BEFORE THE DISTRICT CONSUMER DISPUTES

REDRESSAL COMMISSION, JALANDHAR.

Complaint No.179 of 2020

      Date of Instt. 24.06.2020

      Date of Decision: 22.08.2022

Gaurav Kalyan, son of Rajinder Kumar W. D. 178, Ali Mohalla, Jalandhar.

..........Complainant

Versus

1.       M/s Muthoot Finance Ltd., Basti Adda Branch, Jalandhar.

2.       M/s Muthoot Finance Ltd., Head Office: Nakodar Chowk,       Jalandhar.

….….. Opposite Parties

Complaint Under the Consumer Protection Act.

Before:        Dr. Harveen Bhardwaj             (President)

                   Smt. Jyotsna                            (Member)

                   Sh. Jaswant Singh Dhillon       (Member)                                

Present:       None for the Complainant.

                   Sh. A. S. Thind, Adv. Counsel for OPs No.1 and 2.

Order

Dr. HarveenBhardwaj (President)

1.                The instant complaint has been filed by the complainant, wherein it is alleged that the complainant has mortgaged Gold Jewellery with Muthoot Finance Ltd. Basti Adda Jalandhar on 26.11.2019 in the Gold Loan Case No.00728/M.D.L. 001014 for Rs.1,81,050/-. The complainant has been regularly paying installment to the company without failure and during Lockdown there was a contact lapse between complainant and OP/Muthoot Finance Ltd. as the company office was closed during this period and payment of interest amount could not be deposited. Now company has asked complainant to pay interest on interest in the Lockdown period for the interest amount. On 22.05.2020 complainant received a message on phone informing that amount of interest of Rs.10,005/- stands against his loan account. However complainant being out of station in Mumbai, on 25.05.2020 visited the company office and contact the concerned Manager who assured wait for 2-3 days and the interest will be Waived Off, but on 28.05.2020 when complainant went to company office he was told that matter is still pending and complainant was asked to give in writing, but later on the complainant was flatly told on 15.06.2020 that he is bound to pay interest on interest for the lockdown period also. The cause of action to file the complaint accrues to the complainant as and when OP has categorically refused to waive the interest on interest which is illegal, unlawful and harsh in law. The complainant has suffered undue harassment and mental agony and as such, necessity arose to file the present complaint with the prayer that the complaint of the complainant may be accepted and OPs be directed to give compensation and damages to the tune of Rs.50,000/- for causing mental tension and harassment to the complainant and Rs.5500/- as litigation expenses.

2.                Notice of the complaint was given to the OPs, who filed joint written reply and contested the complaint by taking preliminary objections that the OP/M/s Muthoot Finance Ltd. is a company duly incorporated under the provisions of the Companies Act, 1956. The OP has carved a niche for itself in the Gold Loan products, as well as other financial services, across the country. The present reply is being filed through its constituted attorney/authorized officer/authorized signatory Sh. Sham Sunder Vaid S/o Sh. Madan Lal Vaid who is posted as Branch Manager of Basti Adda Branch, Jalandhar and is fully conversant with the facts of the present case. It is further averred that the complaint is neither maintainable in law nor on facts and the same is liable to be dismissed out rightly. There has been no negligence or deficiency in service whatsoever on the part of the OP in dealing with the subject loan account. The complaint is not maintainable and is liable to be dismissed as no cause of action ever arose in favour of the complainant and against the OP. The complainant under reply is nothing but an abuse of the process of law, as such, the same is liable to be dismissed. On merits, the factum with regard to mortgaging the Gold Jewellery with OP No.2 is admitted, but the other allegations as made in the complaint are categorically denied and lastly submitted that the complaint of the complainant is without merits, the same may be dismissed.

3.                Rejoinder not filed by the complainant.

4.                In order to prove their respective versions, both the parties have produced on the file their respective evidence.

5.                We have heard the learned counsel for the OPs only as none has appeared on behalf of the complainant and have also gone through the case file very minutely.

6.                The complainant has filed the present complaint seeking the relief of waiving of amount of interest on interest and compensation. It has been alleged and admitted case of the parties that the complainant has mortgaged gold jewellery with the OP Jalandhar on 26.11.2019 in the Gold Loan for Rs.1,81,050/-. It has been alleged by the complainant that he has been making the payment of installment to the OP without failure, but due to lockdown because of Covid-19, he could not deposit the installment as the office of OP was closed and the payment of the interest could not be deposited.

7.                The OPs have denied that they are seeking or charging any penalty interest on interest rather the OP has given the relaxation to the complainant during the first 10 days of opening of the branches which had resumed their operations after the lockdown restrictions were relaxed by the Government.

8.                The complainant has alleged that a message was received from the OPs to pay the amount of interest of Rs.10,005/- and when he contacted the manager, he was assured that the interest shall be waived but despite the correspondence and request made number of times, the amount of interest has not been waived rather the amount has been claimed on as a penalty on the interest. He has proved on record Ex.C1, the installment paper dated 28.05.2020. This shows that special grace period for interest payment has been granted by the OP. There is no reference of the fact that any interest on interest has been claimed by the OPs. Ex.C-2 shows that the complainant has moved an application for waiver of the interest. No document has been filed on the record by the complainant to show that the OP has ever assured the complainant that the interest will be waived. Ex.C-3 is the sanction letter. Perusal of the sanction letter shows that it is no where mention  in this letter that the interest shall be waived in exceptional circumstances like Covid, nothing has been mentioned in it. As per Ex.C-1, the rate of interest has been claimed as per CBC 24%, whereas perusal of Ex.C-3 shows that the penal interest @ 1% is to be charged after default of 360 days @ 27% per annum, but no interest of 27% has been claimed or charged by the OP. The OP has produced on record the statement/gold loan ledger Ex.OP-4, which shows the interest received and receivable from the OP. The terms and conditions of Ex.OP-5/Ex.C-3, nowhere show any rebate. Ex.Op-6 is Gold Loan Ledger and this shows that on 29.06.2020, the loan account has been closed. As alleged by the complainant, no assurance has been proved by the complainant, which was allegedly given by the OP. Any such assurance has been denied by the OP. Thus, the complainant has failed to prove his case and thus, the complaint of the complainant is dismissed with no order of cost. Parties will bear their own costs. This complaint could not be decided within stipulated time frame due to rush of work.

9.                Copies of the order be supplied to the parties free of cost, as per Rules. File be indexed and consigned to the record room.

Dated          Jaswant Singh Dhillon    Jyotsna               Dr. Harveen Bhardwaj     

22.08.2022         Member                          Member           President