Kerala

Idukki

CC/119/2021

Joby George - Complainant(s)

Versus

K L M Nidhi Ltd - Opp.Party(s)

01 Apr 2023

ORDER

DATE OF FILING : 16/08/2021

IN THE CONSUMER DISPUTES REDRESSAL COMMISSION, IDUKKI

Dated this the 1^st day of April 2023

Present :

              SRI.C.SURESHKUMAR                                               PRESIDENT

              SMT.ASAMOL P.                                                          MEMBER

              SRI.AMPADY K.S.                                                        MEMBER

CC NO.119/2021

Between

Complainant                            :   Joby George,

                                                     Valliyamthadathil House,

                                                     Pazhayarikandam P.O.,

                                                     Pazhayarikandam, Kanjikuzhi.

                                                          (By Adv.P.A.Suhas)

                                                           And

Opposite Party               :   1 . The Branch Manager,

                                                 KLM NIDHI Ltd., Mary Matha Building,

                                                 Kanjikuzhy P.O., Kanjikuzhy, Idukki District.

                                           2 . The Manager,

                                                 Astoria Nidhi Ltd., Mary Matha Building,         

                                                 Kanjikuzhy P.O., Kanjikuzhy, Idukki District.

                                                     (Both by Adv.Shiji Joseph)

                                           3 . The General  Manager, KLM NIDHI Ltd.,                 

                                                Kothamangalam P.O., Kothamangalam.                                                    

                                                             

O R D E R

SMT.ASAMOL P., MEMBER

 

Complainant filed this complaint under S.35 of Consumer Protection Act, 2019.  Brief facts of this complaint are discussed hereunder:-

 

1 . Complainant is a small farmer.  Complainant had pledged 238gm gold ornaments for Rs.10,19,900/- with 1^st opposite party institution.  Complainant’s father is suffering from cancer and the above said amount was taken for his treatment.  These gold ornaments were pledged by 7 times and

(Cont.....2)

-2-

 

received the loan amount on 11/08/2020, complainant has pledged the gold ornaments and the amounts such as Rs.1,69,400, Rs.1,94,600/-, Rs.1,91,700/-Rs.1,75,300/- and Rs.1,69,900/- were received.  Also, Rs.68,700/- was received on 13/08/2020 and Rs.23,300/- on 15/10/2020.  1^st opposite party has issued the receipts to complainant. Thereafter, opposite parties are illegally demanding exorbitant interest and penal interest for the loan amount.  2^nd opposite party has informed to complainant that if the amounts not paid, these gold ornaments will be transferred to 3^rd opposite party on 17/08/2021 and thereafter, on 18/08/2021, it will be auctioned.

Thereafter, on 26/07/2021, 2^nd opposite party has issued notices to complainant that which about the information of these gold ornaments were transferred to 3^rd opposite party and auction proceedings will be accepted forthwith.

Complainant was in financial difficulties due to lockdown related to Covid 19.  Therefore, complainant has demanded statement of account from opposite parties before selling these pledged gold ornaments instead.  But they didn’t give the statement of account till now.

These gold ornaments were pledged with 1^st opposite party institution.  But, 2^nd opposite party has issued the notices related to that.  It was not informed that the name of 1^st opposite party’s institution has changed as 2^nd opposite party.  2^nd opposite party has not issued any notices to complainant.  The notice was issued in the name of 2^nd opposite party for illegally takeover these gold ornaments with charged exorbitant interest.  This is unfair trade practice and service deficiency on their part.  Hence he has prayed the following reliefs.

 

(Cont.....3)

-3-

(a ) Opposite parties may be prevented from either transferring the pledged ornaments to 3^rd opposite party institution or taking the auction proceedings without duly notice to complainant.

(b ) Complainant should get interest exemption during Moratorium period under law.

(c )  Opposite parties may be prevented from charged illegal amounts such as interest, penal and compound interest.

(d )   Opposite parties may be directed to give balance statement which is accurately calculated the interests.

(e) Opposite parties may be directed to return the gold ornaments to complainant.

(f)  Opposite parties may be directed to pay Rs.25,000/- for mental agony and litigation expenses to complainant.

Complaint was admitted and upon notice,  1^st and 2^nd opposite parties have entered appearance through their counsel and filed details written version.  3^rd opposite party has not appeared.  The contentions of 1^st and 2^nd opposite parties are briefly discussed hereunder:-

1  .   Complaint is not maintainable either in law or on facts of the case.

2 . 2^nd opposite party is a Nidhi company registered under the Companies Act and working as per the government rules and regulations.

3 . It is true that complainant had pledged gold ornaments with 1^st opposite party on 11/08/2020, 13/08/20202 and 15/10/20202 for an amount of Rs.10,19,900/-.  Also it is true that opposite party has issued notice to complainant with demanding re-payment,  because, complainant has failed to re-pay the gold loan interest.

(Cont.....4)

-4-

4 . Opposite parties have given the gold loan form’s copy showing the details of the rate of interest.  The allegation is made for the purpose of evading repayment of the gold loan.

5 . Since complainant failed to renew the loan or to redeem the pledge in time, opposite parties has sent notice to complainant. 

