Delhi

East Delhi

CC/40/2014

K. RANJANI - Complainant(s)

Versus

karvy financial services - Opp.Party(s)

09 Oct 2018

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM (EAST)

GOVT. OF NCT OF DELHI

CONVENIENT SHOPPING CENTRE, FIRST FLOOR,

SAINI ENCLAVE, DELHI – 110 092

 

C.C. NO. 40/14

 

Shri K. Rajan

S/o Shri Krishnamurthy

H.No. 80, Block No. 29

Trilok Puri, Delhi – 110 091                                                    ….Complainant

Vs.     

1. The Manager

Karvy Financial Service Limited

G-59, 1^st Floor, Main Vikas Marg

Laxmi Nagar, Delhi – 110 092

 

2. Karvy Financial Service Limited

Unit No. 762, 6^th Floor, Building No. 7

Solitaire Corporate Park

Andheri East, Mumbai -93

 

3. Group Office

46, Avenue 4, Street NO. 1

Banjara Hills, Hyderabad-34

Anddhra Pradesh                                                                       …Opponents

 

Date of Institution: 10.01.2014

Judgement Reserved on: 09.10.2018

Judgement Passed on: 15.10.2018

 

CORUM:

Sh. Sukhdev Singh (President)

Dr. P.N. Tiwari (Member)

Ms. Harpreet Kaur Charya (Member)

 

Order By: Harpreet Kaur Charya (Member)

 

JUDGEMENT

            This complaint has been filed by Shri K. Rajan against The Manager, Karvy Financial Service Limited (OP-1), Karvy Financial Service Limited (OP-2) and Group Office, 46, Avenue4, Street No. 1, Banjara Hills, Hyderabad (OP-3) under Section 12, of the Consumer Protection Act, 1986 with allegations of unfair trade practice and deficiency in service. 

2.         The facts in brief are that the complainant entered into an agreement with OP and availed gold loan on 11.08.2012 vide account no. PR00111635.  Total gold pledged with OP was 46.40 grams and pledged amount was Rs. 94,000/-.

            It was stated that the complainant paid monthly interest in September 2012, but due to some unavoidable financial constraints, he could not pay the interest from October 2012 to April 2013.  

            On 16.05.2013, the complainant visited the office of OP for repayment of interest amount as well as loan where he was told that due to non payment of interest, the pledged gold has been sent for sale by auction.  The complainant has stated that due date for payment amount was 05.08.2013, but OP conducted the auction sale prior to the due date and without giving any information or notice to the complainant.  

            It was further stated that the complainant sent a letter to OP expressing his willingness to pay the outstanding amount and to settle the loan for which he received a SMS from OP on 29.05.2013 at 11.32.05 AM stating “Dear Customer, your Karvy Finance Gold Loan account is due on 6^th June, 2013.  Kindly make arrangement for renewal/repayment.  Pls. ignore, if already paid”.  After receiving the message, the complainant approached the concerned branch where he was told that the SMS was simply sent to you from our Head Office.

            On 05.07.2013, the complainant received another SMS stating “Dear Customer, your Karvy Finance Gold Loan account is due on 6^th July, 2013, kindly make arrange for renewal/repayment.  Pls. ignore, if already paid”.  The complainant has further stated that if OP conducted the auction sale and closed the account, then the above messages would not be coming to his mobile.

            In reply to the letter of the complainant, a legal notice was sent by OP demanding the complainant to pay another Rs. 10,232/- for the losses suffered.  In reply to the said notice, the complainant sent a legal notice dated 15.07.2013 to OP, the reply of which notice was not satisfactory.  Hence, the complainant has prayed for directions to OP to return the gold which was pledged by the complainant; Rs. 2,00,000/- compensation for mental harassment and other losses and Rs. 11,000/- towards cost of litigation.

3.  

