Date of Filling    :03.05.2012.

                                                                                                                                Date of Disposal 08.09.2014.

                                              DISTRICT CONSUMER DISPUTES REDRESSAL FORUM,TIRUVARUR.

                                                    THIRU K. JAYABALAN. B.SC., B.L                        ....PRESIDENT.

                                                     THIRU.R.RAMESH. B.Com., M.A.,                    …..MEMBER-1.

                                                       TMT.K.SIVASANKARI. B.SC.,M.C.A.,M.Phil.,    …..MEMBER-2

                                            CC.NO 09/2012

                                                                       DECIDED ON THIS 8^th  DAY OF SEPTEMBER  2014.

J.Shanmugasundaram,

S/o Jaganathan,

Annanagar,

Thiruvarur(District),

Thiruthuraipundi(Taluk),                                                             ….Complainant

                                                 /versus/

1.Sridharan,

Branch Manager,

Indian Overseas Bank,

Thiruthuraipoondi.

2.Regional Manager,

Indian Overseas Bank,

Velipalayam,

Nagapattinam.

3.General Manager,

Head Office,

Indian Overseas Bank,

Chennai.                                                                              ……Opposite Parties

            This complaint having come up for final hearing before us on 08.09.2014 and  on  perusal of the material records and after  hearing the arguments of Thiru.  V.Arasu,B.A.,B.L.,Counsel  for the complaint and  Thiru.G.Karthikeyan,B.Sc.,B.L., counsel for the opposite parties 1 to 3 and having   stood over for consideration till this day and  the Forum passed the following

ORDER

BY PRESIDENT, THIRU.K.JAYABALAN,B.Sc.,B.L.,

            This complaint is filed by the complainant u/s 12 of the Consumer Protection Act 1986.

COMPLAINT IN BRIEF:

                The complainant has borrowed an agricultural loan by pledging gold jewels weighing 100.300 gms with the 1^st opposite party  in account No. AJL 25/2010 on 29.03.2010 and also borrowed an another jewels loan weighing 18 gms in account No.179/2010  on 17.05.2010.  The 1^st opposite party collected excess interest more than the interest agreed to be payable by the complainant.  The complainant also redeemed both the above loans on 28.01.2012 and for which he has been also given a receipt. Even after payment of the loan amount the 1^st opposite party did not return the jewels to the complainant.  Hence on 28.01.2012 itself the complainant sent a complaint to the 2^nd opposite party stating that the 1^st opposite party did not return the jewels even after the payment of the jewel loan amount.  The 1^st opposite party due to personal enmity with the complainant, misusing   his official position and caused  trouble to the complainant.  The collection of the excess interest and also not handing over the pledged jewels even after the  payment of the loan amount  is amounts to deficiency in service.  The complainant caused legal notice dated 18.2.2012 for which the 1^st and 2^nd opposite party did not reply.  The 2^{nd &}  3^rd opposite party are the higher officials of the 1^st opposite party and therefore  the 2^nd and 3^rd  opposite parties are severally liable for the acts committed by the 1^st opposite party.  Hence the complainant prays to  direct the 1^st opposite party to hand over the jewels pledged by him and also to pay the excess interest collected from him and further to direct the opposite parties 1 to 3 to pay a sum of Rs.1,00,000/- as compensation for causing mental agony to the complainant with litigation expenses.  

WRITTEN VERSION IN BRIEF:

