PUNJAB NATIONAL BANK Vs. L N NAVETIA

JUDGEMENT

(1.) This revision petition is directed against impugned order passed on 27th August. 2003 by the Punjab State Consumer Disputes Redressal Commission in Appeal No. 472/2005, dismissing the appeal of Punjab National Bank, opposite party.

(2.) The complainant/respondent had taken a cash credit limit of Rs. 5,00,000 on 26.9.1992 on hypothecation of goods. The agreement provided for interest at the minimum rate of interest @ 22.75%. Thereafter an application was moved for increasing the limit on 10.10.1994 to Rs. 10,00,000 and agreement was signed on 18.10.1995 providing for interest @ 2.5% p.a. over the Reserve Bank of India rate with minimum of 15.5% p.a. The case of the complainant/respondent is that the Branch Manager of the Bank assured to the complainant that interest would be charged only at the same rate as was being charged by other nationalised bank. It is claimed by the complainant that its representative Mr. Laxmi Narain highlighted the difficulties of the traders in a Customer Relation Programme organised by the Punjab National Bank to the annoyance of the officials of the Opposite Party - Bank. Thereafter the opposite party Bank started charging interest at the enhanced rate @ 18.75% p.a. It was further raised to 19.25% p.a. w.e.f. March 1996 despite protest and the fact that the State Bank of Patiala was charging interest @ 17.75% p.a. on the limit upto Rs. 25,00,000. Again the similar complaint was made to the Regional Manager Shri Arora for ignoring the rights of the traders in the Customers Relation Programme. The interest was enhanced to 21.25% p.a. The complainant/respondent ultimately closed its account and obtained a clearance certificate but subsequently filed a complaint for recovery of Rs. 16,792 on account of excess interest charged and a sum of Rs. 15,000 on account of Guarantee Fee under the DICGC Guarantee, thus in all Rs. 31,792 + Rs. 10,000 as compensation for physical and mental harassment.

(3.) The Bank contested inter alia on the ground that the opposite party Bank was to charge interest on the amount of loan advanced under the Cash Credit Limit @ 21.25% p.a. but inadvertently interest was charged at lesser rate and this fact was pointed out in the Revenue Audit Report conducted by the concerned Inspector of the Punjab National Bank for the year 1995-1996 with the consequence that the complainant was later on charged interest at the agreed rate of interest. As per the directions of the Reserve Bank of India, interest at different rates could be charged by the Banks depending on fulfilment of the conditions by borrowers. Accordingly, the complainant was put in the category and interest @ 21.25% p.a. was, therefore, chargeable. No amount was paid as 50% of the excess charge on interest. There was no deficiency in service on the part of the Bank. It was also contended that the complainant was not a consumer and the matter was not entertainable by the Consumer Fora.