Karnataka

Chitradurga

CC/80/2017

Sri. Manjakka N. W/o Veeresh.L - Complainant(s)

Versus

Manapuram Finance Limited - Opp.Party(s)

Sri.R.K.Govindraju

30 May 2018

ORDER

COMPLAINT FILED ON:05/08/2017

DISPOSED      ON:30/05/2018

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHITRADURGA.

 

CC.NO: 80/2017

 

DATED:  30^th MAY 2018

PRESENT: - SRI. T.N. SREENIVASAIAH  : PRESIDENT                                   B.A., LL.B.,

                   SRI.N. THIPPESWAMY        : MEMBER

                          B.A., LL.B., PGD., CLP   

 

……COMPLAINANT/S	Manjakka. N, W/o Veeresh.L, Age: 23 Years, R/o Kandikere Village, Yaraballi Post, Hiriyur Taluk, Chitradurga.   (Rep by Sri. R.K. Govindaraj, Advocate)
V/S
…..OPPOSITE PARTIES	1. Manapuram Finance Ltd., Represented by its Managing Director, Manapuram House, Head Office: IV470 (old) W638A (new), Valapad Trissur, Kerala State-680567.   2. The Branch Manager, Manapuram Finance Ltd., 78/1, 76/5, 1st Floor, TST Circle, Hiriyur, ChitradurgaDistrict.   (Rep by Sri.B.L. Sateesh Babu, Advocate for OP No.2, OP No.1 ex-parte)

ORDER

SRI. T.N. SREENIVASAIAH:   PRESIDENT

The above complaint has been filed by the complainant u/Sec.12 of the C.P Act, 1986 for the relief to direct the OPs to return the gold or to pay the value of the gold, Rs.5,00,000/- towards compensation towards financial and mental loss and such others reliefs.

2.      The brief facts of the case of the above complainant are that, OP No.1 is the registered company having so many branches all over India and having one of its branch at Hiriyur, Chitradurga District i.e., OP No.2.  The complainant had taken gold loan by pledging 8 items of gold ornaments from the OP No.2 on different dates.  As per the instructions of the OPs, the complainant has paid interest without fail.  15 days back i.e., before issuance of the legal notice, the complainant has approached OP No.2 and enquired about the gold ornaments and told that, she is ready to pay the principal amount along with interest.  By that time, the office bearers of the OP No.2 says that, the gold ornaments pledged by her were already sold in a public auction.  After that, the complainant has issued the legal notice to the OP No.1 and 2 on 28.06.2017 stating that, she is ready to redeem the gold ornaments by paying principle and interest but, the OP No.2 says that the gold ornaments were already sold in a public auction, the same is violation of terms and condition of the agreement and unfair trade practice, dishonest, defective and deficient trade practice and service and misused the public.  The cause of action for this complaint arose on 28.06.2016 when the legal notice issued to the OPs, which is within the jurisdiction of this Forum.  Therefore, the complainant respectfully prayed before this Forum to allow her complaint with cost. 

3.      After issuance of notice to the OPs, OP No.2 appeared through Sri. B.L. Satheesh Babu, Advocate and filed version.  In spite of service of notice, OP No.1 did not appear before this Forum and placed ex-parte.  As per the version of the OP No.1, it is admitted that, the husband of the complainant by name Veeresh has pledged one item of gold and obtained loan and complainant has pledged 8 items of gold and obtained loan.  Further, it is stated that, the complaint filed by the complainant is not maintainable either in law or on facts and the same is liable to be dismissed in limine.  The averments made in para 2 to 9 are all false and denied and the complainant is put to strict proof of the same.  OP No.2 submits that, the complainant has approached the OP No.2 for sanction of loan by pledging the gold ornaments.  OP No.2 accepted and provided gold loan under Swarna Shati Scheme for a period of three months.  The complainant agreed for the terms and conditions of the said scheme in respect of the scheme and interest.  Complainant was agreed to pay the interest every month and the principal amount along with interest within a period of three months and redeem back the gold what she pledged.  The complainant has violated the terms and conditions and committed default in payment of loan and non-redemption of the gold.  The OP has issued notice to the complainant on 01.02.2017 and 01.03.2017 and the same were served on the complainant.  In the said notice, the OP No.2 has fixed the date of auction for selling the gold ornaments pledged by the complainant and also the OP No.2 has published in the Samyukta Karnataka Kannada Daily newspaper.  After selling the gold ornaments, the OP No.2 has followed the procedure as contemplated under the Swarna Shakti Scheme.  OP No.2 has not violated any terms and conditions as imposed under the Swarna Shakti Scheme.  After following the procedure, the gold has been sold in a public auction.  The complainant knowing fully well of the facts, just to harass the OP, this complaint has been filed and further the complainant has suppressed the real facts and stated false things in order to get the unlawful gain.  After selling the gold ornaments, now still the complainant has to pay Rs.28,854/- to the OP No.2.  Therefore, there is no deficiency of service on the part of OPs and prayed for dismissal of the complaint.

