ICICI BANK LTD Vs. RAMAKRISHNA ARUGOLLU

JUDGEMENT

(1.) The appellant ICICI bank preferred the appeal against the order of the Dist. Forum directing it to pay Rs. 35,000/- towards compensation besides processing fee of Rs. 2,806/- together with costs.

(2.) The case of the complainant in brief is that he was a software engineer working in Wipro Technologies, Hyderabad. He entered into an agreement with Sri K. Kiran Kumar Reddy for purchase of plot of 175 sq.yds at Chandanagar, on 22.11.2006. He approached the appellant bank for house loan for purchase of plot and construction. One Mr. Pavan Kumar informed that it would take four days for sanction of loan and three days for disbursement. As 30 days was stipulated in the agreement he submitted application along with requisite documents and processing fee on 28.11.2006. Despite sanction letter when he was asking for the amount, on one reason or the other the employees were asking some information or other postponing the payment. Admittedly the agreement period was coming to a closure. In fact one of the employees informed that the process was over by 19.12.2006, and he could go for registration. Later one of the employees Mr. Pramod informed that second technical evaluation was not done. On 30.12.2006 the employees informed that he had to submit some more documents for further processing and that the registration could be done as per the market value for which the landlord did not agree. While the government rate was Rs. 3,000/- per sq.yd the market value was Rs. 10,000/- per sq.yd. Mr. Pramod one of the employees informed for the land value of Rs. 7 lakhs, he could claim an amount of Rs. 10 lakhs. Accordingly he convinced the landlord, and sent e-mail. Since the appellant has been taking time to process the loan he asked to stop further process on 2.1.2007. He went to IDBI bank on 2.1.2007 and obtained loan within eight working days. The landlord insisted that he had to pay Rs. 75,000/- for the delay. As he had already entered into the agreement and paid the amount, he had no other go than to pay Rs. 75,000/-. All this was due to delaying tactics adopted by the appellant bank. Therefore, he claimed Rs. 75,000/- for negligent processing and delaying in payment, Rs. 2,806/- towards processing fee, Rs. 50,000/- towards mental agony and costs.

(3.) The appellant bank resisted the case. It alleged that the complainant had approached for home loan and submitted loan application on 30.11.2006. Following the procedure for sanction of home loans, a loan sanction letter was issued basing on salary, income certificate furnished by the complainant. The property particulars would be asked to be furnished and the same would be forwarded to the legal and technical clearances besides verification of the property The loan amount shall not exceed 80% in case the property is residential house or apartment and 70% in case the property is an open plot. When he did not furnish the particulars of the property or agreement of sale loan was tentatively sanctioned purely basing on his salary. Subsequently he produced agreement of sale of open plot. It processed the loan application after collecting processing charges. The sanction letter contained terms and conditions wherein it was stated that it should not be construed as binding obligation on the part of the bank to provide financial assistance. The disbursement depends on legal and technical clearances besides marketable title etc. The amount mentioned in the agreement of sale Dt. 22.11.2006 was Rs. 18,90,000/-. The complainant did not want the said amount to be reflected in the sale deed, as the owner was not agreeing. However, it insisted that the sale deed should contain this amount. As he did not agree the loan disbursement was delayed. The officers insisted that before signing the agreement the sale deed should reflect the consideration mentioned in the agreement of sale, and that he would not be eligible for sanction unless the matter regarding market value consideration is finalized. When the complainant himself asked not to process the loan any further and obtained loan from IDBI bank he did not suffer any loss, and on that score he could not claim any amount towards compensation. The complainant was not entitled to any processing fee or refund of the amount or amount towards compensation or mental agony and therefore prayed for dismissal of the complaint with costs.