KERALA STATE CONSUMER DISPUTES REDRESSAL COMMISSION VAZHUTHACAD, THIRUVANANTHAPURAM FIRST APPEAL 442/09 JUDGMENT DATED: 29.12.09 Appeal filed against the order passed by CDRF, Malappuram in OP.298/03 PRESENT JUSTICE SRI.K.R.UDAYABHANU : PRESIDENT The Branch Manager, :APPELLANT Muthoot Gold Loans, Malappuram Branch, Downhill, Malappuram. (By Adv.C.M.Stephen) vs. P.Ramesh Babu, : RESPONDENT S/o Balakrishnan Nair, Vaishnavi, Downhill, Malappuram. JUDGMENT JUSTICE SRI.K.R.UDAYABHANU : PRESIDENT The appellant is the opposite party in OP 298/03 in the file of CDRF, Malappuram. The appellant is under orders to pay a sum of Rs.2774.50/- with interest at 9% from 12.11.2003 and also cost of Rs.1000/-. 2. It is the case of the complainant that he pledged 64 gms of gold ornaments with the opposite party on 13.2.03 and availed loan of Rs.27,000/- with the interest advertised and agreed by the opposite party as Rs.1.50 per month for every Rs.100/-. On 3.11.03 the complainant wanted to redeem the pledge and the appellant demanded Rs.33,326/- towards settlement of account. According to the complainant the opposite parties refused to issue receipt. On his insistance a receipt was issued simply mentioning that Rs.27,000/- and interest from 13.2.2003 was paid . He has sought for return of the excess amount collected. 3. It is the contention of the opposite party/appellant that the agreed period of loan was 6 months. The complainant was bound to redeem the pledge within 13.8.03 or else he has liable to pay penal interest. As per the pledge agreement complainant has to pay monthly interest which was not remitted. The interest was collected only as per the agreed terms. It is contended that proper receipt was issued. The complainant came on the next day and asked for a duplicate copy of the receipt alleging that he lost the original. As the Manager was not authorized to issue duplicate receipt he asked the complainant to come after one week. But the complainant got angry and walked away. 4. The evidence adduced consisted of Exts.A1,A2 and B1. 5. I find that Ext.P1 produced by the complainant which is mentioned as the loan agreement contains conditions. It is mentioned that interest due on each month should be remitted so that penal interest can be avoided. It is also mentioned that the loan amount and interest should be remitted back within 6 months failing which the pledged articles will be sold in auction. 6. The Forum has found that Ext.A2 receipt simply mentioned that Rs.33325/- was received on 3.11.2003. It was held that non issuance of proper receipt is an unfair trade practice. 7. I find that Ext.A1 produced by the complainant is mentioned as the gold loan ledger with respect to the particular transaction bearing only the amount debited and credited as Rs.27000/- each. Ext.A2 is a receipt written by hand wherein it is noted only the amount received in total. 8. I find that Ext.B1 agreement containing the conditions did not specify as to exactly what will be the penal interest if the interest or the instalment amount is not remitted each month. The rate of penal interest is not mentioned. According to the counsel for the appellant what they meant by penal interest is compound interest . I am not in a position to accept the above contention. The same could have been properly specified in Ext.B1. I find that the interest portion collected on 3.11.03 would work out to 24%. The Forum has directed the opposite party to return the excess amount over and above the 18% which is the allegedly agreed rate. It is pertinent to note that Ext.P1 also did not contain any mention about the agreed rate of interest. The colums in this regard are blank. Hence the finding of the Forum that it is unfair trade practice in not issuing proper receipts. I find that rate of interest and what is the penal interest ought to have been mentioned in B1 agreement itself. In the circumstances I find no interference is called for in the order of the Forum. The appeal is dismissed. The Office is directed to return the LCR to the Forum urgently. JUSTICE SRI.K.R.UDAYABHANU : PRESIDENT ps
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