IN THECONSUMER DISPUTES REDRESSAL COMMISSION, KOLLAM
DATED THIS THE 27th DAYOF FEBRUARY 2021
Present: - Sri.E.M.Muhammed Ibrahim, B.A, LLM. President
Sri.Stanly Harold, B.A.LLB, Member
CC.No.221/2019
B.Bhasi, Nandanam,
Sneha Nagar 32 A.
KuttappalliKizhakkathil,
Kavalppura, EravipuramP.O.,Kollam Pin 691011.
(By Adb.M.P.SugathanChittumala) : Complainant
V/S
Manager,
Central Bank, M.C.No.815/625A,
Kadappakkada, Kollam (Kerala) : Opposite party
ORDER
Sri.Stanly Harold, B.A.LLB, Member
This is a case based on a complaint filed U/s 12 of the Consumer Protection Act 1986.
The averments in the complaint in short are as follows:-
The complainant is the holder of SB a/c No.3022959732 for the last 10 years in the opposite party bank. At the time of taking the account he submitted full postal residential address for communication in the account opening form along with the Mob.No.9388951179. He also submitted the photocopy of adhaar for communication as per request of the opposite party bank. The address mentioned in the adhaar card is B.Bhasi, Nandanam, Sneha Nagar 32 A, Kavalpura, Eravipuram, Kollam, Kerala 691011. The complainant has already pledged gold ornaments by way of gold loan for a tune of Rs.30,00,000/- during the last 10 years. Usually the bank intimates the complainant through telephone regarding the expiry of the loan period as well as issue intimation letter in the address produced by the complainant. So far,on all intimations the complainant used to go to the bank and clear the loan account by paying the principal and interest and on certain occasions he used to renew the gold loan by paying its interest. During this period one of the customers of the opposite party bank had taken a housing loan for the purpose of construction and as the complainant was the contractor the bankers cheque for about 20 lakhs rupees was issued to the said customer to the complainant who encashed the same through his account.According to the complainant if the address given by him before the opposite party bank was false and fake he would have faced difficulties to encash the aforesaid cheques in the bank transactions. Furthermore the complainant alleges that the bank was having no doubt regarding the address furnished by the complainant. While so on 27.12.2017 the complainant pledged a gold chain weighing 40 grams vide gold loan No.45/23/41 and availed a loan of Rs.82,000/-. The loan amount was calculated at the existing market rate of Rs.16,000/- per 8 grams. It is further alleged by the complainant that when he approached the bank on 13.08.2019 for the purpose of closing the gold loan account he was informed by the bank officials that the gold ornaments pledged by the complainant was already sold in auction. When the complainant informed the bank officials that he was not intimated about the fact of auction either through telephone or by way of letter the bank officials informed the complainant that they had issued 3 letters in the address of the complainant and the same werereturnwith endorsement ‘no such addressee’ and hencethe bank sold the said gold ornaments in auction. As far as complainant is concerned he had enquired this matter to the appraiser of the opposite party bank who usually used to call the complainant regarding the gold loan and the aforesaid person used to fill the application form with necessary details such as address for communication and after ascertaining the purity and weight of the gold ornaments, obtainedthe signature of the complainant in the proposal application form. According to the complainant, the said person used to call the customers and intimate about the expiry of gold loan before issuing the notice. It is further alleged by the complainant that most of the banks are following this practice of informing the customers regarding the gold loan unfortunately when the complainant enquired about the non-communication through telephone the officials from the bank informed that they have already sent 3 letters to the complainant and the same were returned. Hence they abstained from calling the complainant. It is further alleged by the complainant that at the time of auction the market price for one sovereign wasRs.28,500/- apart from making charges. The grievance of the complaint is that the gold ornaments pledged for Rs.82,200/-was sold by the bank when it was worth Rs.1,42,500/-+10 % making charges as per the then existing market price. According to the complainant the bank which had conducted auction has received illegal profit and if the complainant was given notice he would have got an opportunity to take back the ornaments pledged. The aforesaid act of the opposite party amount to clear case of deficiency in service and unfair trade practice.It is further alleged by the complainant that if the bank official has informed the complainant incorrect time and incorrect address for communication the complainant could have received the notice and taken back the gold ornaments pledged and there will not be any loss occurred to the complainant. According to the complainant the opposite party bank with a malifide intention has not complied with the statutory formalities before conducting the auction of the pledged gold ornaments and thereby the complainant sustained monetary loss and mental agony. Since the bank has not complied with the existing procedure with regard to gold pledging of ornaments the bank is liable to return the gold ornaments after receiving the principal amount and its interest. In the circumstances the opposite party bank is liable to give compensation for monetaryloss and mental agony for the complainant.Hence the complaint.
