Canara Bank fined ₹3 lakh for claiming settled loan from farmer

JALANDHAR: The district consumer forum, Shaheed Bhagat Singh Nagar, directed the Canara Bank through its local Banga branch to pay a compensation of ₹3 lakh and ₹20,000 as litigation expenses to a complainant for causing mental tension and harassing him over a loan amount that was settled.

Complainant Chanan Singh of Rahon in SBS Nagar had taken a loan of ₹3 lakh for agriculture machinery on January 22, 2004, and had mortgaged his property against the loan to the bank. However, he could not make the payment of the loan on time and the bank filed a civil suit for recovery.

Later on August 27, 2011, Singh cleared the loan in onetime settlement and he was also issued no due certificate by the bank. Based on the certificate, the mortgaged land of the complainant stood redeemed on September 13, 2011, in the revenue record.

“It was settled between us that bank will withdraw its civil suit for recovery. But Upendra Kumar Choudhary, manager of the bank, filed a false affidavit on February 3, 2014 by stating wrong facts and concealed the real and material facts claiming ₹3.7 lakh along with ₹17,861 as interest,” he told the forum in his complaint.

On March 18, 2017, Tarun Kumar, another manager of Canara Bank, filed another affidavit with regard to recovery of the amount and put the land of the complainant for auction.

Upon the notice, officials of bank representative refuted the claims citing that the complainant did not get the payment certified from the court and also did not appear in the court.

“Complainant was bound to get the matter settled by taking recourse to file an objection petition. After coming to know of the mistake, the local branch of the bank withdrew the execution application stating that the claim of the bank has been settled,” the bank told the forum.

Forum observed that on February 2014, Upendra Choudhary stated in his affidavit that complainant did not pay the dues of the bank and committed default in the due repayment.

“While Harvinder Singh, manager of bank admitted in August 2011 that complainant paid back the loan amount after one-time settlement. Hence, complainant was unnecessarily harassed in court proceedings for about seven years,” the forum said in its order.

The forum stated that due to negligent act of the bank, the complainant suffered mental agony and monetary loss and directed the bank to pay ₹3 lakh compensation along with ₹20, 000 as litigation expenses.

COMPLAINANT HAD CLEARED THE LOAN AMOUNT IN 2011 IN ONE-TIME SETTLEMENT, HOWEVER, THE BANK FILED ANOTHER AFFIDAVIT IN 2014 FOR RECOVERY