Tamil Nadu

South Chennai

CC/67/2022

Mr.S.Vijayakumar - Complainant(s)

Versus

The Branch Manager, Manappuram Finance Limited and another - Opp.Party(s)

R. Venkatesh

02 Jan 2023

ORDER

                                                 Date of Complaint Filed : 09.12.2021

                                                 Date of Reservation      : 20.12.2022

                                                 Date of Order               : 02.01.2023

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,

CHENNAI (SOUTH), CHENNAI-3.

 

PRESENT:    TMT. B. JIJAA, M.L.,                                                 : PRESIDENT

                       THIRU. T.R. SIVAKUMHAR, B.A., B.L.,                 :  MEMBER  I 

                       THIRU. S. NANDAGOPALAN., B.Sc., MBA.,          : MEMBER II

 

CONSUMER COMPLAINT No. 67/2022

MONDAY, THE 2^ndDAY OF JANUARY 2023

Mr. S.Vijayakumar,M/28,

S/o.T.Subramani,

No. 41/18, Ramaswamy street,

Mackeys Garden,

Thousand light,

Chennai - 600006.                                                                                                                            ... Complainant                

..Vs..

1. The Branch Manager,

    Manappuram Finance Limited,

    Regional office,

    No.126, Thambu Chetty Street,

    Mannadi, George Town,

    Chennai-600001.

 

2.The Branch Manager,

   Manappuram Finance Limited,

   New Washermenpet Branch,

   ID: 698,NewWashermenpet Building,

   No.47/IH, New No.139,

   1^st Floor, Thirvottiyor High Road,

   Chennai – 600 081.                                                                                                                         ...  Opposite Parties

 

******

Counsel for the Complainant          : M/s. R. Venkatesh

Counsel for the Opposite Parties     : Exparte

On perusal of records and after having heard the oral arguments of the Counsel for the Complainant, we delivered the following:

ORDER

Pronounced by Member-I, Thiru. T.R. Sivakumhar, B.A., B.L.,

1.      The Complainant has filed this complaint as against the Opposite Party under section 35 of the Consumer Protection Act, 2019 and prays to direct the Opposite Parties to pay to the Complainant to pay a sum of Rs.1,00,000/- as mental agony and to pay a sum of Rs.5,00,000/- as compensation for harassment and suffering and mental agony caused to the Complainant along with cost of this complaint.

