This complaint coming up before us for final hearing on 03-05-11 in the presence of Sri Y.Kishore Kumar, advocate for complainant and of Sri K.Srinivasa Rao, advocate for opposite parties, upon perusing the material on record, hearing both sides and having stood over till this day for consideration, this Forum made the following:
O R D E R
Per Sri M.V.L.Radha Krishna Murthy, Member:
This complaint is filed under section 12 of the Consumer Protection Act, 1986 praying to direct the opposite parties to release the gold jewelry pledged by the complainant by receiving loan amount along with agreed normal interest, and to direct the opposite parties not to claim unfair, usurious and excessive penal interest, to award costs of complaint, to direct the opposite parties to pay an amount of Rs.50,000/- to the complainant towards compensation and damages.
The averments of complaint in brief are as follows:
The complainant obtained a loan for an amount of Rs.2,98,300/- from opposite parties by pledging gold jewelry weighting 329.8 grams worth Rs.5,27,680/-. The loan amount was given in eleven occasions as detailed hereunder:
S.No. | Pledge No. | Pledge date | Pledge amount | Balance | Due date |
1 | 0102750700704101 | 19-03-09 | 37,500.00 | 37,500.00 | 29-06-09 |
2 | 0102750700703987 | 09-03-09 | 28,300.00 | 28,300.00 | 29-06-09 |
3 | 0102750700704100 | 19-03-09 | 22,700.00 | 22,700.00 | 18-04-09 |
4 | 0102750700703633 | 09-02-09 | 18,200.00 | 18,200.00 | 11-04-09 |
5 | 0102750700703632 | 09-02-09 | 20,000.00 | 20,000.00 | 29-06-09 |
6 | 0102750700703634 | 09-02-09 | 9,800.00 | 9,800.00 | 11-04-09 |
7 | 0102750700703809 | 23-02-09 | 20,700.00 | 20,700.00 | 24-04-09 |
8 | 0102750700704191 | 26-03-09 | 9,500.00 | 9,500.00 | 29-06-09 |
9 | 0102750700704175 | 25-03-09 | 22,600.00 | 22,600.00 | 24-04-09 |
10 | 0102750700704176 | 25-03-09 | 81,500.00 | 81,500.00 | 29-06-09 |
11 | 0102750700704178 | 25-03-09 | 27,500.00 | 27,500.00 | 29-06-09 |
| Total :- 11 | | 2,98,300 | 2,98,300 | |
The complainant regularly paid monthly interest without fail. When the complainant approached 2nd opposite party and requested to receive pledge amount and receive gold jewelry on the due dates. The 2nd opposite party demanded the complainant to pay interest at 32% p.a. the complainant requested 2nd opposite party to receive principle amount and release gold jewelry as he has already paid the agreed interest every month without fail. The 2nd opposite party stated that he will release the gold jewelry on payment of penal interest at 18% p.a. However the complainant came forward to pay penal interest at 4% p.a. in addition to the agreed interest at 14% p.a. But 2nd opposite party insisted to pay penal interest 18% p.a. in addition to the agreed interest of 14% p.a. The opposite parties illegally collected interest for a period prior to the date of advance of loan. The complaint is ready and willing to redeem the gold jewelry by paying the principle amount and agreed normal interest but the opposite parties are demanded unfair penal interest. The demand of opposite parties to pay penal interest at 18% p.a. in addition to the normal interest at 14% p.a. is illegal, excessive, unfair and against the principles of natural justice. Due to the attitude of opposite parties, the complainant suffered a lot of mental agony. Finally complainant got issued a legal notice dt.17-07-09 to 2nd opposite party, who received the same and kept quite. Hence, the complaint.
The 2nd opposite party filed its version and 1st opposite party adopted the same, which is in brief as follows:
The complaint is not maintainable at law or on facts against this opposite parties. The averments of complaint are all incorrect. The complainant is put to strict proof of the same. The complainant is not a consumer. The 2nd opposite party is one of the branches of 1st opposite party situated at Guntur. The complainant approached 2nd opposite party and enquired about the terms and conditions of different scheme of loans and also about the rate of interest, mode of payment etc. and after satisfying himself, he availed eleven loans on various occasions as mentioned in complaint and after duly signing the respective agreements. It is purely a contract entered into by the parties after knowing the contents and each party is bound by terms and conditions of the agreement. The complainant having agreed and signed the respective pledge agreement cannot give a goby to them and raise any dispute contrary to the terms and conditions. As long as opposite parties are acting within the four corners of the pledge agreement, the complainant cannot allege any deficiency of service on the part of opposite parties and cannot raise any dispute. There is no deficiency of service on the part of opposite parties. The complainant wants to dispute the quantum of amount payable by him under the respective pledge agreements for which this Forum has no jurisdiction to entertain the complaint. The remedy for this type of dispute lies elsewhere and the consumer forum cannot decide the said issue. The complainant has no cause of action to raise any dispute.
