Karnataka

Kolar

CC/44/2022

Sri.Munikrishna K.N - Complainant(s)

Versus

Fincare Small Finance Bank Ltd - Opp.Party(s)

S.Divakar

07 Feb 2023

ORDER

Date of Filing: 27/09/2022

Date of Order: 07/02/2023

BEFORE THE KOLAR DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, OLD D.C. OFFICE

PREMISES,KOLAR – 563 101.

 

Dated: 07^thDAY OF FEBRUARY 2023

SRI.SYED ANSER KALEEM, B.Sc., B.Ed., LL.B., …… PRESIDENT

SMT.SAVITHA AIRANI,B.A.L., LL.M., …..LADY MEMBER

CONSUMER COMPLAINT NO :: 44 OF 2022

Sri. Munikrishna.K.N,

S/o. Late Narayanappa,

Aged About 48 Years,

No.272, Behind Sathiamma Temple,

Upparpet, Kolar-563 101.

(Rep. by Sri. S. Divakar, Advocate)                        ….  Complainant.

 

- V/s -

1) FIN Care Small Finance Bank

Limited, 5^th Floor, Bren Mercury,

Kaikondanahalli, Sarjapur Main Road,

Bangalore-560 035,

Rep. by its Manager.

(Rep. by Sri.C.M.Niranjana Swamy, Advocate)

 

2) FIN Care Small Finance Bank

Limited, Gowripet Branch,

Next to Reliance Super Market,

Kolar Branch, Kolar District-563101.

Rep. by its Branch Operation Manager.

(Rep. by Sri.C.M.Niranjana Swamy, Advocate)    …. Opposite Parties.

-: ORDER:-

BY SRI. SYED ANSER KALEEM, PRESIDENT

01.   The complainant has filed this complaint Under Section 35 of the Consumer Protection Act 2019 against the OP Nos.1 & 2 alleging deficiency in service and pray to direct the OPs to permit / allow the complainant to pay simple interest @ 8.99% PA along with principal amount and to return back the entire gold ornaments pledged and not to raise any illegal demand claiming exorbitant rate of interest and penalty amount from the complainant and to pay a sum of Rs.50,000/- towards compensation for mental agony and to grant such other reliefs as this Hon’ble Commission deems fit.

2)  The brief facts of the complaint petition is that, during the 3^rd week of January 2022 the complainant had approached the Ops in order to obtain the loan by pledging his gold ornaments.  It is stated that, complainant after enquiring the rate of interest on the loan amount the Ops informed that, the rate of interest will be at the rate of 8.99% per annum, accordingly complainant by accepting the rate of interest borrowed the loan amount of Rs.14,90,000/- on 24.01.2022 by pledging his gold ornaments.  Further stated that the period of loan is 9 months and the due date is 24.10.2022 to redeem the gold ornaments.  The complainant stated that, he had already paid one month interest and after that he had not paid any interest till date. On 19.07.2022 complainant visited the OP office of Ops and enquired the full details of his loan account due and as such asked for the loan account statement and accordingly OP issued the total interest due till 19.07.2022 is of Rs.1,10,367/- and informed that interest due is of Rs.43,977/- and penalty charge of Rs.57,229/- for the late payment charges.  It is alleged that Ops have not given the detailed statement of calculation to show that, how is he liable to pay such huge amount of penalty charges with a malafide intention.  Further stated that, complainant is an illiterate person and having no worldly knowledge and taking the advantage of the same OP No.2 have furnished the wrong calculation contrary to RBI rules and regulations.  Thereafter complainant also got issued the legal notice to the Ops and the OP No.1 only given the untenable reply and hence alleging deficiency in service filed this complaint. 

03.   On issuance of notice from this Commission and the Ops were appeared through their counsel and despite sufficient opportunity Ops failed to file their version, under the circumstances version of Ops taken as not filed.  

04.   In order to prove the case of the complainant, the complainant has filed his affidavit evidence.  Further non filing of the version, the question of filing of affidavit evidence by the Op will not arise. 

 

05.        On the basis of the available pleadings on record the following points will arise for our consideration:-

(1) Whether the complainant is proved deficiency in service on the part of OP Nos.1 & 2?

(2) Whether the complainant is entitled for the relief as sought for in the complaint?

(3) What Order?

