COMPLAINT FILED ON:19/11/2020

DISPOSED ON:28/04/2023

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, CHITRADURGA.

C.C.NO:96/2020

DATED: 28^th  April 2023

PRESENT: Kum. H.N. MEENA, B.A., LL.B., PRESIDENT

                  Smt. B.H. YASHODA, B.A., LL.B., LADY MEMBER                          

                  Sri. H.JANARDHAN, B.A.L., LL.B., MEMBER

:: ORDER ::

By Smt. B.H.YASHODA, B.A., LL.B., LADY MEMBER.

                The above complaint has been filed by the complainant Under Section 35 of Consumer Protection Act 2019 for seeking the relief/s to direct the opponent to refund the excess interest amount of Rs.1,35,806/- collected from the complainant pertaining to the pledged gold ornaments and to direct the opponent to pay Rs.10,000/- towards compensation, for unfair trade practice, mental agony, loss of time and energy and court costs, etc., to the complainant and to grant such other reliefs as this Hon'ble Court deems fit to grant under the circumstances of the case.

        2. The brief facts of the complaint is as follows:

        That the complainant during the month of June 2017 and on different dates has approached and requested the opponent company to provide loan from pledging the gold ornaments to meet his legal family necessities and urgent needs.  Accordingly, the opponent No.1 has sanctioned the gold loan at the rate of interest 9% P.A on different dates by keeping gold ornaments for a period of 1 year, loan has been sanctioned for Rs.3,36,049/- on 5 items as per the Bank terms and conditions.  But, due to family problems that complainant's wife has undergone heart treatment at Jayadeva Hospital, Bangalore and the complainant has taken treatment at Kasturba Medical college Hospital at Manipal, and he has incurred heavy medical expenses, as such, the complainant is in disastrous condition and the complainants wife of died with age-old elements and also disease.  Due to this reason the complainant was unable to pay the interest or principal amount.  Then the complainant has approached and requested the Financing Authority to provide time to got release the pledged gold ornaments.  They have agreed to provide further 3 months.  After 2-3 months, again the complainant has approached and informed that he is ready to pay to loan amount with interest and to perform his part of contract.

        3. That the complainant submitted that he came to know that the pledged ornaments have been scheduled to be auctioned without following the proceedural aspects.  But, the opponent company has issued notice that schedule auction sale will be conducted on 21/05/2018 at 10=00 at Chitradurga Branch or otherwise, finally auction will be conducted on 28/05/2018. Being aggrieved by the illegal act of opponent without any alternative, the complainant intends seek the redress from this Hon'ble Commission.  Hence, the complainant has filed the complaint in C.C.No.53/2018 to 57/2018 before this Hon'ble Forum by seeking relief of 3 months time.  Further, the complainant.  Submitted that this Hon'ble Commission was pleased passed an common order on 07/02/2019 pertaining to C.C.No.53/2018, 54/2018, 55/2018, 56/2018, 57/2018 and 62/2018 by partly allowing the complaint and it is further ordered by this Hon'ble Commission that in all the cases, directed to the opponent to collect the gold loan amount along with interest at the rate of 9% P.A from the date of pledging the gold ornaments till repayment of loan amount and to hand over the same to the complainant.

4. Further, the complainant submitted that during this period the complainants wife was died and the complainant was fully engaged in funeral ceremony and was suffering from mental agony and pain, Moreover, the complainants 2^nd son Mr.Furkhan's marriage was fixed and performed on 12/08/2020 / 13/08/2020 at Raichur, so the complainant was very much in need of gold ornaments pledged in Finance company.  So, the complainant paid he approached the Finance Authority and requested to take interest at the rate of 9% as per the Hon'ble Commission order dated:07/02/2019.  Firstly, they have agreed for the same.  Later on by refusing the request and order, the opponent has charged interest @ the rate 18% P.A. on the principal amount.  On 10/08/2020, after deducting some reduction in interest the opponent has collected Rs.2,52,065/- as interest from the complainant.  It clearly goes to shows that deficiency in service and unfair trade practice done towards the complainant.  The opponent has collected abnormal and exorbitant interest from the complainant, which is against to the law. During the moratorium period the company should not collect the interest from the borrowers.  Even then, the opponent has collected the principal amount of Rs.3,36,049/- and interest amount of Rs.2,52,065/- in total the opponent has collected Rs.5,88,594/- from the complainant.  It shows that the opponent has collected excess interest amount of Rs.1,35,806/- from the complainant.  In this regard, some verbal conversation were took place, finally, on urgency basis, the complainant has paid full demanded amount of Rs.2,52,065/- and taken delivery of all the pledged gold ornaments.  After that, complainant has requested to repay the excess interest amount collected from the complainant, but the opponent party refused to do 80 please note that principal loan amount Rs.3,36,049/- 9% interest works out to Rs.1,16,259/- but the opponent collected excess interest amount of Rs.1,35,806/- in 5 gold pledge accounts.  So, the complainant has filed this complaint before this Hon'ble Commission.