            The written version filed by the 1^st opposite party adopted by the 2^{nd &} 3^rd opposite party.The opposite parties admits that the complainant had availed an agricultural jewel loan amount of Rs. 1,00,000/- by pledging his jewels 100.300 gms under loan account No.25/10 on 29.3.2009 and another jewel loan amount of Rs.17500/- by pledging his jewels of 18 gms under loan account No.179/10 on 17.10.2010 from the 1^st opposite party bank.  The 1^st  loan is an agricultural loan and the 2^nd loan is a non agricultural loan.  It is incorrect that the complainant remitted the entire loan dues with the bank on 28.01.2012.  The complainant wife came on the day and she was informed that they have availed a education loan for their son to  an amount of Rs.2,00,000/- and the said loan become over due and NPA (Non Performance Account) on 1.3.2003 and hence the bank has got the right of General lien over the jewels pledged by the complainant.   Then she remitted the balance amount only for the jewel loan and she also said that she will redeem the jewels later.  Further the bank also informed the complainant wife that the interest is   separately calculated under the memorandum of interest account as per the guidelines of RBI since their jewel loan where classified as NPA.   This respondent has got the right of general lien over all forms of security including jewels of the borrowers.  There is no illegality or deficiency in service on the opposite parties. After issuance of notice dated 18.02.2012 the complainant met the 1^st opposite party and requested not to make any general lien over his jewels and to deliver the same.  Accordingly the complainant had paid balance amount for the 2 jewel loan accounts and received the jewels on 17.05.2012 with due acknowledgement.  Since the complainant received the pledged jewels the prayer to return the jewels become infructuous.  Since there is no deficiency in service on the part of the opposite party the complainant is not entitled for any relief as  prayed in the complaint and the same is liable to be dismissed with costs.

POINTS FOR CONSIDERATION:

1.Whether the complainant is entitled to return of the Jewels pledged in  loan No AJL 27/2010 and AJL No.179/10 from the opposite party?

            2. Whether the first opposite party collected excess interest from the complainant, if so, the complainant is eligible to get return of excess interest from the first opposite party?

            3. Whether the complainant is entitled for a compensation of  Rs.1,00,000/-(Rupees One lakhs only) from the opposite parties 1 to 3 for    causing deficiency in service and also mental agony to the complainant by not delivering the jewels pledged with them?

            4. To what relief the complainant is entitled in this complaint? 

    POINT: 1

            The complainant contended that  both the jewel  loans are agricultural  loans and even after  the payment of both the Jewel loans including interest the first opposite party bank did not return the jewels  to the complainant. Whereas the opposite party contended that the first Jewel loan is an agricultural loan and second Jewel loan is a non agricultural loan. The complainant had not filed any document to show that both the loan are Jewel loan. Exhibit B1 is the loan application for loan Account No AJL 25/10.  In column 4.1&4.2 of the application   reveals that it is an agricultural loan and the said loan was granted for the cultivation of Paddy Crop.

            Exhibit B2 copy is the loan application for loan Account No AJL 192/2010 which does not specify the purpose for which the loan was granted. In column 4.1&4.2 of the application nothing mentioned about the nature of the loan. Therefore as contented by the first opposite party the second loan AJL 179/10 is    not an agricultural loan and first loan AJL 25/2010 is an agricultural loan is accepted.

            According to the opposite party after filing of the case, the complainant paid the balance Jewel loan amount and received back the pledged jewel on 17.05.2012. The fact of receipt of Jewel on 17.05.2012 has not been disputed by the complainant. Hence, it is held that the complainant received the Jewels         from the first opposite party bank on 17.05.2012 the prayer to return the jewel to the complainant become infructuous.

POINT:2

            Though the complainant argued that the first opposite party collected excess interest from him and the same has not been proved by the complainant by acceptable evidence.  To prove the excess interest collected by the bank, the complainant had not filed any document. On the other hand the bank had filed the computer printed statement of accounts and marked as Exhibit B3 to B5. Even in the said statement’s the complainant has not shown any were in the statement that the bank has collected excess interest. As the complainant has not proved that the bank has collected excess interest, the complainant is not entitled for refund of excess interest from the bank.

POINT:3

            According to the complainant   though he had paid the Jewel loan, the bank did not return the Jewel and therefore opposite parties have committed deficiency in service and caused mental agony to him and therefore he has claimed Rs.1, 00,000(Rupees One lakh only) towards compensation from the opposite parties.