06.   Heard arguments of both parties.

07.   Our answer to the above points are:-

             POINT No.1:-     Is in the Affirmative

             POINT No.2:-     Is in the Affirmative

             POINT No.3:-      As per the final order

                                        for the following :-

5299419885.  

07.   POINT NO.1:-  On perusing the pleadings of the complainant, the documents placed on record and the oral arguments addressed by the counsel for OP Nos.1 & 2, it is an undisputed fact that, the complainant had obtained the Gold Loan of Rs.14,90,000/- on 24.01.2022 by pledging his gold ornaments and bearing ID No. 220000072302 and Loan Account No.22660000057993.  Further on perusal of document Nos.1 & 2 and these documents revels that, the complainant had obtained the loan amount of Rs.14,90,000/- on 24.01.2022 by pledging his gold ornaments as shown in the Document No:2 worth of total weight of the gold is 475.70 grams consisting of 08 items. It is also reveled in the Document No.2 that, the rate of interest is shown as 8.99% per annum and penal interest is shown at the rate of 1% per month.

 

08.        The main allegation of the complainant is that, when he was approached the Ops during the 3^rd week of January 2022 to know the outstanding due of the loan amount and sought for the detailed statement of the loan account in order to redeem the said pledged gold ornaments.  Further alleged that, Ops given the wrong statement and claiming interest to an extent of Rs.1,10,367/- till 19.07.2022 from the Ops.  In order to substantiate the case of the complainant the complainant has filed Document No.3 in support of his evidence.  On perusing the Document No.3 dated 19.07.2022, it discloses that, complainant fairly admitted that, he had paid only one month interest and in order to redeem the pledged gold ornaments and he demanded statement of interest pending with calculation in writing.  Further on perusal of Document No. 4 it discloses that, the OP Manager shown only the interest is of Rs.1,10,367/- out of which Rs.43,927/- is shown as interest due and penal charges shown as Rs.57,229/- it comes to Rs.1,01,156/- and hence the complainant had rightly contended that, there is a difference in calculation of the interest.  It is worth to note that, in the notice and in the request letter dated: 19.07.2022 as per document No.3 though complainant requested for detailed statement of interest pending with calculation in writing the OP given document No.4 not disclosing the calculation of interest in detail and it amounts to deficiency in service.  Further it is noteworthy to mention that, whenever the borrower approached the OPs, it is the duty of the OPs to made known to borrower the details of the interest of the loan and the penal interest before granting the loan as per the RBI circulars and guidelines.  However there is no record placed before us despite opportunity provided to the OPs to file their version, but for the reasons best known to the OPs and the Ops have failed to file their version and to provide details of the loan transactions along with the RBI guidelines and Circulars to ascertain the fairness of the OPs.  Whereas the complainant has not disputed the rate of interest i.e., 8.99% per annum and 1% penal interest per month as per the Document No.2 placed on record by the complainant. Further on perusal of Document No.2 complainant has rightly canvassed that, he is ready to pay interest at the rate of 8.99% per annum along with penal interest as agreed. The document No.2 is also disclosed that, the complainant has obtained the said loan for his business activity and hence as per Document No.2 i.e., Sanction – cum – Disbursal Order a copy issued to the complainant and the complainant has to abide by the interest part and penal interest shown in the Document No.2.  Whereas the OPs have failed to intimate the complainant what would be the penal interest when the complainant particularly failed to pay the monthly interest as per OP-Bank slab.  Further in order to substantiate the case of the complainant and the complainant counsel drawn our attention to the decision of the Hon’ble Tamilnadu State Consumer Disputes Redressal Commission, Madurai, it is decided in First Appeal No.162/2014 dated: 08.08.2022 between The Branch Manager, Muthoot Finance Private Limited Vs R. Satish Kumar.  The facts involved in the above decision also the similar facts in the present case on hand.  In the present case on hand the complainant also approached the OPs on 19.07.2022 to know the interest due and whereas the OPs failed to provide the  exact calculation of rate of interest to the complainant and demanded higher rate of interest and the same     set of facts involved in the above decision.  It is observed in the above said decision that the OP running a non-banking financial company under the guidelines of RBI and they have Web copy of guidelines issued by the RBI, wherein the RBI has given guidelines for processing of application and sanctioning of loan under the caption Fair Practice Code for NBFC’s wherein sub-clause (i) it has been mentioned that, “the application forms should include necessary information which affects the interest of the borrower so that, a meaningful comparison with the terms and conditions offered by the NBFC’s can be made and informed decision can be taken by the borrower”.  In that case OPs not clarified that they have obtained any loan application from the complainant or not and moreover in this particular case OPs have not submitted the detailed calculation of interest and agreements and other necessary documents to show their fairness.  When they have not filed any such documents it clearly proves the case of the complainant.  It is also observed in the said decision that, borrowers at the time of sanction of loan are not duly aware of the terms and conditions of the loan including the rate of interest either the NBFC’s does not provide details of the same or the borrower has no time to look in to detailed agreement.  It is understood that, in a few cases, borrowers at the time of sanction of loan are not duly aware of the terms and condition of the loan including rate of interest either the NBFC’s does not provide details of the same or the borrower has no time to look in to detailed agreement.  Accordingly, it was advised that, not furnishing a copy of agreement or enclosure quoted in the loan agreement is unfair trade practice and this could lead to dispute between the NBFC’s and the borrower with regard to terms and conditions on which the loan is granted.  The OPs failed to produce any documentary evidence that they have followed the guidelines issued by the Reserve Bank of India.  Furthermore non-furnishing the detailed statement of interest as per the calculation on the basis of RBI guidelines it is the clear fault on the part of the OPs and it obviously amounts to deficiency in service.  Accordingly we hold Point No.1 is in the Affirmative.

