KERALA STATE CONSUMER DISPUTES REDRESSAL 

     COMMISSION VAZHUTHACADU THIRUVANANTHAPURAM

             APPEAL  NO:14/2010

                              JUDGMENT DATED:18..03..2010

PRESENT

JUSTICE SHRI.K.R.UDAYABHANU                :  PRESIDENT

1.The Managing Director,

  Mini Muthoot Nidhi Kerala (Ltd.),

  Administrative Office,

  P.B.No:8, Kozhencherry, Kerala.

                                                                             : APPELLANTS

2.The Manager,

  Mini Muthoot Nidhi Kerala Ltd.,

  Kalluvathukkal Branch,

  Kalluvathukkal.

(By Adv:Kulathoor.S.V.Premakumaran Nair & C.S.Rajmohan)

          Vs.

Sudheesan.N,

Karunalayam,                                                      : RESPONDENT

Mevankonam, Kalluvathukkal.P.O,

Kollam.

                                      JUDGMENT

JUSTICE SHRI.K.R.UDAYABHANU:  PRESIDENT

The appellants are the opposite parties in CC.431/06 in the file of CDRF, Kollam.  The appellants are under orders to return the gold ornaments pledged on receiving the loan amount with interest as per the RBI guidelines.  It is also directed that if the gold ornaments happened to be sold in auction the prevailing market value is to be given to the complainant.

2. The case of the complainant is that he pledged gold ornaments on 17/12/2004 and availed a loan of Rs.13,600/-.  It is the contention that on receiving notice of auction the complainant approached the opposite parties but they calculated a huge amount as interest.  It is alleged that they have not yet returned the gold ornaments although the complainant is ready to pay the loan amount with interest.

3. It is the contention of the appellants/opposite parties that the ornaments were pledged on loan availed with stipulation that the amount will be repaid within 6 months.  The articles were auctioned only on 17/3/2006 after notice.  According to the opposite parties the opposite parties are entitled to sell the ornaments in auction as per the terms of the agreement.

4. The evidence consisted of the testimony of PW1, DW1, Exts.P1, P2 D1 and D2.

5. I find that as per Ext.D1 the document of the transaction the rate of interest mentioned is 18%.  Of course there is stipulation that the amount has to be repaid within 6 months and the pledge redeemed.  The evidence of the complainant that the opposite parties claimed exorbitant interest when he wanted to redeem the ornaments is relied on by the Forum.  I find that no interference is called for in this regard as no illegality as such in the appreciation of evidence can be pointed out.  So also the opposite parties have not produced any details as to whom the ornaments were sold and what was the amount in the auction.  Hence we find as held by the Forum the appellant is liable to return the value of the gold ornaments and to receive the loan amount with interest at 18%.  In the circumstances it is clarified that the appellant/opposite party is liable to return the value of the gold ornaments ie; vide 33.5 grams as per the prevailing market rate ie the rate of gold on the date of return of the balance amount by the appellant.  The appellant is permitted to deduct the loan amount with 18% interest till the date of return of the balance amount.  The appellant is also be liable to pay cost of Rs.2500/- as ordered by the Forum.  The amount is to be paid to the complainant or deposited before the Forum at the earliest or within one month from the date of receipt of this order failing which the appellant would be liable to pay interest at 18% per annum on the amount due to the complainant from the date of this order..  The appeal is disposed of accordingly.

The office will forward the LCR to the Forum urgently.

JUSTICE K.R.UDAYABHANU:  PRESIDENT

VL.