INDO PACIFIC HOUSING FINANCE LTD Vs. GOPALA SHETTY

JUDGEMENT

(1.) Petitioners/opposite parties being aggrieved by order dated 4.7.2011, passed by Karanataka State Consumer Disputes Redressal Commission, Bangalore (for short, 'State Commission') have filed the present revision petition under Section 21(b) of the Consumer Protection Act, 1986 (for short 'Act').

(2.) Brief facts are that Respondent/ Complainant had availed a loan to the tune of Rs. 2 lacs from the petitioners for construction of his house. As per terms of the agreement, the loan was to be repaid in 180 monthly instalments. It is alleged by the respondent that while availing the loan, petitioners had assured that agreed rate of interest as on the date of execution 6f documents, will prevail till the completion of the instalments. Respondent was further assured that number of instalments will not be enhanced. However, petitioners have enhanced the rate of interest and also enhanced the number of instalments from 180 to 277. Thus, alleging deficiency in service on the part of the petitioners, respondent filed a consumer complaint before District Consumer Disputes Redressal Forum, Chikmagalur (for short, 'District Forum')

(3.) In the written statements, petitioners had taken preliminary objections to the effect that respondent being a borrower, had committed repeated defaults in repayment of the loan despite repeated requests and notices. Initially, a Loan Recall Notice dated 16.5.2009, was sent to the respondent through Registered Post demanding a total outstanding dues of Rs. 1,67,151 payable as on that date. Despite service of the notice, respondent failed to pay the outstanding dues. Therefore, petitioners were constrained to exercise its legitimate rights under the provisions of the "Securitization and Reconstructions of Financial Assets and Enforcement of Security Interest Act, 2002" (for short, 'SARFAESI Act') being a secured creditor under the terms of the said Act. Accordingly, a notice dated 15.7.2009 under Section 13(2) of the SARFAESI Act, was issued and served upon the respondent. However, respondent did not respond to the notice. There after, proceedings under SARFAESI Act were initiated against him. Under these circumstances, the complaint filed by the respondent before the District Forum is barred under the provisions of Section 17 read with Section 34 of the SARFAESI Act.