Date of filing:17.4.2014.
Date of disposal:13.1.2015.
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM - II:
VIJAYAWADA, KRISHNA DISTRICT
Present: SMT N. TRIPURA SUNDARI, B. COM., B. L., PRESIDENT (FAC)
SRI S.SREERAM, B.COM., B.A., B.L., MEMBER
TUESDAY, THE 13TH DAY OF JANUARY, 2015.
C.C.No.89 of 2014
Between:
Gandi Ranga Rao, S/o Rama Rao, Hindu, R/o D.No.2-243-A, Sundarampet, 2nd Ward, Vuyyuru – 521165, Krishna District.
.… Complainant.
AND
Muthoot Fincorp Ltd., rep., by its Branch Manager, D.No.8-325, 1st Floor, JNB Complex, Katuru Road, Beside SBI Bank, Vuyyuru, Krishna District.
.… Opposite Party.
This complaint coming on before the Forum for final hearing on 31.12.2014, in the presence of Sri N.Sudarsan Rao, Advocate for complainant and Sri B.Satyanarayana, Advocate for opposite party and upon perusing the material available on record, this Forum delivers the following:
O R D E R
(Delivered by Hon’ble President (FAC) Smt N. Tripura Sundari)
This complaint is filed under Section 12 of the Consumer Protection Act, 1986.
The averments of the complaint are in brief:
1. The complainant availed three gold loans of Rs.54,600/-, Rs.35,250/- and Rs.94,800/- from the opposite party on 27.3.2013, 28.3.2013 and 2.4.2013 respectively by pledging his gold ornaments weighing about 24 grams, 15.5 grams and 42.5 grams. The complainant had agreed to pay interest at 22% per annum. Accordingly the opposite party issued three separate receipts showing the wife of the complainant as nominee. While so one week back when the complainant approached the opposite party to clear the gold loan amounts the opposite party has not responded properly and denied to receive the amount due under the loan accounts and thereby failed to release the pledged gold. Recently the agents of the opposite party approached the complainant and demanded higher rate of interest on the gold loan amounts or else they will sell away the gold ornaments of the complainant which amounts to deficiency in service and the complainant is underwent untold mental agony. Hence the complainant is constrained to file this complaint against the opposite party praying the Forum to direct the opposite party to receive the outstanding amount covered by the said gold loans and released the pledged gold ornaments, to pay double amount of gold towards compensation if the opposite party failed to release and handover the gold ornaments to the complainant, to pay Rs.10,000/- towards damages for mental agony and to pay costs.
2. The version of the opposite party is in brief:
The opposite party denied all the allegations of the complainant and submitted that at the time of obtaining the gold loan, the complainant agreed to the terms and conditions and signed on the loan agreement and obtained gold loan from the opposite party. So it is under obligation to pay the loan amount to the opposite party. The opposite party lends money to its customers on fixed rate of interest and the same is duly explained to its customers at the time of the customers applying for loan and it is disbursed only upon the terms and conditions of the loan by the customers. The customer while taking gold loan had verified the terms and the rate of interest and signed on the agreement. If the customer failed to pay the loan amount as agreed by him within time the opposite party had the right to recover the amount by conducting public auction of the ornaments pledged by the complainant as per the terms and conditions provided in the pledge card. The opposite party issued legal notices to the complainant with regard to clearance of 3 gold loans on 2.4.2013 which was received by the complainant and the legal notice issued on 2.3.2013 was got returned on 6.3.2014. Further on 2.4.2014 got issued notices and it was returned on 7.4.2014 with regard to gold loan. Further for another gold loan the opposite party got issued another legal notice on 28.3.2013 which was received by the complainant and it was got returned on 2.4.2014. Further the another gold loan the opposite party got issued legal notice on 27.3.2013 which was received by complainant. Again on 27.2.2014 got issued a legal notice which was returned on 3.3.2014. The opposite party got issued another notice on 27.3.2014 which was returned on 2.4.2014. The opposite party took necessary actions for recovery of gold loans but the complainant negligently failed to perform his part of obligation. There is no deficiency in service on the part of the opposite party towards the complainant and prayed to dismiss the complaint with costs.
3. On behalf of the complainant he gave his affidavit and got marked Ex.A.1 Ex.A.4. On behalf of the opposite party Sri P.Ramachandramouli Prasad, Branch Manager filed his affidavit and got marked Ex.B.1 to Ex.B.15.
4. Heard and perused.
5. Now the points that arise for consideration in this complaint are:
1. Whether there is any deficiency in service on the part of the opposite party towards the complainant in releasing the gold ornaments even though the complainant is ready to pay the pledged amount with interest?
