CONSUMER DISPUTES REDRESSAL FORUM, KOTTAYAM.

Present

Sri. Santhosh Kesavanath P. President

                                                                                                                             Sri. K.N. Radhakrishnan, Member

 

CC No.197/10

 

Monday the 12^th day of December, 2011

 

Petitioner                                                          : Muhammed.M.H

                                                                         Moolechalil,

                                                                         Nadackal, Kottayam.

                                                                         (Adv. Avaneesh.V.N)

 

                                                                      Vs.

 

Opposite party                                                 :   Branch Manager,

                                                                            Muthoot Finance Ltd

                                                                            MKS Building, Pvt.Bas Stand Road,

                                                                            Erattupetta PO

                                                                           (Adv.Joseph Thampan)

 

                                                                        ORDER

 

 

             Case of the petitioner, filed on 16/08/10, is as follows:-

            Petitioner availed a gold loan, for Rs.4,37,000/-, vide loan No.411, dtd 2/12/09, from opposite party. The period of repayment, according to the petitioner, is fixed as one year, interest rate is fixed as 17% per annum. On 16/6/10 petitioner received a registered notice stating that period of loan is over and the opposite party will sold the ornaments in auction. According to the petitioner act of opposite party amounts to deficiency in service, so he prays for compensation for Rs. 35,0000/- and Rs. 2500/- as cost of the proceedings.

            Opposite party entered appearance, filed version contenting that petition is not maintainable. According to the opposite party petitioner is not a consumer, interest of the loan at the rate 17% per annum is false. Petitioner availed the loan agreeing to repay the amount with interest at the rate of 15%. The scheme availed to the petitioner is Muthoot Vannijiya loan since there is heavy risk in advancing more amount risk interest is charged above the basic rate of 15% per annum. The risk interest will be low if loan is closed within the stipulated period. Petitioner is well aware of these facts. Opposite party demanded only loan amount and interest as per the terms and conditions of the loan receipts. As per the agreement petitioner agree to repay the amount at the rate of 15% per annum and risk interest at the rate of 15% per annum. As on 16/6/10 total amount was Rs.515309/-. According to the opposite party there is no deficiency in service on their part and they pray for dismissal of the petition with their costs.

Points for determinations are:

i)                    Whether there is any deficiency in service on the part of opposite party?

ii)                   Reliefs and costs?

            Petitioner alleges deficiency in service on the following grounds:

a)      According to the petitioner the period of loan is one year hence the issuance of the notice before one year is illegal.

b)      Petitioner is only liable to pay 17% interest for the loan amount.

According to the opposite party as per the agreement petitioner is liable to pay 15% interest for loan amount and 15% interest as risk interest since the loan availed is Muthoot Vannijiya loan. Receipt issued by the opposite party is produced and the same is marked as Ext.A1. From Ext.A1 it can be seen that the loan was availed on 2/12/09. In the reverse side of Ext.A1, as first clause it is stated that for one year 17% interest is levied by the company.   Ext.A2 is the notice issued by the opposite party to the petitioner dtd 15/6/10 said document is marked as Ext.A2. In Ext.A2 it is stated that since one year term is over. Opposite party is going to conduct auction for the pledged gold ornaments`. From Ext.A2 it can be seen that the notice was issued after 6 month of availing the loan. From Ext.A1 and A2 it can be seen that the period of the loan is one year and the rate of interest is 17%, for one year.   In the reverse side of the Ext.A1 as clause (1) there is mentioning of risk interest. But in the portion stating risk interest of this particular loan is kept blank. In our view issuance of the notice and claiming huge interest other than the agreed interest amounts to deficiency in service, so point no.1 is found accordingly.

            In view of the findings in point no.1 petition is allowed. 

            Opposite party is directed to return gold ornaments to the petitioner on payment of principle amount with 17% interest per annum. Considering the facts and circumstances of the case no cost and compensation is order. Order shall be complied with within one month of the receipt of a copy of the order. If the order is not complied as directed petitioner entitled for 10,000/-rupees as compensation.

Dictated by me transcribed by the Confidential Assistant corrected by me and pronounced in the Open Forum on this the 12^th day of December, 2011

 

Sri. Santhosh Kesavanath P. President              Sd/-

Sri. K.N. Radhakrishnan, Member                                Sd/-

 

 

Ext.A1-Receipt dtd 2/12/09

Ext.A2-letter issued by the opposite party to the petitioner dtd 15/6/10

Ext.A3-loan statement.

Nil