Haryana

StateCommission

A/823/2016

MAHIPAL - Complainant(s)

Versus

MUTHOOT FINCROP LTD. - Opp.Party(s)

SIKANDER BAKSHI

22 Feb 2017

ORDER

 

STATE CONSUMER DISPUTES REDRESSAL COMMISSION,

HARYANA PANCHKULA

                  

                                                First appeal No.823 of 2016

Date of the Institution: 24.08.2016

and 07.09.2016

Date of Decision: 22.02.2017

 

Mahipal age 32 years S/o Shri Krishan Kumar R/o Dhani Brahamnan Tehsil Narnaud District Hisar.

…..Appellant

Versus

 

1.      Muthoot Fincorp Limited Hansi (Haryana) through its Branch Manager.

2.      Muthoot Fincorp Limited, Muthoot Centre, Punnen Road,Trivandrum-95034, Kerala, India through M.D.

                                                                             .….Respondents

 

CORAM:    Mr.R.K.Bishnoi, Judicial Member

                    Mrs. Urvashi Agnihotri, Member

 

Present:-    Mr. Sikander Bakshi, Advocate counsel for the appellant.

                   Mr.Vishal Taneja, Advocate counsel for the respondents.

 

O R D E R

 

R.K.Bishnoi, JUDICIAL MEMBER:

 

It was alleged by the complainant  that he borrowed Rs.47,500/- from opposite parties/O.Ps. on 13.02.2013 after pledging ornaments i.e. Two Rings weight 8.4 gm, Matti weight 4.4 gm, 2 Studs weight 3.9 gm, 2 Locket weight 9.6 gm.  The loan was to be repaid within 24 months i.e. 13.02.2015.  He used to pay installments regularly, but, when failed to pay any instalment he also paid penalty thereupon.  ON 13.03.2014 he went to make payment in lumpsum, but, O.P.NO.1 refused to accept the same and took only one installment.  It was told by O.P.No.2 that the installments were due towards him and the ornaments were forfeited, whereas he was to pay installments up to 13.02.2015.  O.Ps.  were not entitled to confiscate the gold before 13.02.2015.  He already deposited Rs.10,950/- with O.Ps. and they were keeping his gold with them unauthorisedly.  O.Ps. be directed to return gold after accepting money which is due towards him. They be also directed to pay Rs.40,000/- as of compensation.

2.      In reply it was alleged by O.Ps. that loan was obtained by complainant under Smart Plus Gold Loan.  He was to pay installments regularly.  In case of default of three continuous installments the plan was to be converted automatically to gold loan with normal tenure of 12 months.  Complainant paid first installment of Rs.2410/- on 13.03.2013 second installment of Rs.2562/- on 13.05.2013 and thereafter third installment including penal interest to the tune of Rs.5979/- on 13.03.2014.  As he failed to repay loan as per agreement, this plan was converted to normal gold loan.  A notice about auction was sent to complainant on 11.02.2014 which was acknowledged by him on 22.02.2014.  He was also informed about auction through telephone.  On 28.07.2014 the gold was auctioned for Rs.47922/- whereas Rs.62,218/- were due towards him and the sale proceeds were  adjusted against the same.  Objections about maintainability of complaint, concealment of true facts, estopple etc. were also raised and requested to dismiss the complaint.

3.      After hearing both the parties learned District Consumer Disputes Redressal Forum, Hisar, (In short “District Forum”) dismissed the complaint vide impugned order dated 15.07.2016.

4.      Feeling aggrieved therefrom, appellant-complainant has preferred this appeal.

5.      Arguments heard. File perused.

6.      Learned counsel counsel for the appellant vehemently argued that installments were to be paid up to 13.02.2015 whereas gold has been auctioned on 28.07.2014. Vide letter dated 28.03.2014 he was asked to deposit installments from 13.05.2013 onwards and to clear all dues in respect of the loan account before 27.03.2014.  In this way proper opportunity was not afforded to him to repay the loan.  Impugned order be set aside and O.Ps. be directed to return his gold.

7.      This argument is of no avail.  Loan was obtained by the complainant as per terms and conditions mentioned in Ex.C-1 which are as under:-

“1.     The Principal amount and interest of Smart Plus Gold Loan has to be paid in Equated Monthly Instalments.

