STATE BANK OF INDIA Vs. MEENA WALIA

JUDGEMENT

(1.) This order shall decide the above detailed five revision petitions, which entail similar facts and questions of law. The complainants, namely, Meena Walia, Dr. Jagtar Singh, Ramesh Chander and Sheetal, Deepak Rattan and Monica Rattan, Munish Rattan obtained separate house loans in the year 2004-05 from the State Bank of India through its Chief Manager, Railway Road, Kapurthala. The opposite party/petitioner/bank had given two options to the respondents-complainants for the repayment of the loan amount, firstly, the loan was to carry floating rate of interest which could vary from time-to-time as per the instructions of the Government and R.B.I. and the second was to opt for fixed rate of interest, which was 1% more than the prevalent rate on house loan interest at that time. The complainants opted for the second option. All the complainants paid the installments regularly. The grievance of the complainants was that the opposite party had illegally changed the rate of interest from 8% per annum to 8.5%, 8.75%, 9.25%, 9.75% and to 14.5% without any intimation to the complainants. The complainants had made an application in the year 2007 before the Bank for not changing the fixed rate of interest as agreed between the parties. A protest note was also sent to the opposite party-Bank. The grievance of the complainants is that excess rate of interest was charged from them.

(2.) On the other hand, the Bank submitted that they are authorized to charge the enhanced rate of rent as per memorandum of term loan of agreement. Relevant part of which is Clause 2(b) and Clause 2(o). It was also submitted that vide letter dated 15.5.2009, the bank had intimated the complainants that it shall reset fixed rate of interest in the end of every two years.

(3.) Separate complaints were filed before the District Forum, which allowed the complaints. Vide order dated 6.4.2010, the District Forum directed the bank to charge Fixed Deposits rate of interest as mutually agreed between the parties and adjust the amount of excess interest already charged by Bank.