Order-9.

Date-10/03/2016.

This is an application u/s.12 of the C.P. Act, 1986.

          Complainant by filing this complaint has submitted that complainant took a loan by depositing his gold ornaments and OP issued customer I.D. No.005040000000192 date 17-02-2015 releasing an amount of Rs.1,05,400/-, Rs.41,200/- and Rs.30,400/- respectively.

          Term for repayment of the said loan and refund of gold ornaments on repayment was fixed within 16-12-2015.

          Complainant had been paying the EMIs but subsequently for financial crisis he could not pay the EMIs regularly and that was informed to the OP and prayed for at least one month time for repayment of the entire unpaid EMIs amount but OP did not pay heed to that but subsequently OP informed the complainant that deposited gold ornaments would be auctioned on 22-12-2015 and they threatened the complainant continuously that the OP shall proceed to sell the gold ornaments in auction and that was intimated to the complainant and that was informed by sms.  In the above situation complainant finding no other alternative prayed for directing the OP to stay immediately of auction procedure in respect of gold ornaments of the complainant which would be auctioned on 22-12-2015 and for other relief.

          Particular factor is that notice along with interim order was communicated to the OP Muthoot Finance Ltd. and they received it on 23-12-2015 whereas the complaint was admitted on 22-12-2015.  Thereafter, Muthoot Finance did not appear or did not contest the case so ultimately the case was heard ex parte.

          In the above circumstances, the case is heard from the said of the complainant only even after given several times to the OP to file objection etc.

Decision with Reasons

Before enter into the merit of the case it is found that notice along with copy of injunction order was sent from this Forum to the OP on 22-12-2015 vide speed post no.EW113353401IN and from the track report of the India Post it is clear that it is received by Muthoot Finance on 23-12-2015 but OP did not turn up to contest the case when OP did not turn up the case was fixed for ex parte hearing and complainant submitted his E-Chief on 18-12-2016 and that copy of E-Chief also sent to the OP by speed post vide speed post no.EW156208225IN and that was received by the Branch Manager on 22-12-2016 but they did not turn up and in the above situation the case was finally closed and argument was heard on 01-03-2016 for judgment.

          From the very materials of the complaint it is found that complainant took loan of Rs.30,400/-. Rs.1,05,400/-, Rs.41,200/- and against that complainant deposited to the OP two Bangles, one weighing about 11.400 gm. net weight 11.000 gm  at the rate of1.00/g and other weighting 15.900 gm. net weight 16.000 gm  at the rate of1.00 /gm and further one Chain weighting about 35.900gm, net weight 34.200 gm.  at the rate of1.00/gm.

          It is undisputed fact that loan was granted but as per complainant’s own case, he failed to pay some repayment due to financial crisis.  So, he prayed for some time to pay the sum and prayed for one month time for repayment of the dues and also prayed for not to auction the said gold but OP proceeded without considering the situation of the complainant.  Truth is that OP can easily allow one month time for repayment but it has become the practice of Muthoot Finance to auction and to sell the gold to their some hench businessmen at a very low price and to enjoy the entire sale proceed by showing some fake rate of higher interest.  Complainant deposited two bangles and a chain weighing of 60.200gm. (net weight) that means the valuation of that gold is now about Rs.1,60,000/- and above so, there is no headache on the part of the OP for selling the same when complainant prayed for one month time to repay it and truth is that this Muthoot Finance company is a known cheat company all over India and they always without any proper auction publication without informing notice to the consumers are selling the same and that practice has been adopted by Muthoot Finance and they in such a way have been deceiving the customers for which customers are being harassed and in the present case from the conduct of the OP it is proved that OP ultimately did not turn up to contest the case and deny the allegation as made by the complainant.

          Considering the above facts and materials we are convinced to hold that complainant has been able to prove the allegation against the OP about their negligent and deficient manner of service including their deceitful manner of trade.

In the result, the complaint succeeds with cost in ex parte form.

Hence,

Ordered

That the case be and the same is allowed ex parte against the OP with a cost of Rs.2,000/-.

          OP is hereby directed to release the gold on full repayment of loan amount with interest to be assessed  at the rate ofRs.12 percent from the complainant within 2 months from the date of this order and on receipt of the said amount OP shall release the gold ornaments deposited by the complainant to the complainant on proper receipt and gold shall not be sold in auction without written order of this Forum.

          If OP fails to comply the order in that case OP shall be prosecuted u/s.25 read with Section 27 of the C.P. Act for which penalty and fine shall be imposed.