5. After registering the complaint, the Commission has issued the notice to the OP and the same has been duly served, and OP have appeared through their counsel and filed their version / objections.  The OP has submitted that the averments made in the complaint against the opposite party are hereby denied, as false, frivolous and baseless except for the facts which admitted specifically.  That during the month of June 2017, on different dates the complainant has approached and requested the opponent company to provide loan from pledging the gold ornaments to meet his legal family necessities and urgent needs.  Accordingly, the opponent has sanctioned the gold loan at the rate of 9% P.A on different dates of keeping gold ornaments for a period of 1 year, as per the loan particulars.  That due to family problems that his wife has undergone heart treatment at Jayadava Hospital, Bangalore and the complainant has taken treatment to Kasturba Medical College Hospital at Manipal, and he has incurred heavy medical expenses, as such, the complainant is in disastrous condition and the complainants wife of died with age-old ailments and also disease.  Due to this reason the complainant was unable to pay the interest or principal amount.  The complainant has approached and requested the Financing Authority to provide time to got release the pledged gold ornaments.  They have agreed to provide further 3 months.  After 2-3 months, again the complainant has approached and informed that he is ready to pay the loan amount with interest. For this, the opponent company has agreed to provide 3 months to clear of the pledged loan amount.  That the complainant came to know that the pledged ornaments have been scheduled to be auctioned by not following the procedural aspects.  But, the opponent company has issued notice that schedule auction sale will be conducted on 21/05/2018 at 10=00 at Chitradurga Branch or otherwise, finally auction will be conducted on 28/05/2018.  Being aggrieved by the illegal act of opponent, without any alternative, use complainant intends to seek the redress from this Hon'ble Commission.  For this, the complainant has filed the complaint in C.C.No.53/2018 to 57/2018 before this Hon'ble Forum by seeking relief of 3 months time.

6. The OP is non-Banking Financial company (NBFC) legitimately conducting their business as a company, under companies Act 2013, carrying valid certificate of registration issued by the reserve Bank of India (RBI) having its Branch office at Chitradurga.  In the course of their business, the complainant had approached the OP branch, with a request to lend amount to overcome his exigencies from time to time by getting pledge of their gold articles by filling signing loan application on agreeing /accepting terms and conditions embedded there in.  Wherein amongst other terms, the complainant accepting to pay interest at the following rates from 0 to 30 days 18% from 31 to 80 days 21% and above 80 days 24 %.

7. That this Hon'ble Commission was pleased passed common order on 07/03/2019 pertaining to C.C No.53/2018, 54/2018, 55/201, 57/2018 and 62/2018 by partly allowing the complainant and it is further ordered by this Hon'ble Commission that in all the cases, directed to the opponent to collect the gold loan amount along with interest at the rate of 9% P.A from the date of pledging the gold ornaments till repayment of loan amount.  Being aggrieved by the order of this Hon'ble Commission regarding reducing the rate of interest at 9% P.A. instead of 24% levied by the opponent, the opponent has preferred on Appeal in Appeal No.588/2019 to 592/2019 before the State Commission Bangalore by challenging the order to set aside the orders passed by the district commission Chitradurga dated:07/02/2019.

8. During the pendency of Appeals, the complainant came forward to settle the issue by requesting to withdraw the appeal and at the behest of the complaint of his intention to settle the pledge, the OP received the loan amount dues as on the day and obtainment of signature of complainant on withdrawal memos of Appeals and the OP released all the pledged gold ornaments to complainant on 10/08/2020 wherein the parties the to conceded to withdraw of Appeal.  While asserting there shall remain no dispute due between parties arising out of the said cases and none of the parties shall file any civil or criminal proceedings against each other in future and if any other case / Petition / Appeal is pending before any courts or authority, the case shall be withdraw / get disposed of by the respective party.

9. Thus the OP its withdrawal Memo dated 11/01/2021, reporting the settlement before the Hon'ble State Commission and got dismissed the Appeal.  The copies of withdrawal Memo signed by and between OP/ Appellant and complainant / Respondent, withdrawal Memo of Appellant before Hon'ble State Commission Bangalore. 

10. Further, the opponent contended that the complainant is not a consumer under section 2 of consumer protection Act 1986 and it is purely about financial institution loan transaction, there I no short coming / deficiency of service and OP is conducting its financial business activity perse its terms / license, in case of failure of its customer, they are at liberty to invoke agreed terms and conditions loan transactions and act accordingly to release the loan dues and the complainant has not established the defect and deficiency of service under section 2(f) and (g) of consumer protection Act 1986, Further, all averments which are contrary to the above contentions are hereby denied as false and the averments which are specifically traversed herein are denied as false and baseless.  Hence, the opponent prays to dismiss the complaint with exemplary costs to meet the ends of justice.  Further the opponent contends that in the contest of false claim and cannot action by the complainant against the OP, the OP intention to plead on record the actual and factual of its case, to make it obvious of their business with reference to complaint in hand.

11. Complainant has examined as P.W-1 filed his Affidavit evidence and got marked the documents as Ex.s Ex.A-1 to Ext.A-6 and closed his side evidence.

