w w w . L a w y e r S e r v i c e s . i n



Indian Overseas Bank v/s Hotel Natraj


Company & Directors' Information:- HOTEL CORPORATION OF INDIA LIMITED [Active] CIN = U55101MH1971GOI015217

Company & Directors' Information:- R P G OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1989PTC035238

Company & Directors' Information:- M K OVERSEAS PRIVATE LIMITED [Active] CIN = U25209DL1987PTC029976

Company & Directors' Information:- NATRAJ PVT LTD [Active] CIN = U55102WB1979PTC031989

Company & Directors' Information:- P K OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1994PTC059051

Company & Directors' Information:- U & M OVERSEAS PRIVATE LIMITED [Active] CIN = U25200DL2007PTC165258

Company & Directors' Information:- B R K OVERSEAS PRIVATE LIMITED [Active] CIN = U51311DL2002PTC117390

Company & Directors' Information:- A V I OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1994PTC059014

Company & Directors' Information:- INDIAN OVERSEAS CORPORATION PRIVATE LIMITED [Active] CIN = U51900DL2010PTC203948

Company & Directors' Information:- J C OVERSEAS LIMITED [Active] CIN = U65993WB1999PLC090116

Company & Directors' Information:- J S OVERSEAS PVT LTD [Active] CIN = U74899DL1994PTC058039

Company & Directors' Information:- H A OVERSEAS PRIVATE LIMITED [Active] CIN = U55101CH1999PTC032886

Company & Directors' Information:- B. R. OVERSEAS LIMITED [Active] CIN = U24111MP1973PLC001244

Company & Directors' Information:- A T OVERSEAS LTD [Active] CIN = U17115PB1995PLC015815

Company & Directors' Information:- P A HOTEL INDIA PRIVATE LIMITED [Active] CIN = U55101PY2007PTC002029

Company & Directors' Information:- A L OVERSEAS PRIVATE LIMITED [Active] CIN = U15300DL2013PTC250975

Company & Directors' Information:- D R OVERSEAS PRIVATE LIMITED [Active] CIN = U15122DL2013PTC253214

Company & Directors' Information:- M R OVERSEAS PRIVATE LIMITED [Active] CIN = U01111DL1998PTC092787

Company & Directors' Information:- B C C OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1994PTC058775

Company & Directors' Information:- R B OVERSEAS PVT LTD [Active] CIN = U24200MH1982PTC028320

Company & Directors' Information:- S L OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1999PTC099800

Company & Directors' Information:- B L OVERSEAS PRIVATE LIMITED [Active] CIN = U51109DL2008PTC177039

Company & Directors' Information:- G D R OVERSEAS LIMITED [Strike Off] CIN = U51909TN1994PLC028831

Company & Directors' Information:- C S T HOTEL PRIVATE LIMITED [Active in Progress] CIN = U55101TZ1994PTC004907

Company & Directors' Information:- S. B. OVERSEAS PVT LTD [Active] CIN = U27101WB1994PTC065565

Company & Directors' Information:- G B OVERSEAS PRIVATE LIMITED [Active] CIN = U51109WB2007PTC116567

Company & Directors' Information:- G B OVERSEAS PRIVATE LIMITED [Active] CIN = U74110DL2007PTC317094

Company & Directors' Information:- AT OVERSEAS INDIA PRIVATE LIMITED [Active] CIN = U74900DL2015PTC276303

Company & Directors' Information:- M D OVERSEAS LIMITED [Active] CIN = U52110DL1980PLC011099

Company & Directors' Information:- R C OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1991PTC045610

Company & Directors' Information:- S. R. O. OVERSEAS PRIVATE LIMITED [Active] CIN = U51101DL2014PTC268846

Company & Directors' Information:- K P OVERSEAS LIMITED [Active] CIN = U51311DL2004PLC125574

Company & Directors' Information:- M I OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74899DL1987PTC026966

Company & Directors' Information:- M M B HOTEL PVT LTD [Active] CIN = U55101MP1987PTC003855

Company & Directors' Information:- R F OVERSEAS PRIVATE LIMITED [Active] CIN = U51909PB1997PTC019643

