Date of Filing :19.12.2011
Date of Disposal :26.06.2024
BEFORE THE KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BENGALURU (PRINCIPAL BENCH)
DATED:26.06.2024
PRESENT
Mr K B. SANGANNANAVAR: JUDICIAL MEMBER (DIST & SESSIONS JUDGE (R )
Mrs DIVYASHREE M:LADY MEMBER
APPEAL No.4156/2011
M/s Manappuram General Finance
And Leasing Ltd.,
Regional Office
Situated at No.3/6-5, 3/6-6
1st Floor, Shaik Ali Complex
3rd Cross, Near Ayyap Temple
Koramangala
2nd Block, Madivala
Bengaluru-560 068
Represented by its
Authorised Representative
And Legal-Head, Mr Nataraj
(By Mr. Ravishankar T.P, Advocate) Appellant
-Versus-
Sri Namdev Seetaram Badiger
Major in age
S/o Sri Sitaram
Residing at No.753
Munavalli Post
Savadatti Taluk
Belgaum District Respondent
-:ORDER:-
Mr. K B. SANGANNANAVAR: JUDICAL MEMBER:
1. This is an Appeal filed under Section 15 of Consumer Protection Act, 1986 by OP aggrieved by the Order dated 29.10.2011 passed in Consumer Complaint No.314/2011 on the file of District Consumer Disputes Redressal Forum, Belgaum (for short, the District Forum).
2. The Parties to this Appeal will be referred to as the rank assigned to them by the District Forum.
3. The Commission examined the impugned order, grounds of Appeal, Appeal papers and heard. Now the point that would arise for consideration of this commission would be:
Whether the impugned order dated 29.10.2011 passed in Consumer Complaint No.314/2011 passed by the DF does call for an interference of this Commission for the grounds set out in the appeal memo?
4. The District Commission directed the OP to furnish statement of account in respect of all the 3 gold loan accounts of the complainant by deducting the amount already paid by the Complainant, calculating simple interest at the rate of 12% p.a, within a month from the date of the order.
Further directed the complainant to pay said amount within 15 days from the date of receipt of the statement of the account from OP, through demand draft of any Nationalized Bank and after receipt of that demand draft, the OP shall release all the pledged gold ornaments to the complainant.
Further directed the OP to pay compensation of Rs.10,000/- towards mental agony & inconvenience and cost of Rs.5,000/- towards litigation costs.
Further directed the OP to pay Rs.50,000/- to the Legal aid account of Forum for unfair trade practice in its finance business so far concerned to the present case within 45 days.
It is this order is assailed in this Appeal contending that the rate of interest awarded by the District Forum is contrary to the materials on record and submitted that the News Paper advertisement is not a piece of evidence, which can be relied upon in court of law, unless the same is proved in accordance with law, yet the District Forum without considering the materials on record which discloses the rate of interest at 24%, 27% and 30% p.a. directed to charge interest at 12% p.a contrary to the terms mutually agreed upon, as such, the impugned order is liable to be set aside.
5. Let us examine the materials on record placed before the District Forum coupled with guidelines of RBI, Statement of Account and the documents, wherein could see RBI issued a Certificate of Registration in the name of OP to carry on the business of Non-banking Financial Institution subject to the condition given on the reverse on 25.05.1998 as per Notification No.DNBS:204:CGM (ASR):2009 dated January 2, 2009 RBI issued guidelines
a) the Board of each NBFC shall adopt an interest rate model taking into account relevant factors such as cost of funds, margin and risk premium etc., and determine the rate of interest to be charged for loans and advances. The rate of interest and the approach for gradation of risk and the rationale for charging different rate of interest to different categories of borrowers shall be disclosed to the borrower or customer in the application form and communicated explicitly in the sanction letter.
b) The rates of interest and the approach for gradation of risks shall also be made available on the web-site of the companies or published in the relevant newspaper. The information published in the website or otherwise published should be updated whenever there is a change in the rates of interest.
c) The rate of interest should be annualised rates so that the borrower is aware of the exact rates that would be charged to the account.
Further under Circular dated 02.01.2009 RBI/ 2008-09/337:DNBS(PD):CCNO.133/03.10.001/2008-09 issued Circular as to how regulations of the interest charged by NBFC’s. Thus keeping in mind these Circulars, it would be just and proper to appreciate the contention of the OP/Appellant herein that it is the specific contention that the complainant has failed to prove the rate of interest on gold loan was at a rate of interest at 12% p.a and contending that District Forum relied on certain advertisement found in Vijaya Karnataka Kannada Daily News Paper is not a piece of evidence, which can be relied upon in a court of law unless the same is proved in accordance with law, which in our view, is not correct considering the nature of dispute and the procedure to be followed by Consumer Commission, since RBI in the Notification cited supra itself guided the OP to notify the rate of interest and the approach for gradation of risk shall also made available on the Website of the company are published in the relevant news paper. In such circumstances if OP gave advertisement in Vijaya Karnataka Kannada daily news paper suffice for the public at large to believe, since it was notified in a vernacular language and said news paper is recognised as one of the State news paper with vast circulation. It has come in the enquiry that the rate of interest for gold loan was at 12% p.a which was produced before the District Forum, which cannot be said, the said news paper is not relevant before the consumer forum while deciding a complaint under CPA. It is therefore, viewed from any angle it cannot be said that the District Forum has failed to appreciate the materials on record in right perception.
6. No doubt, it is found in receipt for having weighed 39.9 gm, 61.6 gm and 179.4 gm of gold for having received and disbursed the amount of Rs.56,000/-, Rs.76,500/- and Rs.2,21,000/- in favour of complainant, wherein could see the rate of interest at 27% which is in printed form and in loan application also found interest at 27%, but facts remain that, in their advertisement notified to general public for gold loan, rate of interest at 12% which could be said rebutted the loan papers was rightly considered by the District Forum and rightly held in respect of the interest, holding OP, certainly practiced unfair trade practice. The District Forum also found in all the notices, period of loan is left blank and so also the date of repayment, likewise, the total amount payable is not mentioned but mentioned only the amount and the loan account number. Further District Forum also found OP has calculated the interest as per their will & wish and ask the complainant to pay a sum of Rs.4,67,739/-. The District Forum has also rightly opined, OP by giving advertisement in a daily news paper induced the public at large to raise loan stating that the interest rate is 12% p.a as mentioned in the advertisement but, later on demanding even more than double the said rate of interest. OP did not disclose the amount legally entitled to and on the contrary demanded exorbitant amount charging exorbitant interest and even though no period of repayment has been established, the OP had sent a message that the pledged article will be auctioned. It is therefore, viewed from any angle, OP cannot claim interest either at the rate of 24%, 27% or 30% as found in the printed loan papers from Complainant who had availed gold loan inspired by their own advertisement notified in daily news paper Vijaya Karnataka which has to be held relevant and the Forum rightly appriciated. Hence, we proceed to dismiss the Appeal with no order as to costs.
7. Amount in deposit is directed to be transferred to the District Commission for needful.
8. Return the LCR forthwith to the District Commission.
9. Send copy of this Order to the District Commission and the parties concerned.
Lady Member Judicial Member
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