In the matter of:
RAMNESSH GARG VERSUS UCO BANK
ORDER by CONSUMER DISPUTES REDRESSAL FORUM-VI (DISTT. NEW DELHI)
We have summarily considered the complaint in the light of reply of OP, evidence and material placed on record and submissions made by parties. it is admitted case of the parties that complainant had fully paid all the installments of loan and only after all payment, the OP bank demanded some more money by way of escalation of interest. Bank has relied on clause in the agreement (Exh.Annexure R-1) that complainant has to pay 9.5% interest on change of interest notified to borrower first, if rate changed. The reading of clause providing for interest in Agreement does not provide for any enhancement or notifications changed rates. In this case, OP has failed to produce any evidence of increase of rate of interest, when since when, and for how long and its notification of sending to complainant. In our view, bank has acted totally illegally in demanding Rs.14,442/-.
OP is directed to issue NOC, withdraw charges of Rs.14,442/- to complainant and also pay Rs.25,000/- as compensation for harassment and litigation expenses to complainant.
The order shall be complied within 30 days of the receipt of the copy of the order; otherwise action can be taken under Section 25 / 27 of the Consumer Protection Act.
File be consigned to record room. Copy of the order be sent to the parties free of cost.