Kerala

Idukki

CC/107/2020

Paulose MJ - Complainant(s)

Versus

KLM Nidhi Ltd - Opp.Party(s)

Adv: PA Suhas

11 Jan 2023

ORDER

DATE OF FILING : 25.8.2020

IN THE CONSUMER DISPUTES REDRESSAL COMMISSION, IDUKKI

Dated this the 11^th day of  January, 2023

Present :

SRI. C. SURESHKUMAR                   PRESIDENT

SMT. ASAMOL P.                             MEMBER

SRI. AMPADY K.S.                           MEMBER

CC NO.107/2020

Between

Complainant                                           :      Paulose M.J.,

                                                                   Mulekkarayil House,

                                                                   Thadiyampadu P.O.,

                                                                   Idukki.

          (By Adv: P.A. Suhas)

And

Opposite Parties                                     : 1. The Manger,

                                                                   KLM Nidhi Ltd.,

                                                                   KLM Tower College Road,

                                                                   Kothamangalam,

          Ernakulam – 686 691.

      2. The Manager,

                                                                   KLM Axiva Finvest

                                                                             (formerly needs finvest)

                                                                   Kattappana Branch, K.P. Building,

                                                                   Chennattumattam Junction,

                                                                   Kattappana P.O.

      3. The Branch Manager,

KLM Nidhi Ltd.,

Karimban Branch,

Karimban Bishop House Building,

Manippara P.O.

 

O R D E R

 

SRI. C. SURESHKUMAR, PRESIDENT

 

1. This is a complaint filed under section 35 of the Consumer Protection Act of 2019 (the Act, for short).  Complaint averments are briefly discussed hereunder :

 

Complainant and his wife have availed 4 loans from 2^nd opposite party, namely, Kattappana Branch of M/s. KLM Axiva Finvest, which is represented by its Manager in these proceedings.  Opposite party No.1 is KLM Nidhi Ltd. having its Head Office at Kothamangalam represented by its Manager and opposite party No.3 is Manager of Karimban Branch of 1^st opposite party.  4 loans availed by complainant and his wife

                                                                                                          (cont….2)

• 2  -

from 2^nd opposite party are KF 31/15, NKF 1/3, NKF 1/21 and NH 1-143.  These loans were cleared by complainant after availing a loan of Rs.5,50,000/-  numbered as NFT-20 from 3^rd opposite party. At the time of availing loan No.NH 1-143 from 2^nd opposite party, 2 blank cheque leaves were collected from one guarantor of the said loan, namely, Arogyadas, by 2^nd opposite party. Besides blank cheque leaves of complainant and his wife, documents relating to their property were also collected by 2^nd opposite party with regard to other loans also.  Though complainant had requested for statement of account relating to old loans availed from 2^nd opposite party, it was not given to him.  1^st and 3^rd opposite parties are sister concerns of 2^nd opposite party.  Now the opposite parties are trying to make unlawful gains by filing cases against complainant, his wife and their guarantors.  This would amount to deficiency in service on the part of opposite parties.  Hence complainant prays for a direction against opposite parties to return blank cheque leaves, property documents collected from complainant, his wife and guarantors at the time of availing loans and also for return of property documents including basic tax receipts.  He further prays for a direction against opposite parties to furnish statement of account relating to loan account of his wife and himself.  Complainant further prays for a compensation of Rs.25,000/- for deficiency in service and Rs.10,000/- towards litigation costs.

 

2.  Complaint was admitted and notice was ordered to opposite parties.  3^rd opposite party alone has appeared.  1^st and 2^nd opposite parties have not appeared, despite service of notice by registered post.  3^rd opposite party has filed written version contending as hereunder :

 

