By Smt. C.S. Sulekha Beevi, President,<br /> <br /> <br /> 1. Bereft of unnecessary details the say of complainant is that he is earning his livelihood by conducting dry fish business by self employment. He availed loan from opposite party for the purpose of his business by pledging gold ornaments. That the time of availing the loan opposite party had assured that the interest charged is 8½% per annum. He availed a total amount of Rs.1,00,301/-. Due to financial stringencies he was unable to repay the amount. Thereafter he raised money by sale of his property and approached opposite party to close the loan. Though complainant tendered repayment of the loan opposite party claimed huge amount as dues and interest which complainant was unable to pay. On perusal of accounts he found that opposite party has charged interest @ 27%. Complainant requested to reduce the interest rate, and opposite party directed him to approach the Regional Office at Kozhikkode. Though complainant contacted the Manager of Regional Office directly and also gave a written request to redress his grievance no action was taken by opposite party in this regard. Complainant alleges that opposite party is trying to extract illegal and exhorbital interest and has committed deficiency in service. Hence this complaint to direct opposite party to accept repayment of loan with interest @ 8½ % per annum and to redeliver the pledged ornaments to the complainant and to pay compensation of Rs.50,000/-.<br /> <br /> 2. Opposite party has filed version specifically denying the allegations in the complaint. It is submitted that complainant approached opposite party on various occasions for gold loan. Opposite party granted loan on strict terms and conditions which were accepted by complainant by executing legal document. The total loan availed by complainant is Rs.2,01,800/-. The details of the loan with their number, amount and date are stated in the version. The condition of the loan was to repay the amount with interest within three months failing which penal interest will be charged. Complainant was aware of the terms and conditions while availing the loan. Complainant defaulted payment. Illegal or exorbitant interest was never demanded by opposite party. Complainant is continuing transactions with opposite party. That the complaint is filed on experimental basis and is to be dismissed.<br /> <br /> 3. Evidence consists of affidavit filed by complainant. Exts.A1 and A2 marked on his side. Counter affidavit filed by opposite party. Exts.B1 to B10 marked for opposite party. Either side has not adduced any oral evidence.<br /> <br /> 4. The main grievance of complainant is that at the time of availing the gold loan opposite party assured that the interest rate would be 8½ % per annum and later when he went to make repayment opposite party demanded high rate of interest. According to him opposite party demanded repayment @ 27%. These allegations are vehemently refuted by opposite party. It is seen that through in the complaint it is stated that the loan availed is Rs.1,00,301/- later in the affidavit complainant admits that the total loan availed is Rs.2,01,800/-. He shifts his contention in the affidavit stating that the interest demanded by opposite party is Rs.1,00,301/-. No documents are produced by complainant to support this contention. Exts.B1 to b8 are the pledge receipts produced by opposite party. As per these documents the loan availed by complainant is as follows:<br /> <br /> Gold loan No. Date Amount (Rs. Ps.)<br /> 2404 23-09-03 30,000.00<br /> 2350 18-09-03 9,000.00<br /> 2845 24-10-03 74,500.00<br /> 2910 29-10-03 22,800.00<br /> 2927 30-10-03 32,000.00<br /> 2999 04-11-03 2,500.00<br /> 3167 17-11-03 7,500.00<br /> 3169 17-11-03 13,500.00<br /> ------------------------<br /> Total 2,01,800.00<br /> <br /> 5. Admittedly complainant has not repaid the amount within time. In fact he does not have a case that he repaid a single penny. From the counter affidavit filed by opposite party it is seen that the pledged articles have been sold in 2005 itself and the amount has been adjusted to the outstanding dues of the complainant. The calculation stated by opposite party in the counter affidavit is as follows:<br /> Total loan amount : Rs.2,01,800/-<br /> Total interest : Rs.55,155/-<br /> Amount recovered in July 2005 by sale Rs.470 x 368.5 grams = Rs.1,73,195/-<br /> Amount recovered in October 2005 by sale Rs.510 x 76.5 grams = Rs. 39,015/-<br /> Total amount entitled by the opposite