ADV. RAVI SUSHA, MEMBER. Complaint for directing the opp.party to close the loan accounts, compensation and other reliefs. The averments in the complaint can briefly summarized as follows: The complainant is an agriculturalist. The complain ant in connection with his urgent financial needs availed a loan of Rs.85,000/- on 24.4.2006 and another sum of Rs.40,805/- on 10.5.2006 from the opp.party by pledging his gold ornaments by way of security. The amount was lent on condition to pay interest at the rate of 14.5% p.a. compounded with quarterly rats. Thereafter the complainant approached the opp.party on 23.4.2007 for closing the loan accounts and releasing the securities. The complainant was ready to repay the sum availed with interest at the agreed rate. But the opp.party claimed interest at the rate of 30% p.a. for the entire advances and did not incline to close the accounts and release the securities unless interest is paid at the exorbitant rate. In spite of repeated requests and demands the opp.party did not heed to close the accounts and release the securities by accepting interest at the contract rate. On 30.1.2008 the complainant approached the opp.party for closing the accounts, but the opp.party has claimed Rs.45,713/-towards interest for 21.5 months on the loan of Rs.85,000/- availed on 24.4.2006 and Rs.21,190/- for 20.5 months on Rs.40,805/- availed on 10.5.2006. The complainant is ready to pay interest at the agreed rate all the time. Since the opp.party is claiming interest at oxorbitant rate the complainant is not able to close the account and release his securities. Therefore there is deficiency in service against and the action of the opp.party is unfair trade practice. Hence the complaint. The opp.party filed version contending, interalia, that the complaint is not maintainable either in law or on facts. Neema Benefit Fund Ltd, Adoor is a Public limited , Nidhi company registered Under Section 620 A of Company Acts 1956 and the opp.party is one of opp.party’s several branches in Kollam District. The complainant is not at all a Pledgee of Neema Benedfit Fund Ltd. At the time of pledging the company is collecting an application for loan from the pledgees. This application form contains the details such as Gold loan No. Amount of loan, details of ornaments including its weight, maximum period of loan other terms and conditions applicable to the comp0any etc. The complainant signed this application form. At the time of releasing the pledge, the pledge should return this card. Here also we have issued the pledge card to the complainant and is still with the complainant. On 30.3.2007 when he approached the opp.party for pledging[Gold Loan No.17943], the opp.party informed him about the maturity period of these Gold loans and asked him to release On 12.4.2007 and 25.5.07 the opp.party issued notices in ordinary post to the complainant. The opp.party again given resisted notices on 3.5.07 and 8.6.07 to the pledge showing all details of auction. After receiving the registered notice the complainant came in the branch for pledging his other ornaments vide Gold Loan Nos. 19577 dt. 12.5.2007, 20128 dtd.25.5.2007 and 20536 dt. 5.6.07. All these times the opp.party have reminded him to release these pledges. In January 2008 when the market rate of the Gold increased suddenly at a very high range, this jeweler approached for releasing the pledge. By this time the articles were auctioned. After 15 days from the date of issue of registered letter, the pledge can be auctioned, as per the guideline issued by the Government of India. We have auctioned the above ornaments on 22.8.07. The complainant approached the opp.party for release of this pledge at a belated date as on 30.1.08 only ie. 20 months after pledging. By this time the pledge was auctioned. On completion of this period, the pledge can be disposed in public auction after giving a registered notice to the pledge There is no deficiency in service on the part of the opp.party. Hence the opp.party prays to dismiss the complaint. Points that would arise for consideration are: 1. Whether there is deficiency in service on the part of the opp.party? 2. Reliefs and costs. For the complainant PW.1 is examined. Exts. P1 and P2 are marked. For the opp.party DW.1 is examined. Exts. D1 to D10 are marked. POINTS: Here the opp.party has no case that the complainant is not a consumer within the purview of the Consumer Protection Act. Complainant’s case is that when he approached the opp.party for taking back the pledged articles the opp.party demanded exhorbitant rate of interest. According to the complainant the opp.party has no right to claim interest above the contract rate. Opp.party’s main contention is that as per notifications the period of loan should not be more than 12 months and if no repayment is made within 15 days of the issue of notice, the auction should be lheld and loan amount can be recovered. Complainant’s case is that as per the contract the opp.party is entitled to collect only 14.5% interest from the loanee but opp.party’s version is that they are entitled to collect 20% interest from the loanee. But on perusing the agreement Ext. D5 interest rate is not mentioned. In Ext. P1 series also interest rate is not mentioned. That shows that the opp.party has purposefully avoided to mention the rate of interest in those documents. As per Ext. D3 the opp.party is entitled to claim interest only 5% above the RBI rate. Opp.party argued that before the maturity period of loan, notices to this effect was served on ordinary post on 12.4.2007 and 25.5.2007 and again on completion of 12 months from the date of pledging auction notice showing the details of auction was sent on registered post on 3.5.07 and 8.6.07. Opp.party did not produce any evidence to show that they had sent notices to the complainant on ordinary post. For showing resisted post the opp.party produced copy of postal journal for registered notices Ext. D7 and acknowledgement card. Ext. D8 are produced. As the complainant did not produced the original of D7, it cannot be accepted. According to opp.party Ext. D8 evidenced that they have sent registered notices to the complainant showing the details of auction. But no copy of said notice is produced before the Forum. Then how the Forum can know that the opp.party had sent auction details to the complainant. The complainant is alleging that the opp.party did not mention any rate of interest chargeable for the loan amount. On verification of Ext. P1 series and D5 we find that there is no mention about the rate of interest. The said act of opp.party is none other than unfair trade practice. The opp.party has no right o collect exhorbitant interest from the complainant. Opp.party is entitled to collect only 5% above the RBI rate. On perusing the documents and oral evidence we find that there is deficiency in service and unfair trade practice on the part of opp.party. In the result the complaint is allowed directing the opp.party to close the loan amount of the complainant after recovering 14.5% per annum from the complainant from the loan date till 2.11.2009. [ the complainant date] and give back the pledged ornament to the complainant or in the alternative the opp.party is directed to pay the value of pledged gold articles at the present day market value after deducting the loan amount along with interest at the rate of 14.5% per annum from the loan date to 2.11.2009. The opp.party is also directed to pay Rs.1000/- as compensation Rs.1000/- as cost. The order is to be complied with within one month from the date of receipt of this order. Dated this the 23rd day of January, 2010. I N D E X List of witnesses for the complainant PW.1. – Jamal List of documents for the complainant P1. series – Pledged cards P2. – Interest slip List of witnesses for the opp.party DW.1. – Shiju Varghese List of documents for the opp.party D1. – Authorisation letter D2. – Gazette Notification D3. – Gazette notification D4. – Gazette notification D5. – Application D6. – Letter dated 25.8.09 D7. – Postal Journal D8. – Acknowledgement D9. – Attested copy of Auction Register D10. – Gold Loan Register | 
