ORDER

SRI.H.R. SRINIVAS, PRESIDENT

1.     This is the complaint filed by the complainant against the Opposite Party (herein referred to as OP) under Section 35 of the Consumer Protection Act, 2019 for the deficiency of service and to return back his Gold Ornaments by collecting the loan amount along with interest and to award compensation of Rs.1,00,000/- and other reliefs as the commission deems fit.

2.     The brief facts of the complaint are: the complainant  availed the Gold Loan from Manappuram Finance Limited. On 15.09.2020  by pledging his Gold Ornaments i.e (1) Bracelet (2) 4-Bangles (3) Chain-1 (4) Drops  & Stud-2 (5)  finger Rings -2 (6) Necklace-2 and (7) Stud-2, totally of actual weight 184.90 gms for a sum of Rs.5,76,000/- vide pawn ticket No.2419152119 and pledge No.0214190730032394 for a period of three months with annualized interest rate  of 23.78% through scheme name : B1-N of  maturity dated 13.12.2020. 

3.     The complainant obtained the Gold Loan in order to bear expenses  towards treatment of his parents who were affected by COVID-19  and also his Aunt and her son who are living in the joint family and also for his financial crises caused due to lock down implemented by the central Government and State Government to prevent the spreading of Corona Virus Pandemic diseases. It is submitted that complainant suffered very much due to Corona Virus diseases which affected his family members  and he could not able to concentrate on other issues like payment of interest towards the loan availed from OP. After relaxation given to lockdown from the Government in the month of June 2021, the complainant approached the OP for payment of interest towards the loan account but to his utter shock and surprise OP informed that the pledged Gold ornaments were auctioned and the amount was adjusted to the loan account. Though complainant informed them that he has not received any statutory notice from it, the OP officials shown wrong phone number stating that they were regularly calling him.  OP has not furnished the registered post details and statement in respect of auction of gold ornaments and the amount realized.

4.     It is submitted that ornaments pledged by the complainant has more value than the auctioned amount as mentioned in the copy of the account statement and the OP has misused the complainant distress and difficult situation which arosen out of COVID-19 pandemic disease, which affected his family members.  OP had played fraud on complainant and they have intentionally avoided to inform  about  the auction of his Gold ornaments and it is clear that they have colluded and auctioned the jewellery for lesser amount than its actual value which amounts to unfair trade practice. The complainant was harassed and put to mental agony and he got issued the legal notice dated 12.07.2021 to OP calling upon to return back his Gold ornaments  by collecting the loan amount along with interest. Though the said notice was duly served on them, they have failed to comply the same. Hence the complaint.

5.     Upon service of notice through RPAD, OP did not appear before the commission and hence placed exparte.

6.     In order to prove the case, complainant filed affidavit evidence and produced documents. Arguments Heard.   The following points arise for our consideration:-

1. Whether the complainant has proved deficiency in service on the part of the opposite party?

2. Whether the complainant is entitled to the relief prayed for in the complaint?

7.     Our answers to the above points are:-

POINT NO 1: In the Affirmative

POINT NO 2 : Partly in the affirmative

                      For the following.

REASONS

POINT NO 1:

8.     Though notice was served on OP issued by this commission, OP did not venture to appear before the commission and file its defence in respect of the complaint filed by the complainant. The documents produced by the complainant Ex P1 is the loan document wherein he has pledged totally 159.864 grams of 22 carat gold jewels and obtained Rs.5,76,000/- as loan by pledging the said gold ornaments.  The tenure of the return of the loan is 90 days and the availed rate of interest agreed is 23.78% per annum.  It is also mentioned that if the amount is returned within 30 days, interest is 20% per annum, within 60 days 24%, and within 90 days 26% per annum and overdue interest is @ 3% per annum after due date. The statement is also produced marked as Ex P2.  The balance shown is Rs.60,053/- and auction for a sum of Rs.67,735/-. Ex P3 is the document produced by the complainant to show that his relative is tested positive for COVID that’s why they could not pay the amounts. Notice as Ex P5 issued to the OP informing that the pledged articles which more value than the auctioned price, and OP has misused the difficult situation of the complainant arose due to COVID-19 pandemic disease. It is alleged that OP has sold the same for lessor value than the market value of the ornaments, that to without issuing any notice prior to auction and demanded OP to return the gold articles.

9.     It is the bounden duty of the OP to issue a notice prior to auction of the pledged articles to the borrower becomes defaulter. Clear auction notice has to be issued to the complainant before auctioning thus giving an opportunity to the complainant to pay the arrears of amount borrowed.  In this case, we find no such notice issues to the complainant by OP.

10.   Though notice was issued by the complainant and also when the notice was issued by this commission to the OP after complaint, OP remained silent, has not put forth its defence and did not appear before this Commission to make its stand clear which vitiates  the complaint. In view of the OP failing to produce any of the documents notifying the complainant regarding the auction of the pledged gold articles, we are of the opinion that, the act of OP amounts to deficiency in service and unfair trade practice. Hence we answer POINT NO.1 IN THE AFFIRMATIVE. 

POINT NO.2:

11.   Complainant has sought for return of the gold jewellaries which he had pledged, by collecting the loan amount along with interest  and also to award compensation of Rs.1,00,000/- for deficiency in service, and for causing mental agony, hardship and financial loss. As stated above, OP has taken gold jewellaries weighing  159.864 gram of 22 carat quality under pledged and the same has been auctioned by it than the realised an amount of Rs.6,00,543/- over internet it is found that the value of 22 carat jewelaries gold on the date of auction i.e. 12.04.2021, was of Rs.44,980/- when this is taken into consideration and multiplied by 159.864 X 4498 = Rs.7,19,068.272 is the value of the pledged jewels (7,19,068.272 - 5,76,000 = Rs.1,43,068.272).  The difference in the gold rate on the said jewellary has to be compensated to the complainant. As the gold jewelry have already auctioned and it would be very difficulty to get it back and order to return to the complainant.  In view of this, we answer POINT NO.2 PARTLY IN THE AFFIRMATIVE and pass the following:-

ORDER

1. The complaint is partly allowed with cost.
2. OP i.e. Manappuram finance Limited represented by its Manager/authorized signatory is hereby directed to return a sum of Rs.1,43,068.272 along with interest at 23.78% per annum which OP has charged to the complainant from the date  of auction i.e. 12.04.2021 till payment of the entire amount.
3. Further OP is also directed to pay Rs.25,000/- towards damages and Rs.10,000/- towards cost of the litigation expenses to the complainant.
4. OP is hereby directed to comply the above order within 30 days from the date of receipt of this order and submit the compliance report to this Commission within 15 days thereafter.
5. Send a copy of this order to both parties free of cost.

Note: You are hereby directed to take back the extra copies of the Complaints/version, documents and records filed by you within one month from the date of receipt of this order.

(Dictated to the Stenographer over the computer, typed by him, corrected and then pronounced by us in the Open Commission on this day the 15^th  day of February 2022)

MEMBER                                PRESIDENT

ANNEXURES

1. Witness examined on behalf of the Complainant/s by way of affidavit:

Copies of Documents produced on behalf of Complainant/s:

Ex P1: Copy of the receipt issued for having deposited the gold.

Ex P2: Copy of the statement of account.

Ex P3: Copy of ICMR Specimen Referral Form

Ex P4: Copy of the receipts.

Ex P5: Legal notice.

Ex P6: Postal Acknowledgment.

2. Witness examined on behalf of the Opposite party/s by way of affidavit:

RW-1: - Nil -

Copies of Documents produced on behalf of Opposite Party/s

- Nil -

MEMBER                PRESIDENT

RAK*