BRANCH MANAGER, BANK OF BARODA Vs. MAHABIR SINGH
LAWS(NCD)-2020-1-35
NCDRC
Decided on January 07,2020

BRANCH MANAGER, BANK OF BARODA Appellant
VERSUS
MAHABIR SINGH Respondents

JUDGEMENT

V.K.JAIN,J. - (1.) The respondent/complainant had obtained a plot on lease-hold basis from Urban Improvement Trust, Bhilwara vide lease deed dated 01.11.2003. He obtained a housing loan from the Bank of Baroda to the extent of Rs.5 lakhs. The loan was sanctioned vide sanction letter dated 21.09.2007 whereby a condition was imposed requiring the complainant to construct house within two years, failing which interest was to be charged with retrospective effect i.e. from the date of disbursement of the loan. The case of the petitioner is that the house was not constructed within the stipulated period of two years as a result of which they become entitled to charge commercial rate of interest from the complainant.
(2.) Being aggrieved the complainant approached the concerned District Forum by way of a consumer complaint challenging the levy of commercial rate of interest by the petitioner bank.
(3.) The complainant was resisted by the bank primarily on the ground as per the terms of the sanction the housing loan interest at commercial rate was payable if the house was not constructed within two years. Since the complainant had failed to construct the house within the aforesaid period of two years, they were liable to pay commercial rate of interest with effect from the date of disbursal of the loan.;


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