            The Exhibit A1, A2 filed by the complainant would show that he had availed jewel loan from the 1^st opposite party bank.  Accordingly   Exhibit A1 and B1 shows that the complainant had availed the loan of Rs.1, 05,000/- (One lakh five thousand only) and exhibit A2 and B2 shows that he had availed another loan of Rs.17, 500/-(Rupees seventeen thousand five hundred only) from the 1^st opposite party bank .Through  Exhibit A3 the  complainant remitted a sum of Rs.1,09,960/-(Rupees one lakh nine thousand nine hundred and sixty only) by way of cash. Apart from that there is no other document is filed to prove that the complainant paid the balance Jewel loan amount to the bank to redeem both the loans.  Therefore  the contention  of the first opposite party bank is that only after filing of the case the complainant has paid the balance Jewel loan amount and thereafter  they have returned the Jewel on 17.05.2012 is accepted.

            Further, apart from the above said Jewel loan, the complainant borrowed a sum of Rs. 2,00,000/-(Rupees two lakhs only) as educational loan for their son from the first opposite party bank and  according to the bank education loan were become overdue and classified as Non  performance account (NPA) .  Further the bank has got the right of general lien over the said Jewels, Since the education loan amount had become overdue as on 1.03.2003. This position was supported by a judgment of the Honble High Court, Madras   reported in (2008)(1) MLJ 1009( STATE ABNK OF INDIA, KOTAGIRI BRANCH, REP. BY BRANCH MANAGER …PETITIONER VERSUS (CHOKKALINGAM AND OTHERS)… RESPONDENTS).  The  ratio laid down  in  the above Judgment is

“The bank has a general lien over the securities and other instruments

Deposited by or on behalf of the customer in the ordinary course of banking

business and such general lien being valuable right of the banker, cannot be

Ignored in absence of an agreement to the contrary”.

            The ratio laid down in the above case is squarely applies to the facts of the case on hand as contented by  the first opposite party bank  as they had  a right of  general lien  over the Jewel pledged to the first opposite party bank. Therefore the contention of the complainant that the opposite parties 1 to 3 have committed deficiency in service and also caused mental agony to the complainant had not been proved by him and therefore the complainant is not entitled for any compensation as prayed by him in the complainant.

POINT:4

            It is held in point 2  and 3  is that the complainant is not entitled for any compensation and the opposite parties have not committed deficiency in service and therefore the complainant is also not  entitled litigation expenses in this case.

            In the result the complainant is dismissed. No costs.

            This order is dictated by me to the Steno-Typist transcribed and typed by her and corrected and pronounced by me on this 8^th day of September 2014.

MEMBER – I                                     PRESIDENT                                        MEMBER – II

LIST OF DOCUMENTS ON THE SIDE OF THE COMPLAINANT:

1.Ex.A1/ Dated    29.03.2010.            AJL:25/2010 Jewel  loan  Card   Xerox copy.

2.Ex.A2 / Dated    17.05.2010.           AJL:179/2010 Jewel  loan  Card Xerox copy.

3.Ex.A3  / Dated   28.01.2012.           Payment  receipt. Xerox copy.

4.Ex.A4  / Dated   18.02.2012.           Complainants advocate notice. Xerox copy

5.Ex.A5 /  Dated   18.02.2012.         Postal Receipts. Xerox copy.

6.Ex.A6/  Dated   20.02.2012.         Acknowledgement card of the First opposite

                                                            party. 

7.Ex.A7/ Dated     20.02.2012.         Acknowledgement card of the Second Opposite   

                                                           party  .

LIST OF DICUMENTS ON THE SIDE OF THE OPPOSITE PARTIES:    

1.Ex.B1/ Dated 29.03.2010.             AGL Loan application of the petitioner

                                                             (Loan Account No.25/2010) with his

                                                              Acknowledgement of received the Jewels.

                                                              Photo Copy.

2,ExB2/ Dated 17.05.2010.                Jewel Loan Application of the petitioner

                                                              (JL Loan Account No:179/2010) with his

                                                               Acknowledgement of received the Jewels.

                                                               Photo Copy.

3.Ex.B3/Dated                                      Statement of accounts loan account No:

                                                               25/2010.    Certified True Copy.

4.Ex.B4/Dated                                       Statement of accounts loan account No:

                                                                179/2010.  Certified True Copy.

5.Ex.B5/Dated                                        Statement of accounts of the petitioner

                                                                Educational loan. Certified True Copy.

MEMBER – I                                        PRESIDENT                                          MEMBER - II