Andhra Pradesh

Visakhapatnam-II

CC/368/2012

A. Srinivas - Complainant(s)

Versus

Shriram City Union Finance Limited - Opp.Party(s)

K. Dakshina Murthy

21 Feb 2015

ORDER

                                              Date of Registration of the Complaint:06-11-2012 

                                                                                                Date of Order:21-02-2015

BEFORE THE DISTRICT CONSUMERS FORUM-II AT

                             VISAKHAPATNAM

 

P  r  e  s  e  n  t:

1.  Sri H. Ananda Rao, M.A., L.L.B.,

     President           

2. Smt K. Saroja, M.A. B.L.,

     Lady Member 

                                3. Sri C.V. Rao, M.A., B.L.,

                                     Male Member

 

                         Saturday, the 21^st day of February, 2015.

                             CONSUMER CASE No.368/2012

Between:-

Aduri Srinivas, S/o late AVA Sharma, Hindu,

aged 50 years, working in East Coast Railways,

residing at Quarter No.558/B/Tatichetlapalem,

Visakhapatnam-4.

                                                                                        ….. Complainant

And:-

1.shriram City Union Finance Ltd., rep. by its

   Branch Manager, Sangam Theater Back Side,

   Dwarakanagar, Visakhapatnam-16.

2.Shriram City Union Finance Ltd., rep. by its

   Managing Director, having its Regd. Office,

   123, Angappa Naicken Street, Chennai,

   Tamilnadu.

                                                                                           …  Opposite Parties

                     

This case coming on 03.02.2015 for final hearing before us in the presence of Sri        K. Dakshina Murthy, Advocate for the Complainant and Sri K. Srinivasa Rao, Advocate for the Opposite Partiess and having stood over till this date for consideration, this Forum made the following:

 

                                                ORDER

        (As per Smt. K. Saroja Honourable Lady Member on behalf of the Bench)

 

1.       The case of the Complainant in brief is that the Complainant approached the 1^st Opposite Party and he pledged his wife’s gold ornaments weighing 13.600 grams (24 carrots/Necklace) on 2.6.2010 for his domestic purposes.   As per the existing bullian market rate, the 1^st Opposite Party agreed to give an amount of Rs.15,300/- on the said ornament (necklace) with interest @ 12% p.a. agreed for the said condition, the Complainant pledged his wife’s ornaments with the 1^st Opposite Party and borrowed a sum of Rs.15,300/-.   The 1^st Opposite Party issued a receipt note under the caption of “Memorandum of Securities Under GL-6”.   The Complainant had paid the entire amount as per the 1^st Opposite Party instructions with a little bit delay and for which the 1^st Opposite Party collected penal charges for the delay.    After receiving the said amounts, the 1^st Opposite Party did not issue any sort of acknowledgement for the payments made by the Complainant.    The Complainant approached the 1^st Opposite Party on different occasions and requested them to return back his ornament as they were received the entire amount.   Inspite of many requests made by the Complainant, the Opposite Parties did not return the ornament to the Complainant.   Then he issued a legal notice dated 22.05.2012 to both the Opposite Parties, received the legal notice but they did not respond or give any reply.    Hence, this Complaint.

 

2.       a)  Direct the Opposite Parties to return back the gold ornament (24 carats) weighing 13.600 gms. in the form of necklace or;

          b)  Direct the Opposite Parties to return back 13.600 gms. 24 carats gold or in alternative;

          c) Direct the Opposite Parties to pay proportionate amount equivalent to the weight of the gold and;

          d) Further direct the Opposite Parties to pay a sum of Rs.25,000/- towards damages and compensation on account of deficiency in service on the part of the Opposite Parties and costs of Rs.5,000/-.

 

3.       The 1^st Opposite Party filed a counter and the 2^nd Opposite Party filed an adoption memo.

         

          The Opposite Parties strongly resisted the claim of the Complainant by contending, as can be seen from their counter.    The Opposite Parties stated that the Complainant failed to make payments, as per the agreement of the Opposite Parties issued a notice on 18.10.2011.   But the Complainant failed to response to that notice.   Then the Opposite Parties issued a paper notification on 11.11.2011 in Andhra Jyothi Local Edition about the auction of the gold ornaments of the defaulters including the name of the Complainant.    The auction was held on 19.11.2011 and the ornament of the Complainant was auctioned for an amount of Rs.21,700/-.    One Mr. M. Srinivasa Rao became the highest bidder for the above said amount and he paid the entire amount immediately and taken away the said ornament.   So, the Opposite Parties had no liability to pay any reliefs asked by the Complainant.

 

4.       At the time of enquiry, both parties filed affidavits as well as written arguments to support their contentions.   Exs.A1 to A4 are marked for the Complainant.    Exs.B1 to Ex.B4 are marked for the Opposite Parties.    Heard both sides.

