Bank penalised for not crediting loan instalment to CHB | chandigarh | Hindustan Times
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Bank penalised for not crediting loan instalment to CHB

Coming to the aid of a Manimajra resident who was penalized by the Chandigarh Housing Board (CHB) for the non-payment of instalments, the district consumer disputes redressal forum, Chandigarh, held the bank deficient in services for failure to maintain proper account.

chandigarh Updated: Jan 09, 2014 23:07 IST
Shailee Dogra

Coming to the aid of a Manimajra resident who was penalized by the Chandigarh Housing Board (CHB) for the non-payment of instalments, the district consumer disputes redressal forum, Chandigarh, held the bank deficient in services for failure to maintain proper account.


Disposing of the complaint filed by Mohar Singh, resident of Manimajra, the consumer forum directed Punjab and Sind Bank to refund Rs 14,115 which he was forced to pay to the CHB on account of the failure of the bank to maintain his bank account properly.

The bank has also been directed to pay Rs 10,000 as compensation along with Rs 5,000 as cost of litigation for the deficiency in services.

Mohar Singh, in his complaint to the consumer forum, said that he was allotted a dwelling unit under the economically weaker section category in Indra Colony, Manimajra, Chandigarh, by the Chandigarh Housing Board (CHB), in December 1993 and total cost of the unit was Rs 32,900 for which he was to pay a monthly installment of Rs 372.

After depositing total dues with Punjab and Sind bank, authorised by the CHB to receive payments made by the allottees and remit the same to its (CHB) account, he applied for no-due certificate with the housing board. But instead of issuing no- due certificate, the CHB in June 2013 asked him to deposit the amount of Rs 14,116 towards the six unremitted instalments by the bank to the CHB.

"I never defaulted in the payment of dues and it was on account of the non-maintenance of the proper accounts by the bank, that I was forced to pay the penalty of Rs 14, 116," said Mohar in the complaint filed before the consumer forum.

Punjab and Sind Bank, in its reply, denied that any amount claimed to be deposited by the Mohar was left out and not remitted to the account of the Chandigarh Housing Board.

The bank said that the matter of non- credit of instalments, if any, was between Mohar and the CHB and the bank has nothing to do in the issuance of no dues certificate.

"The bank failed to give proper service to the complainant by not crediting the amount, received from him, to the housing board. The bank took nearly two years in not redressing the grievance of the complainant or locating its records, which it finally placed before the consumer forum, leading to the harassment of Mohar, who was forced to pay the penalty without his fault," opined consumer forum in its order dated January 6, 2014.