party : Rs.2,56,955/-<br /> Total amount recovered by sale of gold : Rs.2,12,210/-<br /> Total due to the opposite party after recovery by sale is : Rs.44,745/-<br /> 6. The above calculations reveal that opposite party has charged interest of Rs.55,155/- only and not Rs.1,00,301/- as contended by complainant. Per se the interest is not exorbitant or usorious. If the pledger makes default in payment of the debt or performance, at the stipulated time the pledgee has right to sell the thing pledged after giving reasonable notice of sale. The complainant does not have a case that opposite party did not issue him any notice. In fact he has admitted receiving repeated notices from opposite party. Further Ext.B9 and Ext.B10 are acknowledgement cards of registered letters send to complainant by opposite party. Thus it is clear that opposite party has already sold the pledged articles and has appropriated the proceeds to the outstanding dues of the complainant. Opposite party claims that an amount of Rs.44,745/- is still due from complainant even after sale of pledged articles. Ext.B1 to B6 reveals that complainant had availed the gold loan on a series of occasions and not on a single date. Opposite party contends that complainant is still continuing transactions with opposite party. For these reasons we are not able to accept the contention of complainant that he was made to believe that the interest rate is 8½ % per annum. In Ext.B1 to B8 the interest rate shown is 18%. Even then as per calculation submitted by opposite party we do not find the interest charged is on the high side. We have to therefore conclude that complainant has failed to establish a case in his favour.<br /> 7. Before parting with the case we cannot refrain from stating that though opposite party contends that the pledged articles were sold in 2005 it was very unfair on the part of opposite party not to state anything about the sale in it's version. Opposite party has not explicitly stated what is the interest rate charged or how the calculation for repayment is derived. Further opposite party has not produced any document to support the sale conducted regarding the date of sale, consideration of sale and details of buyer. Since the pledged articles are gold ornaments, which to common knowledge has only increased it's value every year it would not be proper for opposite party to recover the alleged balance of Rs.44,745/- without disclosing the full particulars of the sale. So far opposite party has not taken any steps for the recovery of the same.<br /> <br /> 8. From the above discussions we have to say that we do not find any merits in the contentions raised by complainant.<br /> <br /> 9. In the result, we dismiss the complaint. Parties are directed to suffer their respective costs.<br /> <br /> Dated this 19th day of September, 2008.<br /> <br /> Sd/-<br /> C.S. SULEKHA BEEVI, PRESIDENT<br /> <br /> <br /> Sd/-<br /> E. AYISHAKUTTY, MEMBER<br /> <br /> <br /> APPENDIX<br /> <br /> Witness examined on the side of the complainant : Nil <br /> Documents marked on the side of the complainant : Ext.A1 and A2<br /> Ext.A1 : Photo copy of the request dated, 03-9-04 by complainant<br /> opposite party.<br /> Ext.A2 : Request dated, 18-8-06 by complainant to Regional Manager<br /> of opposite party.<br /> Witness examined on the side of the opposite parties : Nil<br /> Documents marked on the side of the opposite parties : Ext.B1 to B10<br /> Ext.B1 : GL No.0002350 dated, 18-9-03 for Rs.9,000/- by opposite party<br /> to complainant.<br /> Ext.B2 : GL No.0002404 dated, 23-9-03 for Rs.30,000/- by opposite party<br /> to complainant.<br /> Ext.B3 : GL No.0002845 dated, 24-10-03 for Rs.74,500/- by opposite party<br /> to complainant.<br /> Ext.B4 : GL No.0002910 dated, 29-10-03 for Rs.22,800/- by opposite party<br /> to complainant.<br /> Ext.B5 : GL No.0002927 dated, 30-10-03 for Rs.32,000/- by opposite party<br /> to complainant.<br /> Ext.B6 : GL No.0002999 dated, 04-11-03 for Rs.2.500/- by opposite party<br /> to complainant.<br /> Ext.B7 : GL No.0003167 dated, 17-11-03 for Rs.17,500/- by opposite party<br /> to complainant.<br /> Ext.B8 : GL No.0003169 dated, 17-11-03 for Rs.13,500/- by opposite party<br /> to complainant.<br /> Ext.B9 : Postal acknowledgement card from complainant to opposite party.<br /> Ext.B10 : Acknowledgement card from complainant to opposite party.<br /> <br /> <br /> <br /> Sd/-<br /> C.S. SULEKHA BEEVI, PRESIDENT<br /> <br /> <br /> Sd/-<br /> E. AYISHAKUTTY, MEMBER