By. Smt. Bindu. R, President:

            This complaint is filed by Insha, W/o. Saifudeen, Muringakkadan House, Meenangady Post, Purakkadi Village, Sulthan Bathery Taluk, Wayanad and Prasad, S/o. Divakaran, Karuthedath House, Kologappara Post, Sulthan Bathery Taluk, Wayanad against M/s. Maxvalue, Credits and Investments Limited, Corporate Office, Ceekey Plaza, Opp.Metropolitan Hospital, Koorkkanchery, Thrissur, Represented by Its Manager and M/s. Maxvalue, Credits & Investments Limited, Kalpetta Branch, Kalpetta, Wayanad, Rep by Its Branch Manager as Opposite Parties alleging deficiency of service and unfair trade practice from the side of the Opposite Parties.

            2.  The Complainant states that being the customer of Opposite Parties, 1^st Complainant took loan from the Kalpetta Branch of the 1^st Opposite Party on 17.01.2023 for Rs.5,00,000/- pledging gold ornaments on the guarantee of 2^nd Complainant and the husband of the 1^st Complainant viz Saifudeen took another loan for Rs.5,00,000/- on the guarantee of 1^st Complainant.  The repayment period was 1 year and the Complainants agreed to repay the loan with interest within 1 year period.  The loan was taken for the purpose of conducting medical shop business for the husband of the 1^st Complainant.  Complainants states that due to the collapse of the business and also due to the cancer treatment of the mother of the 1^st Complainant, the Complainants faced financial crisis.  The Complainant states that on 06.05.2023 the Complainants received a notice from the Opposite Parties stating that an amount of Rs.4,84,000/- is the due amount with interest in the loan account and the Complainants are called upon to repay the same within 7 days or else the further action will be taken in the matter.  The Complainants states that the office staff of the Opposite Parties informed the Complainants over phone that if the amount is not paid, the gold ornaments will be sold in auction.  According to the Complainant, the Complainants will be put to irreparable injury if the gold worth Rs.15 lakhs is sold in auction for the reason that the monthly payment is in arrears.  According to the Complainants, the auctioning of the gold ornaments which is entrusted as collateral security without the concurrence and consent of the Complainants amounts to unfair trade practice from the side of the Opposite Parties.  The Complainant states that Opposite Parties had issued similar notice to the husband of the Complainant and he  could not accept the same since had gone abroad. The Complainant states that they will clear the entire dues and close the account before 17.01.2024.  Even though the Complainants had paid substantial amount, the loan chart is not given to the Complainants by the Opposite Parties.  According to the Complainant the husband of the Complainant went abroad due to the financial crisis and they will be closing the loan account as early as possible.  Hence prayed for time to close the accounts and the Complainants states that they have issued advocates notice to the Opposite Parties not to take illegal steps and sale proceedings of gold ornaments of the Complainants.  The Complainants states that the Opposite Parties had initiated hasty steps to sell the ornaments without showing the actual price of the gold which amounts to deficiency of service from the side of the Opposite Parties.  According to the Complainants the gold ornaments are not belonging to the Complainants alone.  Most of them are that of friends and relatives.  Hence the complaint praying for giving time to repay the loan till the period of expiry of loan after calculating the amount through the Commission and for other reliefs.

