BEFORE THE DISTRICT CONSUMER  DISPUTES REDRESSAL FORUM; FATEHABAD.

 Complaint Case No.135 of 2017.

 Date of Instt.:16.06.2017.

Date of Decision:19 .12 .2017.

Mange Ram son of Ganpat Ram, resident of Gali No.1, Bhatia Colony, Fatehabad, Tehsil and District Fatehabad.

                                                                           ..Complainant

                                     Versus

1.Muthoot Fincorp Limited, Regd.Office: Muthoot Centre, Punen Road, Trivandrum, Karela-695039 through its Manager/ Authorized Signatory.

2. Muthoot Fincorp Limited, First Floor of Union Bank of India, Branch G.T.Road, Fatehabad, Tehsil and District Fatehabad through its Authorized Signatory.

           ..Respondents/OPs

Before:                Sh.Raghbir Singh, President.

                            Sh.R.S.Panghal, Member.

Mrs.Ansuya Bishnoi, Member.                          

Present:               Sh.Pankaj Bansal, Adv. for the complainant.

                            Sh.C.L.Narang, Adv. for the OPs.

ORDER

                            The present complaint under Section 12 of Consumer Protection Act, 1986 has been filed by the complainant against the OPs with the averments that he had taken gold loan of Rs.96,000/- on 06.02.2016 vide Loyalty No.MPFTBD1233280115 and as a security for repayment of the above said loan the complainant pledged 56.200 grams gold ornaments with the OPs and all the pledged gold ornaments were kept in the custody of OP No.2. It was represented by the OPs to the complainant that as and when the complainant will deposit the loan amount along-with interest then the gold ornaments will be released to the complainant.

2.                         It is further submitted that after passing of some days the complainant visited the office of OP No.2 for depositing the loan amount along-with interest. However the OPs delayed the matter of getting deposit of loan amount along-with interest and assured the complainant that there is no need to worry. Thereafter on 04.05.2016 when the complainant approached the OPs to get the deposit of loan amount then he was told by the OPs that his gold ornaments have been sent in Ambala Branch for auction. Therefore on account of non-releasing of the gold ornaments the complainant is facing hard-ships.

3.                         It is further submitted that thereafter the complainant served a legal notice on 09.05.2017 through his counsel to the OPs calling upon them to get the loan amount alongwith interest deposited and release gold ornaments of the complainant but all in vain. The above said act on the part of OPs amounts to deficiency and unfair trade practice in rendering service to the complainant. Therefore the complainant is entitled for return of the gold ornaments of the complainant along-with compensation on account of mental agony and physical harassment suffered by him. Hence, the present complaint.

4.                         On being served the OPs appeared and resisted the complaint by filing a joint written statement wherein various preliminary objections with regard to maintainability, estoppal, cause of action, locus-standi, etc., have been raised.

5.                         On merits it is admitted that the complainant had taken a loan of Rs.96,000/- from the OPs and had pledged gold ornaments  of net weight of 55.200 grams. It is further submitted that the above said loan amount of Rs.96,000/- was disbursed to the complainant on 06.02.2016. However the complainant did not deposit loan amount and its interest within the stipulated period of nine months as mentioned in the pledged-form. Therefore the complainant was given a notice dated 05.05.2016 by OP No.2 calling upon the complainant to make payment of said loan along-with interest. However the complainant did not deposit the loan amount and interest and as such the complainant was given another notice dated 23.09.2016 through registered post calling upon him to deposit the loan amount but the complainant neither deposited the loan amount nor interest. Thereafter the complainant was served another notice dated 23.03.2017 calling upon him to deposit the loan with interest upto 08.04.2017 failing which the pledged gold will be auctioned on 15.04.2017 in the office of Op No.2 and in case of failure of auction on dated 15.04.2017 the pledged gold will be sold on 22.04.2017 at Ambala Cantonment in the office of Muthoot Fincorp Limited. It is further submitted that the complainant has also served notice through publication in daily newspaper namely Aaj Samaj and  Indian Express published on 05.04.2017. Besides this the complainant was also informed telephonically by Manager of Op No.2 on 25.03.2017, 01.04.2017, 05.04.2017, 10.04.2017, 12.04.2017 and on 13.04.2017 to deposit the loan amount with interest failing which the pledged gold of the complainant will be auctioned. However the complainant did not deposit the loan amount with interest with the OPs and as such the pledged gold was sold in open auction on 22.04.2017. From the above said auction an amount of Rs.1,28,816/- were realized whereas the loan amount along-with interest upto 17.04.2017 were Rs.1,36,604/- and thus the complainant is still liable to pay balance amount of Rs.7,788/- to the OPs.

