Date of filing: 17.07.2017
Date of order: 17.08.2022
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, VELLORE AT VELLORE DISTRICT.
PRESENT: THIRU. A. MEENAKSHI SUNDARAM, B.A.,B.L. PRESIDENT
THIRU. R. ASGHAR KHAN, B.Sc., B.L. MEMBER – I
SELVI. I. MARIAN RAJAM ANUGRAHA, M.B.A., MEMBER - II
TUESDAY THE 17th DAY OF AUGUST 2022
CONSUMER COMPLAINT NO.16/2017
S. Abirami,
No. 4/29, Anna Street,
Kalar Village,
Tajpura Post,Arcot,
Vellore District – 632 521. …Complainant
-Vs-
1. The Branch Manager ACPIO,
State Bank of India,
No. 144/82, Jeevanandam Salai,
Arcot.
2. The Regional Manager CPIO,
State Bank of India Regional Business Office,
No. 22, 6th East Cross Street,
Gandhi Nagar,
Vellore – 632 006
3. General Manager (Redressal),
State Bank of India,
Local Head Office,
Circle Top House,
No. 16, College Lane, Thousand Light,
Chennai – 600 006 …Opposite parties
Counsel for complainant : Thiru. Pon Devarajan
Counsel for opposite parties : Thiru. N.S. Ramanathan
ORDER
THIRU. A. MEENAKSHI SUNDARAM, B.A.,B.L. PRESIDENT
This complaint has been filed under Section 12 of Consumer Protection Act 1986, the complainant has prayed this Hon’ble Commission directing the opposite parties to return the gold ornament weighing 120 grams of kasumalai and to pay a sum of Rs.1,00,000/- as compensation for mental agony, physical strain suffered and also to pay a sum of Rs.1500/-.
1. The case of the complaint briefly as follows:
The complainant borrowed a gold jewel loan of Rs.2,21,500/- from the first opposite party by pledging her jewels weighing of 120 grams. The complainant repaid the said loan and interest amount of Rs.1,23,000/. On 19.10.2015 complainant was deposited Rs.10,000/-at the first opposite party branch. Later on the bank officials rejected her deposit and returned the cash and asked the complainant to see the loan Manager for further details. The complainant had spoken to the loan Manager and for the first time she informed that her jewels was sold in auction and her account was closed. On hearing the said news the complainant became upset and refused to collect the balance amount. Further the bank officials did not produce any documents. The opposite party did not given any information with regard to the sale of her gold jewels in public auction and they failed to give any particular to the complainant to discharge her loan and redeem the jewels. Further they failed to follow the guidelines before selling the complainant’s jewels in public auction for recovery of the loan amount. The complainant wrote a letter on 27.10.2015 to furnish all the documents relevant to auction of her jewels under the RTI Act. The second opposite party replied on 21.11.2015 with particulars along with ABCD Statement of account details of gold jewels held at branch office. News paper advertisement given by regional office opponent-2. Auction notice letter dated 06.05.2015 (claiming Rs.136,729/- to meet the gold ornament) and all Xerox copies enclosed. Further the complainant alleged that the opposite party forged letter auction notice letter dated 06.05.2015 from the first opposite party to the complainant. But the same was not received by the complainant. The complainant again wrote a letter on 18.12.2015 to second opposite party asking to produce registered post booking receipt or postal booking number, Ref. Xerox copy of letter etc. The second opposite party replied on 18.1.2016 stating that the booking documents not traceable. State Bank of India asked post office for the booking reference on receipt of the same, we will inform you later. Till date no booking documents or booking reference number been produced. (Ref All Xerox copy of reply letter from first opposite party, second opposite party at various dates). Thereafter the complainant make a complaint to the General Manager State Bank of India Redressal Chennai Local Head Office on 16.05.2016, but the State Bank of India Redressal Chennai did not reply. But forwarded her complaint to the first opposite party. The first opposite party replied on 23.05.2016 stating that booking reference in respect of the notice is not traceable at the branch, Again the complainant wrote a letter on 07.07.2016 to General Manager State Bank of India Redressal Chennai Local Head Office. But there was no reply from LHO. On 18.09.2016 on the occasion of Consumer Grievance Redressal day a counselling was held at Chennai at Mother Theresa Building Near Valluvarkottam. The complainant made a complaint to State Bank of India, counter and gave all copies. But there is no solution. He met a Law consultant. They asked him to file a complaint before the Hon’ble Commission. The complainant personally visited three times at Tajpura sub post office and checked the registered post delivery records of period from yearly May 2015 to October 2015. There is no registered postal letter has been delivered to the complainant. Further she has also given a complaint to ombudsman who replied on 11.01.2017. The complainant issued a notice on 14.02.2017. She also wrote a letter to the Superintend of post office, Arakkonam on 21.03.2017. For supporting documents, for register post not served on them. But there was no reply as on date. The General Manager of State Bank of India local head office Chennai did not take any action, to resolve the said issues. Hence this complainant approached this Hon’ble Commission. Hence this complaint.
