MAHINDRA HOUSING RURAL FINANCE LTD Vs. NIRBHAY

JUDGEMENT

(1.) The present Revision Petition is filed by the Petitioner under Section21(b) of the Consumer Protection Act, 1986 against the Order passed by the State Consumer Disputes Redressal Commission, Maharashtra, Circuit Bench at Nagpur(hereinafter referred to as the "State Commission") in Appeal No. 14/158 dated 28.08.2018.

(2.) According to the Petitioner, the Respondent/Complainant made an application for housing loan to the Petitioner. The Respondent paid Rs.6,500.00 to the Respondent on 10.12.2010 towards fees for documentation and processing. Thereafter, the Petitioner sanctioned housing loan of Rs.1 lakh in the month of Feb., 2011. The Respondent mortgaged the house standing in the name of his father as a security for repayment of that loan on 07.03.2011. The Petitioner disbursed loan of Rs.27,500.00 as first instalment on16.04.2011 when the Respondent had already completed the foundation work of the house by spending Rs.50,000.00. The Petitioner then disbursed the second instalment of Rs.30,000.00 on 05.10.2011 after receiving an interest of Rs.1,200.00 on 03.10.2011 from the Respondent. The Respondent completed construction of his house in the month of Jan., 2012 by spending Rs.5 Lakhs.However, the Petitioner disbursed total loan of Rs.57,500.00 only by the aforesaid two instalments. The Respondent was, therefore, required to obtain loan from other sources for completing the construction. The Petitioner did not disburse the balance loan amount of Rs.42,500.00 , despite several requests made by the Respondent . The Respondent was also required to pay interest of Rs.2,000.00 for disbursement of balance loan. Respondent was again required to pay further interest of Rs.3,000.00. Even after obtaining the interest amount also, the Petitioner did not disburse the balance loan amount. The Respondent, thereafter, made a representation to officials of the Petitioner who in turn wrote a letter dated 31.09.2012 to their Head Office, but with no response.Hence, the Respondent filed Consumer Complaint seeking direction to the Petitioner to disburse the balance loan amount of Rs.42,500.00 and also pay compensation of Rs.50,000.00 as balance loan was not disbursed to him in time, apart from Rs.20,000.00 for mental harassment and litigation cost of Rs.5,000.00.

(3.) Despite service of notice, the Petitioner before the District Forum did not file his written statement. The case was, therefore, proceeded Ex-parte against the Petitioner.