STATE BANK OF INDIA Vs. USHA VAID

JUDGEMENT

(1.) IN December 2002, a joint loan application was submitted by respondents for loan of Rs. 23,76,913. Before release of the loan they were asked to sign blank forms and applications. Where after the loan was released in the shape of three drafts and handed over to Standard Chartered Bank. Since the bank was charging much less interest from the new consumer but did not give this benefit to the respondents though her case was falling in the floating rate of interest category and since ICICI Bank was charging lesser rate of interest, the respondent got transferred the loan to ICICI Bank. Appellant bank issued an advertisement to the effect that they were passing low rate of interest to housing loan customers with no pre -payment charges. In spite of this they charged Rs. 42,300 as pre -payment charges. Feeling aggrieved the respondents filed instant complaint before District Forum for refund of the said amount.

(2.) VIDE impugned order dated 15.11.2006, the District Forum allowed the complaint of the respondents with the direction to the appellant to refund aforesaid amount and also to pay Rs. 1,000 as compensation and Rs. 500 as cost of litigation.

(3.) FEELING aggrieved the appellant has preferred this appeal.