DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, BARNALA, PUNJAB.

 

Complaint Case No : CC/36/2017

Date of Institution : 27.03.2017

Date of Decision : 27.05.2019

Dharminder Sharma son of Udey Bhan Sharma resident of House No. XI/1713, Street No. 3A, Shakti Nagar, Bajakhana Road, Barnala now residing at Mysore City in Karnatka through Special Attorney Sh. Jatinder Singh son of Sh. Inderjit Singh resident of Village Amla Singh Wala, Tehsil and District Barnala. 

…Complainant

Versus

1. Muthoot Fincorp Limited, Near Old Bus Stand, College Road, Barnala through its Branch Manager. 

2. Muthoot Fincorp Limited Registered Office, Muthoot Fincorp Ltd., Muthoot Centre, Punnen, Trivandrum, Kerla-695039 through its Managing Director/Authorized Person.

…Opposite Parties

Complaint Under Section 12 of Consumer Protection Act, 1986.

Present: Sh. Pankaj Kumar counsel for the complainant.

Smt. Anu Sharma counsel for opposite parties. 

Quorum.-

1. Sh. Amrinder Singh Sidhu : President

2. Sh. Tejinder Singh Bhangu : Member

 

(ORDER BY AMRINDER SINGH SIDHU PRESIDENT):

  The complainant Dharminder Sharma son of Udey Bhan through his special attorney Jatinder Singh has filed the present complaint under Section 12 of the Consumer Protection Act, 1986 (as amended up to date) against Muthoot Fincorp Limited, Barnala and another. (hereinafter referred as opposite parties).  

2. The brief facts of the present complaint as stated by the complainant are that the complainant had taken loan of Rs. 1,80,000/- from the opposite party No. 1. Opposite party No. 2 is the registered legal entity and opposite party No. 1 is its branch office at Barnala. Further, the complainant had been paying the interest on the loan amount and for security had pledged gold ornaments vide pledge No. F2652, so the complainant is consumer of the opposite parties. The complainant has alleged that as per terms and conditions he repaid the entire loan with interest of Rs. 1,88,686/- through Sat Pal Singh (Authorized Agent). The opposite party No. 1 issued Account Closure Slip/Statement dated 19.7.2016 to the complainant. However, the opposite parties asserted that gold ornaments could not be given to special attorney and same would be given to the borrower in person. But in the month of December 2016 opposite party No. 1 demanded some amount on account of interest. The special attorney visited the office of opposite party No. 1 and inquired about the matter but no satisfactory answer was given by the employees of the opposite parties to him. It is further submitted that thereafter special attorney visited the office of opposite party No. 1 many times and requested them not to demand any interest as account had already been closed on 19.7.2016 but they told that they would recover the interest by sale of gold ornaments. The act and conduct of the opposite party have caused mental tension, agony and harassment to the complainant and further there is deficiency in service on the part of the opposite parties. Hence the present complaint is filed seeking the following reliefs.- 

1) The opposite parties be directed to return the gold ornaments and not to demand any interest and be issued No Due Certificate.   

2) To pay Rs. 20,000/- as compensation for mental agony and  harassment and Rs. 10,000/- as litigation expenses. 

3) The opposite parties be further directed to pay the above mentioned amount of Rs. 30,000/- with future interest at the rate of 12% per annum from the date of filing of the complaint till actual realization.

4) Any other relief to which this Forum deems fit.