2.     The averments of Complaint in brief are as follows:-

 The Complainant is a Law College student and he is a basically from poor family and he was totally depend on his brother only. During the month of January 2021 he was struggling to meet out his day today requirements, he and his family members were put much financial crises. He was unable to obtain any hand loan from his friends and relatives, he had approached various person and due to the Covid - 19 issues the Complainant was unable to arrange amount for his necessary need i.e., rental, food, etc,. During which time he came to know through the advertisement that a Jewells loan is available in "Manappuram Gold Loan Finance Limited" with lesser interest. Believing the advertisement he had approached the Manappuram Gold Loan Finance Limited and enquired about the monthly interest and having satisfied with the terms and condition imposed by Manappuram Gold Loan Finance Limited. Further the 2^nd Opposite Party had convinced him that a New Scheme was available in lesser interest (ie, 1.25%p.m.) and the scheme was called as “Online Gold Loan". To get benefit under the scheme the Complainant has to login the 2^nd Opposite Parties portal for every 15 days and he has to submit the OTP which was sent by the 2^nd  Opposite parties. Believing their words he had accepted to pledge his Jewells in the Opposite Parties finance company. On 23.01.2021 the Complainant has pledged his Jewells for a sum of Rs.88,000/- with Opposite Party’s new washermenpet branch vide Loan No.06980013913223 and inventory No. IN06980700013462 and it has been credited into his account and he has to pay 1.25% as monthly interest for the above said amount. The Bankers informed to him that due to Covid 19 issues that all the loan application, Renewal of other process has been done only through the online, since the scheme has been called as "Online Gold Loan". On 06.03.2021 he had paid a sum of Rs.5000/- as part of principal amount and paid a sum of Rs.1600/- as interest amount ie,. From the date of the pledging to till 06.03.2021. The Opposite Parties have informed that the interest amount and Loan amount or any further amount has to be paid by him only through the online, since the scheme is comes under the online basis. If he wants to make any further payment, he has to login the 2^nd Opposite Party’s, New washermenpet, Branch ID: 698 portal. After receiving the OTP from the 2^nd Opposite Party, he has to forward the OTP to the concern branch for payment. He used to receive OTP and he has paid the part of principal amount, Interest amount without any issues till March 2021. In the month of April 2021 he had  contacted the concern branch and he intended to release his pledged Jewells, the Opposite Parties had informed that the loan could be closed only after receiving the OTP from their ID: 698 portal. From April 2021 to July 2021 the Complainant had made efforts to close the loan but everything went on vein. Oftenly he had contacted the concern branch, but there was no proper response from their side. To his shock and surprise that during the 3^rd week of July 2021 he got a call from the concern branch and they stated that he has to pay a sum of Rs. 8198/- as interest amount. He had enquired about the exharbidant interest imposed by the 2^nd Opposite Party, but there was no proper details from them. But they informed that they have a some server problem from the month of April 2021 to till July 2021 and therefore they were unable sent the OTP (every 15 days) to him. Therefore there was a some mistake in calculating the interest amount. The bankers had admitted that due to the server problem only the interest amount has been increased from 1.25 to 3% and they are not responsible for the above said server error. Though he had explained about his situation, but the 2^nd  Opposite Party was not in a position to listen his words. Finally he had no other option and paid a sum of Rs.84868/- towards principal and paid a sum of Rs. 8276/- towards interest. On 24.07.2021 he had totally a sum of Rs.93144/- for closing the Jewells loan. The interest amount which was imposed by the Opposite Parties is against the terms of conditions and it is totally violation and Banking and finance Rules of Reserve Bank of India. Further to impose 3% of interest amount is punishable under the Tamilnadu Exorbitant interest and the 2^nd Opposite Parties were liable to be prosecuted. He had sent a legal notice to the Opposite Parties on 10.08.2021 calling upon the Opposite Party to pay the compensation and explanation but there was no response from their side. The Opposite Party even after receipt of the notice neither given written reply notice complied with the demand made by the Complainant, which clearly establish the negligence on the part of the Opposite Party.Hence the complaint.

3.   The Complainant submitted his Proof Affidavit and Written Arguments. On the side of the Complainant, documents marked as  Ex.A-1 to Ex.A-7 . The Opposite Parties did not appear before this Commission even after sufficient notice served and remained absent and set exparte.

Points for Consideration

1. Whether there is deficiency in service on the part of the Opposite Party?

2. Whether the Complainant is entitled for reliefs claimed?

3. To what other reliefs the Complainant is entitled to?

Point No.1:

The case of the Complainant is that he had availed Online Gold Loan from the 2^nd Opposite Party for a sum of Rs.88,000/- on 23.01.2021 with an agreed interest of 1.25% per month. The mode of payment of Principal and interest was through online on receipt of OTP sent by the Opposite Parties and by submitting the same to the 2^nd Opposite Party, respective payments were made by him till March, 2021. In the Month of April, 2021 the Complainant wanted to close the said Gold Loan and approached the 2^nd Opposite Party for closure, the 2^nd Opposite Party had informed him that the said Gold Loan could be closed only after providing OTP sent to the Complainant and the same could not be done manually, thereafter the Complainant had tried to get OTP and to close the Gold Loan, till July 2021, due to server issues of the Opposite Parties, which were informed and notified by the Opposite Parties, he could not get the OTP he could not close the said Gold Loan Account. Instead he had sent a demand claiming exorbitant interest of Rs.8198/- till 24^th July 2021 and had claimed a total amount of Rs.93,144/- to be paid and the said sum was paid by him on 24.07.2021. For no fault of him, the Opposite Parties had charged an exorbitant interest as against the agreed rate of interest at 1.25% per month.

