IN THE CONSUMER DISPUTES REDRESSAL COMMISSION, KOLLAM

DATED THIS THE   22^nd DAY OF JUNE 2022

Present: -      Smt.S.Sandhya   Rani Bsc, LLB ,Member

         Sri.Stanly Harold, B.A.LLB, Member

                                      CC.No.35/2020

1. Mohan Kumar B.,

        Aged 58 years,

       S/o Bhaskara Pillai,

        Nandanam, Bahavana Nagar 180,

       Kadappakkada, Kollam                                    :           Complainants

       (By Adv.Kankath G.Krishnakumar)

2.   Bindhu Mohan,

Aged 47 years, W/o Mohan Kumar

           Nandanam, Bahavana Nagar 180,

Kadappakkada, Kollam

        (By Adv.Kankath G.Krishnakumar)                             

V/S

1. Secretary,

         Q1145,

        Pattathanam Service Co-operative Bank,

         Kadappakkada Branch, Kollam.

2. Pattathanam Service Co-operative Bank,

Q 1145, Kadappakkada Branch, Kollam                      :           Opposite parties

ORDER

Sri.Stanly Harold, B.A.LLB, Member

          This is a case based on a complaint filed U/s 12 of the Consumer Protection Act 2019.

          The averments in the complaint in short are as follows:-

          The Complainants are the permanent resident in the above address.  The 2^nd opposite party is Pattathanam Service Co-operative Bank, Q.1145, Kadappakkada Branch, Kollam and the 1^st opposite party is the Secretary of 2^nd opposite party.

          The 1^st complainant Mohankumar pledged gold ornaments at the 2^nd opposite party on 23.11.2012 and availed Rs.4,00,000/-(Rupees Four Lakhs) by pledging 171.5 grams of gold ornaments vide loan No.201028950/GL6(C0201000245) and the 2^nd complainant Bindu Mohan availed a loan of Rs.2,05,000/-(Rupees Two lakhs and Five Thousand only) from the 2^nd opposite party by pledging 87.7 grams of gold ornaments vide loan No.201028951/GL6(C0201001007).  The above gold loans were for a period of 6

months.  Due to certain financial commitments of the complainants were unable to close the said gold loan with the said period.  So the complainants approached the opposite party and requested further time for closing the account.  But the opposite party was not ready to grant time for payment dues.  The complainant had paid the entire amount along with other dues for the period from 23.11.2012 to 31.08.2015.  The remitted amount was 170534 for 1010 days in GL6/201028950 and Rs.87,499/- for 1010 days and has thus renewed the loan for a further period of 6 months which is the amount outstanding as per the receipt dated 31.08.2015 the actual amount taken on 23.11.2012 by the complainant Opposite party made publication in 15.08.2015 in Malayala Manorama daily giving notice that the said gold will be auctioned on 31.08.2015 and on noticing the same the complainants approached the opposite party and paid the entire interest amount of Rs.170534.00 in loan No.,201028950/GL6(C0201000245) on 31.08.2015 and Rs.87499.00 in 201028951/GL6(C0201001007) on the same day itself and renewed the said gold ornaments for a further period of 6 months from 31.08.2015 and hence as per the terms of the pledge, the terms of the gold loan mature only on 02.03.2016.  Subsequently the complainants approached the opposite party’s bank on 15.01.2017 to clear the liability and to get back the gold ornaments pledged.  The opposite party then informed the complainants that the account is closed and the gold pledged was taken by the complainants and they made an endorsement in the receipts dated 23.11.2012 that  loan is ‘ closed on 07.02.2016’.  The complainants were surprised on hearing the same and they informed the bank that they had not taken their gold ornaments from the bank.  On enquiry regarding the non-intimation to the complainant, the opposite party replied that the loan was closed on 07.02.2016 and the complainant had taken the pledged ornaments.  Thereafter the complainants approached the opposite party bank several times for the details of loan proceeds.  But no satisfactory reply was given to them by the bank.  Aggrieved by the act of the opposite party,   

