This C.C. came before us for hearing in the presence of Sri. Beesha Ramesh, Advocate for complainant and of Sri. S.V.R. Gupta, Advocate for Opposite Part No.2; Notice to opposite party No.1 not claimed, called absent; upon perusing the material papers on record; upon hearing arguments and having stood over for consideration, this Forum passed the following:-
ORDER
(Per Sri. R. Kiran Kumar, FAC President & Member)
This complaint is filed under section 12(1) of the Consumer Protection Act, 1986. The averments made in the complaint are that the complainant is an agriculturist by his profession apart from business at Ramavaram, Kothagudem Mandal, khammam District. The complainant submitted that in order to sell the red chillies at better cost in open market, the complainant kept red bags 358, white bags 47 on 12-04-2011, red bags 254 and white bags 12 on 02-05-2011 and red bags 69 and white bags 20 on 06-05-2011 with proper acknowledgement and receipt with M/s. Devi Sai Cold Storage, Aatukuru Village of Madhira Mandal, i.e. opposite party No.1. The complainant also submitted that the opposite party No.1 collected Rs.1,00,000/- and issued receipts as the quantity entrusted to the opposite party No.1 has been lying with them with a condition to release stock entrusted when there is a good rate in the market per fetching profits with the charges of the rent. The complainant also submitted that as there is financial hurdle, he borrowed an amount of Rs.8,00,000/- from the opposite party No.2 on 23-04-2011 under ‘Kisan Sampathi Pathakam’ by pledging the goods which are kept with opposite party No.1. the complainant submitted that since the market rates of the chillies gone to higher rate and he is with the hope of getting profit, many times approached the opposite parties 1 & 2 for release of stock with opposite party No.1 simultaneously redemption of the pledge stock with opposite party No.2, but instead of release of the stock entrusted with the opposite parties No.1 & 2 has to redeem with property after receiving the borrowed amount with interest. The complainant many times requested the opposite parties that he is a old aged person and suffering with ailments, but no change in the attitude of the opposite parties, though the complainant is ready to pay the mortgaged amount together with interest as agreed and also ready to pay the hire charges to opposite party No.1. The complainant also submitted that vexed with the attitude of opposite parties, the complainant issued notice on 27-07-2013, demanding the opposite party No.2 to supply statement of account pertaining to the complainant. The complainant also submitted that he requested the opposite parties not to create any troubles with regard to release of chillies from the cold storage of opposite party No.1, even after receipt of notices opposite parties failed to respond, itself it is the deficiency in service on the part of opposite parties for that the complainant approached the Forum..
2. Along with the complaint, the complainant filed his affidavit and also filed the following documents, those were marked as Exhibits.
Ex.A1:- Photocopy of Acknowledgement issued by opposite party No.1, dt. 12-04-2011.
Ex.A2:- Photocopy of Weigh Bridge Receipts, dt. 12-04-2011
Ex.A3:- Photocopy of Acknowledgement issued by opposite party No.1, dt. 02-05-2011.
Ex.A4:- Photocopy of Weigh Bridge Receipts, dt. 02-05-2011
Ex.A5:- Photocopy of Acknowledgement issued by opposite party No.1, dt. 06-05-2011.
Ex.A6:- Photocopy of Weigh Bridge Receipts, dt. 05-05-2011
Ex.A7:- Photocopy of Demand Notice issued by opposite party No.2 Bank, dt. 08-12-2011.
Ex.A8:- Office Copy of Legal Notice, dt. 27-07-2013 issued by complainant to the opposite parties.
Ex.A9:- Postal Receipts, dt. 27-07-2013 and Acknowledgement dt. 29-07-2013
Ex.A10:- Unserved cover of opposite party No.1, dt. 05-08-2013.
3. On receipt of notice, the opposite partyNo.2 appeared through its counsel and filed counter. In the counter, the opposite party No.2 submitted that the complaint is not maintainable either in law or on facts and does not come under the purview of the consumer protection act. The opposite party No.2 also submitted that the complainant availed loan facility under the ‘Kisan Sampathi Pathakam’ vide loan No.105530100038091 by pledging the warehouse receipt for the stocks of red chillies stored in the cold storage of opposite party No.1 and the complainant executed all necessary documents in favour of opposite party No.2 on 23-04-2011 and obtained loan amount of Rs.8,00,000/- and agreed to repay the same with interest @ 12% per annum in 11 months. The opposite party No.2 submitted that they issued many notices demanding the complainant to pay due amount along with interest, in spite of receiving the said notices by the complainant, the complainant not come forward to pay the due amount, which clearly shows the malafide attitude to cause loss to the Bank. The opposite party No.2 is submitted that even after issuing of demand notices to the complainant to redeem the stocks pledged by him, by repaying the dues with interest to the Bank, lest the Bank would sold the stocks in public auction to the highest bidder and further informed to pay the balance amount. The opposite party No.2 also submitted that they are ready to redeem pledge as and when the complainant pay the entire due amount to the Bank, without paying the loan amount to the Bank seeking relief to release of stocks which are pledged with the Bank is unlawful demand and should not be encouraged. The opposite party No.2 also submitted that the complainant approached the Forum with unclean hand and tried to damage the reputation of the Bank in public by filing a false and frivolous allegations and there is no cause of action to file the complaint. And also submitted that as there is no deficiency in service or negligence on the part of opposite party No.2 seeking compensation and costs is not maintainable and prayed to dismiss the complaint.
4. On behalf of the opposite party No.2 the following documents were filed, and those were marked as Exhibits.
Ex.B1:- Statement of Accounts dt.18-11-2013.