12. The OP hs examined and filed his Affidavit evidence by Murugeshwaraiah U.M Senior Branch Manager, Muthoot Finance corporation Ltd., Chitradurga Branch, Chitradurga and but the documents not marked and closed their side evidence.

13. The complainant and OP has filed their oral arguments and heard arguments. After perusal of the complaint and evidence and all document produced by the complainant and OP.

14. Now the points that arise for our consideration for decision of above complaint are that.

1) Whether the complainant proves that the   OP has committed deficiency of service of opponent in collecting the excess gold interest amount?

2) Whether the complainant entitled to receive the excess gold interest amount on 5 items of Rs 1,35,806/- collected by the opponent?

          3) What order?

      15. Our findings on the above points are as follows:

1. Negative
2. Negative
3. As per final order

:: REASONS ::

       16. Point No.1 & 2:- The complainant examined as P.W-1 and documents marked as Ex.s A-1 to 6.  The OP has examined D.W-1 and not produce any documents.  On perusal of documents produced by the complainant as per the complaint averments, the complainant had approached in the month of June 2017 on different dates and requested to lend amount for his gold articles by filling signing loan application form on agreeing / accepting the terms and conditions.  That the complainant failed to discharge the loan amount and get back gold ornaments pledged even after the lapse of agreed period of one year, then the opponent is obliged to cause its notice dated: 21/08/2018 to comply, lest they are forced to conduct public auction on 28/05/2018, pledged ornaments and appropriate realized amount towards the individual loan account as per the agreed terms of loan.  But, the complainant instead of compliance of demand, rushed to this Hon'ble Forum by filing bunch of complaint on the file of C.C.No.53/2018 to 57/2018 and was able to get interim order dated: 21/05/2018, restraining the opponent to conduct the auction sale of gold ornaments pledged by the complainant till the end of August 2018 for a period of 3 months.  In furtherance, the Hon'ble Forum passed order on 07/02/2019, partly allowing all the complaints, by directing the opponent company to collect loan amount along with interest at the rate of 9% P.A. from the date of pledging the gold ornaments and to hand over the same to the complainant.

17. That being aggrieved by the order passed by the Hon'ble forum, dated: 07/02/2019, the opponent company strained to challenged the said order before the Hon'ble State Commission at Bangalore to set aside the order passed by the Hon'ble District Commission, Chitraduga by paying a reduced interest rate 9% P.A. along with the principal amount instead of 24% as per the contract signed by the complainant on the file of Appeals No.588/2019 to 592/2019.  During the pendency of Appeals, the complainant came forward to submit letter dated: 08/08/2020 for settle the issue by requesting to withdraw the Appeals and at the best of the complainant of his intention to settle the pledge, the opponent company received the loan amount dues on 10/08/2020 as per Ex.s. A-1 to A-5 as on the date and on obtainment of signature of complainant on withdraw memos of Appeals and the OP company released all the pledged gold ornaments to complainant (respondent in Appeal) on 10/08/2020, wherein the parties there to conceded to withdrawal of Appeal, while asserting there shall remain no dispute due between parties, arising out of the said cases and none of the parties shall file any civil or criminal proceedings against each other in future and if any other case / Petition /Appeal is pending before any courts or authority, the case shall be withdrawn/ get disposed of by the respective party.  Accordingly, the OP Company in its withdrawal memo dated: 11/01/2021, reporting before the Hon'ble State Commission, Bangalore, the matter has been settled out of court and prays permission to withdraw the appeals.  In view of the submission and memo filed by the counsel for appellant, Appeals No:588/2019 to 592/2019 i.e., filed by the appellant appeals has been dismissed as withdrawn vide document No.29.

18. After perusing the documents and facts, this Hon'ble Commission come to the conclusion, there is no deficiency in service or any unfair trade practice done towards the complainant by alleging that the opponent has collected abnormal and exorbitant interest of Rs.1,35,806/- from the complainant on the part of opponent.  As such, the point No.1 and 2 are taken into consideration as negative.

        19. Point No.3:- As discussed on the above points and for the reasons stated therein we pass the following.

:: ORDER ::

       The present complaint filed by the complainant under section 35 of Consumer Protection Act, 2019 against the opponent is hereby dismissed.

       Communicate to both the parties.

(Dictated to the Stenographer, typed by him, the transcript corrected, revised and then pronounced in the open commission by us on 29^th  April 2023.)

LADY MEMBER                  MEMBER               PRESIDENT

-:ANNEXURES:-

Witness examined on behalf of Complainant:

PW-1: Syed Shabuddin Hussain, S/o Late Syed Khutbuddin Hussaini, by way of affidavit evidence.

Witness examined on behalf of Opponent:

DW-1: Murugeshwaraiaha.U.M. S/o Umapathaiaha.E.M. by way of

           affidavit evidence

Documents marked on behalf of Complainant:-

Documents marked on behalf of opponent:-

Nil

LADY MEMBER                      MEMBER                    PRESIDENT