Upgrad LLM

filing complaint: deficiency of service by bank

Not Applicable


I need some advice in the following matter:


A home loan pre- approval was taken from a leading bank for an amount of 5 million INR. The sale price of the apartment was approx. 8.3 million INR. The completion of the sale process took almost 5 months (it began in mid May 2011 and was registered by 3rd Oct 2012). This was because the seller kept collecting money from us and kept delaying the registration. I kept the bank in the loop of all activities and delays.


As per our agreement we paid the seller 3.3 million INR and the pending 5 million INR was to be paid by the bank on a specified date of 13th Oct.


The bank loan manger delayed the payment by 3 working days. The PO for 5 million was made available to the seller on 18th Oct 2012. The reason for this delay was explained in two parts:


1.      The second valuation visits was cancelled by the seller at the end of Sept 2011 and  due to the delay the bank pay-out to seller was delayed


2.      The bank lawyer was not available on 13th and 14h of Oct to handover the PO to the seller. This was informed to the seller and he agreed to collect the PO on 18th Oct. This was a verbal agreement between the bank and the seller.




Now the seller has taken this opportunity to demand INR 1.5 million from me. Please note the PO was available on 18th Oct and the seller refused to collect it unless I paid him the additional amount as compensation.


The seller now is not giving possession of the apartment. He has my INR 3.3 million and I have paid all the duties and brokerage. In total I have spent INR 4 million and do not have possession.


The civil case is now in high court and while I purse justice, I need to know what is the best course of action for filing a case against the bank?


I have incurred expenses of approx. INR 2,00,000 in court fees and lawyer fees.


How can I recover this expense from the bank?


Any advice or guidance will be appreciated.


Kind Regards





practicing advocate

It is loan transaction it does not come under consumer act.


Not Applicable


Dear Advocate Rajeev, if it does not come under consumer act, please advise what should be my next course of action?

The matter between me and the seller is in high court. The seller wants to benefit from the situation and does not mind as he has my money and y house.


How do I hold the bank accountable for my predicament?


All Banking services including loans are covered under the Consumer Act. You can with absolutely no doubt file a case for deficiency of service against the Bank and claim the loss you have suffered.

Total likes : 1 times


Hello advocates,

We have an aparment in chennai and we registered our association. One of the falt owner wants to run a business in his flat. Is there any rule if he wants to run a business. We have 38 owners /flats in our apartment. In case if any disturbance by the office to other owners  how do we deal? Is it coming under Association responcibilty to involve and sort out the issues? If it is not taken by association , Is there anyway to take / file complaint  against association / the falt owner who running a business in his flat by other owners ?

A flat owner who approached the association , as he wants to start his business in his flat. What is the solution to be provided for this case by association


Best Regards,






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