DAYARAM BHIKA AHIRE Vs. KOTAK MAHINDRA BANK LTD

JUDGEMENT

(1.) THIS is an appeal filed against the order dated 4.7.2008 in Consumer Complaint No. 216/2007, Shri Dayaram Bhika Ahire V/s. Kotak Mahindra Bank Ltd., passed by District Consumer Forum, Nashik ('Forum below' in short).

(2.) THE appellant/org. complainant filed consumer complaint before the Forum below that he had taken a loan from the opponent/ Bank and they have charged interest at two different rates i.e. 7.04% and 13.799% and secondly, without giving him any notice, tractor was repossessed and it was sold behind his back and thus, the opponent/Bank did not follow the terms and conditions of the agreement. Forum below in their order dated 4.7.2008 has specifically observed that the interest on the loan as charged by the opponent/ Bank @ 7.04% and 13.799% are the same. While explaining this, it is clarified that the interest @ 7.04% is a flat rate of interest whereas 13.799% is calculated by reducing the rate of interest. So, both the rates are the same and the appellant/ org. complainant has not been deceived by the respondent/Bank. Secondly, appellant/org. complainant being defaulter in repayment of loan, respondent/Bank has acted as per the agreement by taking repossession of the tractor giving due notices to the appellant and in spite of various notices, when the appellant did not respond to the notices, action of selling tractor was taken by the respondent/Bank. So, the District Consumer Forum having observed that both the points of the complainant had no merits and therefore, complaint was dismissed. Having aggrieved thereby, org. complainant has preferred this appeal.

(3.) THE appellant /org. complainant pointed out that he has been charged with two different rates of interest i.e. 7.04% and at the same time at 13.799%. Secondly, he alleged that without giving any notice his tractor was repossessed and sold out by the respondent/Bank. Those notices which the respondent/Bank has contended to be sent to him were sent on wrong address and, therefore, they were not received by the appellant. Thus, respondent/Bank has illegally acted in disposing off his tractor. Advocate Mr. Marathe for the respondent/ Bank in his reply argued and denied the allegations made by the appellant. He clarified that both rates of interest are one and the same. The interest rate at 7i04% is a flat interest whereas, 13.799% is calculated by reducing the rate of interest. Therefore, no excess rate of interest is levied on the loan given to the appellant.