Company & Directors' Information:- M R K OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1984PTC018631

Company & Directors' Information:- L & W OVERSEAS PRIVATE LIMITED [Active] CIN = U17221PB2013PTC037343

Company & Directors' Information:- HOTEL K K (INDIA) PVT LTD [Active] CIN = U55101GJ1995PTC025898

Company & Directors' Information:- NATRAJ INDIA LTD [Active] CIN = U52110HR1985PLC054440

Company & Directors' Information:- C D OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51909DL1997PTC085553

Company & Directors' Information:- J D OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1990PTC038866

Company & Directors' Information:- A A P OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51909KA2007PTC042105

Company & Directors' Information:- K G OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74899DL1993PTC054832

Company & Directors' Information:- OVERSEAS CORPN. PVT LTD [Active] CIN = U67120WB1947PTC014910

Company & Directors' Information:- G R OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74899DL1992PTC050950

Company & Directors' Information:- A M D OVERSEAS PRIVATE LIMITED. [Active] CIN = U52110DL1980PTC010622

Company & Directors' Information:- M S D OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74899DL1995PTC069001

Company & Directors' Information:- R K G OVERSEAS PRIVATE LIMITED [Active] CIN = U51229DL1997PTC086734

Company & Directors' Information:- N D OVERSEAS PRIVATE LTD [Converted to LLP] CIN = U51900MH1994PTC076787

Company & Directors' Information:- N W OVERSEAS PRIVATE LIMITED [Active] CIN = U51507HR1999PTC034265

Company & Directors' Information:- R. G. OVERSEAS LIMITED [Strike Off] CIN = U27104TN1981PLC008963

Company & Directors' Information:- P M OVERSEAS PRIVATE LIMITED [Active] CIN = U51909DL1991PTC045126

Company & Directors' Information:- J M B OVERSEAS PRIVATE LIMITED [Active] CIN = U51909WB1997PTC085224

Company & Directors' Information:- S C J OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1993PTC052913

Company & Directors' Information:- M C S OVERSEAS PVT LTD. [Strike Off] CIN = U51909WB1994PTC063666

Company & Directors' Information:- B. J. OVERSEAS PVT. LTD. [Strike Off] CIN = U24134WB1994PTC063846

Company & Directors' Information:- A H OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51109UP1977PTC004421

Company & Directors' Information:- R M OVERSEAS LTD [Active] CIN = U51909PB1992PLC011971

Company & Directors' Information:- P A HOTEL PRIVATE LIMITED [Active] CIN = U92490TN1981PTC008959

Company & Directors' Information:- L O P OVERSEAS PRIVATE LIMITED [Active] CIN = U51109UP2001PTC026011

Company & Directors' Information:- R R OVERSEAS LTD [Active] CIN = U51909DL1993PLC054909

Company & Directors' Information:- U D OVERSEAS PRIVATE LIMITED. [Strike Off] CIN = U74999DL2000PTC105257

Company & Directors' Information:- S A OVERSEAS PRIVATE LIMITED [Active] CIN = U51909DL2001PTC112769

Company & Directors' Information:- A H R OVERSEAS PRIVATE LIMITED [Active] CIN = U51909DL2000PTC103069

Company & Directors' Information:- H S OVERSEAS PRIVATE LIMITED [Active] CIN = U51909DL2008PTC182147

Company & Directors' Information:- S G OVERSEAS PRIVATE LIMITED [Active] CIN = U18101DL2000PTC105649

Company & Directors' Information:- R AND R OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U18101DL1987PTC030154

Company & Directors' Information:- D & D OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51420OR2009PTC010779

Company & Directors' Information:- A TO Z OVERSEAS PRIVATE LIMITED [Active] CIN = U51909PB2007PTC031342

Company & Directors' Information:- HOTEL E V P PRIVATE LIMITED [Active] CIN = U55101TN1990PTC019823

Company & Directors' Information:- J P OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1994PTC059744

Company & Directors' Information:- R Q OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51909MH2012PTC230840

Company & Directors' Information:- J M OVERSEAS PRIVATE LIMITED [Active] CIN = U51909WB2008PTC128957

