LIC HOUSING FINANCE LIMITED Vs. RAJEEV RASTOGI

JUDGEMENT

(1.) THIS appeal by LIC Housing Finance Ltd.one of the opposite parties is directed against the order dated 23.4.2009 passed by District Consumer Forum -I, U.T. Chandigarh whereby his complaint bearing No. 1083 of 2008 was allowed in the following terms:

(2.) PUT shortly the facts as set out in the complaint are that the complainants applied for a housing loan of Rs. 5 lacs through OP -2 for construction of a house at Barotiwala (Himachal Pradesh) and paid him Rs. 7,200 to meet with the expenses. OP -2 also received all the original title deed documents and two cheques duly signed by complainant No. 1 in favour of LIC Housing Finance Ltd. Thereafter the complainants were informed by OP -2 that a loan of Rs. 5 lacs had been sanctioned on 26.11.2007 but no cheque or draft in respect of the said loan was handed over to the complainants. Upon enquiry, the concerned official of OP -1 told them that their loan file/papers had not been forwarded by OP -2 and the period of validity of loan had lapsed. When the complainants contacted OP -2, he demanded certain documents which were handed over to him. The complainants were again told by OP -2 that their loan had been sanctioned on 7.6.2008 but they did not receive any cheque/draft. However, thereafter OP -2 again demanded jamabandies of the last 13 years from the complainants. The complainants then got issued a legal notice dated 29.8.2008 calling upon OPs to do the needful but to no avail. Hence, alleging deficiency in service and unfair trade practice on the part of OPs, complainant filed complaint before the District Consumer Forum.

(3.) ON the other hand, the case of OP No. 1 before the District Forum was that the complainants did not submit the required papers relating to the Society and original documents/title deeds pertaining to the plot in question and as such OP No. 1 could not get the project approval report of the society and the title verification report of the property in question required to be mortgaged which was a necessary formality. It was admitted that on the basis of initial papers, loan of Rs. 5 lacs was sanctioned to the complainants but they did not complete the requisite formalities required for disbursement of the loan amount. It was stated that the complainants deposited only Rs. 1,122 whereas they were required to deposit Rs. 5,618 as 1% upfront fee and Service tax. It was further pleaded that due to non -completion of documents on the part of complainant the previous sanction of the loan had lapsed which was revalidated but even then they did not submit the requisite papers and as such title deed could not be got verified.