6.                         It is further submitted that the action of the OPs in selling the pledged gold of the complainant through public auction is perfectly in accordance with the terms and conditions of loan agreement and sustainable in the eyes of law. The pledged gold of the complainant has been sold in a fair and transparent manner. Therefore the present complaint is without any merit and the same is liable to be dismissed.

7.                         The complainant submitted his affidavit as Annexure C1 in evidence along-with documents as Annexure C2 to C6. On the other hand Shyam Dass, Manager produced his affidavit on behalf of OPs. The OPs also tendered in evidence documents Annexures R1 to R11 and closed the evidence.

8.                         We have duly considered the arguments advanced by learned counsel for the parties and have also examined the entire material placed on record of the case. It is the case of the complainant that he approached the office of Op No.2 many a times for depositing the loan amount along-with interest, however the OPs neither accepted the loan amount along-with interest from the complainant nor the gold ornaments pledged by him have been returned by the OPs. On account of the same he is facing financial hardship and is suffering from mental and physical agony. The above said act amounts to deficiency and unfair trade practice on the part of OPs in rendering service to him.

9.                         On the other hand, it is the case of the OPs that the complainant failed to deposit the loan amount along-with interest with the OPs within the stipulated period as provided in the loan agreement. Therefore, the OPs by following due procedure as laid down in the terms and conditions of the loan agreement has sold the gold ornaments in a public auction. Before selling the pledged gold due notices were served to the complainant and notice to general public was given by making publication in the two leading newspapers of the area. The gold ornaments were sold in public auction in a fair and transparent manner. Therefore there is no deficiency on the part of OPs in rendering service to the complainant.

10.                       After examining the pleading of both the parties, documents placed on record and arguments put-forth by counsel of the parties, we are of the opinion that the complainant has failed to prove any deficiency on the part of OPs in the present case. The loan in the present case was advanced to the complainant on the basis of a loan agreement Annexure R-8. The terms and conditions of the loan agreement constitute a contractual agreement and the same is binding on both the parties. As per terms and conditions of the loan agreement, duly signed by the complainant, he had to refund the loan amount along with interest to the OPs within the maturity period. However from perusal of the record it is evident that the loan amount along-with interest was not deposited by the complainant with the OPs within stipulated period as agreed by him in the loan agreement. Therefore terms and conditions of the loan agreement have been violated by the complainant.

11.                       From perusal of record it is also revealed that notice dated 05.05.2016 and notice dated 23.09.2016, Annexure R2 were sent to the complainant to deposit the loan amount. Thereafter the complainant was served notice dated 23.03.2017 for depositing the loan amount with interest upto 08.04.2017and it was also informed that failing of the same the pledged gold will be auctioned on 15.04.2017 and in case of failure of auction on 15.04.2017 the pledged gold will be sold on  22.04.2017. It is also evident from Annexure R4 and R5 that notice to the general public was given by the OPs by making publication in two daily newspapers namely Aaj Samaj and Indian Express published on 05.04.2017. We are also of the considered opinion that the 22 carat gold of the complainant has been sold by the OPs as per the market rate prevailing on the date of auction. From perusal of Annexure R7 as per report of post-office, Fatehabad it is evident that letter 23.03.2017 issued to the complainant was delivered to him. From the above it is evident that due process as per terms and conditions of loan agreement has been followed by the OPs before selling the gold.

12.                       In view of the aforesaid discussion the present complaint is devoid of any merits and the same is accordingly dismissed. A copy of this order be furnished/given to both the parties free of cost as provided in the rules.  File be consigned to record room after due compliance.

ANNOUNCED IN OPEN FORUM.                                                   Dt.19.12.2017

                   (Ansuya Bishnoi)   (R.S.Panghal)      (Raghbir Singh)

                         Member              Member              President                                                                                         

                                                                                     DCDRF, Fatehabad