Company & Directors' Information:- D N OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U24119DL1999PTC102409

Company & Directors' Information:- A-3 OVERSEAS PRIVATE LIMITED [Active] CIN = U36900HR2016PTC063750

Company & Directors' Information:- HOTEL K. K. PRIVATE LIMITED [Strike Off] CIN = U55101OR1995PTC004187

Company & Directors' Information:- D J R HOTEL PRIVATE LIMITED [Strike Off] CIN = U55101MH1996PTC096508

Company & Directors' Information:- D M OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74900DL1995PTC072532

Company & Directors' Information:- B R V K OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51909DL1982PTC014130

Company & Directors' Information:- OVERSEAS (INDIA) LTD [Strike Off] CIN = U51909WB1945PLC012624

Company & Directors' Information:- B N OVERSEAS PVT LTD [Strike Off] CIN = U74899DL1991PTC042764

Company & Directors' Information:- S N R OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U00063KA1996PTC019873

Company & Directors' Information:- P B M OVERSEAS PVT LTD [Strike Off] CIN = U51311RJ1996PTC011483

Company & Directors' Information:- M H OVERSEAS LIMITED [Strike Off] CIN = U36911UP2000PLC025118

Company & Directors' Information:- V. R. OVERSEAS PRIVATE LIMITED [Active] CIN = U51109WB2006PTC107676

Company & Directors' Information:- N V HOTEL PRIVATE LIMITED [Active] CIN = U55101WB1996PTC082014

Company & Directors' Information:- I E S (OVERSEAS) PVT LTD [Active] CIN = U31200WB1974PTC029343

Company & Directors' Information:- V B OVERSEAS PRIVATE LIMITED [Active] CIN = U28995DL1996PTC077049

Company & Directors' Information:- J N OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1994PTC060359

Company & Directors' Information:- V C OVERSEAS PRIVATE LIMITED [Active] CIN = U51900DL2007PTC166741

Company & Directors' Information:- T M K OVERSEAS LIMITED [Strike Off] CIN = U51223KL1992PLC006416

Company & Directors' Information:- V E OVERSEAS PVT LTD [Strike Off] CIN = U31909DL1981PTC011849

Company & Directors' Information:- S R D OVERSEAS PRIVATE LIMITED [Active] CIN = U52209DL2008PTC178806

Company & Directors' Information:- C M D OVERSEAS PVT LTD [Active] CIN = U74899DL1995PTC073068

Company & Directors' Information:- M B OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74899DL1994PTC061016

Company & Directors' Information:- B G OVERSEAS PRIVATE LIMITED [Under Process of Striking Off] CIN = U74899DL1990PTC038859

Company & Directors' Information:- M Y HOTEL PRIVATE LIMITED [Strike Off] CIN = U55101TN2010PTC077329

Company & Directors' Information:- M N OVERSEAS PRIVATE LIMITED [Active] CIN = U51909WB2004PTC099257

Company & Directors' Information:- R L K OVERSEAS PRIVATE LIMITED [Converted to LLP] CIN = U74899DL1991PTC043115

Company & Directors' Information:- J S R OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U52399DL2009PTC190839

Company & Directors' Information:- K D OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U18101DL1982PTC013342

Company & Directors' Information:- S S B OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74120WB1997PTC086041

Company & Directors' Information:- C J OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74899DL1991PTC045545

Company & Directors' Information:- NATRAJ OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U17200DL1999PTC098700

Company & Directors' Information:- A AND P OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74999DL1992PTC048780

Company & Directors' Information:- D AND M HOTEL PRIVATE LIMITED [Strike Off] CIN = U55101PN2008PTC131239

Company & Directors' Information:- V & D OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51909DL2009PTC186537

Company & Directors' Information:- P G OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74999DL1982PTC013479

Company & Directors' Information:- S N OVERSEAS PRIVATE LIMITED [Active] CIN = U74996DL2006PTC150004

Company & Directors' Information:- D. T. OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U36911UP1996PTC020289

Company & Directors' Information:- A R C OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1989PTC036343

Company & Directors' Information:- T D OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U52590DL2013PTC257410

Company & Directors' Information:- V K OVERSEAS PVT LTD [Strike Off] CIN = U18209CH1990PTC010214