6 . The averments that complainant has pledged gold ornaments in KLM Nidhi and the notice was issued by  2^nd opposite party with charging exorbitant interest and for taking possession of gold ornaments illegally is false, hence denied.  These ornaments can be released only if the loan accounts are settled.  The name of 1^st opposite party was changed after following the procedure prescribed by the company law.  Complainant was given proper notice to redeem the pledge, the opposite party not supposed to give notice regarding the change of its name to complainant.  The averment that by issuing the notice, opposite parties thus did unfair trade practice is false and hence denied.  2^nd opposite party is the free legal successor of 1^st opposite party and has every right to act for and on behalf of 1^st opposite party.

7 . Opposite parties are ready to abide the conditions stipulated by the government.  The interest rates for the loans are 20% and complainant agreed for that.  Complainant is also liable to pay interest and other charges during the default period.  Opposite parties are ready and willing to release the gold ornaments provided that it complainant remits the loan amount, interest and penal interest etc.,

8 . Opposite party is ready to give the benefits of Moratorium, if it is applicable to complainant’s case.  Complainant filed this complaint as an experimental  one.    There  is  no  deficiency  in  service  on  the  part of

 

(Cont.....5)

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opposite parties.  After availing the loan, complainant did not care to repay the same.

9 . Since there is no deficiency in service on the part of the opposite parties, complainant is not entitled for any relief as prayed for.

10 . Hence this complaint may be dismissed with costs of opposite parties.

After filing written version, the case was posted for complainant’s evidence.  No oral evidence adduced  by complainant.  Exts.P1 to P3 were marked on the part of evidence of complainant.  Opposite parties have also not  adduced any oral evidence.  Exts. R1 and R2 were marked on their part.

As per Ext.P2 series, it is seen that these notices were sent by 2^nd opposite party  on 26/07/2021.  But, it is mentioned in these notice that ‘Astoria Nidhi Ltd.,’ formerly known as KLM Nidhi Ltd.,  here, complainant has known about the name of 1^st opposite party was changed as 2^nd opposite party.  These notices were sent on 26/07/2021 ie, approximately by one year from the pledge date.  Complaint does not specify how much interest was demanded.  Therefore, allegation that exorbitant interest was demanded by opposite parties are vague and unconvincing.  We are of the opinion that since the loan was defaulted, opposite parties have issued notices to complainant that which informed about initiating the proceedings by them.  We have perused the documents which were marked  on the part of opposite parties.  As per Ext.R1, ie. Certificate of incorporation pursuant to change of name, name of 1^st opposite party was changed as 2^nd opposite party ie, Astoria Nidhi Ltd.,  therefore 2^nd opposite party has sent notices for settling the loan account of complainant.  This is not unfair trade practice on their part.  According to complainant, opposite parties are demanding penal and

 

(Cont.....6)

-6-

compound interest for settling his loan account and this is exorbitant than normal interest, moreover, opposite parties are not ready to give interest exemptions during moratorium period.  But, complainant has not adduced any evidence to show that either opposite parties has demanded exorbitant interest or he has paid any interest more than which was agreed as per Ext.P1 series or that inoperative lay off was not granted.  No accounts were produced or scrutinized.    Hence, deficiency in service on the part of opposite parties are not proved.  Moreover, it is proved that opposite parties have duly informed the complainant that if the loan accounts are not settled, auction proceedings would be initiated.  Complainant alleges that opposite parties were not ready to give the statement of account in which accurately calculated.  But, complainant has not stated that any amounts were remitted to his loan account.  Moreover, there was no application filed by him to opposite parties’ institution for getting the statement of account.  Hence we are of the opinion that complainant has not tried for either receiving statement of account or paying any amount to his loan account after availing this gold loan.  Complainant failed to prove the deficiency in service on the part of opposite parties. 

In the result, complaint is dismissed without cost.  Accordingly, stay granted in IA No.46/2021 in this case is also vacated.

Extra copies to be taken back by parties without delay.

 Pronounced by this Commission on this the 1^st  day of April, 2023.

 

                                                                                        Sd/-

                                                                                SMT.ASAMOL P., MEMBER                                                                                                            

                                                                                                 Sd/-                                                                      

                                                                        SRI.C.SURESHKUMAR, PRESIDENT                                                                                               

                                                                                                 Sd/-                                                                            

                                                                              SRI.AMPADY K.S., MEMBER

(Cont.....7)

-7-

 

APPENDIX

Depositions :

On the side of the Complainant :

Nil

On the side of the Opposite Party :

Nil

Exhibits :

On the side of the Complainant :

Ext.P1  -  KLM Nidhi Ltd., Receipts

Ext.P2  -  Letter from Astoria Nidhi Ltd., to Complainant dated 26/07/2021.

Ext.P3  -  Letter from Astoria Nidhi Ltd., to Complainant dated 30/07/2021.

On the side of the Opposite Party :

Ext.R1 – Certificate of Incorporation pursuant to change of name.

Ext.R2 series – Copy of KLM Nidhi Ltd., Receipts.

 

 

                                                                                               Forwarded by Order  

 

 

                                                                                          ASSISTANT REGISTRAR