Karnataka

Chitradurga

CC/55/2018

Syed Shabuddin Hussain - Complainant(s)

Versus

Authorised Signatory/Proprietor, - Opp.Party(s)

P.S. Sathyanarayana Rao

07 Feb 2019

ORDER

 

COMPLAINT FILED ON:21.05.2018 & 26.05.2018

DISPOSED      ON:07/02/2019

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHITRADURGA.

 

C.C.NOs.53 to 57/2018 and 62/2018

 

DATED: 7^th FEBRUARY 2019

PRESENT: - SRI. T.N. SREENIVASAIAH  : PRESIDENT                          B.A., LL.B.,

SMT. JYOTHI RADHESH JEMBAGI

BSc.,MBA., DHA.,             : LADY MEMBER

 

……COMPLAINANT/S	Complaint No.53/2018 to 57/2018   Syed Shabuddin Hussain, S/o Syed Khutbuddin Hussaini, Aged about 62 years, Advocate by Profession, Khazi Mohalla, Chitradurga.   (Reptd., By Sri.P.S. Sathyanarayana Rao, Advocate)
V/S
…..OPPOSITE PARTIES	1. The Authorised signatory, Muthoot Fincorp ltd., First Floor, Masha Allah Complex, Santhe Honda Road, Opp to Vasavi Mahal road, Chitradurga.   2. The Authorised Sinatory, Muthoot Pincorp Limited, No. 5/1-A to 230 First Floor, Ashaktha Poshaka Trust Building, Beside Old Bus-stand, P.B. Road, Davanagere.   (Reptd., By Sri.C.J. Lakshminarasimha, Advocate)
……COMPLAINANT	Complaint No.62/2018   Syed Shabuddin Hussaini, S/o Syed Khutbuddin Hussaini, Aged about 62 years, Advocate by Profession, Khazi Mohalla, Chitradurga.
V/s
…..OPPOSITE PARTY	The Manager, Manipuram Finance Ltd., Medehally Road, Chitradurga.

COMMON ORDER

SRI. T.N. SREENIVASAIAH    PRESIDENT

The above complaints have been filed by the complainants u/Sec.12 of the C.P Act, 1986 for the relief to direct the OPs to release the pledged gold ornaments by collecting the loan amount along with nominal interest and to grant such other relief.

2.      Since the above complaints have been filed against the same OPs, for the similar reliefs and compensation thereon and also for costs and interest and since the above matters are similar and for the sake of convenience they have been clubbed together and after hearing the arguments, above cases have been posted for orders. 

3.      The brief facts of the case of the above complainants are that, they have approached the OP to provide loan by pledging the gold ornaments.  Accordingly, the complainant in Complaint No.53/2018 has obtained loan of Rs.40,004/- by pledging 20.5 gms of gold ornaments on 02.06.2017, the total value of the gold pledged was Rs.60,000/-, the complainant in Complaint No.54/2018 has obtained loan of Rs.83,012/- by pledging 42.5 gms of gold ornaments on 02.06.2017, the total value of the gold pledged was Rs.1,28,000/-, the complainant in Complaint No.55/2018 has obtained loan of Rs.78,512/- by pledging 40 gms of gold ornaments on 10.06.2017, the total value of the gold pledged was Rs.1,20,000/-, the complainant in Complaint No.56/2018 has obtained loan of Rs.82,500/- by pledging 40 gms of gold ornaments on 10.06.2017, the total value of the gold pledged was Rs.1,20,000/-, the complainant in Complaint No.57/2018 has obtained loan of Rs.52,012/- by pledging 26.5 gms of gold ornaments on 29.06.2017, the total value of the gold pledged was Rs.80,000/- and the complainant in Complaint No.62/2018 has obtained loan of Rs.20,198/- by pledging 21 gms of gold ornaments on 29.01.2017, the total value of the gold pledged was Rs.40,000/-, the term of the above said gold loans was for one year.  It is further submitted that, due to some family problems and financial crisis as the family members of the complainants were undergone treatment at Jayadeva Hospital, Bangalore and the complainant himself has taken treatment at Kasturba Medical College Hospital at Manipal, the complainant has incurred huge medical expenses and as such the complainant is in disastrous condition, the complainant in all the complaints was unable to pay the interest or principal amount towards the gold loan obtained by him.  Therefore, the complainant approached the OP company to provide further 2-3 months time.  After 2-3 months, again the complainant approached the OP and informed that, he is ready to pay the loan amount with interest and to perform his part of contract.  But, as on today the complainant in all the complaints are due to the OP to an extent of loan amount obtained from the OP with interest.  It is further submitted that, the complainants in the above cases came to know that, the pledged gold ornaments have been scheduled to be auctioned by not following the procedural aspects and the OP has issued notice that the schedule auction will be conducted on 21.05.2018 at 10-00 AM at Chitradurga Branch or otherwise finally auction will be conducted on 28.05.2018.  Being aggrieved by the illegal act of the OP, without any alternative, the complainants intend to seek redressal from this Forum.  It is further submitted that, the complainants are still ready and ever ready to perform their part of contract and ready to pay the amount by taking delivery of the gold ornaments, but the OP with an intention to get wrongful gain and to cause wrongful loss to the complainants have scheduled to be conduct the auction sale by not following the formalities as per their whims and fancies.  Moreover, the Banking authorities have clearly mentioned in the notice dated 14.05.2018 that the ornaments pledged were auctioned on 21.05.2018 and the sale proceeds were appropriated towards the amount due from the complainants and the remaining balance has been kept in suspense account and the Bank authorities have not furnished the clear statement of accounts to the complainants.  The complainants have approached the OP and requested to provide accurate statement of accounts, but the OP failed to provide the same, which is a deficiency of service, dereliction of duties and unfair trade practice.  The cause of action for these complaints arose when the OP has sent the letters stating that, the pledged ornaments have been sold out through auction and remaining balance amount will be adjusted to the complainants’ account by not providing statement of account which is within the jurisdiction of this Forum and prayed for allow the complaints.      

