Complaint filed on: 27-07-2022
Disposed on: 13-12-2022
BEFORE THE DISTRICT CONSUMER DISPUTES
REDRESSAL COMMISSION, TUMAKURU
DATED THIS THE 13th DAY OF DECEMBER, 2022
PRESENT
SMT.G.T.VIJAYALAKSHMI, B.Com., LLM., PRESIDENT
SRI.KUMARA.N, B.Sc. (Agri), LLB., MBA., MEMBER
SMT.NIVEDITA RAVISH, B.A., LLB. (Spl)., LADY MEMBER
CC.No.117/2022
Sri,Ramesh Naika S/o Champla Naika
A/a 26 years, Upparahalli Thanda,
Nagalamadike Hobli, Pavagada Taluk,
Tumakuru District.
……………….Complainant/s
(In person)
V/s
The Manager,
Manappuram Finance Limited,
Bellari Main Road, Pavagada,
Tumkur District.
……………….Opposite Party/s
(OP By Sri. B.R.Prabulingamurthy, Adv.,)
:ORDER:
BY SRI.KUMARA.N., MEMBER
This complaint was filed by the complainant under Section 35 of the Consumer Protection Act, 2019, with a prayer to direct the OP to return the gold items i.e. 2pair ear rings, 01 ear reverse chain and 01 ring, totally 17.50 grams, net weight 16.902 grams pledged with the OP and also prays to direct the OP to pay Rs.1,00,000/- towards compensation for deficiency of service.
- The Opposite Party was, The Manager, Manappuram Finance Limited, Bellari Main Road, Pavagada, Tumakuru District. (Hereinafter called as OP).
3. It is the case of the complainant that the complainant, pledged gold ornamentals i.e. ear rings 2 pair, 01 ear reverse chain and 01 ring, which were weighing totally 17.50 grams, and net weight of 16.902 grams with the OP and obtained the loan of Rs.57,631=00 on 02.12.2020 and from that date to 13.12.2021, the complainant paid interest regularly. It is further case of the complainant, when the complainant went to pay the interest in the month of March last week; the Manager of OP informed that his pledged gold ornaments were auctioned on March 18 2022. The Complainant submitted that, the OP auctioned the gold ornaments without intimating the complainant, even though the complainant on 13-12-2021 paid the interest of Rs 3006=00 and up to this date interest paid regularly. The complainant ready to pay the loan amount and interest, and approached the OP, many times, the OP taken times to return the said pledged gold ornamentals but not returned the said gold ornamentals. The complainant further submitted that, the OP not given opportunity to the complainant, to participate in the auction of said pledged gold ornaments, hence, without any alternative, the complainant filed this complaint for deficiency of service against the OP.
4. After the service of the notice, the OP appeared through counsel and filed its version, admitting that the complainant approached the OP in the month of November 2020, for loan by pledging the gold articles weighing totally 17.50 grams, and net weight of 16.902 grams and at that time, the OP has explained the terms and conditions of the loan by the OP and thereafter the complainant agreed accordingly, the gold articles i.e. Drops and Studs 2 finger ring, studs 2, totally three items pledged with OP and obtained the loan of Rs.57,631=00 on 02.12.2020, under the pledge No.0103180700818274. The OP terms and conditions, which were accepted by the complainant was, the interest calculated per days 1-30 days is 25.75% P.A., 31-60 days is 27.5% P.A., 61-90 days is 29% PA, overdue interest was 3% P.A. It is further contended that the complainant has agreed to repay the said loan with interest on 01-3-12-2021, and there by OP to release the pledged gold articles, and on the last payment of the interest was Rs 3006=00 with the principle due amount was Rs.57,621=00. After the due date the officials of the OP, put effort to contact the complainant over the phone, the said phone number was given by the complainant, at the time of obtaining the loan amount from the OP, but the phone was switched off, and many times the officials of the OP visited the house of the complainant, which was his native place and explained the details with regard to the loan amount, interest and other details, but the complainant not responded. The OP issued demand and auction notice to the complainant, which was served, but, even after the service of the said notice the complainant has not come forwarded to clear the said loan amount along with interest, and as a last chance, the OP has issued a public notice of said pledged gold ornaments in the morning edition, in both the Kannada and English Language, which were published in New Indian Express (Bangalore edition) and Udayavani (Bangalore Edition) on 20-12-2021, where in fixed the auction of pledged gold ornaments on 18.03.2022, and in spite of it, the complainant has not responded, ultimately the said pledged gold ornaments were auctioned on 18.03.2022 for Rs.72,261=00, but the pledged settlement amount was Rs.64,652=00, accordingly by deducting the loan and other dues, surplus amount of Rs.7,535=00 transferred to the complainant. The complainant filed this complaint just to harass the OP. Hence, prays to dismiss the complaint.
5. The complainant has filed his affidavit evidence and marked the documents at Ex.P1 to P6. Sri.Gangadara .A. Area Head of OP filed affidavit evidence on behalf of OP and marked the documents at Ex.R1 to R10.
6. We have heard the arguments of complainant in person and counsel for OP. The points that would arise for determination are as here under:
- Whether the complainant proves the deficiency of service/unfair contract of OP?
- Is complainant entitled to the reliefs sought for?
- What order ?