the complainant preferred complaint before the Assistant Registrar (general),         Co-operative Societies on 02.08.2017.  On receiving the said complaint the Registrar sent reply to the complainants which reached the complainants only on 15.12.2017 stating that the opposite party had sold the gold ornaments on 07.02.2016.  But in the said reply the details of auctioned amount were not stated.  As above stated, the pledging of the gold ornaments was for a period of 6 months from 31.08.2015 and therefore the sale of gold ornaments before the termination period of loan is illegal.  The terms and conditions which are to be kept up by the opposite parties are violated.  The auction was done without the knowledge and connivance of the complainants.  On receiving the above reply the complainants again approached 1^st opposite party on 16.12.2017 and enquired about the auction amount and the details of proceeds of the auction in person and subsequently through written application dated 20.01.2018.  The opposite parties are mandatorily bound to inform the complainant, regarding the auction amount and the details of proceeds of the auction.  The complainant was ready to pay the loan amount and to take back the gold ornaments.  The act of the opposite party is absolutely beyond their legal capacity.  The ornaments pledged are having the market value of Rs.7, 00,000/-(Rupees Seven lakhs).  Beyond that the items pledged consists of items of sentimental interest.  The opposite parties have to compensate the complainants for their deficiency in service.  Moreover the complainants had on several occasions visited the bank but in none of the time the opposite parties gave any intimation to the complainants that the ornaments pledged exceeded the period of pledging.  The complainants are entitled for the loss of Rs.7,00,000/- incurred in the sale of gold ornaments along with interest @ 12% towards the loss of sufferings the complainant entitled to compensation of Rs.50,000/- .  The complainant is devastated due to the unlawful acts of the opposite parties.  The act of the opposite parties is unlawful, unjust and amounts to high degree of deficiency in service that could be committed upon a common man who had put his faith upon the opposite parties.  The complainant is put to suffer untold miseries and mental agony by the act of opposite parties without complying with the terms of the loan.  The complainants are entitled for a compensation of Rs.50,000/- towards deficiency in service of the 1^st opposite party.  Hence the complaint.

          Even after the acceptance of the notice issued from the commission none of the opposite parties cared to appear before the commission.  Hence they were set exparte.  The complainant filed affidavit by reiterating the averments in the complaint and got marked Exts.P1 to Ext.P10.  Ext.P1 is the certified copy of receipt issued for loan No.201028950/GL6(C0201000245) dated 23.11.2012.  Ext.P2 is the certified copy of receipt issued for loan No.201028951/GL6(C0201001007) dated 23.11.2012 in favour of 2^nd complainant.  Ext.P3 is the certified copy of receipt No.1102057572 (GL6/0201028951) dated 31.08.2015.  Ext.P4 is the certified copy of receipt No.1102057570 (GL6/0201028950) dated 31.08.2015.  Ext.P5 is the copy of complainant preferred before the Assistant Registrar (general) Co-operative Societies dated 02.08.2017.  Ext.P6 is the copy of reply served to complainant by Asst.Registrar(general) Co-operative Societies dated 04.12.2017.  Ext.P7 is the copy of complaint dated 20.01.2018.  Ext.P8 is the certified copy of FIR in Crime No.2729 of Kollam East Police Station.  Ext.P9 is the certified copy of report in Crime No.2729 of Kollam East Police station.  Ext.P10 is the certified copy of the report of the Enquiry Report of Co-operative Joint Registrar(General).

