The District Consumer Disputes Redressal Forum, Fatehgarh Sahib in Punjab has directed ICICI Bank Limited to pay Rs 10,000 as mental agony and harassment, Rs 5,000 as litigation charges to Hans and Company, Sirhind.
Hans and Company, Sirhind had filed complaint before the Forum on September 3, 2009 against ICICI Bank Limited. The company counsel Anil Gupta informed that the company entered into a Credit Franchise Agreement(CFA) on December 29, 2006 with the bank for earning his livelihood and after entering into the CFA, the company had established an office at Sirhind after spending around Rs 3 lakh and paid a rent of Rs 6,000 per month till the closure of the local bank branch.
As per the complaint, at the time of executing CFA, the bank obtained a FDR which was matured on January 14, 2008 for the amount of Rs 5 lakh on interest rate of 8 per cent per annum for security purpose through Amanpreet Singh. The bank terminated CFA at its own and closed its business in Fatehgarh Sahib area and now the bank has no right to retain the FDR of Rs 5 lakh taken as security but the bank are not returning the same and harassing the company intentionally which is big deficiency in service on the part of the bank.
During the hearing of the case, the bank agreed that CFA was entered between the company and the bank and the company was required to perform duties and obligations mentioned in the agreement and the company failed to perform his obligations agreed under the CFA. As per the bank, in case of default in the loans sourced by the company, the bank was entitled under the agreement to adjust the amounts payment and due to the bank, against the security deposited by the company with the bank. In the present case, the company was appointed as Credit Franchise and there are 16 cases currently pending which were disbursed by the company to pay their dues and it is repeatedly requested by the bank to fulfill his obligations under the agreement but the company has failed to do so the amount is not refundable.
The Forum observed in judgment that the CFA in clause 16 titled as Termination it is specially written that either party may terminate this agreement by providing two months prior written notice. The ICICI Bank may without any notice terminate this agreement but the conditions laid down in this clause is not violated by the complainant. The bank was required to give prior notice of two months to terminate the agreement. The legal notice was issued on August 7, 2009 by the company to the bank to refund the Rs 5 lakh which was retained by the bank in the shape of FDR which was matured on January 1, 2008 with interest kep as security.
During the hearing of the case, the bank admitted that the FDR with them it and they have paid the amount of interest of Rs 1,49,342 but they failed to give any prior notice to the company before terminating the agreement and neither they have refunded the FDR kept as security.
The Forum accepted the complaint and order the Bank to return the FDR of Rs 5 lakh to the company with 8 per cent interest till its realization deducting the amount of interest already paid the bank.
source: Punjab Newsline