PRESIDENT DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, SAMBALPUR
CONSUMER COMPLAINT NO.47/2023
Present-Dr. Ramakanta Satapathy, President,
Sri. Sadananda Tripathy, Member,
Smt. Kamini Kachan Samal
w/o Shri Sadhabananda Samal
R/o Nigamananda Vihar, Lane No. 7/E, Ward No. 01,
Bargarh, Dist- Bargarh-768028
M. No- 9437144532 .……….......Complainant.
Vrs.
Bank of Baroda represented through its
Managing Director,
At- Baroda House, Mandavi, Baroda-390001,
The Branch Manager, Bank of Baroda,
Bargarh Branch, Bargarh-768028 ...……….Opp. Party
Counsels:-
- For the Complainant :- Sri. R.N. Debta & Associates
- For the O.P.s :- Sri. P.S.N. Reddy & Associates
Date of Filing:03.04.2023,Date of Hearing :22.08.2023,Date of Judgement : 03.10.2023
Presented by Dr. Ramakanta Satapathy, PRESIDENT
- The case of the Complainant is that the Complainant availed gold loan of Rs. 3.00 lakhs from O.P. No.2 in 2012 pledging gold ornaments of 215 gms having 96.46% gold and 3.54% silver and net gold 207 gms with 23.15 carrot. Due to some difficulties the Complainant could not repay the loan in time. The O.P. No.2 issued notice dated 23.08.2017 which was received on 12.09.2017. Immediately Complainant contracted the O.P. No.2 Bank. The O.P. No.2 demanded Rs. 5,60,000/- for refund of pledged gold. The Complainant agreed to pay Rs. 5,20,000/- within a month and requested for an account statement and calculation sheet of gold but it was in vain. Complain was made before Ombudsman, RBI, Bhubaneswar By order dated 06.02.2023 the O.P. No.2 was directed to compensate the Complainant within 7 days. The O.P. No.2 sent a mail dated 20.02.2023 that the gold loan account has been closed. Imaginary calculation was provided quoting inferior quality of gold and taken lower side of the value. No dues certificate also not provided to the Complainant. The O.Ps are deficient in their service.
- The O.Ps in their version submitted that notice dated 23.08.2017 was served to the Complainant to pay the liability and other charges and redeem the pledged security on or before 05.09.2017 failing which securities will be sold by the Bank in public auction or private treaty at her cost at Bank premises on 12.09.2017. The O.Ps denied the allegations of the Complainant. The O.Ps further submitted that the complaint before Ombudsman has been decided on 06.02.2023 when the Bank sought for time during merger of the banks and documents were not traceable. Order of the Ombudsman is not binding on the O.Ps. In public auction the securities have been sold and loan account closed as the Complainant failed to repay the loan in time. The assessment of value of gold by the Complainant is not proper. This Commission has no jurisdiction as Bargarh Branch is concerned with the subject matter. The claim of the Complainant is vexatious and there is no deficiency in service on the part of the O.Ps.
- Perused the documents filed by both the parties. It is the admission of both the parties that the Complainant availed gold loan of Rs. 3.00 lakhs against appraised value of Rs. 4,44,493/- as on 22.06.2012. Gross weight of the gold was 215.04 gms and net weight 190.04gms certified by gold Smith Jugal Kishore Verma. The Complainant has executed letter of pledge, promisory note & letter of acknowledgement of debt. Demand notice was made by O.Ps on 13.05.2017 against loan A/C No. 32550600000498. Date of auction sale was fixed on 12.2018 and notice has been issued against the Complainant. On 15.12.2017 final notice was given before auction sale. News paper publication was made on notice dated 28.12.2017. Weight of the gold has been shown 215.04 gms. The Deputy General Manager of the O.Ps vide letter dated 11.01.2018 advertising cost of the Sambad and New Indian Express has been shown Rs. 60,480/-. The Deputy regional Manager was authorized to initiate auction sale on 12.01.2018. Perused the auction bid sheets submitted by the O.Ps. One Sachin Kumar Verma is the highest bidder as per his letter addressed to the O.P. No.2 dated 10.02.2018 and requested to debit Rs. 15.50 lakhs from his A/C No. 21550100007862. The bidder further authorized his father Jugal Verma(The appraiser) to collect the auctioned gold jewellery. On 12.02.2018 Rs. 14,79,536/- was debited from A/C of sachin Kumar Verma and the amount credited in various accounts in the O.P. Bank.
After perusal of the terms and condition of auction notice it reveals that the O.Ps have not fixed the reserve price, earnest money deposit of 25% of reserve price and who were the bidders participated not reflected in the bid sheet. The date of auction fixed on 12.01.2018 whereas Sachin Kumar Verma mentioned in his letter that auction was made on 10.02.2018. The O.Ps not explained under what circumstances the auction was deferred and details money deposit, Reserve price not mentioned in their written statement and argument. The O.Ps have violated the terms and conditions of the auction notice and managed to obtain bid sheets by taking one bidder Samir Kumar Verma who is also son of the bank gold smith appraiser which proves that the auction sale is not proper.
The second point of consideration is that the O.Ps failed to serve the notice to the Complainant after so called auction sale shown 09.02.2018 in their notice dated 12.02.2018. The sale produced has been shown as Rs. 4,60,200/- From the Supra discussion it is clear that three dates have been shown as auction sale date.
12.01.2018 - Auction Sale notice
10.02.2018 – As per Statement of Sachin Kumar Verma
09.02.2018 – As per notice dated 12.02.2018 to the Complainant.
From this it is clear that the auction sale papers are manipulated and accordingly auction sale is not proper.
- The RBI Banking Ombudsman passed order dated 06.02.2023 and directed the O.Ps to compensate the Complainant within 7 days and advised to obtain value of gold as on 12.02.2018 from an authentic source. In reply the O.Ps replied that decision of the Ombudsman is not binding on the O.Ps. This proves the attitude of the O.Ps to-wards the Banking system and resolution of disputes mechanism. The O.Ps not submitted the market price of gold as on 12.02.2018.
- As per public auction notice of the O.Ps dated 28.12.2017 an amount of Rs. 5,50,000/- was outstanding against the Complainant. Due to non-submission of actual value of gold as on 12.02.2018 (Gross weight 215.04gm in 22 carot or net weight 190.04 gms in 24 carot) calculation can not be made. Accordingly, the O.Ps are directed to make a calculation in standard value declared by Govt. within one month of this order.
The O.Ps by manipulating documents not only deficient in their service but also unfair in trade practice and caused loss to the Complainant by unfair trade means.
Accordingly, it is ordered
ORDER
The Complaint is allowed on contest against the O.Ps. The O.Ps are directed to refund(value of gold 190.04 gms in 24 carot as on 12.02.2018-Rs. 5,50,000/-) with 14% interest P.A. w.e.f. 12.02.2018 to the Complainant within one month of this order. In case of non payment the amount will carry 18% interest P.A. till realisation. For deficiency in service the O.Ps are directed to pay compensation of Rs. 10,00,000/- and for unfair trade practice Rs. 25,000/- to the Consumer Welfare Fund of the State Government. The O.Ps are to pay litigation cost of Rs. 10,000/- and no dues certificate to the Complainant.
Order pronounced in the open court on this 3rd day of October 2023.
Supply free copies to the parties.
