IN THE DISTRICT CONSUMERS’ DISPUTES REDRESSAL FORUM AT MYSORE<br /> <br /> PRESENT: 1. Shri.A.T.Munnoli<br /> B.A., L.L.B (Spl.) - President <br /> <br /> 2. Smt.Y.V.Uma Shenoi<br /> M.Sc., B.Ed., - Member<br /> 3. Shri. Shivakumar.J.<br /> B.A., L.L.B., - Member<br /> <br /> CC 278/09 DATED 11.11.2009<br /> ORDER<br /> <br /> Complainant H.N.Nagendra, <br /> No.84/VRC, Yadavagiri,<br /> Mysore.<br /> <br /> (By Sri. M.Y.Kumar, Advocate)<br /> <br /> Vs. <br /> Opposite Party Manager, <br /> Manapuram Finance and Leasing Limited, Devaraja Urs Road, Mysore.<br /> <br /> (By Sri.S.Shivanna, Advocate)<br /> <br /> Nature of complaint : Deficiency in service<br /> Date of filing of complaint : 04.08.2009<br /> Date of appearance of O.P. : 28.08.2009<br /> Date of order : 11.11.2009<br /> Duration of Proceeding : 2 MONTHS 13 DAYS<br /> <br /> <br /> PRESIDENT <br /> <br /> <br /> <br /> MEMBER<br /> <br /> <br /> MEMBER<br /> <br /> <br /> Sri. A.T.Munnoli,<br /> President<br /> <br /> 1. The complainant has filed the complaint, seeking a direction to the opposite party not to charge and collect compound interest, but only simple interest and further, a sum of Rs.30,500/- towards the compensation etc.,<br /> <br /> 2. In the complaint, it is alleged that, the complainant pledged ornaments on 19.02.2008 and borrowed loan of Rs.5,700/- from the opposite party, for a period of one year. After one year, the complainant either was to renew the loan paying the interest or get the pledged ornaments back paying the amount due. Due to pressure of work, complainant did not approach the opposite party in time. After lapse of four months, when the complainant approached the opposite party, he demanded compound interest. Demand of compound interest, is illegal and contrary to the Money Lenders Act. Opposite party has not replied the letter of the complainant. There is second instance of demand of compound interest by the opposite party. The opposite party is cheating the customers. Hence, it is prayed to allow the complaint.<br /> <br /> 3. The opposite party in the version, has contended that, complainant is not the customer and there is no deficiency in service. In case of default, penal interest is charged. Complainant even has not paid the interest on the loan borrowed. He has executed loan documents undertaking to pay compound and penal interest, in case of default. The demand made is, as per the terms and conditions of the loan.<br /> <br /> 4. Both parties have filed affidavit in support of their respective contentions. Also, written arguments are filed. Further, we have heard the arguments and perused the records.<br /> 5. Now the points arises for consideration are as under:-<br /> 1. Whether the complainant has proved any deficiency in service on the part of the opposite party and that he is entitled to any relief?<br /> 2. What order?<br /> <br /> 6. Our findings are as under:-<br /> Point no.1 : Negative.<br /> Point no.2 : As per the order.<br /> <br /> REASONS<br /> <br /> 7. Point no. 1:- Complainant has borrowed certain loan from the opposite party. The complainant claims that, demand made by the opposite party to pay compound or penal interest is illegal, which amounts to deficiency in service. On the other hand, the opposite party contend that, as per the terms and conditions of the loan, interest is being charged and demanded.<br /> <br /> 8. At the outset, this Forum cannot direct the opposite party to charge and collect interest at any particular rate.<br /> <br /> 9. To hold that, there is any deficiency in service, the complainant shall have to make out that in violence of the agreed rate of interest, the opposite party is charging and collecting the interest. To substantiate it, for the complainant, there is no evidence.<br /> <br /> 10. On the other hand, for the opposite party, certain documents are produced. The opposite party has contended that, having borrowed the loan agreeing to the terms and conditions, the complainant has executed certain documents. From the copy of the documents, prima-facie it is made out by the opposite party that, complainant has agreed to pay interest at the rate of 24% p.a. and further, overdue interest at the rate of 3% p.a. Said documents produced by the opposite party are executed by the complainant, have not been denied or disputed by the complainant. Hence, when the complainant has agreed to pay interest at the rate referred to above, now, he cannot contend contrary to it. He is bound by the terms and conditions of the contract.<br /> 11. From the material on record, we found no deficiency in service on the part of the opposite party. The complainant having agreed to pay interest at particular rate referred to here before, has filed the complaint before this Forum alleging that, the opposite party is cheating the general public, charging penal interest etc., At the cost of repetition as noted here before, the complainant having agreed to pay interest at particular rate, is bound by the contract. The complainant himself admitted that, there is delay on his part to repay the loan, within the stipulated time. In spite of all these facts, the complainant has filed frivolous complaint before this Forum, may be just to take chance.<br /> 12. Accordingly, our finding is in negative. <br /> 13. Point No. 2:- Considering the discussion made above and conclusion arrived at, we pass the following order:- <br /> ORDER<br /> <br /> 1. The Complaint is dismissed with cost of Rs.1,000/-.<br /> 2. The complainant shall credit the cost of Rs.1,000/- to the Legal Aid Account of this Forum, within a month from the date of this order.<br /> 3. Give a copy of this order to each party according to Rules.<br /> (Dictated to the Stenographer, transcribed by her, transcript revised by us and then pronounced in the open Forum on this the day 11th November 2009)<br /> <br /> <br /> (A.T.Munnoli) <br /> President <br /> <br /> <br /> (Y.V.Uma Shenoi)<br /> Member<br /> <br /> <br /> (Shivakumar.J.)<br /> Member<br /> <br />