4.      On service of notice, OPs have appeared through Advocate Sri. C.J. Lakshminarasimha, and filed version.  According to the version filed by the OPs, it is submitted that, the complaints filed by the complainants are not maintainable either in law or on facts and the same are liable to be dismissed in limine.  The complainants have suppressed the very material facts and filed these false complaints. The relief sought by the complainants is not coming within the purview of C.P Act and barred by jurisdiction.  It is submitted that, the allegations made in the complaints are all completely false, created and concocted for one or the other reason.  The contents made in para 2 are true and correct.  The allegations made in para 3 and 4 of the complaints are the matter of record and proof and the complainants are put to strict proof of the same.  The OP is not aware of the other contents in respect of the medical treatment of family members of the complainants.  It is submitted that, the OPs have given notice, legal notice and also given paper publication in both Kannada and English News Papers like Hosadigantha and Indian Express regarding the date of auction of pledged gold ornaments.  The OPs have followed the legal steps and as per the contractual terms with conditions, the complainants are the laymen and they are the educated.  The allegations made in para 5 of the complaints are denied as false and the complainants are put to strict proof of the same, but the OPs have given clear information, intimation, notice etc., to the complainants periodically.  But the complainants have not turned up to pay the loan amount.  Therefore, there is no deficiency of service on the part of OPs and hence, prayed for dismissal of the complaints.      

 5.     Complainant in all the cases has examined as PW-1 in all the above cases by filing affidavit evidence.  The OPs have not filed any affidavit evidence.   

6.      Arguments heard.

7.      Now the points that arise for our consideration for decision of above complaints are that:

(1)  Whether the complainant in all the cases proves that the OPs have committed deficiency of service and entitled for the reliefs as prayed for in the above complaints?

              (2) What order?

 

          8.      Our findings on the above points are as follows:-

                    Point No.1:- Partly in Affirmative.

                    Point No.2:- As per final order.

 

REASONS

 

9.      Point No.1:- It is not in dispute that, the complainants in all the cases have approached the OPs and requested to provide loan as stated supra by pledging their gold ornaments. Accordingly, the complainant in Complaint No.53/2018 has obtained loan of Rs.40,004/- by pledging 20.5 gms of gold ornaments on 02.06.2017, the total value of the gold pledged was Rs.60,000/-, the complainant in Complaint No.54/2018 has obtained loan of Rs.83,012/- by pledging 42.5 gms of gold ornaments on 02.06.2017, the total value of the gold pledged was Rs.1,28,000/-, the complainant in Complaint No.55/2018 has obtained loan of Rs.78,512/- by pledging 40 gms of gold ornaments on 10.06.2017, the total value of the gold pledged was Rs.1,20,000/-, the complainant in Complaint No.56/2018 has obtained loan of Rs.82,500/- by pledging 40 gms of gold ornaments on 10.06.2017, the total value of the gold pledged was Rs.1,20,000/-, the complainant in Complaint No.57/2018 has obtained loan of Rs.52,012/- by pledging 26.5 gms of gold ornaments on 29.06.2017, the total value of the gold pledged was Rs.80,000/- and the complainant in Complaint No.62/2018 has obtained loan of Rs.20,198/- by pledging 21 gms of gold ornaments on 29.01.2017, the total value of the gold pledged was Rs.40,000/-. The term of the above said gold loans was for one year.  After lapse of one year, the OP has send notice to the complainants to come and take back the pledged gold ornaments by paying the loan dues.  By that time, the wife and mother of the complainant in all the cases were admitted to the Jayadeva Hospital, Bangalore he himself has taken treatment at Kasturba Medical Hospital at Manipal and incurred huge expenses, as such, the complainant in all the cases is in disastrous condition and due to the said reason, the complainant in all the cases was unable to pay the interest or principal amount.  Further the complainant in all the cases approached the OP and requested to grant 2-3 months time to take back the pledged gold ornaments.  As on the date of notice, the complainant in Complaint No.53/2018 was due for an amount of Rs.46,485/-,  the complainant in Complaint No.54/2018 was due for an amount of Rs.1,00,105/-, the complainant in Complaint No.55/2018 was due for an amount of Rs.91,171/-, the complainant in Complaint No.56/2018 was due for an amount of Rs.97,047/-, the complainant in Complaint No.57/2018 was due for an amount of Rs.61,822/- and the complainant in Complaint No.62/2018 was due for an amount of Rs.21,800/-.  It is argued by the OP that, after obtaining the gold loan, the complainant in all the cases never paid any interest or principal amount to the OP.   On 21.05.2018, the OP send the public auction notice to the complainant in all the cases fixing the date for selling the pledged gold ornaments in a public auction on 28.05.2018.  By that time also, the complainant in all the cases fails to pay the loan amount or to pay the interest.  Now the complainant is going to perform the marriage of his daughter that’s why the complainant is under financial crisis. 

