DISTRICT CONSUMER DISPUTES REDRESSAL FORUM: BHADRAK
Dated the 28th day of February, 2019
C.D Case No. 64 of 2017
Present 1. Shri Raghunath Kar, President
2. Shri Basanta Kumar Mallick, Member
3. Afsara Begum, Member
Pabitramanjari Panigrahi
W/o: Akhilesh Kumar,
Vill: Daulatpur (Part),
G.P: Daulatpur,
Ps: Tihidi,
Dist: Bhadrak ……………………. Complainant
(Versus)
India Infoline Finance Ltd.
12 A-10, 13th Floor, Parinee
Coeceseenzo, C-38 & C-39,
G. Block, Behind MCA, Bandra,
Kurla Complex, Bandra East,
Mumbai- 400051 and having
It’s Branch Office, At- Bhadrak, Gupta Complex,
By-pass, Po/Ps/Dist- Bhadrak
Represented through its Branch Manager,
At- Bhadrak, Gupta Complex,
By-pass, Po/Ps/Dist- Bhadrak
…………………………..Opp. Parties
Counsel For Complainant: Miss K. Behera & Others, Adv
Counsel For the OP: Sri A. Choudhery, Adv & Others
Date of hearing: 04.12.2018
Date of order: 28.02.2019
BASANTA KUMAR MALLICK, MEMBER
This dispute arises out of a complaint filed by the complainant alleging deficiency of service and unfair trade practice.
The facts of the complaint are that the complainant is a borrower under OP and had availed loan Rs 38,400/- & Rs 80,300/- dt. 08.05.2017 on pledge of 20gm & 41.40gm of 22ct gold respectively. That the OP has charged exorbitant rate of interest that is 22.68% per annum which is more than two times of the interest charged by S.B.I and other commercial banks and charging such rate of interest is not only illegal but contravening the settled position of relevant rules also. It is also stated by the complainant that in spite of the higher rate of interest, the complainant has paid Rs 2,290/- to the loan accounts as interest so far but the OP did not issue any money receipt in support of payment made by the complainant. On the other hand, OP deputed a group of persons who threatened the complainant at her door step to put the pledged gold ornaments to auction if the entire outstanding in the account is not paid within a shorter time. Further the OP also served loan recall notice on 20.09.2017 for an amount of Rs 86,503/- & Rs 41,487/- total of which comes to Rs 1,27,990/-along with other various charges within a period of 10 days failing which the gold so pledged would be put to auction. Under such situation the complainant, finding no other way, took shelter in this Forum praying for a direction to the OP to disclose the actual rate of interest charged on loan account which should be genuine and reasonable and calculate interest at the lower rate so as to enable the complainant and to pay cost and compensation for mental agony and harassment.
OP vehemently objected the claim of the complainant and contested the case. In submitting written version where in the OP has stated that the dispute is not maintainable in the present form as it relates to an accounting matter and the relation between the complainant and the OP is “debtor” and “creditor” and such case is not maintainable in the Consumer Forum as it contravenes the relevant provision of CP Act. Secondly this dispute lacks cause of action and the complainant is not coming within the meaning of CP Act. Furthermore the complainant has not come to the Forum in clean hands as he has suppressed the exact fact and has exaggeratedly narrated some imaginary and fake facts in the complaint. The OP has denied all the contentions as narrated in the complaint and had stated that the rate of interest charged by the OP was within the knowledge of the complainant when she executed relevant documents such as loan agreement etc and also she has agreed to all the terms and conditions as stipulated in the sanction latter. It is nothing but the only truth that the OP has not fluctuated rate of interest at the later stage what was agreed between the parties at the time of sanction and release of loan. The complainant has taken false plea in post disbursement period when the chapter of repayment of loan came. Apart from above the complainant has also grossly violated the agreed terms of the loan agreement. Further it is also stated by the OP that it is a Micro Finance Institution/Non-Banking Financial Institution operating its business by the guideline issued by R.B.I. Simultaneously R.B.I has also deregulated the interest rate for the M.F.Is fixing maximum rate of interest to be charged up to 26% per annum. Hence the OP has not violated the guideline/circular issued by R.B.I while fixing the interest in case of complainant. Hence the complaint filed by the complainant is bereft of merit and liable to be dismissed with cost.
Admittedly the complainant is a borrower of OP who has availed loan on pledge of gold ornaments. The sole allegation of the entire petition is that the complainant has charged 22.68% interest on the advance which is considered as illegal and exorbitant. We have gone through the complaint, written version of OP, heard the parties in the open Forum, perused materials on record and observed as follows.
On the point of maintainability, OP has submitted that it is a dispute between the complainant & OP whose actual relation is “debtor” & “borrower” respectively and that is why such a case is not maintainable in the Consumer Forum as provided in the CP Act. Secondly it is also observed that there is no cause of action and the OP is not deficient in providing service to the complainant at any point of time. Further it is also observed that as revealed from the sanction letter, the rate of interest has been mentioned as 22.68% per annum and subject to be cleared of in every three months interval. It is also seen from the record that the complainant has paid of Rs 2,290/- to the credit of the loan accounts till expiry of one year and because of that the loan account has become out of order and therefore there was no other way for the OP other than to put the gold ornaments on auction. Under such a situation the OP was compelled to depute its staff for personal contact of the borrower and served loan recall notice to the complainant stating that the ornaments would be put to auction if the amount is not paid together with interest within a period of 10 days from the date of receipt of this notice. Therefore we don’t find any fault with the OP that the said OP is deficient in providing service nor has resorted to any unfair trade practice. However in course of hearing the Forum orally requested the OP to consider reduction of rate of interest as 22.68% interest is too much for the complainant to pay. Hence it is ordered;
ORDER
The complaint be and the same is partly allowed without cost & compensation. OP is directed to reduce the interest whatever is outstanding as on the date of order by 50% and no penal interest and charges etc shall be charged and the OP is required to communicate a revised demand to the complainant within 15 days for final settlement of the loan account. The complainant is also directed to pay the entire amount of loan to the OP for closing of the loan accounts within 30 days from the date of receipt of revised demand failing which the OP is at liberty to put the gold to auction. This order must be complied within the time frame as mentioned above.
This order is pronounced in the open Forum on this day of 28th February, 2019 under my hand and seal of the Forum.