Though the notice issued has been served the opposite party bank has not appeared before the Forum nor filed any version. Hence the opposite party was set exparte.
The complainant filed affidavit by reiterating the averments in the complaint and got marked Ext.A1 to A5 documents. Ext.A1 is the copy of passbookissued by the opposite party bank to the complainant. Ext.A2 is the receipt received while pledging the gold ornament. Ext.A3 is the copy of aadhar card of the complainant. Ext.A4 is the election Id card of the complainant. Ext.A5 is the copy of driving license issued to the complainant.
The complainant appeared in person, heard the complainant and perused the records. The unchallenged averments in the affidavit coupled with Ext.A1 to A5 documents would establish the case of the complainant. It is true that complainant had pledged a gold chain of 40 grams on 27.12.2017 before the opposite party bank for Rs.82,200/- and when he approached the bank on 13.08.2019 for getting released the pledged gold ornament the opposite party bank refused to return the pledged ornament. According to the complainant the opposite party bank has sold the gold ornaments by way of auction without the knowledge or consent of the complainant and when the complainant enquired more the bank officials told him that they had sent 3 letters regarding the gold loan to the complainant. According to the complainant he did not receive any such letter from the bank. It is also brought out when the complainant asked the bank officials to show the last demand letter but they were not amenable and instead of it they had shown the file relating the pledge in which the address of the complainant is wrongly mentioned. However, the complainant would say that he had produced the correct address for communication to the opposite party. The unchallenged averments in the affidavitwould establish the case of the complainant that he had not received intimation from the bank.
It is to be pointed out that the complainant is customer of the bank for the last 10 years. It is pertinent to note that he had various transactions with the opposite party Bank till the sale of pledged gold ornaments. According to the complainant if the opposite party had made an effort to intimate the complainant about the gold loan and the rate of interest as well as the total amount to be paid by the complainant and about the proposed auction, he would have got an opportunity to take back the pledged ornaments. But the opposite party has failed to do so which caused monetary loss as well as mental agony to the complainant. However, it is clear that the gold ornaments pledged before the opposite party bank was sold in auction without giving intimation to the complainant which amounts to deficiency in service and unfair trade practice on the side of the opposite party Bank. Since the opposite party violated the statutory formalities regarding pledging of gold by not intimating the matter to the complainant in proper time they are liable to make amend the loss caused to the complainant.The main prayer in the complaint is to return the pledged gold ornaments after receiving the principal amount with interest which is practically not possible since even according to the complainant the pledged gold ornament was already sold in auction. Hence the bank is liable to pay the value of 40 grams of gold ornaments in the prevailing market rate as on the date of payment after deducting the principal amount, interest and penal interest if any as per the terms of the gold loan agreement. The complainant is also entitled to get compensation as prayed for.
In the result complaint stands allowed in the following terms.
- The opposite party bank is directed to return the value of 40 grams of gold chain in the prevailing market rate as on the date of payment after deducting its interest and penal interest if any as per the terms of loan agreement.
- The opposite party Bank is directed to pay compensation to the tune of Rs.1,00,000/- to the complainant.
- The opposite party Bank is directed to pay Rs.5,000/- as costs of the proceedings.
- Opposite party Bank is directed comply with the above direction within 45 days from the date of receipt of a copy of this order failing which the complainant isentitled to recover the same along with the interest at the rate of 9 % per annum for compensation from the opposite party and from its assets.
Dictated to the Confidential Assistant Smt. Minimol.S transcribed and typed by her corrected by me and pronounced in the Open Forum on this the 27th day of February 2021.
E.M.MuhammedIbrabim:Sd/-
StanlyHarold:Sd/-
Forwarded/by Order
Senior Superintendent
INDEX
Witnesses Examined for the Complainant:-Nil
Documents marked for the complainant
Ext.A1 : Copy of Passbook
Ext.A2 : Receipt of pledge gold ornament
Ext.A3 : Copy of adhaar card
Ext.A4 : Election ID card
Ext.A5 : Copy of driving license
Witnesses Examined for the opposite party:-Nil
Documents marked for opposite party:-Nil
E.M.MuhammedIbrabim:Sd/-
Stanly Harold:Sd/-
Forwarded/by Order
Senior Superintendent
