IN THE CONSUMER DISPUTES REDRESSAL FORUM, ALAPPUZHA
Monday the 31st th day of January, 2011
Filed on 27.02.2008
Present
- Sri. Jimmy Korah (President)
- Sri. K. Anirudhan (Member)
- Smt. Shajitha Beevi (Member)
in
C.C.No.40/2008
between
Complainant:- Opposite Party:-
Sri. Muhammed Riyad The Chief Executive Officer
Puthenpurackal House Alappuzha Urban Co-operative
Zacharia Ward, Alappuzha West Village Bank Ltd. No. A- 67
Alappuzha Alappuzha
(By Adv. B.Somanadha Kurup) (By Adv. C. Parameswaran)
O R D E R
SRI. K. ANIRUDHAN (MEMBER)
Sri. Muhammed Riyad has filed this complaint before the Forum against the opposite party, alleging deficiency in service. The brief facts of his complaint are as follows:- He had applied for a loan of Rs.25,000/- from the opposite party for his business propose and that the opposite party had sanctioned the amount vide No. BL5/0304 on 5.3.2004. e had He He had executed the loan agreement for the said amount on 19.3.2004. He had put orders for purchasing the materials from Ernakulam. But the opposite party had disbursed only Rs.15,000/- to him instead of Rs.25,000/- sanctioned, and he signed the receipt for Rs.25,000/- . The loan amount was to be repaid through collection agent at the rate of Rs.50/- per day and opposite party promised to pay the balance amount of Rs.10,000/- later. But the opposite party had not released the balance amount of Rs.10,000/-. Due to the discontinuing of the collection agent, he could not remit the amount properly and the amount was in arrear. Since the opposite party had not turned up to release the balance loan amount, his business was effected and sustained mental agony. Opposite party filed ARC No.131/2006 and obtained an award for the said amount, and after that through a Revision Petition No.191/2006 before the Co-operative Tribunal, Trivandrum obtained an order vide dt. 19.9.2007 reducing the rate of interest, after allowing him to repay the amount by the equal installments. There is violation of natural justice and deficiency in service on the side of the opposite party. Hence this complaint seeking relief.
2. Notice was issued to the opposite party. They entered before the Forum and filed version to the complaint.
3. In the version filed by the opposite party, it is stated that the Forum has no jurisdiction to entertain the complaint. It is admitted that the complainant had applied for a loan from them and that there was no proper a/c book maintained by the complainant and no invoice of goods purchased before them and the complainant was not found entitled to the loan of Rs.25,000/-. They had sanctioned a loan of Rs.15,000/- vide Resolution No.311 of the Loan committee dt. 11.3.2004. It is further stated that he had executed the document – promissory note – along with him and sureties on 19.3.2004 for the amount of Rs.15,000/- and denied the allegation of the said loan of the Rs.25,000/- and he had to remit the loan amount at the rate of Rs.100/- per day. He was not even paying the above amount, after obtaining the loan amount. Even the pigmy account operated was closed and the amount was taken by him for his personal use, and they have not promised to pay any further amount to him. Since he ha defaulted the amount, they are forced to initiate arbitration proceedings, and that against the order of the arbitrator, had had filed Revision petition and got some order revising the interest and period of payment. It is further stated that he is arbitrarily fixing the amount due to them. There is no breach of promise and that there is no deficiency in service on their part.
3. Considering the contentions of the parties, this Forum has raised the following
issues for consideration:-
1) Whether there is any deficiency in service on the part of the opposite party?
2) Whether he complainant is bound to pay the balance outstanding loan amount to
the opposite party?
3) Compensation and costs.
4. Issues 1 to 3:- Complainant has filed proof affidavit in support of his case and produced documents in evidence – Exts.A1 to A8 and he has been cross examined by the opposite party. Ext.A1 is the terms and considerations of the said loan written in a plain paper. Ext.A2 is the letter dt. 30.6.2004 sent by the complainant to the opposite party. It is stated that the opposite party has to release the balance loan amount of Rs.10,000/- from the total sanctioned amount. Ext.A3 is the petition dt. 8.11.2004 sent to the Chie Minister, Kerala in connection with the loan sanction between the complainant and opposite party. Ext.A4 is the letter dt.10.11.2004 of the Joint Registrar (General) to the opposite party, in connection loan amount. Ext.A5 is the final proceedings dt. 24.3.2006 of the Asst. Registrar (General) vide ARC No.131/06. It shows the step to realise the balance outstanding amount having a sum of Rs.13,042/- together with interest from the complainant and surety..Ext.A6 is the original business loan pass book issued to the complainant by the opposite party vide A/c No.5/0304. It shows that amount issued was only Rs.15,000/- and shows the details of amount paid. Ext.A7 is the letter dt. 18.10.2008 issued by the opposite party to the complainant intimating the inability of the opposite party to furnish details required by the complainant, by RI Act. Ext.A8 is the order dt. 19.9.2007 of the Co-operative Tribunal in RP No.191/2007 filed by the complainant. The order shows that the opposite party is allowed to realize the award amount with future interest at 11% per annum for Rs.13,042/- from 1.11.2005 till date of realization of the entire amount, and that the complaints are allowed to discharge the above debt in 15 equal monthly installments, on failure of 2 consequent installments, the opposite party is at liberty to realize the entire amount in a lump.