2. If so is the complainant entitled for any relief?
3. To what relief the complainant is entitled?
POINTS 1 AND 2:-
6. On perusing the material on hand the complainant availed three gold loans of Rs.54,600/-, Rs.35,250/- and Rs.94,800/- from the opposite party on 27.3.2013, 28.3.2013 and 2.4.2013 by pledging his gold ornaments weighing about 24 grams, 15.5 grams and 42.5 grams under Ex.A.1 to Ex.A.3 respectively. The complainant says that he agreed to pay interest at the rate of 24% per annum for the above said gold loan and he approached the opposite party to clear the gold loan amounts but the opposite party has not responded properly and denied to receive the loan amount and not release the pledged gold. As per opposite party the complainant agreed to the terms and conditions and took the gold loan and signed on the loan agreement. The opposite party lends money to its customers on fixed rate of interest. If the customer failed to pay the loan amount as agreed by him within time the opposite party has the right to recover the amount conducting auction of the gold ornaments pledged by the complainant as per terms and conditions of the pledged gold. But there is no documentary evidence to show that the opposite party auctioned the gold of the complainant. As the complainant failed to repay the gold loan amount as per terms of the loan agreement the opposite party got issued legal notices under Ex.B.7 to Ex.B.14 to the complainant demanding the complainant to repay the loan amount. Some of the notices were returned unserved and some of the notices were served on the complainant, but the complainant kept quiet. As per the agreement the loan was given for a period of 12 months. The loan had become due for closure.
7. Meanwhile the proceedings the complainant filed an IA.94/2014 praying the Forum to direct the opposite party not to put the gold ornaments of the complainant for sale till disposal of the main complaint. As the complainant is not contested the IA the said IA is closed. By then the complainant filed another IA.1173 of 14 to summon the opposite party to furnish concerned record along with terms and conditions and permission of the RBI. The opposite party furnished the same. Again the complainant filed an IA.170 of 14 to summon the opposite party to furnish the record for proof with regard to loan accounts of the petitioner/complainant maintained by the opposite party together with the permission of the Reserve Bank of India. The opposite party filed the same.
8. We the Forum noticed that Ex.A.1 = Ex.B.1 that the rate of interest is 22% per annum. The complainant agreed to pay 24% per annum for over all period as per Ex.B.1. Therefore in view of natural justice we allow the interest at the rate of 24% per annum and as per our calculation the first loan for Rs.54,600/- is calculated to Rs.91,728/- and the second loan Rs.35,250/- is calculated to Rs.59,220/- and the third loan Rs.94,800/- is calculated to Rs.1,59,264/-, the above amounts are inclusive of principal and interest amounts. The complainant has to pay Rs.91,728/- + Rs.59,220/- + Rs.1,59,264/- for three gold loans. The total comes to Rs.3,10,212/- has to pay by the complainant to the opposite party to release the gold. But the opposite party failed to release the gold ornaments by receiving the amounts from the complainant. Therefore there is deficiency in service on the part of the opposite party and the opposite party is liable to release the gold ornaments on receiving the above said total amount. The complainant is liable to receive his gold ornaments by paying the said amount.
POINT No.3:-
9. In the result, the complaint is allowed in part and the opposite party is directed to release the gold ornaments pledged by the complainant on receiving the total loan amount of Rs.3,10,212/- (principal and interest for three gold loans). The complainant is also directed to pay the said amount and get release the gold ornaments pledged by him. The opposite party is directed to pay Rs.10,000/- towards damages and Rs.5,000/- as costs to the complainant. Time for compliance one month. Rest of the claims of the complainant are dismissed.
Dictated to the Stenographer K.Sivaram Prasad, transcribed by him, corrected by me and pronounced by us in the open Forum, this the 13th day of January, 2015.
PRESIDENT(FAC) MEMBER
Appendix of evidence
Witnesses examined
For the complainant: For the opposite party:
P.W.1 G.Ranga Rao D.W.1 P.Ramachandramouli Prasad,
Complainant, Branch Manager of the opposite
(by affidavit) party, (by affidavit)
Documents marked
On behalf of the complainant:
Ex.A.1 27.03.2013 Receipt issued by the opposite party
Ex.A.2 28.03.2013 Receipt issued by the opposite party
Ex.A.3 02.04.2013 Receipt issued by the opposite party
Ex.A.4 02.04.2013 Debenture Certificate issued by the opposite party.
On behalf of the opposite party:
Ex.B.1 27.03.2013 Application for gold loan.
Ex.B.2 27.03.2013 Declaration of the complainant.
Ex.B.3 28.03.2013 Application for gold loan.
Ex.B.4 28.03.2013 Declaration of the complainant.
Ex.B.5 02.04.2013 Application for gold loan.
Ex.B.6 02.04.2013 Declaration of the complainant.
Ex.B.7 02.03.2014 Photocopy of notice issued by the opposite party.
Ex.B.8 . . Returned Unserved cover.
Ex.B.9 27.03.2014 Photocopy of letter from the opposite party to the
complainant.
Ex.B.10 . . Returned Unserved cover.
Ex.B.11 02.04.2013 Photocopy of notice issued by the opposite party.
Ex.b.12 . . Returned Unserved cover.
Ex.B.13 . . Postal receipts.
Ex.B.14 05.04.2013 Photocopy of notice issued by the opposite party.
Ex.B.15 . . Returned Unserved cover.
PRESIDENT(FAC)
