BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, MYSORE-570023

CONSUMER COMPLAINT NO.99/2018

DATED ON THIS THE 2^nd January, 2020

      Present:   1) Sri. C.V.Maragoor

B.Com., L.L.M., - PRESIDENT   

                     2) Sri. Devakumar.M.C.           

                                        B.E., LLB., PGDCLP   - MEMBER

Sri C.V.MARAGOOR,

President

1.       This complaint has filed by Smt.Bhagyalakshmi.R W/o Radhakrishna Shetty.S aged 55 years resident of Mysuru to direct the opposite parties to pay a sum of Rs.27,700/- along with compensation of Rs.1,00,000/- and litigation costs.
2.        The opposite party No.1 is Manager, Muthoot Finance Pvt. Ltd., Corporate Office, Kochi, Kerala State and opposite party No.2 is Mysuru branch office of opposite party No.1. The complainant has deposited Rs.1,00,000/- with opposite party No.2 as F.D. on 28.06.2012 for a period of 60 months and the maturity date of the F.D. was 28.09.2017.  The complainant has requested the opposite parties for return of the bond amount before expiry of maturity period then the opposite party No.2 told that the amount could not be returned before expiry of the maturity date.  Further, the opposite party No.2 told that he may take amount by keeping the bond with them.  Accordingly, the complainant has taken Rs.90,000/- from the opposite party No.2 by keeping the bond with it as a security.  It is further case of complainant that even after expiry of the maturity period, the opposite parties have failed to pay the remaining amount of Rs.10,000/- with interest in spite of oral and written requests.  Hence, this complaint.
3.       The opposite party Nos.1 and 2 though appeared through their learned counsel, but opposite party No.2 only filed written version admitting that this opposite party has issued debenture bond in favour of the complainant for value of Rs.1,00,000/- on 28.09.2012 vide bond No.0438/19.  It is the case of opposite party No.2 that the complainant has availed loan over the bond by executing demand promissory note on 27.10.2012 for a tune of Rs.90,000/- by surrendering the bond.  The complainant has received the bond at the rate of 12% p.a. on 28.09.2012 and subsequently availed loan of Rs.90,000/- agreeing to pay interest at the rate of 14% p.a. on 27.12.2012.  The complainant has filed this false complaint seeking amount from the opposite parties though he has not remitted part of the loan amount.  The complainant was due a sum of Rs.1,77,129/- on 28.09.2017 on the loan amount of Rs.90,000/-.  The complainant instead of discharging the loan has made un just claim of Rs.27,700/-.  On the above grounds, the opposite party No.2 asked to dismiss the complaint.
4.      The complainant filed her affidavit and produced seven supporting documents.  On behalf of opposite party No.2 one Geethashree, Authorized signatory filed her affidavit and produced eight documents.
5.       We have heard the arguments advanced by the learned counsel for the complainant and opposite party No.2 in addition to written brief submitted by them and the  points that would arise for determination are as under:-  

1. Whether the complainant proves that the act of opposite parties not returning the amount of Rs.10,000/- with interest after the expiry of maturity period amounts to deficiency in service and unfair trade practice?
2.  Is complainant entitled to the reliefs sought for?

6.    Our findings on the aforesaid points are as follows:

Point No.1 :- In the affirmative;

Point No.2 :- Partly in the affirmative as per final order for the following

:: R E A S O N S ::