 

5.       Ex.A1 is the Memorandum of Securities issued by the Opposite Parties in favour of the Complainant dated 2.6.2010.   Ex.A2 is the Legal Notice along with receipts dated 22.5.2012 issued by the Complainant to the 1^st Opposite Party.   Ex.A3 is the Acknowledgment.   Ex.A4 is the Acknowledgment.

 

6.       Ex.B1 is the Application for Jewel Loan along with entrustment letter for jewel loan.   Ex.B2 is the auction notice issued by the Opposite Parties to the Complainant dated 18.10.2011.   Ex.B3 is the paper publication, local edition of Andhra Jyothi dated 11.11.2011.   Ex.B4 is the Application Form for participation in the open auction dated 19.11.2011 along with minutes auction proceedings, acknowledgement of receipt of gold ornaments by successful bidder by name M. Srinivasa Rao.     

 

7.       The fact shown from Ex.A1 reveals that the Complainant pledged  ornament (Necklace) with the 1^st Opposite Party dated 2.6.2010, which clearly shows that the Opposite Parties has agreed to give an amount of Rs.15,300/- towards pledged ornament of the Complainant.    Ex.B1 reveals that the Complainant signed on the application form and agreed to repay the loan of Rs.15,300/- with interest @ 22.56% p.a. within the period of 12 months.   Exs.B2, Ex.B3 and Ex.B4 reveals that the Complainant’s ornments auctioned in the open auction after issuing notice to the Complainant as he was a defaulter.

 

8.       The point that would arise for determination in the case is:-

Whether there is any deficiency in service on the part of the Opposite Parties.   Whether the Complainant is entitled to any reliefs asked for?

 

 

9.         After careful perusal of the case record, this Forum finds that there is no dispute regarding the pledge gold ornament of the Complainant with the 1^st Opposite Party dated 2.6.2010.   According to Ex.B1 the Complainant signed on the application as well as entrustment letter for Jewel Loan and agreed to repay the loan amount of Rs.15,300/- with interest @ 22.56% p.a. within the period of 12 months.   As per their agreement, the Complainant has to pay the loan amount within 12 months.   But the Complainant failed to pay the entire amount within 12 months as per their agreement.   As such, the Opposite Parties issued an auction notice dated 18.10.2011 to the Complainant and auctioned the ornament by issuing paper publication in the local edition of Andhra Jyothi.   The successful bidder who participated in the open auction on 19.11.2011 who endorsed that the said ornament is in good condition and he is satisfied with the purity of the gold ornament according to Ex.B4.   Though the Complainant stated in the pleadings, that he had paid the entire amount on different dates, but the Opposite Parties failed to issue any acknowledgments for the payments.   Moreover, the last payment made by the Complainant is in the month of January, 2012.   It shows that the Complainant failed to pay the entire loan amount within the period of agreement.   According to the Complainant, the Complainant has made the last payment in the month of January, 2012, no such payment receipt is not placed before this Forum.     According to Exs.A1 and Ex.B1 it is clear that the Complainant availed loan on 2.6.2010 and it is completed on 2.6.2011.   So, the Complainant is a defaulter in paying the loan amounts to the Opposite Parties.   So, the Opposite Parties auctioned the Complainant’s ornament in the open auction after issuing notice and publication made in the local paper.   We are of the considered opinion that there is no deficiency in service on the part of the Opposite Parties.   Hence, this Complaint is liable to be dismissed.

 

10.     In the result, this Complaint is dismissed.   No costs.

Dictated to the Steno, transcribed by him, corrected and pronounced by us in the Open Forum, this 21^st day of February, 2015.

 

  Sd/-                                        Sd/-                                      Sd/-

President                            Male Member                      Lady Member

                                     

 

 

APPENDIX OF EVIDENCE

For the Complainant:-

NO.	DATE	DESCRIPTIONOFTHEDOCUMENTS	REMARKS
Ex.A01	02.06.2010	Memorandum of Securities issued by the Ops in favour of the Complainant	Original
Ex.A02	22.05.2012	Legal Notice along with Postal Receipts issued by the Complainant’s counsel to 1st OP	Office copy
Ex.A03	25.05.2012	Postal Acknowledgment from 1st OP	Original
Ex.A04	25.05.2012	Postal Acknowledgment from 2nd OP	Original

For the Opposite Parties:-            

                  

NO.	DATE	DESCRIPTIONOFTHEDOCUMENTS	REMARKS
Ex.B01	02.06.2010	Application for Jewel Loan along with entrustment letter	Original
Ex.B02	18.10.2011	Auction Notice issued by the Ops to Complainant	Office copy
Ex.B03	11.11.2011	Paper Publication in Andhra Jyothi	Original
Ex.B04	19.11.2011	Application Form for Participation in the Open Auction along with minutes of the auction proceedings, acknowledgement of receipt of gold ornaments by successful bidder by name M. Srinivasa Rao	Original

 

                            

  Sd/-                                        Sd/-                                      Sd/-

         

President                       Male Member                                             Lady Member