Date of filing :  19.06.2018

                                                                 Date of order : 10.11.2022

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, VELLORE

PRESENT: THIRU. A. MEENAKSHI SUNDARAM, B.A., B.L.     PRESIDENT

                           THIRU. R. ASGHAR KHAN, B.Sc., B.L.                     MEMBER – I

   SELVI. I. MARIAN RAJAM ANUGRAHA, M.B.A.,     MEMBER-II

THURSDAY THE 10^th DAY OF NOVEMBER 2022

CONSUMER COMPLAINT NO. 12/2018

M. Venkatesan,

S/o. Munirathinam,

No. 12 East Street,

Irumbedu,  

Arni Taluk .                                                                                         ...Complainant

-Vs-

The Branch Manager,

Central Bank of India,

Thamaraippakkam,

Arcot Taluk,

Vellore District.                                                                                    ...Opposite party    

Counsel for complainant                            :   Thiru.  N. Raghupathy 

Counsel for opposite party                         :   Thiru. K.M. Boopathy   

ORDER

THIRU. A. MEENAKSHI SUNDARAM, B.A., B.L. PRESIDENT

This complaint has been filed under section 12 of Consumer Protection Act 1986.  The complainant has prayed this Hon’ble Commission, to direct the opposite party to return 171.800 grams gold jewels and to pay a sum of Rs.3,00,000/- as compensation for deficiency in service and mental agony and also to pay cost to the complainant. 

1. The Case of the complaint is briefly  as follows:

The complainant availed four jewel loans as detailed herein below from the opposite party herein.

The allegation of complainant is that without proper notice and with view to cheat the complainant, the opposite party illegally sold the complainant’s jewels by auction, wherein complainant was ready to repay the jewel loan. Therefore, the complainant is liable to return the aforesaid jewels to the complainant.  Hence, this complaint.  

1. The written version of opposite party is as follows:

Per contra the opposite party in their written version categorically denied the allegation of the complainant made in the complaint that namely he had pledged 53 gm of gold in their branch on 01.06.2015 for sum of Rs.81,000/- and again pledged 52 gm. For gold in our branch on 26.01.2015 for a sum of Rs.86,000/- and again he pledged 19 gm of gold in the branch on 19.01.2017 for sum of Rs.38,000/- and he again pledged 53 gm gold in the branch on 19.1.2017 for a sum of Rs.95,000/- is hereby admitted.  

Complainant states that as on 21.09.2017 a sum of Rs.1,76,631/- was in due to in the said loan account, the complainant failed to repay the said loan amount, in spite of repeated demands and request. Further, the bank has send notice on 12.01.2017 through the register post and paper publication has also been effected on 13.09.2017 in New Indian Express as well as Dinamani daily newspaper. Inspite of above said intimation the complainant failed to pay the amount.   Later on the jewels have been auctioned by the bank on 21.09.2017.  As per the banking norms and sales proceeds of sum of Rs.2,00,86,00/- and excess amount have been given credit it to his savings bank account.   Now, the complainant is stopped from the questioning the auction taken by the opposite party.  Further the jewels were auctioned openly and it a public auction.  The gold jewel could not be auctioned and the market value and only the highest bidding amount will be taken into account.  The auction was conducted according to the bank norms and rules. The complainant is a will full defaulter and only to harass the bank. He filed the present false complaint and compensation claimed is highly excessive and the opposite party is not liable such to pay any compensation to the complainant and the complainant is not entitled to get any compensation. 

3.         Proof affidavit of complainant filed.  Ex.A1 to 10 were marked.  Proof affidavit of opposite party filed.  Ex.B1 to Ex.B16 were marked.    Written argument of both sides filed.   Oral argument of both sides heard.

4. The Points that arises for consideration are:

         1.   Whether there is any deficiency in service on the part of the opposite   

               party?

         2.   Whether the complainant is entitled for relief as claimed in the complaint?          

         3.   To what relief, the complainant is entitled to?

5. POINT NOS.1 & 2:-         The complainant availed the following jewel loans from the opposite party

The allegation of the complainant is that without following the due process of law,   the opposite party sold jewels in public auction and thereby they have committed deficiency in service on their part.

 6.        Per contra, the opposite party admitted that all four jewels were auctioned after following the procedure establish by law before auctioning the aforesaid jewels. According to them personal notice as well as paper publication for all the aforesaid jewel loan were given. After selling the aforesaid jewels they adjusted the sale proceeds the excess amount was credited to the complainant’s saving account and same was withdrawn by the complainant without any protest. Therefore, the complainant cannot re-agitated the same.  Initially, the opposite party did not file any documents along with their written version.  During the argument the opposite party has filed certain documents, like the auction notice dated 2.8.2017.  In so far as jewel loan No. 3459831170 and 3502398861, they have also filed paper publication for the aforesaid two loans the same was marked as Ex.B6 and Ex.B7.  But, in so far as the jewel loans No.3617943229 and 3617941630 are concerned opposite party contended that they have issued personal notice as well as paper publication.  But they failed to produce any records in so far as the two items i.e. 3617943229 and 3617941630.  But during the argument the counsel for opposite party contended that, pending the disposal of these proceedings the complainant came to the branch and discharged the subsequent two loan account and got back his jewels from the bank. But this fact was not brought to the knowledge by the complainant as well as opposite party anywhere in their respective pleadings or written arguments.  But, the complainant counsel also admit that they have deposited the loan amount and accordingly the loan account also closed.  But, the opposite party did not hand over the jewels citing the pendency of the present case.  For which we have called for the original loan applications from the bank, along with branch manager they came before this Hon’ble Commission and submitted the original application. On going through the aforesaid loan application, we find that the loan was granted on 19.06.2017 and till date it was not closed.  Therefore, we put a question with the branch manager what is the procedure for closure of the  jewels loan accounts, she fairly admits that once the jewel loan was closed, the bank strikes out the loan account across the loan application and cancel the promissory note as well. But in the present case they did not do so for reason best known to them.  Therefore, we are of the consider opinion that the opposite party did not issue any personal notice before auctioning the aforesaid jewels as contended in their written version and written argument, now they are coming new plea that the aforesaid jewels were returned to the complainant.  But the opposite party did not show any records to show that the jewels in so far as the loan account Nos.3617943229 and 3617941630  handed over to the complainant.  Further the opposite party is not consistency in their defense. Therefore, we find that there is an irregularity in their service.   Therefore, there is a deficiency in service on the part of the opposite party.   Hence, these Point Nos.1 and 2 are decided in favour of the complainant.

