GANESH MAHAL Vs. MANAGER KARNATAKA BANK LTD

JUDGEMENT

(1.) In this complaint, under Sec.17 r/w Sec.12 of the Consumer Protection Act, 1986 , M/s. Ganesh Mahal, Hotel, has sought compensation in a sum of Rs.3,22,363/- towards excess amount of interest, a sum of Rs.15 lakhs as compensation and interest thereon from the Opposite Party-Karnataka Bank Ltd. , Mangalore.

(2.) The Complainant had availed a term loan amounting to Rs.18 lakhs during the year 1978 from the Opposite Party which was later on rephased on 26-11-1990. A short term loan of Rs.3 lakhs was advanced at the interest rate of 9% p. a. and long term loan of Rs.20 lakhs was advanced at the rate of interest at 8% p. a. The Complainant had mortgaged certain properties to the Opposite Party.

(3.) It is the grievance of the Complainant that the Opposite Party charged increased rate of interest without any notice and consent of the Complainant. Even the method of calculating the interest was void and to the disadvantage of the Complainant. The Complainant was directed to clear the dues and the Opposite Party even threatened to enforcement of securities, so the Complainant made sale of certain property as distress sale and in which he suffered heavy loss. The Opposite Party furnished the account extract pertaining to the aforesaid two loan accounts and on which the Complainant verified and came to know that an excess interest of a sum of Rs.3,22,363/- was collected by the Opposite Party. The Complainant was forced to clear the loan amount by making sale of his properties, hurriedly under which he sustained heavy loss. The Complainant on the basis of these averments, sought the repay ment of the excess interest amount so collected from the Complainant and also a sum of Rs.15 lakhs as compensation.