Kerala

Idukki

CC/177/2018

Vinson P Varkkattu - Complainant(s)

Versus

Manager SBI T - Opp.Party(s)

Adv.K M Sanu

26 Dec 2019

ORDER

DATE OF FILING : 1.10.2018

IN THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI

Dated this the 26^th day of December, 2019

Present :

SRI. S. GOPAKUMAR PRESIDENT

SMT. ASAMOL. P MEMBER

CC NO.177/2018

Between

Complainant : Winson P. Varikkattu,

Varikkattu House,

Chilavu P.O.,

Alakkode, Thoudpuzha, Idukki.

(By Adv: K.M. Sanu)

And

Opposite Party : The Manager,

State Bank of India,

Thodupuzha Town Branch,

Sreevalsam Building, Thodupuzha P.O.,

Idukki.

 

O R D E R

SRI. S. GOPAKUMAR, PRESIDENT

 

Case of the complainant is that :

Complainant availed a gold loan from opposite party bank, by pledging his gold ornaments weighing 69.3 grams in the year 2017. When the loan was due, the opposite party bank issued a notice demanding the complainant to close the loan dues, in a post card on 1.9.2018. But the complainant was not in a position to close the gold loan due to the natural calamities and loss of his different types of cultivation. Due to the loss of crops, the complainant approached Government authorities for getting compensation.

 

The complainant further averred that, immediately after the receipt of the notice, the complainant approached opposite party bank and stated all these facts and prayed for extension of time. Moreover, he intimated the matter of moratorium in such types of loans declared by the government for a period of one year and opposite party is bound to extend the loan period or re-schedule the repayment.

 

Thereafter the opposite party again issued a notice on 17.9.2018, against the complainant demanding the loan amount with interest within 10 days from

the date of receipt of the notice, otherwise they will force to auction the gold

(cont....2)

- 2 -

ornaments. Complainant stated that such a demand of the opposite party is unfair trade practice, because it is against the direction of Kerala Government. Moreover, issuing notice in open post card caused much mental agony to the complainant and caused damage to the reputation of the complainant. Against the above said acts of the opposite party bank, complainant approached the Forum alleging deficiency in service and unfair trade practice, by seeking relief such as to direct the opposite party to extend the loan period and further direct them to pay compensation and cost.

 

Upon notice, opposite party entered appearance and filed detailed reply version by admitting the issuance of gold loan on 11.11.2017. Opposite party further contended that the loan was sanctioned for a period of 12 months, within which the complainant should have repaid or renewed the loan as per terms of sanction. But the complainant failed to do so, hence the opposite party had through letter dated 1.9.2018, requested the complainant to repay the loan amount.

 

Opposite party further contended that the relief measures for the flood affected areas in Kerala was made effective from 31.7.2018 till 31.10.2018, further extended to 31.12.2018. Instalment or interest due to the bank during the relevant period only was eligible for moratorium or restructuring. This scheme of moratorium was not applicable as far as the loan of the complainant is concerned. Opposite party further contended that upon receipt of notice dated 1.9.2018, the complainant approached opposite party and enquired whether he will get this benefits and the manager of the opposite party explained and convinced him the real situation and the complainant agreed to close the loan within one week. Since there was no further responses on the part of the complainant, opposite party issued next notice on 17.9.2018 intimating that the bank will be forced to sell the gold ornaments in auction in the event of failure to close the loan account. Opposite party further contended that there is no fault in sending the notice in a post card, since the post card is a mean of communication authorised by the Indian Postal Department. There is no express or implied contract for not using post card in the communication between the complainant and the opposite party. Hence there is no deficiency in service or unfair trade practice on the part of the opposite party. The complainant has no right to get any compensation from the opposite parties on any grounds.

 

Evidence adduced by the complainant by way of proof affidavit and documents. Complainant was examined as PW1 and Exts.P1 to P3 marked.

(cont....3)

- 3 -

Ext.P1 is copy of gold loan token. Ext.P2 is post card notice dated 1.9.2018. Ext.P3 is notice dated 17.9.2018. From the opposite side, except reply version, no further evidence adduced.

 

Heard.

 

The point that arose for consideration is whether there is any deficiency in service from the part of opposite party and if so, for what relief the complainant is entitled to ?

 

The POINT :- We have heard the counsels for both parties and had gone through the documents. It is an admitted fact that the complainant availed a gold loan of Rs.1,22,000/- by pledging her 69.3 gm of gold, from opposite party bank on 11.11.2017. This loan was sanctioned for a period of 12 months. But the complainant failed to renew or close the loan within the period as per the terms of sanction.

 

The reason for non-renewing or non-closing of the loan pointed out the learned counsel for the complainant is that, the complainant had lost all his crops due to the heavy flood and natural calamities happened during that period. Moreover, the bank has no authority to demand the loan dues, since the government declared moratorium in all types of loan during that period.

 

On the other hand, the learned counsel for the opposite party argued that relief measures for the flood affected areas in Kerala was made effective from 31.7.2018 till 31.10.2018, further extended to 31.12.2018. Instalment or interest due to the bank during the relevant period only was eligible for moratorium or restructuring. The scheme of the moratorium was not applicable as far as the loan of the complainant is concerned.

 

On going through the evidence on record, the Forum is of a considered view that, the version of the complainant that during the pendency of loan, he had lost all his crops due to the natural calamities and he approached the opposite party bank for restructuring the loan and extension of time is believable. Opposite party bank also admitted that the complainant was approached them and requested for some more time for closing the loan. As per the records, the complainant is ought to have close the loan on or before 11.1.2018 and bank issued notices on 1.9.2018 and 17.9.2018. From the records, it is seen that bank waited more than 9 months for closing the loan. But the complainant failed to do so. At the same time, it is also taken into

(cont....4)

- 4 -

consideration that relief measures for flood affected areas in Kerala was started from 31.7.2018 to 31.12.2018. No contra evidence is produced by the complainant to convince the Forum that the Government declared moratorium within the above said loan period, that is, from 11.1.2017 to 11.1.2018. Hence such a pleading of the complainant cannot be considerable. At the same time, opposite party bank can consider the prayer of the complainant to extend the time for repayment of the loan in a humanitarian ground.

 

On the basis of above discussion, the Forum is of a considered view that the complainant has got sufficient time to close the loan account in the light of the Interim Order he obtained from this Forum and allowing further time for closing the loan is unfair.

 

Hence the complaint allowed in part. Complainant is directed to close the loan account as per the statement of account of opposite party, within three months from the date of receipt of a copy of this order. No order to cost or compensation.

 

Pronounced in the Open Forum on this the 26^th day of December, 2019

 

Sd/-

SRI. S. GOPAKUMAR, PRESIDENT

Sd/-

SMT. ASAMOL. P., MEMBER

 

 

 

APPENDIX

Depositions :

Nil.

Exhibits :

On the side of the Complainant :

Ext.P1 - copy of gold loan token.

Ext.P2 - post card notice dated 1.9.2018.

Ext.P3 - notice dated 17.9.2018.

On the side of the Opposite Party : Nil.

 

Forwarded by Order,

 

 

SENIOR SUPERINTENDENT