7. POINT NO.3:      As we have decided in Point Nos.1 and 2 that there is a deficiency in service on the part of the opposite party.  The opposite party is hereby directed to return the jewels of complainant in respect of loan No.3617943229 weighing 19.5 grams and 3617941630 weighing 48 grams jewels.  In the alternative, the opposite party is hereby directed to pay Rs.93,983/- (Rupees Ninety Three Thousand Nine Hundred and Eighty Three only) for jewel No.3617943229 and Rs.2,31,120/- (Rupees Two Lakh Thirty One Thousand One Hundred and Twenty only) for jewel No. 3617941630. In total Rs.3,25,103/- (Rupees Three Lakhs Twenty Five Thousand One Hundred and Three only) and to pay a sum of Rs.1,00,000/- (Rupees One Lakh only) as  compensation for deficiency in service and mental agony and also to pay a sum of Rs.25,000/- (Rupees Twenty Five Thousand only) towards cost to the complainant.  Hence, this Point No.3 is also answered accordingly.

8.     In the result, this complaint is partly allowed. The opposite party is hereby directed to return the jewels of complainant in respect of loan No. 3617943229 weighing 19.5 grams  and 3617941630 weighing 48 grams jewels. In the alternative, the opposite party is hereby directed to pay Rs.93,983/- (Rupees Ninety Three Thousand Nine Hundred and Eighty Three only) for jewel No. 3617943229 and Rs.2,31,120/- (Rupees Two Lakh Thirty One Thousand One Hundred and Twenty only) for jewel No.3617941630. In total Rs.3,25,103/- (Rupees Three Lakhs Twenty Five Thousand One Hundred and Three only) and to pay a sum of Rs.1,00,000/- (Rupees One Lakh only) as  compensation for deficiency in service and mental agony and also to pay a sum of Rs.25,000/- (Rupees Twenty Five Thousand only) towards cost to the complainant, within one month from the date of receipt of this order, failing which the above amounts shall carry interest at the rate of 9% per annum from the date of this order to till the date of realization.  In so far as the Jewel No.3459831170 & 3502398861 this complaint is dismissed.

Dictated to the steno-typist transcribed and typed by her corrected and pronounced by us in the open Commission on this the 10^th November 2022.

       Sd/-                                                          Sd/-                                                      Sd/-                                                                                                                               

MEMBER-I                                     MEMBER – II                                    PRESIDENT

LIST OF COMPLAINANT SIDE DOCUMENTS:

Ex.A1-01.06.2015 – Copy of Central Bank of India jewel loan receipt

Ex.A2-26.11.2015 – Copy of pledge jewel receipt

Ex.A3-19.01.2017 -  Copy of pledge jewel two receipt

Ex.A4                   -  Copy of Acknowledgement card -2

Ex.A5                   -  Copy of Bank Pass book

Ex.A6                   -  Copy of auction notice

Ex.A7-18.02.2016 -  Copy of receipt interest paid

Ex.A8-01.06.2015 -  Copy of pledge jewel card

Ex.A9-23.09.2014 -  Copy of auction notice sent by the opposite party bank to the    

                               complainant

Ex.A10-13.04.2016- Copy of Auction notice

LIST OF OPPOSITE PARTIES SIDES DOCUMENTS:    

Ex.B1-12.08.2017 -   Office copy of the auction notice to the complainant

Ex.B2                   -   Copy of Acknowledgement card

Ex.B3-13.09.2017 -   Copy of Paper publication made in new India Express

Ex.B4-13.09.2017 -   Copy of paper publication made in Dinamani Tamil Daily

Ex.B5-12.08.2017 -   Copy of Auction details of the opposite party

Ex.B6-13.09.2017  -  Copy of paper publication original Tamil

Ex.B7-13.09.2017  -  Copy of paper publication original  English

Ex.B8-02.08.2017  -  Copy of office copy of the Auction notice to the complainant

Ex.B9-27.11.2018  -  Pay in slip original Loan No. 3617943229

Ex.B10-27.11.2018-  Pay In Slip  original closing loan No. 3617941630   

Ex.B11                  -  Copy of statement  A/c. 3459831170

Ex.B12                  -  Copy of Statement  A/c. 3617943229   

Ex.B13-19.06.2017-  Copy of Register note jewel loan

Ex.B14                  -  Copy of  Jewel loan application

Ex.B15                  -  Copy of Jewel loan application

Ex.B16                  -  Copy of statement of jewel received

    Sd/-                                          Sd/-                                                                         Sd/-          

 MEMBER –I                              MEMBER-II                                     PRESIDENT