5. Opposite party has submitted that they have no oral evidence, produced only one document marked the same through the complainant as Ext.B1. Ext.B1 is the original loan agreement dt. 19.3.2004 executed by the complainant and the sureties in favour of the opposite party for a total loan of Rs.15,000/-. The agreement further shows the rate of interest changed (14.5%) conditions for remitting the installments, action in case of any default. The deed further shows that the complainant and sureties have signed the agreement and it shows the details of resolution to sanction loan amount etc.
6. We carefully examined the entire matter of this case and perused the documents given by both sides in evidence; deposition of the complainant and heard the case in detail. The complainant had availed a short term loan of Rs.15,000/- from the opposite party, along with the sureties and executed the loan agreement on 19.3.2004 in favour of the opposite party. The agreement shows the rate of interest and mode of payment. The rate of interest from the said loan was 14.5% and it was for the business purpose of the complainant. Ext.B1 shows the above details. But the complainant had not remitted the said loan promptly and defaulted payment. It is alleged that the complainant had to get a further sum of Rs.10,000/- from the opposite party. But the complainant had not produced any document to show that the sanctioned amount of loan was Rs.25,000/-. Ext.A5, Ext.B1 and Ext.A8 shows that the total sanctioned amount was only Rs.15,000/-. So the allegations of the complainant has no locus standi; regarding the loan amount sanctioned. Since the complainant has defaulted payment and violated the agreement, the opposite party has taken steps to recover the balance loan amount by arbitration proceedings. In the said proceedings, vide No.ARC No.131/2006 of AR (General) Co-operative society, Alappuzha, there was an order that the complainant has to repay the sum of Rs.13,042/- with interest to the opposite party. This order shows that the sanctioned loan amount was Rs.15,000/-. Against the said order, complainant had filed RP No.191/2006 before the Co-operative Tribunal on 19.9.2007, and Co-operative Tribunal had ordered that the opposite party was allowed to realize the award amount with future interest at 11% per annum on Rs.13,042/- from 1.11.2005 till date of realization of the entire amount (Ext.A8). But the complainant had not complied with the said order. Alleging deficiency in service on the part of the opposite party, he had filed this complaint before the Forum on 27.2.2008 for a direction to the opposite party to release the balance amount of Rs.10,000/-. Considering the whole facts and circumstances of this case, we are of the view that the allegations of the complainant has no substance and it cannot be accepted as a reasonable facts in support of his allegations. He is bound to remit the balance outstanding amount with interest before the opposite party, as per the terms and conditions of the loan agreement (Ext.B1) and that the complainant and the sureties cannot escape from the liability. The opposite party is fully entitled to proceed against the complainant and the sureties to collect the balance amount now outstanding. The steps taken by the opposite party is fully based on the legal proceedings and it cannot be questioned in any way. There is no deficiency in service, latches or negligence on the side of the opposite party. There is no justification on the part of the complainant to deny the remittance of balance loan amount payable to the opposite party. Since the allegations raised by the complainant has no merit, we are of the strong view that the complaint is to be dismissed.
In the result, the complaint is dismissed. No order as to costs.
Pronounced in open Forum, on this the 31st day of January, 2011.
Sd/- Sri.K.Anirudhan:
Sd/- Sri. Jimmy Korah:
Sd/- Smt.N.Shajitha Beevi:
Appendix:-
Evidence of the complainant:-
Ext.A1 - Terms and conditions of the loan
Ext.A2 - Letter dt. 30.6.2004 sent by the complainant to the opposite party
Ext.A3 - Petition dt.8.11.2004 sent to the Chief Minister, Kerala
Ext.A4 - Letter dt. 10.11.2004 of the Joint Registrar (General)
Ext.A5 - Judgment – ARC No.131/2006
Ext.A6 - Original business loan pass book issued by the complainant by the opposite party
Ext.A7 - Letter dt. 18.10.2008 issued by the opposite party to the
Complainant
Ext.A8 - Order dt. 19.9.2007 of the Co-operative Tribunal
Evidence of the opposite party:-
Ext.B1 - Original loan agreement dt.19.3.2004
By Order
Senior Superintendent
To
Complainant/Opposite party/S.F.
Typed by:-pr/-
Compared by:-
