Judgment:
S. Brar, Member:
1. This is a complaint filed by Mr. Jagmander Dass Bansal against the Tapoban Housing Finance Ltd., who claimed to be a financial institution for lending money to individuals, co-operative societies and companies for house construction through their attractively printed brochure and field force. Mr. Bansal has alleged that two members of this force namely Mr. N.K. Agarwal and Mr. Ajay Kumar Gupta approached him and assured him of the genuine offer of the respondents. Mr. Gupta filled up the application of the complainant for a loan amount of Rs. 2 lakhs. He further informed that Rs. 4,000/- is chargeable towards service charges i.e. 2% and 25% of the loan amount as security deposit.
2. The complainant paid Rs. 4,000/- on 10-12-. 1990 and Rs. 50,000/- on 31-12-1990. Both payments were made by cheques. The respondent acknowledged the receipt of the amounts through their receipt Nos. 37 and 38 both dated 14-3-1993 for Rs. 50,000/- and Rs. 4,000/- respectively. It is alleged that thereafter the respondent stopped taking interest in the case. There was no disbursement of the loan. The complainant paid many visits to the office of the respondents but to no avail. During those visits complainant found that the respondent was raising frivolous objections, in order to avoid payment of the loan to him.
3. Thereafter when he found that the respondent was not interested in giving loan to him, he applied for the refund of the security deposit and the service charges totalling Rs. 54,000/- alongwith the interest accrued till June, 1991. The respondent did not refund the amount and kept making false excuses. Respondent informed complainant in December 1991 through its circular letter that they would refund the amount alongwith 15% interest per annum thereon in six months. However, no refund was made even on the expiry of the said period. He required the loan for the purpose of construction of the house, which was due to nonpayment of loan by the respondent was delayed. He was left with no other alternative but to raise loan from the market at a very high rate of interest.
Thus the complainant suffered great mental agony and financial loss and has prayed that the respondent be directed to refund/pay the following amounts :
| (a) | Security Deposit | Rs. | 50,000-00 |
| (b) | Service Charges Deposited | Rs. | 4,000-00 |
| (c) | Interest @ 24% from 1-1-1991 to 30-6-1992 date of filing the complaint on Rs. 54,000/- | Rs. | 19,440-00 |
| (d) | Conveyance expenses incurred | Rs. | 8,355-00 |
| (e) | Loss due to raising of personal loans from market @ 24% and purchase of building material on credit | Rs. | 20,000-00 |
| (f) | Monetary damage due to mental torture | Rs. | 20,000-00 |
| Total : . | Rs. | 1,21,795-00 | |
| (g) | Further he claimed future interest @24% p.a. on Rs. 1,21,795.00 from 1-7-1992 till date of payment. |
The amount of Rs. 4,000/- was deposited by the complainant as service charges and it is evident from the facts that no service has been rendered by the respondent, therefore, the complainant is entitled to the refund of the said amount.
6. Now the question that arises is, at what rate the complainant is entitled to get interest. Considering the facts of the case we grant interest to him @ 18% p.a. on the amount of Rs. 54,000/- deposited by him with the respondents.
7. After taking into consideration the facts of the case, we are of the view that the complainant is entitled to the refund of the amount deposited by him with respondents alongwith interest @ 18% from the date of deposit till the date of complaint in 1-7-1992, which comes to Rs. 14,580-00.
8. The complainant has claimed damages from the respondent on account of mental torture. It is common knowledge that one needs large amounts to construct the house, and that the cost of construction is rising day by day. The complainant in view of rising cost had to make immediate arrangement for the loan from other sources. He could get the loan at a high rate of interest, that naturally caused mental tension. In our view the complainant is entitled to Rs. 10,000/- on this count.
9. The claim of the complainant for the conveyance expenses incurred by him on over 100 visits to the office of the respondent cannot be accepted as no proof has been adduced in this behalf. We therefore, reject the claim.
10. The complainant has claimed an amount of Rs. 20,000/- on account of interest paid for raising the loan from the market. He has already been paid interest on that amount which was deposited by him with the respondent. Therefore, he is not entitled to this amount.
11. We accept the complaint with costs and direct the respondents to pay the amount of Rs. 78,580/- with future interest from the date of the complaint till the date of payment within 3 months of the date of this order failing which are under Section 27 of the C.P.A. would be taken against them. Costs Rs. 1,500/-.
Complaint allowed with costs.