2.      The term of the loan will be 24 months from the date of opening of Smart Plus Gold Loan Account.

3.      Rate of interest for this loan will be at 24% (diminishing) as per annum on the loan amount.

4.      There shall be pre-closure charge @ 2% on the Principal amount outstanding, if the loan is closed before the expiry of the loan period.

5.      Any amount paid in excess of the EMI will be accounted towards the EMI of the  succeeding month.

6.      There will be a grace period of three days for the remittance of EMI and penal interest will be charged on the EMI for defaulted payments. Penal interest will be calculated @ 24% p.a. on the EMI amount for the delayed period. Eg. If due date is on 5^th of month, then EMI can be paid without penalty till 7^th of Month.

7.      The loanee or his authorized representative can redeem the pledged gold ornaments on clearing the loan amount with interest upto date.

8.      In case of continuous default in payment of EMI for three months Smart Plus Gold Loan will automatically get converted to Express 3 minute Gold Loan, attracting interest, if loan is settled between 3 and 6 months- 27% and after 6 months-32%.”

8.      From the perusal of condition No.8 it is clear that in case of default of three monthly EMI’s the plan was to convert  under the normal gold plan.  The EMI’s to be paid by the complainant were as under:-

Sr. No.	Instll Date	Installment	Capital	Interest	Balance capital	Insurance	Rebate for prompt payment
1	13/3/2013	2512	1561	951	45939	0	102
2	13/4/2013	2512	1592	920	44347	0	99
3	13/5/2013	2512	1624	888	42723	0	97
4	13/6/2013	2512	1657	855	41066	0	93
5	13/7/2013	2512	1690	822	39376	0	91
6	13/8/2013	2512	1724	788	37652	0	87
7	13/9/2013	2512	1758	754	35894	0	85
8	13/10/2013	2512	1793	719	34101	0	82
9	13/11/2013	2512	1829	683	32272	0	78
10	13/12/2013	2512	1866	646	30406	0	74
11	13/1/2014	2512	1903	609	28503	0	71
12	13/2/2014	2512	1941	571	26562	0	67
13	13/3/2014	2512	1980	532	24582	0	63
14	13/4/2014	2512	2020	492	22562	0	58
15	13/5/2014	2512	2060	452	20502	0	55
16	13/6/2014	2512	2102	410	18400	0	49
17	13/7/2014	2512	2144	368	16256	0	45
18	13/8/2014	2512	2187	325	14069	0	40
19	13/9/2014	2512	2230	282	11838	0	36
20	13/10/2014	2512	2275	237	9564	0	30
21	13/11/2014	2512	2321	191	7243	0	24
22	13/12/2014	2512	2367	145	4876	0	19
23	13/1/2015	2512	2414	98	2462	0	14
24	13/2/2015	2512	2463	49	0	0	7
	Total	60288	47500	12,797		0”

 

As per facts mentioned above, it is clear that complainant did not pay installment as per aforesaid schedule and O.Ps. were entitled to confiscate and sell the goods.  It is no-where alleged by complainant that before auction no notice or telephonic information was given.  Letter produced by him during arguments was not produced before Ld. District Forum, so it was not possible for the O.Ps. to admit or deny the same or give any explanation.  Why complainant with-held this piece of evidence is no-where explained. When complainant did not pay installment in time, O.Ps. were entitled to proceed in accordance with terms and conditions of agreement. As per agreement it was bounden duty of the complainant to comply with terms and conditions agreed in between them.  When he did not comply with terms and conditions of agreement, O.Ps. were entitled to auction the gold.  It is opined by Hon’ble Supreme Court  in  United India Insurance Co. Ltd. and others Vs.Roshan Lal Oil Mills Ltd. and others (2000) 10 SCC 19, Sikka Papers Ltd. Vs. National Insurance Co. Ltd. and others, AIR 2009 SC 2834 that parties are bound by terms and conditions of agreement.  The contract has to be construed having reference to the stipulations contained in it and no artificial far fetched meaning could be given to the words appearing in it.  When it is settled by Hon’ble Apex court that the parties cannot deviate from the terms and conditions settled in between them, complainant cannot allege to ignore them. Resultantly appeal fails and the same is hereby dismissed.

 

February 22nd, 2017 Urvashi Agnihotri                             R.K.Bishnoi,                                                 Member                                                Judicial Member                                           Addl. Bench                                       Addl.Bench               

S.K.