State Bank of India Vs. Been Abraham and Others

State Bank of India vs Been Abraham and Others

Type Court Judgment Court Kerala State Consumer Disputes Redressal Commission SCDRC Thiruvananthapuram Decided Feb 22, 2012

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Citation: sooperkanoon.com/1108387
Court: Kerala State Consumer Disputes Redressal Commission SCDRC Thiruvananthapuram
Judge: The Honourable Shri. Justice K.R. Udayabhanu President &Amp; the Honourable Mr. M.K. Abdulla Sona Member
Decided On: Feb 22, 2012
Case Number: First Appeal No. A/11/767 (Arisen out of Order Dated 16/08/2011 in Case No. Complaint Case No. CC/09/16 of District Pathanamthitta)
Subject: Consumer

Case Summary

AI-generated summary - not the official court judgment text.

Consumer

Key legal issue: Consumer

Parties & Advocates

Appellant / Petitioner

State Bank of India

Respondent

Been Abraham and Others

Excerpt

justice sri.k.r.udayabhanu : president the appellant is the 3rd opposite party/sbi in cc16/09 in the file of cdrf, pathanamthitta. 2. the matter is with respect to housing loan dues vide the housing loan provided by the 3rd opposite party to the deceased husband of the 1st complainant who died on 2.11.07. the loan was insured with opposite parties 1 and 2 with effect from 13.10.03. opposite parties 1 and 2 repudiated the claim alleging that the deceased was having pre existing illness. the forum rejected the contention of the opposite parties 1 and 2/insurers and directed the insurers to settle the loan account by paying the amount due up to 2.11.2007 as per the terms of the loan agreement and thereafter till payment interest at 9%. the above direction is disputed by the 3rd opposite party bank/appellant. 3. it is the case of the appellants that the amounts due to the appellants till the date of payment should be as per the terms of the loan agreement and that the restriction placed by the forum confining the rate of interest at 9% is liable to be modified. 4. the opposite parties 1 and 2/respondents 3 and 4 were not represented before this commission. 5. we find that the insurers are liable to settle the amounts due with respect to the loan account as per the terms of the agreement. hence the direction confining rate of interest at 9% from the date of death cannot be sustained. in the circumstances the above portion of the order of the forum is modified to the effect that till payment of the loan dues opposite parties 1 and 2 will be liable to pay the amount with the rate of interest as per the loan agreement. the order of the forum is modified accordingly. the rest of order of the forum is sustained. 6. in the result the appeal is allowed as above. office will forward the lcr along with the copy of this order to the forum.

Full Judgment

JUSTICE SRI.K.R.UDAYABHANU : PRESIDENT

The appellant is the 3^rd opposite party/SBI in CC16/09 in the file of CDRF, Pathanamthitta.

2. The matter is with respect to housing loan dues vide the housing loan provided by the 3^rd opposite party to the deceased husband of the 1^st complainant who died on 2.11.07. The loan was insured with opposite parties 1 and 2 with effect from 13.10.03. Opposite parties 1 and 2 repudiated the claim alleging that the deceased was having pre existing illness. The Forum rejected the contention of the opposite parties 1 and 2/insurers and directed the insurers to settle the loan account by paying the amount due up to 2.11.2007 as per the terms of the loan agreement and thereafter till payment interest at 9%. The above direction is disputed by the 3^rd opposite party bank/appellant.

3. It is the case of the appellants that the amounts due to the appellants till the date of payment should be as per the terms of the loan agreement and that the restriction placed by the Forum confining the rate of interest at 9% is liable to be modified.

4. The opposite parties 1 and 2/respondents 3 and 4 were not represented before this Commission.

5. We find that the insurers are liable to settle the amounts due with respect to the loan account as per the terms of the agreement. Hence the direction confining rate of interest at 9% from the date of death cannot be sustained. In the circumstances the above portion of the order of the Forum is modified to the effect that till payment of the loan dues opposite parties 1 and 2 will be liable to pay the amount with the rate of interest as per the loan agreement. The order of the Forum is modified accordingly. The rest of order of the Forum is sustained.

6. In the result the appeal is allowed as above.

Office will forward the LCR along with the copy of this order to the Forum.

Same Court & Year Kerala State Consumer Disputes Redressal Commission SCDRC Thi... Same Parties State Bank of India vs Been Abraham and Others Same Subject Consumer Same Judge The Honourable Shri. Justice K.R. Udayabhanu President &Amp; ...