UCO BANK Vs. BALWANT SINGH

JUDGEMENT

(1.) The present Revision Petition has been filed by the Petitioner under Sec. '""58(1)(b) of the Consumer Protection Act, 2019 (the 'Act') against impugned order dtd. 4/1/2022, passed by the State Consumer Disputes Redressal Commission, Punjab, Chandigarh ('for short 'State Commission') in First Appeal No.99 of 2020. In this appeal, the Respondent /Complainant appeal was allowed, thereby set aside the Order dtd. 9/12/2019, passed by the District Consumer Disputes Redressal Forum, Faridkot (For short 'District Forum') in Consumer Complaint No. 146 of 2019, wherein the Complaint filed by the Complainant (Respondent herein) was dismissed.

(2.) For the sake of convenience, the parties in the present matter are denoted as per positions in the Complaint before District Forum.

(3.) Brief facts, as per the Complainant are that, in the year 2015 he obtained Rs.35,70,000.00 loan for interest @ 11.95% per annum from OP Bank for establishing a Poly House for vegetable cultivation. The repayment was through half-yearly instalments. However, extreme heat conditions from May to September rendered vegetable cultivation impractical and repayments infeasible. Further, the OP Bank unlawfully imposed Rs.44,000.00 processing fee for grant of loan and he was also compelled to bear registration charges which should have been borne by the bank. Additionally, OP Bank obtained 10 blank cheques from him as security. Out of the total loan amount, he paid Rs.31,00,000.00 as instalments, consistently maintaining payment without default. On receiving a Bank Account statement, he discovered that the bank was charging compound interest and penal interest, instead of agreed simple interest. Despite repeated requests to adhere to the terms of simple interest at 11.95% per annum through half-yearly instalments, and to refund the excess amount charged due to compound interest, the bank disregarded the same. Feeling aggrieved, he filed CC No. 146 of 2019 before the learned District Forum seeking direction to OP Bank to charge simple interest at the agreed rate and payment intervals, along with compensation of Rs.1,00,000.00 for harassment and mental anguish, an Rs.1,00,000.00 for unfair trade practices, and Rs.20,000.00 for litigation expenses.