Tamil Nadu

StateCommission

A/372/2017

The Branch Manager, Axis Bank - Complainant(s)

Versus

A.Saroj Jain, - Opp.Party(s)

Mr. Uma Vijayan

21 Dec 2022

ORDER

IN THE STATE CONSUMER DISPUTES REDRESSAL COMMISSION, CHENNAI

 

                             BEFORE :        Hon’ble Justice R. SUBBIAH                    PRESIDENT

                    Thiru R   VENKATESAPERUMAL             MEMBER                        

                      

F.A.NO.371/2017

(Against order in CC.NO.25/2015 on the file of the DCDRC, Cuddalore)

 

DATED THIS THE 21^st DAY OF DECEMBER 2022

 

The Branch Manager

Axis Bank

No.1, Nethaji Road                                                M/s,M.R. Uma Vijayan

Manjakuppam                                                               Counsel for

Cuddalore – 607 001                                        Appellant / Opposite party

 

                                                         Vs.

A. Saroj Jain

W/o. Ashok Kumar Jain

No.27, Bhaburao Street

Thiruppapuliyur

Cuddalore – 607 002

 

Rep. by M.Nizhamudeen

Power of Attorney of A.Saroj Jain                                    M/s. V. Balaji

Secretary, Tamil Nadu Consumer Association                    Counsel for

Cuddalore                                                         Respondent/ Complainant

 

          The Respondent as complainant filed a complaint before the District Commission against the opposite party praying for certain direction. The District Commission allowed the complaint. Against the said exparte order, this appeal is preferred by the opposite party praying to set aside the order of the District Commission dt.25.1.2017 in CC. No.25/2015.

 

          This petition is coming before us for hearing finally today.  Upon hearing the arguments of the counsel appearing on bothside, perusing the documents, lower court records, and the order passed by the District Commission, this commission made the following order in the open court:

 

JUSTICE R. SUBBIAH ,  PRESIDENT  (Open court)

 

1.      The opposite party before the District Commission is the appellant herein.

 

2.       The case of the complainant before the District Commission is that the complainant availed jewel loan of Rs.340000/- with the appellant/ opposite party bank.  At the time of availing the loan, the agreed rate of interest was 11%.  Eventhough there was one year time for redeeming the jewels, the opposite parties were pressuring the complainant to remit the jewel loan amount and redeem the jewels, failing which the jewels will be sold in auction.  When the complainant approached the opposite party bank for redeeming the jewels, it was reported that he has to remit interest amount @14%, while the agreed rate of interest was 11%.  Thus alleging negligence on the part of the opposite parties, the complainant filed a complaint before the District Commission, praying for a direction to the opposite party to redeem the jewels by accepting the interest rate @11% p.a., alongwith compensation of Rs.50,000/- and cost of Rs.2000/-. 

 

3.       The  Appellant/  opposite party, though served, remained absent before the District Commission, hence an exparte order was passed in favour of the Respondent/ complainant, directing the  Appellant/ opposite party to refund Rs.26,7772/- towards the amount collected as extra interest alongwith compensation of Rs.5000/- and cost of Rs.1000/-.    Aggrieved over the said exparte order, this appeal has been preferred by the opposite party as appellant herein.

 

4.       We have heard the learned counsel appearing for bothsides.

 

5.       The learned counsel for the appellant would contend that a notice was issued by the appellant on expiry of six months margin period, strictly in compliance of the terms of the agreement on payment of interest.  The complainant is entitled to pay 11% of interest on the loan amount only if the account is regularized by paying periodical interest within 6 months as per the agreed terms and any delay in payment interest thereafter will attract penal charges of 3% totally 14% from the date of loan till redemption.   The District Commission without any reasoning passed the order by granting relief as prayed for in the complaint.  The opposite party has a fair chance of succeeding the matter.  The non-appearance before the District Commission by the appellant is neither willful, nor wanton.  Thus prayed for an opportunity to contest the matter on merit. 

 

 6.      On careful consideration of the materials on record and on hearing the submissions, this commission is of the considered opinion that there is some force in the submission of the appellant.  Therefore, in order to meet the ends of justice the appeal shall be allowed for the purpose of remanding back the matter for fresh consideration. Eventhough on considering the lethargic attitude of the appellant/opposite parties by remaining absent before the District Commission even after the service of notice, we hereby direct the appellant to pay a  sum of Rs.1000/- as cost to the counsel for Respondent/ Complainant. On imposing the above condition, the appeal is allowed and the complaint is remitted back to the District Commission for fresh consideration according to law.   

 

 7.      In the result, the appeal is allowed by setting aside the order of the District Commission, Cuddalore in C.C.No.25/2015 dt.25.1.2017, and the matter is remanded back to the District Commission, Cuddalore, for fresh disposal according to law on merit.

Parties are directed to appear before the District Commission, Cuddalore on 30.1.2023, for taking further instructions. On which date itself, the appellant/ opposite party shall file not only the vakalat, but also the written version, proof affidavit, and documents if any. The District Commission is directed to dispose of the complaint, within 3 months from the date of appearance, according to law on merit.  

The amount deposited, by the appellant, shall abide the order of the District Commission, in the original complaint, on merit.

 

 

 

 

 

   R   VENKATESAPERUMAL                                                    R. SUBBIAH

               MEMBER                                                                             PRESIDENT