7.         Point Nos.1 and 2:- The learned counsel for the complainant has submitted that the opposite parties even after the expiry of the maturity period have failed to refund the balance amount of Rs.10,000/- since the complainant has taken back Rs.90,000/- out of Rs.1,00,000/- kept in F.D.  The learned counsel for the opposite parties argued that the complainant took debenture bond for Rs.1,00,000/- for a term of five years and after taking bond, the complainant has availed loan of Rs.90,000/- by executing on demand promissory note.  The complainant has failed to pay the loan amount or interest on the said loan as such the complainant is liable to pay some amount to the opposite parties even after adjusting balance amount of Rs.10,000/-.
8.         The opposite party No.2 has not disputed issue of debenture bond for Rs.1,00,000/- in favour of the complainant on 28.09.2012.  The complainant and opposite party No.2 have produced debenture certificate and according to this maturity period is 60 months from 28.09.2012 and redemption value is Rs.1,76,200/- as on 28.09.2017.  This complaint has been filed on 21.03.2018  after the expiry of redemption period.  The complainant prior to filing this complaint has issued legal notice to the opposite parties which have been received by them.  The opposite parties have sent intimation on 05.04.2017 to the complainant with regard to date of maturity of bond and due amount of Rs.2,286/-. According to this intimation interest rate is 15.24%.  The complainant has produced document issued by opposite party No.2 for keeping bond as security for loan on 27.10.2012.  The opposite party No.2 has produced demand promissory note (DPN) loan ledger extract dated 16.08.2018.  It is mentioned in this ledger that DPN effective date is 27.10.2012 and its due date is 26.09.2017.  DPN interest rate is 13.50% p.a. and bond interest rate is 15.24% p.a.  DPN amount is Rs.90,000/- and bond amount Rs.1,00,000/-.  Status shown as active. 
9.           The opposite party No.2 has produced copy of demand promissory note executed by the complainant on 27.10.2012 for Rs.90,000/-, but interest column is kept as blank.  The opposite party No.2 has produced another document executed by the complainant in favour of the opposite parties for keeping the bond as security for loan of Rs.90,000/-.  In this also it is mentioned that bond certificate dated 28.09.2012 for Rs.1,00,000/- for 60 months carrying interest at 15.24% p.a.  Branch duly discharged to be held as security for the amount of Rs.90,000/-.  The opposite party No.2 has produced another document i.e. DPN loans against gold bond appraisal – sanction form dated 27.10.2012.  In this also bond interest rate is mentioned as 15.24% p.a. and rate of interest on DPN loan at 14% p.a.
10.           From the perusal of the documents produced by the opposite party No.2 it is clear that the bond amount is carrying interest at the rate of 15.25% p.a. where as the DPN loan amount carrying interest at the rate of 13.50%.  It shows that the bond amount is carrying higher rate of interest nearly 1.75% more than the DPN loan amount.  Therefore, even the complainant has not repaid the loan amount of Rs.90,000/- the bond amount interest is more than the interest calculated on the loan amount of Rs.90,000/-.  Therefore, the opposite parties have committed deficiency in service as they have failed to return the balance amount of Rs.10,000/- with interest for the period of 60 months after the expiry of maturity period.  The act of opposite parties amounts to unfair trade practice as they have withheld the amount of complainant in spite of oral and written requests.  The opposite parties have taken the debenture bond as security for the loan amount of Rs.90,000/- as such it is not necessary for the complainant to approach them to return back the bond since already it is in the possession of opposite parties.  Therefore, the amount claimed by the complainant is in accordance with own document produced by the opposite parties.  The complainant has not produced any materials for award of compensation of Rs.1,00,000/- as such for causing mental agony to the complainant, the opposite parties shall pay a sum of Rs.10,000/- as compensation and Rs.10,000/- towards litigation costs.    For the above reasons, we proceed to pass the following;          

:: ORDER ::

1. The complaint filed by Bhagyalakshmi.R. is partly allowed directing the opposite party Nos.1 and 2 shall jointly and severally liable to pay a sum of Rs.27,700/-, compensation of Rs.10,000/- and cost of litigation of Rs.10,000/- to the complainant within 30 days from the date of order.  Otherwise, it carries interest at the rate of 10% p.a. from the date of filing complaint till payment.  
2. Furnish the copy of order to the complainant and opposite parties at free of cost.

(Dictated to the Stenographer transcribed, typed by her, corrected by us and then pronounced in open Forum on this the 2^nd January, 2020)

                                                  (C.V.MARAGOOR)    

                                                       PRESIDENT     

                                                (DEVAKUMAR.M.C.)

                                                       MEMBER