            3.  Upon notice the Opposite Parties entered in to appearance and filed their version contenting that the complaint is not maintainable either in law or on facts and is to be dismissed inlimine.  It is admitted by the Opposite Parties that the Complainant’s were customers of the 2^nd Opposite Party and the 1^st Complainant had availed a loan of Rs.5,00,000/- from the 2^nd Opposite Party.  According to the Opposite Parties the Complainants and Opposite Parties have executed an agreement which contains the terms and conditions of the said loan which ultimately become a contract.  According to the Opposite Parties the loan availed by the Complainants became overdue and the Complainants became chronic defaulters.  According to the Opposite Parties the Opposite Parties are entitled to put the gold ornaments pledged by the Complainants for auction as per the terms and conditions of the contract entered into between the parties.  The husband of the 1^st Complainant is not made a party to the proceedings and hence the 1^st Complainant is not legally entitled to represent her husband and interfere in the matter on behalf of the husband.  The averment that the Complainants have paid excess amount towards installments is not correct and the averment that the Opposite Parties would be conducting auction without disclosing the real price of gold ornaments pledged and thereby taking unlawful profits are also not correct which are made  by the Complainants with malafide intention to escape from the loan liability.  According to the Opposite Parties, the Complainants had not taken any steps to avoid auction of gold ornaments by remitting arrears of installments.  The complaint is only to escape from the loan liability and hence prayed for dismissal of the complaint with compensatory costs to the Opposite Parties.

            4.  Evidence in this case consists of the oral testimony of PW1 the 1^st Complainant and Ext.A1 to A5 from the side of the Complainant and oral evidence of OPW1, legal Manager of Opposite Party No.1 and 2 and Ext.B1 to B3(series) from the side of the Opposite Parties.

            5.  The following are the points to be analyzed to derive into an inference of the fact

1. Whether the Complainant had sustained to any deficiency of service or unfair trade practice from the side of Opposite Parties?
2. If so, the quantum of compensation and other reliefs for which the Complainants are eligible to get?

6.  Ext.A1 is the notice sent by Opposite Party to the 2^nd Complainant, calling upon him to pay the entire amount and to close the loan account.  Ext.A2 is the copy of reply notice issued to the Opposite Parties in reply to Ext.A1. Ext.A3 is the speed post receipt with reference to the issuance of Ext.A2 reply notice.  Ext.A4 is the photocopy of the sale notice issued to the 1^st Complainant.  Ext.A5 is the acknowledgment signed by 2^nd Opposite Party.

7.  Ext.B1 is the copy of loan agreement in the name of the 1^st Complainant.  Ext.B2 is the copy of loan agreement in the name of the husband of the 1^st Complainant. Ext.B3 is the certified true copy of the Resolution passed by the Board of Directors of the Opposite Party Company authorizing Mr. Sinoy Alex, Deputy Manager, Legal Department to represent the case on behalf of the Company. 

8.  The case of the Complainant is that before expiration of the term of the loan the Opposite Parties took steps to realize the amount by auctioning the gold ornaments which necessitated the filing of the complaint.  On the other hand the case of the Opposite Parties is that the Complainant made payments up to 26.11.2023 even though the said payment was other than on time.  Thereafter there was no repayment and thereby caused huge arrears and the Complainants had not remitted the amount as requested by the Opposite Parties and hence steps were initiated to realize the amount and there is no deficiency of service or unfair trade practice from the side of the Opposite Parties.

9.  During cross-examination of PW1, the 1^st Complainant, she deposed that “17.01.2023 \mWv loan FSp¯n«pffXv Hcp hÀjs¯Imemh[n \nÝbn¨n«mWv loan FSp¯Xv.  17.01.2024 \v loan Xncn¨Shv Ignªp.  Imemh[n IgnªXn\m ]cmXnbn ]dª At]£ A bn ]dª \nhr¯nIn«m³ AÀlXbnà F¶v ]dªm icnbmWv”.  PW1 further deposed that “kzÀ®¸Wbw sh¨n«mWv loan FSp¯n«pffXv. Xncn¨Shv Imemh[n Ignªm kzÀ®w teew sN¿m³ FXrI£n I¼\nIÄ¡v A[nImcw D­v F¶v Rm³ a\Ênem¡nbn«p­v”.  According to the 1^st Complainant, herself and her husband took two different loans for Rs.5,00,000/- each.  But the husband of the 1^st Complainant is not made party in the complaint.  But PW1 deposed that “Rm³ FXrI£n Øm]\¯n \n¶pw 5 e£w cq]bmWv FSp¯Xv.  `À¯mhv skbv^pZo\pw CtX Øm]\¯n \n¶pw 5 e£w cq] tem¬ FSp¯n«p­v.  `À¯mhn\pw IqSn th­nbmWv tIkv \S¯p¶Xv F¶v ]cmXnbn ]dªn«p­v”. 