On reading of the complaint and on perusal of the exhibits marked in support of the Complaint, it is clear that the Complainant had availed Online Gold Loan from the 2^nd Opposite Party and the payment of Principal or interest to be made only through online after receiving authenticated OTP for login to the Portal, as per Ex.A-1. Ex.A-2 Screen shot of SMS sent by the Opposite Parties to the Complainant, confirming the Gold Loan approval for a sum of Rs.88,000/-. As per Ex.A-2 page No.11 it was informed by the Opposite Parties that there would be intermittent issues in Online payment/OGL on 29.04.2021. The Complainant had contended that he had approached the 2^nd Opposite Party for closure of his said Gold Loan Account during April, 2021 and it was informed by the 2^nd Opposite Party that there was a server issue and only through Online the loan account could be closed, which fact had also been explained in the Legal Notice sent to the 1^st Opposite Party to the address provided and last known address and the same was returned as Left.

On discussion made and considering the facts and circumstances of the case, it is clear that the 2^nd Opposite Party had not considered the closure of the Gold Loan of the Complainant during the server issue persisted in payment/closure to be made online by the Complainant, if the same would have been considered the Complainant would not have been put in a situation to bear the interest charged by the Opposite Parties from April 2021 to July 2021. The 2^nd Opposite Party being the Branch and the 1^st Opposite Party being the Regional Office and the Principal of the 2^nd Opposite Party, who is vicariously liable and thus the negligent act of the Opposite Parties clearly amounts to deficiency of service and thereby had caused mental agony to the Complainant. Accordingly Point No.1 is answered against the Opposite Parties.

Point No.2 and 3:

As discussed and decided Point No.1 against the Opposite Parties, the Opposite Parties are liable to pay Rs.25,000/- towards deficiency of service and mental agony caused to the Complainant along with cost of Rs.5,000/-Accordingly Point Nos. 2 and 3 are answered. 

In the result, the complaint is allowed in part. The 1^st and 2^nd Opposite Parties are directed to pay Rs.25,000/- (Rupees Twenty Five Thousand Only) towards deficiency of service and mental agony caused to the Complainant along with cost of Rs.5,000/- (Rupees Five Thousand Only) within 8 weeks from the date of receipt of this order failing which the amount of Rs.25,000/- shall carry interest @9% p.a from the date of receipt of this order till the date of realization.

          In the result this complaint is allowed.

Dictated to Steno-Typist, transcribed and typed by her, corrected and pronounced by us in the Open Commission, on 2^nd of January 2022.

 

 

S. NANDAGOPALAN               T.R. SIVAKUMHAR                 B.JIJAA

         MEMBER II                       MEMBER I                        PRESIDENT

 

List of documents filed on the side of the Complainant:-

 

Ex.A1	20.05.2020	Copy of Gold Loan application Form
Ex.A2	25.01.2020 to 24.07.2021	Copy of Messages sent by the Opposite Parties
Ex.A3	23.01.2021 to 22.03.2021	Copy of payment in statement (Processing Charge and TFR to Re pledge)
Ex.A4	26.03.2021 to 24.07.2021	Copy of Final payment Receipt
Ex.A5	26.03.2021 to 24.07.2021	Copy of Final payment Statement
Ex.A6	10.08.2021	Copy of Legal Notice with Receipt
Ex.A7	16.08.2021	Copy of Legal Notice Return with Receipt and Acknowledgement card

 

List of documents filed on the side of the Opposite Parties:-

 

NIL

 

 

 

S. NANDAGOPALAN               T.R. SIVAKUMHAR                    B.JIJAA

         MEMBER II                       MEMBER I                         PRESIDENT