LIC OF INDIA Vs. KANCHAN MURLIDHAR AKKALWAR

JUDGEMENT

(1.) REVISION Petitions 701 and 702 of 1996 have been filed against the common order dated January 22, 1996 passed by the Maharashtra State Consumer Disputes Redressal Commission in Appeal Nos. 86 and 127 of 1995 preferred respectively by the complainant and the opposite party -LIC in the original complaint before the District Forum, Yavatmal. The opposite party, LIC in the complaint, is the Revision Petitioner in both the Revision Petitions.

(2.) FACTS of the case may be briefly narrated from the available records. The complainant applied to the opposite party for housing loan of Rs. 2,25,000/ - for the purchase of a house at plot No. 44, SS No. 28/4 Z.P. Krishi Colony, Ramnagar, Yavatmal. The opposite party in their communication dated January 4, 1993 made an offer to advance a loan of Rs. 1,80,000/ - subject to certain terms and conditions. For this purpose, as required by the opposite party the complainant took two LIC policies, one for Rs. 90,000/ - and the other for Rs. 20,000/ - for which a total premium of Rs. 3,956/ - was paid besides the fee of Rs. 1,330/ - as costs for valuation and legal advice. The complainant entered into an agreement for purchase of the house inclusive of plot from one, Mr. Nilawar for Rs. 2,40,000/ - towards which she reportedly paid an advance of Rs. 25,000/ - on 22.7.92. In respect of the house, the opposite party requested the complainant to take a fire policy for Rs. 2,00,000/ - and this was also complied with. The term of the agreement with Mr. Nilawar was only upto 28.2.93 and since the opposite party did not disburse the loan by that time, she had to pay additional sum of Rs. 30,000/ - to get the term extended upto 15.4.93. On 2.4.93, the opposite party called upon the complainant to obtain the release deed from the Zilla Parishad Co -operative Society in respect of the plot she proposed to purchase with a certificate stating that the said plot is not mortgaged with them. The complainant got the certificate from the Maharashtra Government stating that Mr. Nilawar has repaid housing loan and interest thereon due to the Zilla Parishad Krishi Karamchari Sehakari Grihe Nirman Sanstha and that there was nothing outstanding from him towards loan amount or by way of interest. Despite production of this certificate, the opposite party did not release the loan. The complainant cited the case of one Mr. Vaishempayam, an employee of the opposite party who was given the loan by the opposite party under similar circumstances. It was the contention of the complainant that she was made to take LIC policies and go through a number of formalities without finally getting the loan amount and that the disbursement of loan by the opposite party was arbitrary.

(3.) THE District Forum observed that while the grant of loan is within the discretion of the opposite party, the approach of the opposite party in the instant case was casual. The Forum held that there was deficiency of service on the part of the opposite party and directed the opposite party to pay a sum of Rs. 54,926/ - towards compensation, refund of premium amount and travel expenses incurred by the complainant in obtaining the certificate from the Maharashtra Government at Bombay, besides Rs. 1500/ - as costs. This order was appealed against by both the complainant and the opposite party before the Maharashtra State Commission. The State Commission made a brief order observing that in spite of the release letter from the State Government, the opposite party refused to disburse the loan and this conduct amounted to a sheer harassment by the opposite party. The State Commission in their common order directed the opposite party to release the loan within a period of four weeks from the date of the order failing which the opposite party had to pay Rs. 500/ - per day as penalty to the complainant until compliance of the order. The State Commission also directed the opposite party to pay Rs. 10,000/ - against the amount of Rs. 30,000/ - paid by the complainant to Mr. Nilawar for extending the term of sale agreement and Rs. 2,000/ - towards stamp duty alongwith interest @ 18% per annum.