7. Our findings on the aforesaid points are as follows:
Point No.1: Partly in the affirmative
Point No.2: As per the final order
:REASONS:
Point No.1 to 2:
8. The complainant argued that, even in spite of the, interest paid regularly, the OP without giving intimation / final notice of pledged gold auction dates, avoided the complainant to participate in the said gold auction, since the complainant ready to pay the loan amount along with interest The OP intentionally auctioned the pledged gold ornaments and made false assurance of returning the pledged gold ornaments by giving different dates, and made the complainant to suffer. The complainant prayed to allow the complaint and grant reliefs. The Complainant produced Ex P1, which was acknowledgement of OP, stating that Inventory No; IN03180700033082, where in 22 carrot total weight of 17.500 grams and Net Weight of 16.902 grams gold ornaments received ( pledged by the complainant) by with OP and Rs 57631=00 loan amount released to the complainant by the OP with interest of 28.04 pa. EX P2 and P3 were receipts of OP, where the complainant paid interest, EX P4 and EX P5 were demand and auction notice of OP dated 08-03-2021 and 10-11-2021 and auction dates were 17-05-2021 and 17-01-2022 respectively. EX P 6 Statement of account of the complainant, which was maintained at OP.
9. The learned counsel for the OP, argued that, the complainant inspite of several notice, even after the paper publication regarding pledged gold ornaments auction, not responded and the complainant accepted by signing the forms of the OP terms and conditions at the time of availing loan by pledging gold ornaments. As per the policies of the company, the OP auctioned the pledged gold ornaments of the complainant by following procedures, after deducting loan over due, surplus amount transferred to the complainant, hence as there is no deficiency on the part of OP, prayed to dismiss the complaint. The OP counsel produced EX R1, which was acknowledgement of OP, stating that Inventory No; IN03180700033082, where in 22 carrot total weight of 17.500 grams and Net Weight of 16.902 grams gold ornaments received ( pledged by the complainant) by with OP and Rs 57631=00 loan amount released to the complainant by the OP with interest of 28.04 pa, EX R2, filled loan application form by the complainant, EX R3 and EX R5, were demand and auction notice of OP dated 08-03-2021 and 10-11-2021 and auction dates were 17-05-2021 and 17-01-2022 respectively. EX R4, statement of account, EX R6 and EX R7, acknowledgements, EX R8 and EX R9, relevant documents and EX R10, news paper publication, INDIAN EXPRESS English daily dated 20-12-2021.
10. In this case, the OP engaged in the business of providing loans against the pledge of gold ornaments, accordingly, the complainant approached and obtained the said loan of Rs.57,621=00 by pledging gold ornaments (03 items) weighing 17.5 grams (Net weight of 16.902 grams) which was 22 carrot purity (Ex.P1 & Ex.R1) on 02.12.2020 with annualized interest rate @ 28.04 PA. The terms and conditions of the said loan were accepted and signed by the complainant, required the full repayment on or before 12 months i.e. 01.12.2021, failing which the pledged item would be sold by the auction (ExR2). The complainant and OP not disputed that, the complainant obtained the said loan by pledging the gold ornaments by accepting terms and conditions of the OP.
11. The complainant and OP produced Ex.P4, Ex.P5 and Ex.R3 and Ex.R5 respectively, which were demand and auction notices served to the complainant, wherein demand and auction notice of OP dated 08-03-2021 and 10-11-2021 and auction dates were 17-05-2021 and 17-01-2022 respectively, in turn the complainant responded to the said notices and paid the interest to the OP, i.e. Rs.3,027=00- on 08.03.2022, Rs.1,641=00 on 13.03.2021, Rs.1,575=00- on 20.04.2021, Rs.4,018=00 on 06.08.2021, Rs.1,610 =00 on 11.08.21021 and Rs.3,006=00 on 13.12.2021. Thereafter, the complainant not paid the interest and principal amount to the OP. even though it is a duty which is, as agreed by the complainant at the time of obtaining the said loan. The complainant contended that thereafter i.e. 13.12.2021 there was no valid notices (Demand and auction Notices, Final Notice) by the OP, before fixing the date of said auction of pledged gold ornaments, to prove this, OP not produced material on record related to such notices were served and which were received by the complainant.
12. on perusal of the Ex.R10, which was paper publication dated: 20.12.2021 Indian Express English, daily which was common publication given, but not individual publication relating to the auction of pledged gold ornaments of the complainant. The complainant residing in rural/ remote village and that the said paper circulation may not be reached the complainant. In view of the lack of proper notice, with acknowledgment, it cannot be said that there is no deficiency of service on the part of OP. In the event of not giving proper notice, even though complainant has got right to participate in the auction of the pledged gold to get release the gold ornaments, such an opportunity was lost by the complainant and thereby complainant suffered.
13. The complainant agreed to pay the principal amount along with interest within stipulated time as agreed at the time of availing the said loan by pledging three items of gold ornaments. The complainant paid the interest up to 13.12.2021, but not paid the principle / loan amount..
14. The OP on 18.03.2022 (Ex.R6, Ex R4 and Ex.P6) auctioned the complainant pledged gold ornaments for Rs.72,261=00, and by deducting the loan amount, interest and other charges totaling to Rs 72,261=00, remaining surplus amount transferred to the complainant account, but on that day the existing gold rate was Rs. 4,745=00 (www.thehansindia.com) per gram, for 17.5 grams, which work out to Rs.83,037=00, thereby the complainant sustain loss of Rs.10,077=00.
15. In the above discussion, this Commission is in the opinion of there is a deficiency on the part of OP and thereby the OP is liable to pay compensation to the complainant. Hence, we proceed to pass the following:-
The complaint is allowed in part.
The OP is directed to pay Rs 10,776=00 with interest @ 9% PA from 18/03/2022 i.e. Date of auction) to till realization.
The OP is further directed to pay Rs.5,000/- as compensation and Rs.5,000/- as litigation cost to the complainant.
The OP is further directed to comply the above order within 45 days from the date of receipt/knowledge of the order. Otherwise it carries Rs 150=00 per day after lapse of 45 days.
Furnish the copy of order to the complainant and opposite parties at free of cost.
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