Haryana

Ambala

CC/314/2021

Dharam Vir - Complainant(s)

Versus

Muthoot Finance Limited - Opp.Party(s)

Surjeet Singh Walia

02 Nov 2022

ORDER

 BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, AMBALA.

 

                                                          Complaint case no.         :     314 of 2021

                                                          Date of Institution           :     06.10.2021

                                                          Date of decision    :     02.11.2022.

 

Dharam Vir Age 45 years S/o Mohan Lal R/O H. No. 287, Ward No. 2 Gali No.4 Badi Gwal mandi, Topk Khana Bazar, Ambala Cantt.                                                                                                                     ……. Complainant

Versus

Muthoot Finance Limited Rai Market, Ambala Cantt

….…. Opposite Party

Before:        Smt. Neena Sandhu, President.

                   Smt. Ruby Sharma, Member,

Shri Vinod Kumar Sharma, Member.

 

Present:        Shri S.S. Walia, Advocate, counsel for the complainant.

                      Shri Harbhajan Singh, Advocate, counsel for the OP.

                  

Order:        Smt. Neena Sandhu, President.

1.                Complainant has filed this complaint under Section 35 of the Consumer Protection Act, 2019 (hereinafter referred to as ‘the Act’) against the Opposite Party (hereinafter referred to as ‘OP’) and prayed that OP be directed to  settle both the Loan accounts and return the balance Gold or       Rs.One Lakhs after deducting Loan amount and interest upto September 2021 amounting Rs.2,78,950/-; not to charge interest after September 2021; to pay compensation in the sum of Rs.25,000/-.

