The Cuddalore District Consumer Disputes Redressal Commission has directed Axis Bank to pay ₹1 lakh in compensation to a farmer for deficiency in service.
In their petition, the complainants A. Ramalingam, 63, and his son Sabarathnam, 35, of Anguchettipalayam in Cuddalore district, said that they had applied for agricultural loan from Axis Bank. Upon procedural completion and field visit, the Bank had agreed to sanction a sum of ₹26.5 lakh as loan and had called for the execution of Memorandum of Title Deeds of property.
Subsequently, the Bank unilaterally cancelled the memorandum of Title deed and returned the original documents and declined the loan. The Bank took the stand that the loan had been cancelled due to internal policy norms.
The complainants moved the Commission in Cuddalore. The Bank informed the Commission that the second complainant was a defaulter for an earlier loan and his account was declared a Non-Performing Asset.
The Commission held that the unilateral cancellation of loan by the Bank without assigning any reasons amounts to deficiency in service. The complainants were unnecessarily put to hardship and expenses towards the sanction of loan.
The Commission directed Axis Bank to pay ₹1 lakh in compensation to the complainants for deficiency in service. The Commission also awarded the complainants ₹5,000 in legal expenses.