According to 3^rd opposite party, complaint is not maintainable in law or upon facts.  Complaint has no cause of action against 3^rd opposite party.  Opposite parties 1 and 3 are head office and branch office respectively.  2^nd opposite party is a sister concern of 1^st and 3^rd opposite parties and is a NBFC registered under the RBI as such.  2^nd opposite party is a different legal entity from 1^st and 3^rd opposite parties.  3^rd opposite party has no liability or responsibility for actions of 2^nd opposite party.  Complainant had availed loans from 2^nd opposite party, repayment of which was defaulted by him.  Though he had availed loan from 3^rd opposite party for clearing loan arrears due to 2^nd opposite party, averments that loan amount was not given to him by 3^rd opposite party are not correct.  A sum of Rs.5,50,000/- was availed by complainant as loan from 3^rd opposite party, on 8.1.2019, which was transferred to 2^nd opposite party as instructed by complainant.  However, 3^rd opposite party is not aware whether  entire loan arrears were cleared by that amount.  Complainant had agreed to repay Rs.5,50,000/- availed as loan from 3^rd opposite party in equated 20 monthly instalments each of Rs.35,200/- except last one, it being only Rs.27,885/-, if there was no default in repayment.  Out of total 20 instalments, complainant had paid only 9 instalments.  There is no payment from 8.10.2019 onwards.  As per statement of account, an amount of Rs.4,29,960/- is outstanding as on 19.9.2020.  As per loan agreement, complainant is liable to pay penal                                                                                                               (cont….3)

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interest for defaulted instalments.  Opposite party has not taken blank cheque leaves from complainant, his wife or guarantors.  Complainant in fact issued cheques duly executed towards repayment of loan amount.  It is incorrect to say that statement of account was not given by opposite party upon demand.    As repayment is defaulted, opposite parties have the right to take legal action against complainant and his guarantors for recovering the loan dues.  Present complaint is only an attempt to delay and obstruct recovery proceedings.  There are no allegations of deficiency in service or unfair trade practice on the side of opposite parties.  Complainant has no right to demand return of documents or security given, without clearing the loans.  Complainant has no cause of action.  Complaint is to be dismissed with costs and compensatory costs of opposite party.

 

3.  After filing of written version, case was posted for steps and then for evidence. Though repeated opportunities were given, complainant has not appeared or given evidence.  Since complainant has not tendered any evidence, opposite parties also have not given any evidence.  We have heard the learned counsel for opposite party alone, as the complainant or his counsel were not present.  Now the point which arise for consideration are :

1) Whether there was any deficiency in service ?

2)  Whether complainant is entitled for any reliefs prayed for in the complaint ?

3)  Final order and costs ?

 

4.  Point Nos.1 and 2 are considered together :

 

          According to complainant, he had cleared all the 4 loans taken by him and his wife from 2^nd opposite party after availing a fresh loan of Rs.5,50,000/- from 3^rd opposite party.  There is no evidence to show that all the 4 loans were cleared by complainant and his wife as contended by him.  He has further contended that blank cheque leaves were obtained from guarantor, himself and his wife in connection with earlier 4 loans taken from 2^nd opposite party.  There is no evidence in support of these contentions.  Even if property documents were obtained from complainant, his wife and guarantors as security for the loan, those cannot be considered as illegal or inappropriate actions from the side of 2^nd opposite party.  In so far as loan availed from 3^rd opposite party is concerned, no specific allegations are seen leveled against 3^rd opposite party as such, except that statement of account was not given to him by opposite parties when demanded.  There is no evidence to show that there was any demand for statement of account with regard to the new loan obtained from 3^rd opposite party or with regard to the old loans taken from 2^nd opposite party.  Complainant has no case that demand was made in writing.  No copies of any such demand given in writing are produced either.  To put it shortly, there is no evidence to show that there is deficiency in service or unfair trade practice on the part of opposite parties as such.  Complainant has no specific case of there being any demand for amount not legally due either. Hence, we find that there is                                                                                                                  (cont…4)

• 4  -

no deficiency in service from the side of opposite parties.  Therefore complainant is not entitled for any of the reliefs prayed for in the complaint.  Point Nos.1 and 2 are answered accordingly.

 

5.  Point No.3 :

 

          In the result, this complaint is dismissed, considering the circumstances, without costs.  Parties shall take back extra copies submitted, without delay.

 

                                Pronounced by this Commission on this   11^th  day of January, 2023

 

                                                                                         Sd/-

    SRI. C. SURESHKUMAR, PRESIDENT

                                Sd/-

 SMT. ASAMOL P., MEMBER

                          Sd/-          

SRI. AMPADY K.S., MEMBER

 

 

Appendix : Nil.

 

 

                                                                                      Forwarded by Order,

 

 

                  

                                                                               ASSISTANT REGISTRAR