3. Upon notice of this complaint, the opposite parties appeared and filed written version taking preliminary objections on the grounds that the present complaint is not maintainable and complainant has got no cause of action against the opposite parties. Further, the opposite parties objected that the complainant has concealed the material facts from this Forum and has not come to this Forum with clean hands. It is further submitted by the opposite parties that complainant has concealed this fact that he has earlier filed one police complaint against the opposite parties which was dismissed by the police as the same was based on false facts and present complaint is also false and frivolous and opposite parties are entitled to the cost of Rs. 20,000/-.  On merits, it is submitted by the opposite parties that the complainant had taken loan of Rs. 1,80,000/- from the opposite party No. 1 which is branch office of opposite party No. 2 and pledged his gold ornaments vide pledge No. F2652 and terms of loan agreement was 6 months i.e. From 17.11.2015 to 16.5.2016. It is alleged by the opposite parties that complainant defaulted in payment of loan installments as per agreed terms between the parties, so opposite parties had issued auction notice to the complainant. It is further alleged by the opposite parties that before the date of auction Satpal Singh who is brother in law of complainant visited the branch office of opposite party No. 1 on 19.7.2016, who shown the authorization letter of complainant and inquired about the loan liability of complainant. It is submitted by the opposite parties that at that time the complainant on the mobile of Satpal Singh requested the branch Manager to re-pledge the gold ornaments in the name of complainant and adjust the loan amount of new account to clear the outstanding of GL No. F2652 and receive the difference from Satpal Singh. The authorized representative also requested that he would get the loan documents signed from the complainant. So, the opposite parties to foster the business prospects with the complainant re-pledged the gold ornaments vide loan agreement No. GL No. F3434. It is further alleged by the opposite parties that at the time of re-pledging of gold ornaments the IT Section of opposite parties has issued a one time password on the mobile of Satpal Singh bearing No. 90418-03331 which showed the consent to re-pledge the gold ornaments. It is further alleged by the opposite parties that on 19.7.2016 the authorized representative of complainant deposited an amount of Rs. 8,686/- in cash. The opposite party No. 1 regularly maintains its cash book as per the circulars of opposite party No. 2. It is further submitted by the opposite parties that on 19.7.2016 authorized representative of complainant cleared the loan account GL No. F2652 from the re-pledging amount of GL No. F3434, so the Account Closure Slip dated 19.7.2016 was issued to the complainant. The opposite parties denied that complainant repaid the entire loan with interest amounting to Rs. 1,88,686/-. It is alleged by the opposite parties that complainant is the wrong doer and not entitled for any relief. It is further submitted by the opposite parties that the complainant again defaulted in payment of loan installments and himself at fault causing mental tension and harassment to the opposite parties. So, there is no deficiency in service on the part of the opposite parties. It is further submitted by the opposite parties that if the complainant does not repay the loan amount plus interest his gold ornaments would be put to auction as per the policy and rules of the opposite parties. Lastly the opposite parties prayed for the dismissal of the complaint with heavy costs. 

4. The complainant in order to support his complaint has tendered in evidence affidavit of Sat Pal Singh as Ex.C-1, copy of Account Closure Slip dated 19.7.2016 as Ex.C-2, copy of special power of attorney dated 27.2.2017 as Ex.C-3, affidavit of Jatinder Singh as Ex.C-4 and closed the evidence on behalf of complainant.  

5. On the other hand the opposite party in support of their version have tendered into evidence affidavit of Avtar Singh Branch Manager of Muthoot Fincorp Barnala as Ex.OP-1, copy of loan agreement as Ex.OP-2, copy of loan account statement as Ex.OP-3, copy of auction notice as Ex.OP-4, copy of authorization letter dated 19.7.2016 as Ex.OP-5, copy of envelope cover as Ex.OP-6, copy of account statement as Ex.OP-7, copy of cash book as Ex.OP-8, copy of re-pledge report as Ex.OP-9, copy of circular as Ex.OP-10, copy of auction notice dated 24.3.2017 as Ex.OP-11, affidavit of Darshan Kumar Verma Ex Branch Manager of Muthoot Fincorp Barnala as Ex.OP-12 and closed the evidence.          

6. We have heard the learned counsel for the parties and have gone through the record on the file. Written arguments also filed by the parties. 

7. It is admitted fact between the parties that the complainant had taken loan of Rs. 1,80,000/- from the opposite party No. 1 and pledged his gold ornaments vide pledge No. F2652. It is also admitted by the opposite parties in their written version that the Account Closure Slip dated 19.7.2016 Ex.C-2 was issued by them to the complainant which is most important document of the present complaint. 

8. The main question arises in the present complaint that whether Account Closure Slip dated 19.7.2016 was issued by the opposite parties only on receiving the cash amount from the complainant or by re-pledging the gold ornaments.