4.      The complainant herself has examined as PW-1 by filing affidavit evidence and the documents Ex.A-1 to A-4 were got marked and closed her side. On behalf of OPs, one Smt. Praseeda Kishore, the Manager of the OPs has examined as DW-1 by filing the affidavit evidence and Ex.B-1 to B-24 documents have been got marked and closed their side.    

5.      Arguments of both sides heard.

6.      Now the points that arise for our consideration for decision of above complaints are that;

 

1. Whether the complainant proves that, OP No.2 has sold the gold ornaments pledged by the complainant without following the procedure and therefore committed deficiency in service and entitled for the reliefs as prayed for in the above complaint?

              (2) What order?

          7.      Our findings on the above points are as follows:-

          Point No.1:- Partly in Affirmative.

          Point No.2:- As per final order.

REASONS

8.      It is not in dispute that, complainant has approached the OP No.2 to get the loan by pledging the gold ornaments.  OP No.2 has sanctioned gold loan to the complainant under Swarna Shakti Scheme by pledging 8 items of gold.  As per the scheme, the gold ornaments were to be redeemed within three months by paying principle and interest.  Accordingly, the complainant has paid interest regularly to the OP No.2 as per the documents produced by the OP No.2.  The complainant has not paid the entire gold loan to the OP No.2 to redeem the gold ornaments.  The complainant approached the OP No.2 before issuance of the legal notice i.e., on 28.06.2017, by that time, the office bearers of the OP No.2 say that, the gold ornaments pledged were already sold in a public auction.  Thereafter, the complainant has issued legal notice on 28.06.2017.  OP No.2 has send the reply to the notice to the Advocate for complainant on 14.08.2017 ie., after sending the legal notice.  As per the reply notice send by the OP No.2, the OP No.2 has given 15 days time to the complainant to redeem the gold ornaments pledged.  Accordingly, the complainant approached the OP No.2 to redeem the gold loan by that time, the OP No.2 was already sold five items of gold in a public auction.  In this regard, the complainant also, accepted that the OP No.2 has followed the procedure to sell the 5 items of gold ornaments and violated the procedure in selling three items of gold ornaments.  The following three items of gold ornaments were sold by the OP No.2 without following the procedure as per the scheme:

Sl. No.	Application No.	Date of Pledge	Loan amount	Description and weight of the gold
01	0117070700024497	05.12.16	Rs.48,623/-	Finger Ring-1 Chain-1 23.830 gms
02	0117070700024498	05.12.16	Rs.18,000/-	Finger Ring 8.922 gms
03	0117070700025674	28.01.17	Rs.4,800/-	Stud-2 2.74 gms

 

The OP No.2 has violated the terms of the procedure under Swarna Shakti Scheme and sold the above said gold ornaments.  As per the exhibits produced by the complainant, it clearly shows that, the OP No.2 has violated the terms and conditions of the said Scheme in selling the gold ornaments in a public auction. 

