MR. BIBEKANANDA DAS, MEMBER:-           

                       This C.C.Case No. 39/2021 is taken up today for order. Heard the Ld. Counsel for the Complainant & gone through the written version filed by the Op. Perused the materials available on record.

Brief Fact:-

                     The Complainant’s husband mortgaged his gold ornaments before the Op who sanctioned a tune of loan amount of Rs. 1,21,187/- on mortgaged of 40.10 gm of gold. Another Rs. 10,500/- by mortgage of 3.70 gm. of gold & another loan amount of Rs. 51,000/- by mortgage of 20.30 gm of gold. The Complainant borrowed total to a tune of Rs. 1,82,687/- from the Op. Thereafter repaid the installments dues upto the month of June,2021 regularly. Unfortunately the Complainant’s husband died due to COVID-19 on dt. 02.08.2021. Being a widow she approached the Op several times to receive the balance loan amount with interest & return the mortgaged loan ornaments. But the Op could not comply the same & replied they have already auctioned the Complainant’s gold ornaments. Further, the Complainant visited the head office of the Op where they stated no auction was made against the said loan account. It is quite surprised to this Commission how the Op auctioned the said gold ornaments without prior notice to the Complainant, subsequently, the Op issued a letter stating therein that the said ornaments have already auctioned  & balance money of Rs. 208/- remained with the Op to pay the Complainant.

                     Being aggrieved by the illegal & arbitrary action of the Op against the principle of natural justice prayed for return of the gold ornaments & compensation to a tune of Rs.5,00,000/- for mental agony with litigation expenses. The Complainant is a consumer within the ambit of Sec-2(7) of C.P.Act, 2019 & the service provided by the Op is financing well described in the financial transaction in any form by the Op & the Complainant is a potential user of such service U/S-2(42) of C.P.Act,2019. Therefore, the Complainant is a consumer within the C.P.Act,2019. Due to death of the Complainant’s husband during COVID-19 all the banking institution had provisions for moratorium if not paid the installments the same can be payable subsequently with interest. The OP being a financial institution could have provided same benefit as per the RBI guidelines but failed to provide the same. The Op without issuing prior notice which is principle of natural justice auctioned the gold ornaments prejudiced the widow. On death of her husband during continuance of loan. The Op failed to follow the basic principle & caused irreparable loss & mental agony. This Commission being the primary jurisdictional quasi judicial body entrusted power/jurisdiction to grant relief when such injustice, illegality, arbitrariness caused to a consumer within its territorial as well as pecuniary jurisdiction.

1. The Complainant sent legal notice by Ld. Advocate Dillip Ku. Mohanty the same was refused to accept by the Op. Further the Op failed to explain with sufficient material about the sufficiency of prior notice on Complainant, no acknowledgment produced before this Commission. All the notices are without Postal receipt & created doubt that the same are after thought and manufactured after auctioned. The Op has not followed the proper procedure of auction of the mortgaged gold ornaments of the Complainant at the time of auction.
2. The Op made payment in toto Rs.1,82,687/- & as per the loan statement of Op submitted before this Commission the outstanding was Rs. 77,849.44 for which the Op auctioned all the ornaments in toto 64.10gm where present value Rs.2,87,000/- & making charge Rs. 32,000/- as per Complainant total to a tune of Rs. 3,19,000/- approximately.Therefore the Op caused irreparable loss to the Complainant such financial loss should be compensate by the Op equitably for end of justice unless the Commission redress the grievances then the Complainant being a poor widow shall suffer irreparable loss.
3. From the details discussion made above we are of the considered view that the Op shall either release the mortgaged gold ornament by receiving appropriate balance amount of Rs. 77,849/- upto date of auction i.e, 29.07.2021 or return the present market value of the gold i.e, Rs.3.19,000/-(mortgaged gold 64.10gm.) and a compensation of harassment & mental agony Rs. 20,000/- with cost of litigation Rs. 10,000/- to the Complainant.

                                                                         O R D E R

                     Taking into all the facts & laws involved in this case, this Commission directed the Ops to return the mortgaged gold ornament to the Complainant after receiving the balance loan amount of Rs. 77,849/- till the date of auction i.e, upto dt. 29.07.2021 or to refund an amount of Rs. 3,19,000/-with @18% P.A.(the present market value of the mortgaged gold of 64.10gm) with Rs. 20,000/- towards mental agony and harassment and so also Rs. 10,000/- for cost of litigation to the Complainant within a period of one month from the date of receipt of this order, failing which the Complainant is at liberty to file execution proceeding before this Commission.

                                               Issue extract of the order to the parties for compliance.           

                      Pronounced in the open Commission, on this the 30^th day of November,2022.  

                                                                    I agree,

                                 Sd/-                                                          Sd/-

                              MEMBER                                              PRESIDENT