It is absolutely false to say that the complainant has regularly paid the interest without fail. The complainant is never ready to pay interest as agreed upon and wants to evade payment of agreed interest and with malfide intention he got issued a legal notice with false and frivolous allegations. The 1st opposite party duly gave the reply dt.27-07-09 appraising all facts and informing that a sum of Rs.3,16,139/- is due as on 29-07-09 by the complainant under various pledge agreements. In fact as per the agreed terms and conditions, the complainant failed to pay the amount and release the pledged articles. The same will be auctioned to realize the amount due to the opposite parties. To avoid the same, the complainant got issued a legal notice with all false allegations and with malafide intention. The complainant is not willing and ready to pay the principle and agreed interest. The 2nd opposite party never demanded any excess amount. It is false to say that the opposite parties illegally collected interest for the period prior to the date of advance of loan. The complainant has not approached this Forum with clean hands. Hence, the complaint is liable to be dismissed and the same may be dismissed.
The complainant and 2nd opposite party filed their respective affidavits in support of their allegations. The 1st opposite party filed a memo adopting the affidavit of 2nd opposite party.
On behalf of complainant Ex.A1 to A35 are marked. On behalf of opposite parties Ex.B1 to B12 are marked.
Now the points for consideration are
- Whether there is any deficiency of service on the part of opposite parties?
- To what relief the complainant is entitled to?
POINTS 1 & 2
It is not in dispute that the complainant had obtained loan of Rs.2,98,300/- from opposite parties by pledging gold jewelry. The point in dispute is only with regard to the penal interest claimed by the opposite parties. The complainant in his complaint stated that he came forward to pay penal interest at 4% p.a. after respective due date in addition to the agreed rate of interest of 14% p.a. but the 2nd opposite party is insisting to pay penal interest at 18% p.a. in addition to the agreed interest of 14% p.a. and that the claim of penal interest is usurious and unfair. For which 2nd opposite party states that as per terms and conditions agreed upon by the complainant only they are demanding penal interest and that there is no deficiency of service on the part of 2nd opposite party in collecting the interest as per terms and conditions of agreement and that the opposite parties never demanded excess interest against the agreement and that the complainant wants to dispute the quantum of amount payable by him under the respective pledge agreements. The complainant disputes only regarding the penal interest claimed by 2nd opposite party even though the 2nd opposite party claming interest as per terms of agreement. It is not the case of complainant that opposite parties are claiming penal interest against the terms and conditions of agreement. The registered notice got issued by complainant is marked as Ex.A34, wherein the complainant alleges that opposite party is collecting interest at 32% p.a. and that it is not legal. A perusal of Ex.A34 also does not reveal that the opposite party is collecting excessive penal interest as against the terms and conditions of the agreement. The opposite parties are only collecting the penal interest as per the terms and conditions of agreement and there is no violation of terms and conditions of agreement by the opposite parties. The 2nd opposite party has issued a reply registered notice dt.27-07-09, which was marked as Ex.B12. A perusal of Ex.B12 shows that the complainant is due an amount of Rs.3,16,139/- as on 29-07-09 and that as per terms of agreement executed by the complainant, the pledged articles will be auctioned to realize the amount due to the company, if the complainant does not release the pledges in time and that the complainant has executed an agreement with opposite party by accepting the plan which he has selected. It was alleged by opposite party that in order to avoid auction of the pledged articles, the complainant approached this Forum with untenable allegations. The opposite party is only acting in accordance with the terms and conditions of agreement and demanding penal interest as per terms of agreement. As already stated it is also not the case of complainant that opposite party is acting contrary to the agreement. Therefore, in the circumstances of case, we cannot find any deficiency of service on the part of opposite parties since they are acting in accordance with the terms and conditions of agreement. Therefore, the opposite parties are not liable for the amounts claimed by the complainant. Accordingly this issue is answered in favour of opposite parties and against the complainant.
In the result, the complaint is dismissed but in the circumstances without costs.
Typed to my dictation by the Junior Steno, corrected by us and pronounced in the open Forum, this the 6th day of May, 2011.
MEMBER MEMBER PRESIDENT
APPENDIX OF EVIDENCE
DOCUMENTS MARKED
For Complainant:
Ex.Nos. | DATE | DESCRIPTION OF DOCUMENTS |
A1 to A11 | - | Pawn tickets issued by opposite parties |
A12 to A26 | - | Paid receipts of penal and normal interest |
A27 to A31 | 30-05-09 | Copies of statement of accounts of complainant |
A32 | - | Copy of live pledge details of complainant |
A33 | - | Copy of details of payment of interest on different days |
A34 | 17-07-09 | O/c. of legal notice got issued by complainant to 2nd opposite party |
A35 | 20-07-09 | Postal acknowledgement |
For Opposite Parties:
B1 to B11 | - | Copies of statement of accounts along with connected papers |
B12 | 27-07-09 | Copy of reply registered notice |
Sd/-XXXX
PRESIDENT