Ex.B2:- True Copy of Letter of sanction, dt. 23-04-2011
Ex.B3:- True Copy of Process Note.
Ex.B4:- True Copy of Demand Promised Note, dt. 23-04-2011
Ex.B5:- True Copy of Bond issued by opposite party No.1, dt. 18-04-2011.
Ex.B6:- True Copy of Demand Notice issued by opposite party No.2, dt. 21-06-2012.
Ex.B7:- True Copy of Last & Final Notice issued by opposite party No.2 Bank, dt. 20-04-2013.
Ex.B8:- True Copy of Legal Notice, dt. 10-08-2012 issued by opposite party No.2.
Ex.B9:- True Copy of Demand Notice issued by opposite party No.2 to the complainant dt. 08-12-2011.
Ex.B10:- True Copy of returned Unserved covers dt. 04-05-2013 along with receipt.
5. Opposite party No.2 filed written arguments by reiterating the same averments as mentioned in the counter.
6. In view of the above submissions, now the point that arose for consideration is,
- Whether there is any deficiency in service on the part of opposite parties as alleged?
- Whether the complainant is entitled for the relief sought for?
Point:-
The case of the complainant is that the complainant is an agriculturist, in order to sell the Red chillies at the time when there is better cost in the open market, the complainant kept red bags 358, white bags 47 on 12-04-2011, red bags 254 and white bags 12 on 02-05-2011 and red bags 69 and white bags 20 on 06-05-2011 with proper acknowledgement and receipt from opposite party No.1 and the complainant borrowed Rs.8,00,000/- from opposite party No.2 on 23-04-2011 by pledging the above stock under ‘Kisan Sampathi Pathakam’. According to the complainant, he approached the opposite parties 1 & 2 for release of stocks, but to the surprise the opposite parties in collusion, with common intension in order to grab the property, with malafide intention to cause wrongful loss and further wrongful gain and postponing the release and redemption of the goods entrusted to the opposite party No.1. According to the complainant on 27-07-2013 he issued notice demanding the opposite party No.2 for statement of account and the same was acknowledged, even after issuance of legal notice as the opposite parties failed to respond for release and redeem the stock, as such the complainant approached the Forum for redressal.
7. From the documents and material available on record there is no dispute about the loan facility availed by the complainant under ‘Kisan Sampathi Pathakam’ by pledging the warehouse receipt for the stock of Red chillies stored in the Cold Storage of opposite party No.1. And also we observed that the complainant executed all necessary documents in favour of opposite party No.2 on 23-04-2011 for pledging the stock and obtained Rs.8,00,000/- agreeing to repay the amount with interest @12% per annum and also agreed to repay the said amount in 11 months. And we observed that opposite party No.2 issued many notices demanding the complainant to pay the due amount along with interest. Even acknowledging the demand notices from the Bank, without paying the loan amount, the complainant approached this Forum, seeking relief to release of stocks which were pledged with the Bank. From the above we are of the opinion that without payment of loan amount the opposite party No.2 cannot release the pledge stock and there is no deficiency in service on the part of opposite parties. Thus this point is decided against the complainant.
In the result, the complaint is dismissed. No costs.
Typed to my dictation, corrected by me and pronounced by us, in this Forum on this 15th day of July, 2014.
FAC President Member
District Consumer Forum, Khammam
APPENDIX OF EVIDENCE
Witnesses examined for complainant and opposite parties:
-None-
Exhibits marked for complainant:-
Ex.A1:- Photocopy of Acknowledgement issued by opposite party No.1, dt. 12-04-2011.
Ex.A2:- Photocopy of Weigh Bridge Receipts, dt. 12-04-2011
Ex.A3:- Photocopy of Acknowledgement issued by opposite party No.1, dt. 02-05-2011.
Ex.A4:- Photocopy of Weigh Bridge Receipts, dt. 02-05-2011
Ex.A5:- Photocopy of Acknowledgement issued by opposite party No.1, dt. 06-05-2011.
Ex.A6:- Photocopy of Weigh Bridge Receipts, dt. 05-05-2011
Ex.A7:- Photocopy of Demand Notice issued by opposite party No.2 Bank, dt. 08-12-2011.
Ex.A8:- Office Copy of Legal Notice, dt. 27-07-2013 issued by complainant to the opposite parties.
Ex.A9:- Postal Receipts, dt. 27-07-2013 and Acknowledgement dt. 29-07-2013
Ex.A10:- Unserved cover of opposite party No.1, dt. 05-08-2013.
Exhibits marked for opposite party:-
Ex.B1:- Statement of Accounts dt.18-11-2013.
Ex.B2:- True Copy of Letter of sanction, dt. 23-04-2011
Ex.B3:- True Copy of Process Note.
Ex.B4:- True Copy of Demand Promised Note, dt. 23-04-2011
Ex.B5:- True Copy of Bond issued by opposite party No.1, dt. 18-04-2011.
Ex.B6:- True Copy of Demand Notice issued by opposite party No.2, dt. 21-06-2012.
Ex.B7:- True Copy of Last & Final Notice issued by opposite party No.2 Bank, dt. 20-04-2013.
Ex.B8:- True Copy of Legal Notice, dt. 10-08-2012 issued by opposite party No.2.
Ex.B9:- True Copy of Demand Notice issued by opposite party No.2 to the complainant dt. 08-12-2011.
Ex.B10:- True Copy of returned Unserved covers dt. 04-05-2013 along with receipt.
FAC President Member
District Consumer Forum, Khammam