 

09.   POINT NO.2:-  Admittedly complainant had obtained the loan of Rs.14,90,000/- on 24.01.2022 and the complainant approached the OP on 19.07.2022 to know the status of the interest in order to clear the loan amount along with interest.  Whereas OPs given the statement of account as per Document No.4 dated: 19.07.2022 wherein which the rate of interest due is shown as Rs.1,10,367/- including interest and penal interest.  It is worth to mention that, the complainant himself has admitted that, he has paid only one month installment of interest and not paid the interest afterwards and approached the OPs on 19.07.2022 to know the details of the interest.  On fair calculation that the loan amount obtained is Rs.14,90,000/- and the interest at the rate of 8.99% Per annum is calculated for the tenure period of 09 months along with penal interest at the rate of 1% per annum and as there is no dispute the complainant has paid only month interest and the tenure of the loan is 09 months and he approached the OPs within the period of 09 months, hence complainant has to pay interest for remaining period of 08 months at the rate of 9.99% per annum including the penal interest.  Under the circumstances and on the basis of above calculation in the absence of the version of the OPs we reached to conclusion that, it is just and proper to direct the  complainant to pay principal amount of Rs.14,90,000/- along with interest of at the rate of 9.99% per annum to the OPs in order to redeem the pledged gold ornaments and the OPs are directed to redeem the gold ornaments pledged by the complainant by receiving the principal amount of Rs.14,90,000/- along with interest at the rate of 9.99% per annum from the date of sanction of loan to the complainant till the date of filing the complaint and to issue No Due certificate.  Accordingly we answered Point No. 2 is in the Affirmative.

 

POINT No.3:- 

10.   On the foregoing reasons assigned while answering Point Nos. (1) & (2) we proceed to pass the following:-

 

 

 ORDER

01.   The complaint is allowed with cost against OP Nos.1 & 2.

02.   The complainant is directed to pay the principal amount of Rs.14,90,000/- along with interest at the rate of 9.99% per annum to the OPs in order to redeem the pledged gold ornaments.

03.   Thereafter the OPs are directed to redeem the gold ornaments pledged by the complainant by receiving the principal amount of Rs.14,90,000/- along with interest at the rate of 9.99% per annum from the date of sanction of loan to the complainant till the date of filing the complaint and to issue “No Due certificate” in respect of the said gold loan to the complainant.

04.   The OPs are also directed to pay a sum of Rs.2,000/- to the complainant towards cost of the proceedings.

05.   Further the OPs are also directed to submit the compliance report before this Commission within 45 days from the date of the order.

06.   Send a copy of this order to both parties free of costs.

(Dictated to the Stenographer, transcribed by him, corrected and then pronounced by us on this 07^th DAY OF FEBRUARY 2023)

 

 

 

          LADY MEMBER                           PRESIDENT