Kerala

Wayanad

CC/35/2014

Shajan L.S., - Complainant(s)

Versus

Muthoot Fincorp Ltd - Opp.Party(s)

29 Jan 2015

ORDER

By. Sri. Chandran Alachery, Member:

The complaint is filed under section 12 of the Consumer Protection Act for an Order directing the opposite party to pay the excess interest collected from the complainant by the opposite party towards gold loan interest.

2. Brief of the complaint:- The complainant pledged 4 grams of gold on 01.02.2013 with opposite party and availed Rs.9,200/- as gold loan from the opposite party. At the time of pledging gold, the opposite party promised only 12% interest for the loan. On 20.02.2014 when the complainant approached the opposite party for remitting gold loan and taking back gold, the opposite party demanded Rs.3,354/- towards interest only. The complainant remitted Rs.1,500/- towards interest. The opposite party demanded a further amount of Rs.1,854/- towards interest. So according to the complainant, the demand of opposite party towards interest is highly exorbitant. Aggrieved by this, the complaint is filed.

 

 

3. On receipt of complaint, notice was issued to opposite party and opposite party appeared before the Forum and filed version. In the version of opposite party, opposite party stated that the complainant agreed all the terms of agreement and had signed the agreement after fully knowing the contents. In the agreement, the rate of interest is shown as 22% and in case of default repayment of interest in every month, the rate of interest will exceed to 24%, and for further default, in each 3 months, the rate of interest will be exceeded to 3% etc... The complainant committed default and demanded the interest as per law. The opposite party also states that the opposite party is ready to give back the pledged gold if loan amount with agreed rate of interest is paid.

4. On perusal of complaint, version and documents, the Forum raised the following points for consideration:-

1. Whether there is any deficiency of service from the part of opposite party?

2. Relief and Cost.

5. Point No.1:- The complaint is filed proof affidavit and is examined as PW1 and Ext.A1 is marked. After confronting with PW1, Ext.B1 and Ext.B2 are also marked. Ext.A1 is the demand notice issued by opposite party to the complainant demanding him to remit a further sum of Rs.1,854/- towards interest. Ext.B2 is the agreement signed by the complainant and Ext.B1 is the ledger abstract. On verifying the Ext.B2 document ie the agreement, it is found that the rate of interest shown is 22% per annum for the gold loan taken by the complainant. So the Forum is of

the opinion that if a rate of interest is fixed for an year through out, further levying of interest is contrary to law. The rate of interest is 22% is fixed for one year. The opposite party have the right to levy only that much. if any agreement is prepared contrary to that will become void ab-initio The complainant availed loan on 01.02.2013. The complainant approached opposite party to remit the amount and partial remittance is made on 20.02.2014. So the total period of loan is one year and 19 days. So the calculation will be Rs.9,200 x 22/100x 1 year and 19 days. So the actual interest will be Rs.2,130/- only. The opposite party demanded Rs.3,354/- towards total interest. So there is an excess demand of Rs,1,224/- from the complainant. The complainant already paid Rs.1,500/- towards interest. The balance amount towards interest payable will be Rs.630/- only. The complainant is liable to pay Rs.9,200/- towards gold loan and Rs.630/- towards balance interest. The Forum found that demanding more interest from the complainant is a deficiency of service from the part of opposite party. The Point No.1 is found accordingly.

 

6. Point No.2:- Since the Point No.1 is found in favour of complainant, The complainant is entitled to get cost and compensation.

 

In the result, the complaint is partly allowed and the opposite party is directed to return the gold pledged by the complainant as per loan agreement dated 01.02.2013 on remittance of Rs.9,200/- (Rupees Nine Thousand and Two Hundred Only) towards gold loan and Rs.630/- towards interest. The opposite party is also directed to pay Rs.1,000/- (Rupees One Thousand Only) towards compensation and Rs.1,000/- (Rupees One Thousand Only) towards cost of the proceedings. The opposite party shall comply the order within 30 days from the date of receipt of this Order.

 

 

Dictated to the Confidential Assistant, transcribed by him and corrected by me and Pronounced in the Open Forum on this the 29^th day of January 2015.

Date of Filing:22.02.2014..

PRESIDENT :Sd/-

MEMBER :Sd/-

/True Copy/

 

Sd/-

PRESIDENT, CDRF, WAYANAD.

 

APPENDIX.

 

Witness for the complainant:

 

PW1. Shajan. Complainant.

 

Witness for the Opposite Party:

 

OPW1. Sheeja. Manager, Muthoot Fincorp Limited, Kalpetta.

 

Exhibits for the complainant:

 

A1. Copy of Demand Notice.

 

 

Exhibits for the opposite Party.

 

B1. Copy of Ledger Abstract.

 

B2. Agreement. dt:01.02.2013.

 

 

Sd/-

PRESIDENT, CDRF, WAYANAD.

a/-