DATE OF FILING :25/07/17 

IN THE CONSUMER DISPUTES  REDRESSAL FORUM, IDUKKI

Dated this the 28th day of September  2018

Present :

SRI. S. GOPAKUMAR PRESIDENT

           SRI. BENNY. K. MEMBER

CC NO. 148/2017

Between

Complainant       : Mathew V.M.,

                                                                           Vadackeparambil House,

                                                                           Pottenkadu Kara,

                                                                           Devikulam Taluk, Idukki District.

(By Adv: Lissy M.M.)

And

Opposite Party                                          :  The Manager,

                                                                        State Bank of India,

                                                                        Pottenkadu  Branch Pottenkadu P.O.,

                                                                        Devikulam Taluk, Idukki District.

(By Adv:K.V.Kurian)

 

O R D E R

   SRI. BENNY. K.  (MEMBER)

 

The case  of the complainant is that,  

 

Complainant had availed an agricultural gold loan of Rs.32,000/- on 31/01/2015 by pledging his 18.8 grams of gold ornaments.  The tenure of the loan was for 1 year.  In January 2017,  the opposite party charged Rs.2400/- as interest towards the loan,  the amount was debited from the complainant's account.  In February 2017, complainant approached the opposite party for closing the loan. Then opposite party told that the pledged article were auctioned.  The opposite party did not issued prior notice before the auction and also did not give back the balance amount after closing the loan is a gross deficiency in service.  The complainant is entitled to get back the gold ornaments, illegally auctioned and Rs.10,000/- as compensation. 

 

In their written version, opposite party had admitted that the gold loan as per the terms and conditions in the sanction letter dated 31/01/15.  Due to non payment of interest and principal the loan account turned into non performing asset (NPA).   The   opposite  party  was  intimated  this  matter   in

                                                                                                                          (Cont.....2)

-2-

 

various times including the letter No.589/15-16 dated 13/01/17 regarding auction of gold.  But the complainant did not turn up for closure/renewal of the loan, hence the bank published the auction notice in Mangalam Malayalam News papers dated 30/01/17.  The bank lawfully exercised the option of public auction of gold pledged after due notice and paper publication.

 

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

 

The complainant filed affidavit and Ext.P1 and Ext.P2 marked.  Opposite party filed written version along with documents.

 

The Point:    Heard, complainant had availed a agricultural loan of Rs.32,000/- on 31/01/2015 by pledging his 18.8 grams of gold.  Opposite party charged Rs.2400/- as interest towards the loan Ext.P2, complainant approached the opposite party for closing the loan account,  then opposite party told that the articles were sold in auction sale.  The pledged articles were sold by the opposite party without issuing prior notice, and did not give back the balance amount after closing the loan account, it is gross deficiency in service.

 

Complainant availed the loan for one year and the complainant had not produced any receipt showing the instalment payments and the loan agreement.  Due to non payment of interest and principal amount, the loan account turned NPA.  The opposite party was intimated this matter on  13/01/17 regarding auction sale (copy is produced along with written version) and this matter was published in Mangalam Malayalam news paper dated 30/01/17 copy produced).  After going through the records we the Forum find that the complainant is a chronic defaulter.  We find there is a deficiency in service from the opposite party is that they never return the balance amount after auction sale.  The gold was auctioned for Rs. 44,400/-.  The discharge amount is Rs.38,019/-.  Hence the balance amount is eligible by the complainant and the opposite party never produced any balance of statement of the loan transaction.

 

                                                                                                                           (Cont.....3)

 

-3-

 

In the result, the petition partially allowed, the opposite  party is directed to pay the balance amount Rs.6381/- to the complainant and also  directed to pay Rs.3500/- as cost and compensation for mental and financial loss, within 30 days from the date of receipt of the copy of this order, failing which this amount shall carry 12% interest per annum from the date of default  till the realization. 

 

Pronounced in the Open Forum on this the 28th day of September, 2018.

 

                                                                                                     Sd/-

                                                                                         SRI. BENNY. K.  (MEMBER)

                                                                                                             Sd/-

                                                                                    SRI. S. GOPAKUMAR (PRESIDENT)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

            

 

APPENDIX

 

Depositions :

On the side of the Complainant :

PW1               -Mathew V.M.

On the side of the Opposite Party :

Nil

Exhibits :

On the side of the Complainant :

Ext.P1            -  Agriculture gold loan token 

Ext.P2            -  Statement of account

On the side of the Opposite Party :

Nil.

 

                Forwarded by Order,

 

 

                     SENIOR SUPERINTENDENT