9.      We have gone through the entire documents, affidavits and as per the documents produced by the complainant and OP No.2.  As per the complainant, she has approached the OP No.2 for pledging the gold ornaments by way of gold loan.  OP No.2 has send the loan to the complainant under Swarna Shakti Scheme.  The Swarna Shakti Scheme is only for a period of three months and accordingly, the complainant has approached the OP No.2 to redeem the gold ornaments.  The office bearers of the OP No.2 says that, the gold ornaments pledged by the complainant were already sold in a public auction.  The documents itself clearly shows that, the OP No.2 has followed the procedure to sell the five items of gold ornaments but, as per the Ex.A-1 and A-4, it clearly shows that, the OP No.2 has failed to follow the procedure in selling the three items of pledged gold ornaments in a public auction.  The documents produced by the OP No.2 and complainant clearly shows that, the OP No.2 has violated the terms and conditions of the Swarna Shakti Scheme in selling the three items of pledged gold ornaments in a public auction.  Accordingly, this Point No.1 is held as partly affirmative to the complainant.          

            10.     Point No.2:- As discussed on the above point and for the reasons stated therein we pass the following:-

ORDER

          The complaint filed by the complainant U/s 12 of CP Act 1986 is hereby partly allowed.

It is ordered that the OP No.1 and 2 are hereby directed to return the following three items of gold ornaments pledged by the complainant by receiving the loan amount. 

Sl. No.	Application No.	Date of Pledge	Loan amount	Description and weight of the gold
01	0117070700024497	05.12.16	Rs.48,623/-	Finger Ring-1 Chain-1 23.830 gms
02	0117070700024498	05.12.16	Rs.18,000/-	Finger Ring 8.922 gms
03	0117070700025674	28.01.17	Rs.4,800/-	Stud-2 2.74 gms

 

If fails to return the same, the OPs are hereby directed to return the value of the above items of gold along with interest @ 9% p.a from the date of pledging the gold ornaments to till realization.

It is further ordered that, the OP No.1 and 2 are hereby directed to pay Rs.10,000/- towards mental agony and Rs.5,000/- towards cost of the proceedings to the complainant. 

It is further ordered that, the OP No.1 and 2 are hereby directed to comply the above order within 30 days from the date of this order.

            (This order is made with the consent of Member after the correction of the draft on 30/05/2018 and it is pronounced in the open Court after our signatures)         

 

                                     

 MEMBER                                                   PRESIDENT

-:ANNEXURES:-

 

Witnesses examined on behalf of Complainant:

PW-1:  Complainant by way of affidavit evidence.

Witnesses examined on behalf of OPs:

DW-1:  Smt. Praseeda Kishore, the Manager of OP by way of affidavit evidence. 

Documents marked on behalf of Complainant:

01	Ex-A-1:-	Reply notice dated 14.08.2017
02	Ex.A-2:-	Regd. Postal Cover
03	Ex-A-3:-	Postal Acknowledgement and receipt
04	Ex-A-4:-	Legal Notice dated 28.06.2017

 

Documents marked on behalf of OPs:

01	Ex-B-1:-	Gold Loan receipt
02	Ex-B-2:-	Gold Loan receipt
03	Ex.B-3:-	Terms and conditions of loan
04	Ex.B-4:-	Gold Loan receipt dated 24.08.2016
05	Ex.B-5:-	Gold Loan receipt dated 22.10.2016
06	Ex.B-6:-	Gold Loan receipt dated 22.10.2016
07	Ex.B-7:-	Gold Loan receipt dated 05.12.2016
08	Ex.B-8:-	Gold Loan receipt dated 05.12.2016
09	Ex.B-9:-	Gold Loan receipt dated 28.01.2017
10	Ex.B-10:-	Gold Loan receipt dated 28.01.2017
11	Ex.B-11:-	Gold Loan receipt dated 22.10.2016
12	Ex.B-12:-	Loan Form
13	Ex.B-13:-	Loan Indicator Sheet
14	Ex.B-14:-	Loan Form
15	Ex.B-15:-	Loan Indicator Sheet
16	Ex.B-16:-	Loan Form
17	Ex.B-17:-	Loan Indicator Sheet
18	Ex.B-18:-	Loan Form
19	Ex.B-19:-	Loan Indicator Sheet
20	Ex.B-20:-	Loan Form
21	Ex.B-21:-	Loan Indicator Sheet
22	Ex.B-22:-	Terms and conditions of loan
23	Ex.B-23:-	Demand Notice and Auction sale notice
24	Ex.B-24:-	Postal Acknowledgement

 

 

 

MEMBER                                                            PRESIDENT

Rhr**