Company & Directors' Information:- J B OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U17220DL1983PTC016197

Company & Directors' Information:- K H OVERSEAS PVT LTD [Strike Off] CIN = U51496CH1989PTC009704

Company & Directors' Information:- A. A. OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51909PB2008PTC032010

Company & Directors' Information:- Z H OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51909MH2005PTC155819

Company & Directors' Information:- E B OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51101DL2007PTC157263

Company & Directors' Information:- A P OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51101DL2014PTC271288

Company & Directors' Information:- S H OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U18101DL2002PTC116516

Company & Directors' Information:- S D S OVERSEAS PRIVATE LIMITED [Active] CIN = U51909DL2013PTC249539

Company & Directors' Information:- L T OVERSEAS PRIVATE LIMITED [Active] CIN = U15122DL2014PTC272665

Company & Directors' Information:- R P OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74899DL2000PTC108954

Company & Directors' Information:- S V OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U52100DL2013PTC258278

Company & Directors' Information:- T & Y OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51505HR2012PTC047468

Company & Directors' Information:- G R D OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U80301HR2012PTC046968

Company & Directors' Information:- T & T OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51900GJ2015PTC083022

Company & Directors' Information:- S K P OVERSEAS PRIVATE LIMITED [Active] CIN = U51909GJ2013PTC076553

Company & Directors' Information:- P R OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U27310GJ2014PTC079227

Company & Directors' Information:- G T C OVERSEAS PVT LTD [Strike Off] CIN = U18101PB1993PTC013743

Company & Directors' Information:- D AND P OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U18109DL1989PTC038623

Company & Directors' Information:- B G S OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51101PB2007PTC031400

Company & Directors' Information:- I P S OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U63030DL1976PTC008356

Company & Directors' Information:- INDIA AND OVERSEAS CORPORATION LIMITED [Dissolved] CIN = U99999MH1947PTC005626

    First Appeal No. 48 of 2012

    Decided On, 08 November 2019

    At, Assam State Consumer Disputes Redressal Commission Gauhati

    By, THE HONOURABLE DR.(MRS.) JUSTICE INDIRA SHAH
    By, PRESIDENT & THE HONOURABLE MR. DILIP KUMAR MAHANTA
    By, MEMBER

    For the Appellant: V.K. Dewan, Advocate. For the Respondent: G. Deka, Advocate.



Judgment Text


Dilip Kumar Mahanta, Member

This appeal has been filed by the Indian Overseas Bank against the order dated 6.9.2012, passed by the District Consumer Disputes Redressal Forum, Dibrugarh, in respect of the C. P. Case No. 29 of 2007, whereby, the District Forum has directed the appellant bank to disburse to the respondent complainant the amount of Rs. 2,29,600 (Pre-payment charge recovered by the appellant bank from the complainant) plus Rs. 2,50,000 (Loan Processing Fees charged by Punjab National Bank from the complainant) together with litigation cost of Rs. 5,000. Aggrieved by the said order passed by the District Forum, the appellant bank has now filed this appeal.

2. Brief facts of the case are that respondent complainant firm availed Term Loan/Credit Facility to the tune of Rs. 229.6 lacs from the Dibrugarh Branch of the Indian Overseas Bank and after due negotiation, entered into an agreement to this effect on 11.3.2006. It has been alleged by the complainant that initially, though, the bank fixed the rate of interest to be charged @ 11% per annum, subsequently, they arbitrarily increased the rate of interest to @ 11.5% and then to @ 12% per annum, which forced him to apply for premature closure of his loan account and accordingly, on 16.3.2007, the outstanding amount as demanded by the bank, was duly paid. It has further been alleged by the complainant that though request was made to the appellant bank to supply him the copies of relevant notifications/circulars issued by the Reserve Bank of India issued in connection with the increase of rate of interest, the bank refused to provide the same citing reason that those were meant only for internal communication.