9. In the present complaint the most important document is Account Closure Slip dated 19.7.2016 Ex.C-2 which is admittedly issued by the opposite parties. We have perused this document carefully and in this document it is clearly mentioned that the principal amount which was financed to the complainant was Rs. 1,80,572/- and interest amount was Rs. 8,026/-. After adding postage and expenses of Rs. 115/- total amount becomes Rs. 1,88,686/- which was paid by the complainant in cash on 19.7.2016 for which stamp of cash receipt was duly stamped on this document. Further this document also having the stamp of Account Closed on which the date is mentioned as 19.7.2016 which means that the complainant has paid the entire amount of loan alongwith interest and other charges in cash so his account was closed permanently. Even the statement of account Ex.OP-3 is also proved the same fact that complainant paid the entire amount of Rs. 1,80,545/- which is outstanding on 19.7.2016. In this way when complainant has cleared his loan account then the opposite parties have no right to usurp his gold ornaments which was given by him to the opposite parties as security. On the other hand the opposite parties to prove that the payment was made by the complainant by re-pledging the gold ornaments has placed on file statement of Account Ex.OP-7 in which it is mentioned that on 19.7.2016 there is outstanding of Rs. 1,80,575/- against the complainant vide GL No. F3434. But the opposite parties have failed to prove on the record any document vide which they have paid this amount to the complainant or his attorney as this document Ex.OP-7 is not having the signatures of the complainant or his attorney. The opposite parties also filed Ex.OP-8 which is copy of cash book in which also the amount of Rs. 1,80,000/- is mentioned against the Pledge No. F 3434 but this document cannot prove that the opposite parties paid this amount to the complainant as there is no signatures of complainant or his attorney against this transaction. The opposite parties also filed copy of Re-pledge report from 7.7.2016 to 1.1.2017 in which at Serial No. 3 GL No. F3434  amount of Rs. 1,80,575/- is mentioned and old GL No. F2652 is mentioned but this document also prepared by the opposite parties and they have not placed on file any document vide which they can prove the receipt of the amount of Rs. 1,80,575/- by the complainant or his attorney and is having signatures either of complainant or his attorney. The other documents copy of circular Ex.OP-10 and copy of auction notice Ex.OP-11 of GL No. F3434 have no value when the opposite parties have failed to prove the receipt of the amount of this loan to the complainant or his attorney. 

10. The opposite parties relied upon the citation of Hon'ble Uttaranchal State Commission, Dehradun titled Indian Phytochem Versus S.K. Banerjee and others reported in Consumer Protection Judgments 2004 Vol. III Page-227 and citation of Hon'ble Madhya Pradesh State Commission, Bhopal titled as Sanjay Agrawal Versus Garima Concept Constructions Unit and others reported in 2015 (4) CLT-588 are not applicable to the present complaint due to different facts and circumstances as in the present complaint the complainant not mentioned the word of fraud in his entire complaint and only alleged deficiency in service on the part of opposite parties and present complaint is maintainable before this Forum. 

11. In view of above discussion it is proved on the file that Account Closure slip was issued by the opposite parties after receiving the amount of loan in cash from the complainant and opposite parties failed to prove that the amount was received from the complainant only after re-pledging the gold ornaments. So, not returning the gold ornaments to the complainant even after receiving the entire amount from the complainant is deficiency in service on the part of the opposite parties. 

12. As a result of the above discussion, present complaint is allowed and the opposite parties are directed to return the gold ornaments to the complainant, which was deposited by the complainant with the opposite parties vide pledge No. F2652 at the time of taking the loan, without demand of any amount from the complainant and also issues him No Due Certificate regarding this. Compliance of order be made within the period of 30 days from the date of the receipt of copy of this order. Copy of the order be supplied to the parties free of costs. File be consigned to the records after its due compliance.

Reason for delay in deciding the complaint:

As the whole time Post of President of this Forum is vacant since 19.10.2017 due to non appointment of it by the State Government, Punjab so matters are pending since long. Amrinder Singh Sidhu, President who is the author of this order, assumed Additional Charge of this Forum as President on 01.01.2019 for only two days a week and this complaint is decided as soon as possible on the conclusion of arguments on 27.05.2019 by the learned counsel for parties.  

  ANNOUNCED IN THE OPEN FORUM:

27th Day of May 2019

 

 

 

            (Amrinder Singh Sidhu)

           President

 

 

           (Tejinder Singh Bhangu)                Member