CC Filed on 03.07.2010
Disposed on 13.04.2011
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, KOLAR.
Dated: 13th day of April 2011
PRESENT:
Sri. G.V.HEGDE, President.
Sri. T.NAGARAJA, Member.
Smt. K.G.SHANTALA, Member.
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Consumer Complaint No. 85/2010
Between:
Sri. Shivalingam. K., S/o. K.R. Krishnamurthy, 4th Cross, Gowripet, Kolar. (By Advocate Sri. Jayaram.G & others ) | ….Complainant |
V/S Keerthikumar Javarlal, New Bus Stand Road, Brahmin Street, Kolar. (By Advocate Sri. V. Sreedhara Murthy) | ….Opposite Party |
ORDERS
This is a complaint filed under section 12 of the Consumer Protection Act, 1986 praying for a direction against the opposite party to release the gold chain weighing 41.900 gms. pledged by complainant on receiving the amount due in respect of the loan transaction, in default to pay Rs.70,000/- towards the balance value of pledged gold chain and to pay compensation of Rs.5,000/- with costs, etc.
2. The material facts of complainant’s case may be stated as follows:
That the complainant on 13.08.2001 borrowed Rs.11,330/- from OP by pledging the gold chain weighing 41.900 gms with him. The OP had issued the Pawn Receipt on the same day. The complainant subsequently requested the OP for release of the said gold chain by tendering the amount due. It is alleged that the OP postponed to release the gold chain on one or other pretext, though the complainant was ready to pay the amount due under the transaction. Therefore the complainant filed the complaint on 03.07.2010.
3. The OP appeared through Counsel and contested the proceedings. He admitted the borrowing of the amount by pledging gold chain weighing 41.900 gms. and issuing of receipts as alleged by complainant. He contended that as per the terms of contract the complainant was liable to pay interest at 21% p.a. and the said term is mentioned in the Pawn Receipt and further that, the time for releasing the pledged article is 01 year 15 days as mentioned in the Pawn Receipt and that the complainant had not paid the interest regularly nor he offered to pay the amount due and did not ask for release of the pledged article. Further that as complainant failed to get release the pledged article within one year 15 days from the date of pledge, the OP is at liberty to forfeit the pledged article. He also contended that the complaint is barred by time.
4. The parties filed affidavits and documents. We heard the Learned Counsel for the parties.
5. After going through the relevant provisions of the Karnataka Pawn Brokers Act 1961 the Learned Counsel for OP did not press the defence that the complaint is barred by time and that the complainant was under an obligation to get release the pledged article within 01 year 15 days from the date of pledge. Section 11 of the said Act deals with redemption of pledge and Section 12 of the said Act deals with sale of pledged article. These provisions make it clear that the pledge can be redeemed by the borrower before the sale of pledged article. In the present case, it is not contended that the OP had sold the pledged article as per Law. Therefore we think the Counsel for the OP has rightly not pressed the above said defences.
6. The Learned Counsel for the OP submitted that complainant had not paid any interest from the date of pledge and that he was liable to pay interest at 21% p.a. on the amount borrowed. Therefore he submitted that if the principal and interest are paid the OP is ready to handover the pledged article. He relied upon the rate of interest mentioned in the Pawn Receipt, which states that the interest payable is 21% p.a. The Learned Counsel for complainant does not dispute that the complainant signed the Pawn Receipt and that the said receipt contains a term regarding payment of 21% interest p.a. However he contended that as per Sec-6 of the Karnataka Pawn Brokers Act 1961 the Pawn Broker can charge only 9% p.a. simple interest or at such other rate that the State Government by Notification may fix from time to time. He submitted that in the absence of production of any Notification issued by the State Government enhancing the rate of interest from 9% p.a. the Debtor is liable to pay only 9% p.a. simple interest. Therefore he contends that the term regarding interest stated in the Pawn Receipt is not valid and binding on complainant.
Sec - 6 (1) of the Karnataka Pawn Brokers Act 1961 is as follows:
6. Interest and charges allowed to pawn-brokers: (1) No pawn-broker shall charge interest in respect of a loan on a pledge at a rate exceeding nine percent per annum simple interest or at such other rate as the State Government may by notification fix from time to time.
7. The OP has not produced any Notification authorizing him to charge interest exceeding 9% p.a. Therefore we think the OP can charge only 9% p.a. simple interest on the amount lent. Admittedly on 13.08.2001 complainant borrowed Rs.11,330/- on pledging the gold chain weighing 41.900 gms. Therefore the interest payable from the date of loan till the date of order at 9% p.a. is Rs.9,857/-. The total amount payable towards principal and interest comes to Rs.21,187/-. Hence we pass the following:
O R D E R
The complaint is allowed with costs of Rs.1,000/-. The OP shall deliver the pledged gold article to complainant on payment of the principal and interest amounting Rs.21,187/- within six weeks from the date of this order. If for any reasons the OP fails to deliver the pledged article to complainant on tendering the said amount, the OP shall pay the present market value of the pledged article within one month from the date of such default to complainant with interest at the rate of 9% p.a. from the date of default till the date of payment.
Dictated to the Stenographer, corrected and pronounced in open Forum this the 13th day of April 2011.
MEMBER MEMBER PRESIDENT