          Heard the counsel for the complainant and perused the records.  The unchallenged averments in the affidavit coupled with Ext.P7 to P10 would establish the case of the complainant strongly.  As per Ext.P7 complainants had lodged a complaint before the Secretary and President of Pattathanam Service  Co-operative Bank with regard to the pledged gold ornaments.  Thereafter they have given a statement before the East Police Station on that basis Kollam East of which police registered a crime as Kollam East Police Station crime 2729/2020 U/s 420, 409, 468, 469 read with 34 IPC.  In the aforesaid case the bank Secretary

and the officials of the bank have been arrayed as accused persons they have produced the records before the Chief Judicial Magistrate Court, Kollam.  Based on this the Sub Inspector of Police has filed a report before the Chief Judicial Magistrate Court.  As per the report the original documents from the Pattathanam Co-operative Bank has been seized by the police and now it is under investigation.  Ext.P10 would reveal that the Secretary of the 2^nd opposite party bank who is the 1^st opposite party herein has misappropriated the amount of the general public.  As per Ext.P10 an amount of Rs.1,58,28,219/- has been totally misappropriated by the opposite party bank and its officials.  During the course of the investigation the investigating officer has recovered the gold pledged receipt two in number and cash receipt (2 in No.) from the custody and possession of the 1^st complainant.  Since the original documents recovered from the complainant produced before the Chief Judicial Magistrate Court in the crime.  Hence certified copies and on of the same obtained from the Chief Judicial Magistrate Court is produced before the commission and marked as P1 to P4, P8 and P9 for the evidence of the case.  These certified copies are very essential.  Though the complainants had contacted the opposite party continuously they are not amenable to settle the matter.  The unchallenged averments in the affidavit coupled with Ext.P1 to P10 would establish the case of the complainant.  It is clear from the available materials the complainant would come with definition of the consumer and there is clear deficiency in service and unfair trade practice on the part of the opposite parties.  Since the opposite parties had violated the terms and conditions of the pledging.  Therefore the complaint is only to be allowed.

          In the result complaint stands allowed in the following terms:-

1. Directing the parties to pay Rs.2,00,000/- with interest @ 9% per annum from till realization.
2. Opposite parties are also directed to pay Rs.25,000/- as compensation and Rs.5,000/- as costs of the proceedings.
3. Opposite parties are directed the comply with above directions within 45 days from the date of receipt of copy of this order failing which the complainant is entitled to recover the same along with interest @  12 % p.a. from the entire amount except costs from the opposite parties  jointly and severally and from their assets.

Dictated to the Confidential Assistant  Smt. Minimol S. transcribed and typed by her corrected by me and pronounced in the  Open Commission this the  22^nd    day of  June 2022.        

STANLY HAROLD:Sd/-

S.SANDHYA RANI:Sd/-

                                                            Forwarded/by Order

                                                                        Senior superintendent

INDEX

Witnesses Examined for the Complainant:-Nil

Documents marked for the  complainant

Ext.P1             : Certified copy of receipt issued for loan No.201028950/GL6(C0201000245)

                          dated 23.11.2012. 

Ext.P2             : Certified copy of receipt issued for loan No.201028951/GL6(C0201001007)

                          dated 23.11.2012 in favour of 2^nd complainant. 

Ext.P3             : Certified copy of receipt No.1102057572 (GL6/0201028951) dated 31.08.2015. 

Ext.P4             : Certified copy of receipt No.1102057570 (GL6/0201028950) dated 31.08.2015. 

Ext.P5             : Copy of complainant preferred before the Assistant Registrar (general)

                          Co-operative Societies dated 02.08.2017. 

Ext.P6             : Copy of reply served to complainant by Asst.Registrar (general) Co-operative

                          Societies dated 04.12.2017. 

Ext.P7              : Copy of complaint dated 20.01.2018. 

Ext.P8              : Certified copy of FIR in Crime No.2729 of Kollam East Police Station. 

Ext.P9              : Certified copy of report in Crime No.2729 of Kollam East Police station. 

Ext.P10           : Certified copy of the report of the Enquiry Report of Co-operative Joint

                           Registrar(General).

Witnesses Examined for the opposite party:-Nil

Documents marked for opposite party:-Nil