It was stated that as per clause 4 of the agreed terms and conditions, if complainant failed to make payment as per schedule then answering respondent had the right to sell the ornaments by auction at any point of time. They auctioned the ornaments of the complainant after compliance of all legal requirements on 27.04.2013 and after auction, a sum of Rs. 1,04,707/- was adjusted to the loan account of the complainant on 29.04.2013, but still there was a liability of Rs. 10,232/- as on 04.06.2013 towards the complainant.Other facts have also been denied.

4.         Rejoinder to the WS of OP was filed by the complainant where the contents of the WS have been denied and reaffirmed the averments of his complaint. 

5.         In support of its case, the complainant has examined himself.  He has deposed on affidavit.  He has narrated the facts which have been stated in the complaint.  He has got  exhibited the documents such as copy of pledged document dated 11.08.2012 (Ex.CW-1/1), copy of receipt        no. 027014 dated 10.09.2012 (Ex.CW-1/2), copy of treatment details of complainant (Ex.CW-1/3), copy of receipts showing that the complainant is a regular customer of OP (Ex.CW-1/4 colly.), copy of letter dated 17.05.2013 alongwith postal receipt (Ex.CW-1/5), copy of legal notice in reply to the letter of the complainant dated 04.07.2013 (Ex.CW-1/6), copy of legal notice dated 15.07.2013 alongwith postal receipt (Ex.CW-1/7) and copy of reply to the complainant’s legal notice (Ex.CW-1/8).

            No evidence was filed on behalf of Opposite parties  

6.         We have heard Ld. Counsel for the parties and have perused the material placed on record.  Perusal of record reveals that the complainant had taken gold loan for Rs. 94,000/- in lieu of pledged gold of 46.40 gm.  It is admitted fact that complainant paid interest of Rs. 1,450/- for the month of September 2012 and failed to pay subsequent payments from October 2012 to April 2013.  The complainant has placed on record the prescriptions and hospitalization record, which are irrelevant as the complainant is bound by the terms and conditions.

            If a look is made to the Ex.CW1/1 i.e. pledge document, it contains the terms and conditions, of which clause 4 and 5 reads as:-

Clause 4: In case the interest or the principle is not repaid within the due date or earlier as demanded by the company,  KFSL has the right to initiate legal proceedings auction the gold to set off the dues towards loan amount, interest and charges.  If the amount thus recovered is insufficient to cover the due amount, the shortfall will be recovered from the borrower personally or from his other personal assets.

Clause 5: Auction will be conducted for interest or principle overdue customers/loan outstanding exceeds 90% of the collateral value.  Sufficient notice will be provided to customer prior to auction.

            Thus, it was agreed between the complainant and OP that sufficient notice will be provided to the customer prior to auction, complainant has vehemently denied any such service and at the same time, OP has neither placed on record any such notice nor the proof of service to the complainant.  However, the OP with their WS have annexed copy of the newspaper publication in newspapers viz. Veer Arjun and Deccan Herald.  Perusal of the copy pertaining to the publication in Veer Arjun reveals that the loan account no. PR00111635 bears no mention in the said notice.  Even otherwise, OP did not file their evidence by way of affidavit in support of their averments.  Due to failure on part of OP to comply with the terms and conditions of the loan agreement, we hold that there was irregularity in serving the notice to the complainant.    

            Therefore, in the facts and circumstances of the present complaint, where the complainant himself was in default of payment as agreed, we direct M/s. Karvy Financial Services (OP) to compensate the complainant by paying Rs. 40,000/- on account of mental agony and harassment.  However, the prayer for return of gold pledged with OP cannot be allowed as the articles pledged have ceased to exist.    We also award Rs.5,500/- towards litigation expenses. 

            This order be complied within a period of 30 days from the receipt of order.  If not complied, the total amount of Rs. 45,500/- will carry 9% interest per annum from the date of order.

            Copy of the order be supplied to the parties as per rules.

            File be consigned to Record Room.

 

(DR. P.N. TIWARI)                                              (HARPREET KAUR CHARYA)

       Member                                                                             Member    

 

            (SUKHDEV SINGH)

        President