2.            Brief facts of this case are that the complainant borrowed two Gold Loans from the OP vide Customer ID No. 0038400000010488 CRM Code 003840014897297 Loan dated 11-09-2020 under Muthoot advance scheme, one amounting Rs.133,200/- by giving Gold weighing 41.700 grams after deductions for stone etc. Second amounting to Rs.85,750/- by giving Gold weighing total 27.500 grams after deductions of dirt and stone. The complainant put his signatures, where the O.P. asked to sign, which were in English and beyond his reading. The complainant was told that the Gold is taken as per the market value and rate of interest as per the RBI guidelines. Due to the Pandemic of Covid 19, Corona virus, there was no work at all in the market and the complainant could not even deposit the interest to the OP in time. When in the last week, the complainant visited the OP for the settlement of the Loan account and requested to return the balance Gold after deduction of total Loan of Rs.1,33,200/- + 85,750/-= 2,18,950/- As per the O.P. the alongwith total  interest of Rs.60,000/- total payable amount comes to Rs.2,78,950/- i.e. Rs.2,18,950/- + Rs.60,000/-. However, the OP asked the complainant to deposit Rs.60,000/- and informed him no Gold will be returned and account will be totally settled. The complainant informed the OP that the total Gold deposited  it is 79 gm and 200 mg, total value whereof is Rs.3,80,000/- and requested that after taking the loan amount of Rs.2,78,950/-,return the remaining gold to him. The officer of the OP refused to accept his genuine request and asked him to pay Rs.60,000/- and told that no gold will be return to him. The said act of the OP amounts to deficiency in service.   Hence, the present complaint.
3.           The OP appeared through its counsel and filed written version wherein it raised preliminary objections with regard to the fact that this complaint is not maintainable; bad for non-joinder of necessary parties; the complainant has not substantiated his case as no documents have been annexed with the complaint; the complainant has also not provided any details of the alleged claim and /or Particulars of the alleged claim; the complaint lacks cause of action; the complainant is misleading this  Commission; no cause of action; the matter involves intricate, complex and/or complicated questions of law and fact which will require detailed and/or elaborate trial and involve leading of voluminous evidence which is possible only in regular proceedings before a Civil Court; the complainant does not qualify as a consumer under the CPA 2019 etc. On merits, it has been stated that the complainant had approached Ambala Branch office of the OP for the first time on 11.09.2020 seeking grant of loan against pledge of his gold ornaments towards collateral security, for the purpose of securing repayment of the said loan. The complainant took the gold Loan after enquiring all the relevant information and procedure for the same and opted for 2 gold Loans with No. MAL-3591 and MAL 3590 of Rs.85,750/- & Rs.1,33,200/- by pledging the gold of gross weight 29.00grams and 44.400 grams respectively. The complainant had signed and submitted application forms for gold loan in which he had duly agreed to repay the said gold loans within a period of 360 days to be computed with effect from 11.09.2020. Further the rate of interest applicable on the Loan account Nos. MAL-3591 & MAL-3590 were mentioned as 27% p.a. (Including PENAL INTEREST @ 2% p.a. after 360 days) (Effective annualized rate (365 days) is 28.12% (as the interest calculated at) however rebate shall be available, in case of early payment: Further, the interest on the said loan was to be calculated on the monthly basis. But in defiance of the terms of the said loan agreement/contract, the complainant had failed/avoided to adhere to the terms of the said loan's repayment and committed defaults. Till date the complainant has not paid any principal amount or interest in respect of the loan accounts aforesaid despite numerous requests and reminders including the demand notice issued by the OP. Consequently the OP in furtherance to its contractual rights as well as the rights available to it under the law has initiated the auction proceedings and accordingly pre-auction notices dated 24.09.2021 were sent and served upon the complainant calling upon him to pay/deposit the total outstanding dues in respect of the said loan, within a specified time period. However, instead of paying dues, the complainant has preferred to file complaint before this Hon'ble Commission on the basis of false averments The total principal Loan amount for both the accounts is Rs.2,18,950/- and as on 26.11.2021 the total interest receivable is Rs.77,607/- i.e. total outstanding (Rs.2,18,950 + Rs.77,607= Rs.2,96,557/-). The account of the complainant being NPA is liable for auction and if the complainant agrees then the auction of his account will be conducted as per rules then the surplus (if any) will be given to the complainant. Rest of the averments of the complainant were denied by the OPs and prayed for dismissal of the present complaint with exemplary costs.
4.           Learned counsel for the complainant tendered affidavit of the complainant as Annexure CW1/A alongwith documents as Annexure C-1 to C-4 and closed the evidence on behalf of the complainant. On the other hand, learned counsel for the OP tendered affidavit of Shri Sucharu Tandon son of Shri Ram Parkash Tandon, R/o H.No.34-A, Dayal Bagh, Ambala Cantt. as Annexure OP-A alongwith documents Annexure OP-1 to OP-10 and closed the evidence on behalf of OP.
5.           We have heard the learned counsel for the parties and carefully gone through the case file.
6.           Learned counsel for the complainant submitted that by not returning the gold ornaments pledged by the complainant, after deducting the loan amount (principal and interest), the OP is deficient in providing service.
7.           On the contrary, the learned counsel for the OP submitted that till date the complainant has not paid any principal amount or interest in respect of the loan accounts aforesaid despite numerous requests and reminders including the demand notice issued by the OP. Consequently the OP in furtherance to its contractual rights as well as the rights available to it under the law has initiated the auction proceedings and accordingly pre-auction notices dated 24.09.2021 were sent and served upon the complainant calling upon him to pay/deposit the total outstanding dues in respect of the said loan, within a specified time period. He further submitted that instead of paying dues, the complainant has preferred to file complaint before this Hon'ble Commission on the basis of false averments. He further submitted that the total principal Loan amount for both the accounts is Rs.2,18,950/- and as on 26.11.2021 the total interest receivable is Rs.77,607/- i.e. total outstanding (Rs.2,18,950 + Rs.77,607= Rs.2,96,557/-) and the account of the complainant being NPA is liable for auction and if the complainant agrees then the auction of his account will be conducted as per rules then the surplus (if any) will be given to the complainant. 
8.           It is not in dispute that the complainant vide application dated 11.09.2020, availed two gold loans to the tune of Rs.85,750/- & Rs.1,33,200/- in total Rs.2,18,950/- from the OP vide Loans No. MAL-3591 and MAL 3590, by pledging the gold ornaments of gross weight 29.00 grams and 44.400 grams respectively, vide loan sanction letters Annexure C-1 and C-2. It is an admitted fact that the complainant has neither paid a single penny towards the interest in respect of the said loan amount nor has refunded the principal loan amount.  It is coming out from the record that when the complainant failed to pay either the interest or refund the principal amount, the OP served notices dated 24.09.2021, Annexure C-3 and C-4 calling him to make the said payment, failing which it was made clear that necessary action under law shall be taken against him. However, there is nothing on record that the said notices were replied by the complainant. The plea of the complainant is that on account of lockdown, he was having no work, as a result whereof, he could not either pay the interest or refund the principal amount to the OP. It may be stated here that it is not the case of the complainant that he obtained the said gold loans from the OP just before COVID-19.  Complainant had availed the said gold loans in September 2020 i.e. after about 5 months of opening of lockdown in the country. Complainant has not placed on record, any order having been issued by the competent authority, granting moratorium for the said period i.e. September 2020. Thus, under those circumstances, since it is settled law that the parties are bound by terms and conditions of the contract, and, as such, by not repaying the loan amount,  complainant  has violated terms and conditions of the contract and for that the OP cannot be held deficient in providing service. However, still liberty is granted to the complainant to make payment of the principal amount alongwith due interest, to get his gold ornaments back from the OP, in case, the same has not been auctioned by it. In the interest of justice, it is also held that in case the OP has sold the said gold ornaments, it shall refund the excess amount, if any, recovered from the said sale, over and above, the due amount against the complainant.
9.           With these directions, this complaint stands disposed off. Parties to bear their own cost. Certified copy of this order be supplied to the parties concerned, forthwith, free of cost as permissible under Rules. File be indexed and consigned to the Record Room.

 Announced on: 02.11.2022.

 

          (Vinod Kumar Sharma)  (Ruby Sharma)               (Neena Sandhu)

              Member                         Member                       President