3. In view of the said situation, the respondent, as complainant, filed the C. P. Case No. 29 of 2007 before the District Forum praying for a direction to the appellant bank for reimbursement of Rs. 2,97,700 being the expenses that the complainant had to pay to the Punjab National Bank for obtaining a term loan under compelling circumstances, Rs. 28,335 on account of excess interest realized, Rs. 2,29,600 recovered by the appellant from the complainant towards pre-payment charges and Rs. 10,00,000 as compensation for mental agony and harassment plus the cost of litigation. The District Forum after hearing the parties allowed the said complaint, as indicated above, which has now been challenged in the present appeal.

4. We have heard the learned Counsel appearing for the appellant bank. We have also perused the impugned award of the District Forum as well as the records of the consumer case filed by the respondent complainant. However, the oral submission of the contesting respondent could not be taken notice of as their engaged Counsel was not in attendance for the last several dates fixed for hearing.

5. There is no dispute between the parties that they entered into an agreement regarding the Term Loan/Credit Facility in question, where all the relevant conditions were enumerated. The said agreement clearly reveals that the pre-payment of the term loan will attract 1% penal interest of the limit sanctioned (Clause 22 of the acceptance letter).

6. In view of the said position, the collection of the 1% penal interest of the limit sanctioned amounting to Rs. 2,29,600 recovered by the appellant from the complainant towards pre-payment charges, cannot be said to be an illegal exercise. For that reason, the District Forum, in our considered opinion, was totally incorrect in ordering the appellant bank to refund the said amount to the respondent complainant.

7. Likewise, we are of the view that the amount of Rs. 2,50,000 (alleged Loan Processing Fees charged by the Punjab National Bank from the complainant) ordered by the District Forum to be reimbursed by the appellant bank to the respondent complainant, too, cannot be allowed precisely for the reason that, the decision to approach the said bank for loan accommodation, if any, after voluntarily liquidating the dues of his loan account with the Indian Overseas Bank, was entirely the choice of the complainant. Theretofore, by no cogent reasoning, the appellant bank can be saddled with the said burden.

8. Accordingly, we hold that the order of the District Forum directing the appellant bank to pay to the respondent complainant the amount of Rs. 2,29,600 recovered by the appellant bank from the complainant towards pre-payment charges and the amount of Rs. 2,50,000 towards the alleged Loan Processing Fees charged by the Punjab National Bank from the complainant, cannot be sustained and the same is accordingly, set aside.

9. However, we find that the action of the appellant bank not to furnish the copies of the relevant Circulars/Notifications regarding the enhancement of bank’s PLR/PTLR as ordered by R.B.I., to the complainant when he demanded to verify the correctness of the rate of interest charged by the bank for his loan account, on the plea that those were meant only for internal communication, is nothing but a case of deficiency in service.

10. When the bank has charged enhanced rate of interest on the strength of the relevant condition of the loan agreement, than what has been agreed initially, the customer has a right to know the basis of such enhancement. We failed to understand what is so sacrosanct or secrecy attached to these Circulars/Notifications, that these cannot be divulged to the customer, specially when, in the loan agreement itself, it has been clearly mentioned that since the interest rate of the borrowal account has been linked with Prime Lending Rate, changes if any, in the bank’s PLR/PTLR, shall be conveyed through Press report or publicity through media, or a suitable “Notice” placed in the Banking Hall of the branch and such mode of communication shall be construed as sufficient Notice about the revision effected in the interest rates (Clause “h” of the acceptance letter). This means these communications regarding the change of the interest rates were meant for information to the customers of the bank and as such, the bank cannot refuse to reveal the same to the customer, when so demanded.

11. Accordingly, we direct the appellant bank to pay Rs. 25,000 to the complainant as compensation for deficiency in service along with the litigation cost of Rs. 5,000 (as

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already ordered by the District Forum) within two months from the date of receipt of the copy of this judgment failing which, the entire amount shall carry interest @ 8% per annum from the date of this judgment till realisation. 12. In the result, this appeal is partly allowed and the impugned judgment of the District Forum is hereby modified to the extent as indicated in the foregoing paragraphs. Under the facts and circumstances of the case, we leave the parties to bear their own cost in respect of the present appeal. Send back the original records of the C.P. Case No. 29 of 2007 to the concerned District Forum along with a copy of this judgment. Appeal partly allowed.
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