HDFC BANK LIMITED Vs. O P CHOUDHARY

JUDGEMENT

(1.) THE short facts of the case are that the complainant had a savings bank account since 1.10.2001 with the OP HDFC Bank. He approached the OP for an overdraft facility which was provided after he pledged his four LIC Policies amounting to Rs. Three lakh as Security. In the month of August 2003 the complainant asked the OP Bank to give the details of the overdraft loan in order to enable him to settle the accounts and to return his policies and not to adjust the amount of the 'Policies towards the loan of Rs. 3,25,000 approximately (matured being over -draft Rs.Three lakh), which the Bank did not supply. On 28.1.2003 the Bank adjusted Rs. l,17,309.31p of the policies towards his loan account prematurely surrendering the policies amounting to Rs. 3,21,078.

(2.) THE complainant, therefore lodged a complaint before the District Consumer Forum with a prayer that the Bank be directed to give final figures of the overdraft account for settling his accounts and to release LIC Policies of the complainant and also award compensation of Rs. 50,000 besides the costs.

(3.) THE OP opposed the claim and filed written statement denying any deficiency of service on its part alleging that overdraft facility provided to the complainant being a commercial transaction, no relationship of consumer existed between the debtor and the creditor. The Bank sent written intimation thrice respectively on 1.8.2003, 1.9.2003 and 3.10.2003 to the borrower for updating his account to which he did not respond. The Bank, therefore, surrendered his policies on different occasions which were lying as security with the Bank. The complainant violated the conditions of the overdraft facility, and that it was regularly sending the details of his account to the complainant. Since a loan agreement existed between the borrower and the creditor, which provided for surrendering of the securities in case of default in payment of the account, in terms for the repayment schedule, no Court could interfere into the contract.