By Sri. Chandran Alachery, Member:
The complaint is filed under section 12 of the Consumer Protection Act for an order to direct the Opposite parties to levy only the rate of interest for the gold loan of Rs.95,000/- as per terms agreed between the Complainant and Opposite Parties and to repay the excess interest levied from the Complainant at the time of renewal of Gold loan on 19.08.2013 and also to direct the Opposite Parties to levy only yearly interest from the Complainant and direct to pay a cost of Rs.5,000/- to the Complainant.
2. Brief of complaint: The Complainant pledged his Gold ornaments on 19.08.2013 with Opposite parties and availed a gold loan of Rs.95,000/-. The Opposite Parties agreed 12% interest to the Gold loan. After 3 months, the Opposite party send a notice to the Complainant demanding him to pay Rs.9,000/- towards loan and a huge amount towards interest. On receipt of notice, the Complainant approached the Opposite Parties and Opposite Parties demanded monthly interest of 3% in addition to the agreed interest. The Opposite Parties increased the rate of interest to 36% instead of 12%. The Opposite parties send two registered notices to the Complainant and demanded the Complainant to remit the interest and loan amount within 12.02.2014, otherwise the Gold will be auctioned. The Complainant says that the act of Opposite Parties are deficiency in service from their part. Aggrieved by this the Complainant filed this complaint.
3. On receipt of complaint, notices were served to Opposite parties and Opposite Parties appeared before the Forum and filed version. In the version of 1st Opposite Party, 1st Opposite Party stated that their institution is working strictly according to the RBI rules and guidelines. 2nd Opposite Party stated that the Complainant is a regular customer of Opposite Parties and the Complainant clearly knows the rules of the institution. Again stated that the Complainant had signed the Gold loan receipts after fully knowing the terms and conditions. The Complainant had violated the terms and so the Opposite Party send registered notices. The rate of interest is 23% for one month, 24% up to 4 months and after. The Opposite Parties did not levy 36% of interest from the Complainant and Opposite Party further says that the Complainant is filed to harass the Opposite Parties.
4. On perusal of complaint, version and documents, the Forum raised the following points for considerations.
1. Whether there is deficiency of service from the part of Opposite Parties?
2. Relief and costs
5. Point No.1:- The Complainant filed proof affidavit and the Complainant is examined as PW1 and documents are marked as Exts.A1 and A2 and Ext.B1 is also marked after confronting the document with the complainant. The Opposite parties did not adduce oral evidence. On going through the Ext.B1 documents ie the loan agreement with the Opposite Parties and Complainant, it is seen that the rate of interest shown is 20% at an annual rate of interest. But Opposite Party stated in version that the rate of interest for one month is 23%, 1 to 4 months it is 24%. In Ext.B1(1), Ext.B1(2), Ext.B1(3), Ext.B1(4), Ext.B1(6), Ext.B1(7), Ext.B1(8) the annual rate is shown as 20% interest. But in ExtB1(5) the rate shown as 22%, Ext.B1(9), it is 23%, In Ext.B1(10) it is 23% for one month. In Ext.B1(11) also the rate shown as 23% per month. On verification, it is found that the annual rate of interest is 20% only. So the Opposite Parties can levy only 20% interest per annum for the loan amount. If any agreement is prepared and signed against the law it is void ab-into. The Opposite parties admitted that the Opposite Parties levying 23% interest for the loan amount for one month, and 24% after one month up to 4 months, sending notices demanding such a payment from the Complainant is a deficiency of service from the part of Opposite Parties. The amount payable by the Complainant to the Opposite Party is caculated as follows:-
Amount of Loan - Rs.95,000/-
Date of availing loan - 19.08.2013.
Date of first notice - 19.12.2013
Rate of interest per annum - 20%
So the calculation is Rs. 95000x20/100x4/12 = Rs. 6,333/-
So the principal amount of Rs.95,000/- plus interest at the rate of 20% per annum for 4 months ie Rs.6,333/-. The total amount will be Rs.95,000+6333= 1,01,333/-
The total amount is Rs.1,01,333/-
6. Point No.2:- Since 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 1st & 2nd Opposite parties are directed to give back the Gold pledged by the Complainant on 19.08.2013 as per pledge No.40361 on payment of Rs.1,01,333/- (Rupees One Lakh One thousand Three hundred and Thirty Three) only by the Complainant to the Opposite Party. The Complainant shall remit the above amount to the Opposite Party and take back the Gold within One month from the date of receipt of this order. The Opposite Parties No.1 and 2 are also directed to pay Rs.1,000/- (Rupees One thousand) only as compensation for the deficiency of service and Rs.1,000/- (Rupees One thousand) only as cost of the proceedings. Both Parties shall comply the order within one month 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 31st day of January 2015.
Date of Filing:13.03.2014
PRESIDENT : Sd/-
MEMBER : Sd/-
/True copy/
PRESIDENT, CDRF, WAYANAD.
APPENDIX.
Witness for the complainant:
PW1. Sudevan. Complainant.
Witness for the Opposite Parties:
Nil.
Exhibits for the complainant:
A1. Letter. dt:19.12.2013.
A2. Letter. dt:05.02.2014
Exhibits for the opposite Parties.
B1 (1) Receipt dt:03.01.2012.
B1(2) Receipt dt:30.01.2012.
B1(3) Receipt dt:02.03.2012.
B1(4) Receipt. dt:19.03.2012.
B1(5) Receipt. dt:27.03.2012.
B1(6) Receipt dt:31.03.2012.
B1(7) Receipt. dt:31.03.2012.
B1(8) Receipt. dt:30.04.2012.
B1(9) Receipt. dt:22.11.2012.