  10.  We have gone through the affidavit filed by the complainant and the version filed by the OPs.  No doubt the complainant in all the cases has obtained loan from the OP company by pledging gold ornaments i.e., complainant in Complaint No.53/2018 has obtained loan of Rs.40,004/- by pledging 20.5 gms of gold ornaments on 02.06.2017, the total value of the gold pledged was Rs.60,000/-, the complainant in Complaint No.54/2018 has obtained loan of Rs.83,012/- by pledging 42.5 gms of gold ornaments on 02.06.2017, the total value of the gold pledged was Rs.1,28,000/-, the complainant in Complaint No.55/2018 has obtained loan of Rs.78,512/- by pledging 40 gms of gold ornaments on 10.06.2017, the total value of the gold pledged was Rs.1,20,000/-, the complainant in Complaint No.56/2018 has obtained loan of Rs.82,500/- by pledging 40 gms of gold ornaments on 10.06.2017, the total value of the gold pledged was Rs.1,20,000/-, the complainant in Complaint No.57/2018 has obtained loan of Rs.52,012/- by pledging 26.5 gms of gold ornaments on 29.06.2017, the total value of the gold pledged was Rs.80,000/- and the complainant in Complaint No.62/2018 has obtained loan of Rs.20,198/- by pledging 21 gms of gold ornaments on 29.01.2017, the total value of the gold pledged was Rs.40,000/-, the term of the above said gold loans was for one year.  But, the complainant in all the cases is due to pay the same.  As per the documents filed by the complainant in all the documents, he is ready to pay the entire loan amount with nominal interest and prayed before this Forum to order the OP to collect the loan amount with nominal interest to release the pledged gold ornaments.  OP addressed the argument that, the complainant in all the cases is due to pay the entire loan amount with interest and prayed to reject the complaints filed by the complainant.  But as per the affidavit and arguments addressed by the complainant, it is clear that, the complainant is going to perform the marriage of his daughter and the gold ornaments pledged by him with the OP company is very essential for his daughter’s marriage.  So, on humanitarian grounds, the Forum comes to the conclusion that, it is better to order the OP company to collect the loan amount with interest at the rate of 9% p.a from the date of pledging the gold ornaments and release the same to the complainant in all the cases.  Accordingly, this Point No.1 is held as partly affirmative to the complainant.    

  11.     Point No.2:- As discussed on the above point and for the reasons stated therein we pass the following:-

ORDER

The complaint Nos. 53/2018, 54/2018, 55/2018, 56/2018, 57/2018 and 62/2018 filed by the complainants U/s 12 of CP Act 1986 are hereby partly allowed.

It is ordered that, the OPs in all the cases are hereby directed to collect the gold loan amount along with interest at the rate of 9% p.a from the date of pledging the gold ornaments and to hand over the same to the complainants.

            Keep the original of this order in C.No.53/2018 and the copies be in other cases.

(This order is made with the consent of Member after the correction of the draft on 07/02/2019 and it is pronounced in the open Court after our signatures)         

 

                                     

MEMBER                                                   PRESIDENT

-:ANNEXURES:-

Witnesses examined on behalf of Complainant:

 

PW-1:  Complainant by way of affidavit evidence.

 

Witnesses examined on behalf of OPs:

 

-Nil-

Documents marked on behalf of Complainant:

 

-Nil-

 

Documents marked on behalf of OPs:

 

-Nil-

 

MEMBER                                                   PRESIDENT

Rhr**