10.  Opposite Parties produced Ext.B1 loan agreement of 1^st Complainant, which is signed by the 1^st Complainant.  In Cl.8 of Ext.B1 it is stated that “in addition to the security mentioned in sch-1 attached herewith the gold ornaments mentioned in sch-II belonging to the borrowers and/or co-borrower are hereby pledged in favour of the Lender as an exclusive charge to the Lender towards repayment of the principal amount, interest costs and any other charges etc due to the Lender under the loan account”.  In Cl 21 of the agreement, it is stated that “The Borrower and Co-borrower hereby irrevocably and unconditionally authorize the Lender to sell or otherwise dispose of the securities  in full or part as may be decided by the Lender at any time during the currency of loan account, in the event of Borrower and Co-borrower’s loan account runs irregular and shall called upon for repayment and appropriate the sale proceeds net of expenses to repay the loan together  with interest in full including penal interest due if any”.  As per Ext.B1, with reference to the loan taken by the 1^st Complainant the date of disbursement of loan is dated 17.01.2023 and the repayment schedule is shown as “Daily Rs.2241/- Due date of 1^st installment is shown as 18.01.2023 and the Due date of Last installment is shown as 24.09.2023.  As per Ext.B2, with reference to the loan taken by the husband of the 1^st Complainant, the date of disbursement is shown as 21.12.2022 and the repayment schedule is shown as Daily Rs.2241/-, Number of installments is 250/-, and due date of first installment is shown as 22.12.2022.  According to the Opposite Parties, since the repayment of loan hanged up, notice was issued straightly in accordance with the terms and conditions and the Complainant without approaching the Opposite Parties to pay the amount, approached the Commission on flimsy grounds, praying for a direction to extent the time of repayment till the expiry of the loan period and to restrain the Opposite Parties from selling the gold ornaments in public auction.  In this case even according to the Complainant the term of loan expired on 17.01.2024.  In these circumstances the Commission finds that the main prayer in the complaint became infructuous.  Moreover, as far as the 2^nd loan is concerned, the husband of the Complainant who is the borrower of the 2^nd loan dated 22.12.2022 is not made a party in this proceedings or no authorization or power of attorney is produced by the 1^st Complainant.

In these circumstances, we do not find any merit in the complaint and hence the complaint is dismissed without costs. Interim Order in I.A.400/2023 dated 03.06.2023 is hereby vacated.

Dictated to the Confidential Assistant, transcribed by him and corrected by me and pronounced in the Open Commission on this the 23^rd day of May 2024.

Date of Filing:-03.06.2023.

PRESIDENT   : Sd/-

MEMBER       : Sd/-

APPENDIX.

Witness for the Complainants:-

PW1.              Insha.                                     Housewife.

Witness for the Opposite Parties:-

OPW1.          Sinoy Alex.                           Advocate.

Exhibits for the Complainants:-

A1.                  Demand Notice.                                         Dt:06.05.2023.

A2.                  Copy of Reply Notice.                               Dt:17.05.2023.

A3.                  Postal Receipt.

A4.                  Copy of Auction Notice.

A5.                  Acknowledgment Card.

Exhibits for the Opposite Parties:-

B1.                  Copy of Loan Agreement.                        Dt:17.01.2023.

B2.                  Copy of Loan Agreement.                        Dt:21.12.2022.

B3.                  Copy of Resolution passed at the meeting of the Board of

Directors of Maxvalue credits and investments.

PRESIDENT   :Sd/-

MEMBER       :Sd/-

/True Copy/

Sd/-

                                                                                             ASSISTANT REGISTRAR

                                                                                                  CDRC, WAYANAD.

Kv/-