2. The written version of third opposite party adopts the first opposite party is as follows:
This opposite party denies the allegations made in the complaint and except those that are specifically admitted herein and as regards the rest the complainant is put to strict proof of the same. The agricultural gold loan of Rs.2,21,500/- was sanctioned to the complainant on 08.05.2012 on the security of gold Jewels weighing 120 grams. The above loan amount has to be repaid by the complainant within a period of 24 months as per the letter of sanction. The complainant defaulted to pay the loan amount and so the account became NPA during May 2015. A notice was issued to the complainant on 06.05.2015 calling upon her to pay the amount failing which the pledged Jewells will be auctioned. The xerox copy of the said auction notice dated. 06.05.2015 is filed herewith and the same may be read as part and parcel of this written version. Since there was no response from the side of complainant, paper publication was effected informing the date of the auction as on 28.08.2015. The complainant has not taken any steps, inspite of auction notice and paper publication to repay the loan amount. Hence auction was conducted on 28.08.2015 at 4.00 P.M at Arcot Branch. In the said auction Sri Paulraj who participated in the auction became the successful bidder and the gold Jewells pledged by the complainant were auctioned for Rs.2,70,000/-. The loan account of the complainant was closed after crediting a sum of Rs.1,49,203/- out of the auctioned amount. After closure of the loan amount as mentioned supra for the remaining amount of Rs.1,20,797/- a bankers cheque was taken in favour of complainant dated 09.09.2015 bearing No.110652 and the complainant was asked to receive the said cheque. But she has not received the same so far. The above banker cheque is still with the bank and the complainant can receive the said sum of Rs.1,20,797/- at any time from the bank. The allegation made in para 4 to 6 of the complaint, since the complainant knows fully well that her account has became NPA and the gold Jewells were auctioned for non payment of the loan amount after following the procedures. In para 8 of the complaint the complainant was also informed about the auction of the gold Jewels with relevant documents as mentioned in the complaint. The allegations made in para 9 of the complaint that the auction notice letter dated 06.05.2015 was forged and the same was not sent and not received by the complainant. This opposite parties states that there is no deficiency of service on the part of the opposite parties and hence this complaint is not maintainable. This opposite parties states that the above complaint is barred by limitation and no relief to be granted to the complainant as prayed for by her. This opposite party states that since the complainant defaulted to pay the loan amount inspite of repeated demands, the pledged gold Jewells were auctioned according to law after following the procedures. This opposite party reserves its rights to file additional written version. This opposite party states that the second and third opposite parties was not necessary parties to this proceedings and they have not to be exonerated from the above proceedings. It is therefore prayed that this Hon’ble Forum may be pleased to dismiss the complaint with costs.
3. The written version of second opposite party is as follows:
The complaint filed by the complainant is not suitable either in Law or on facts of the case. The opposite party denies all the allegations made in the complaint those that are specifically admitted herein and as regards the rest the complainant is put to strict proof of the same. The opposite party states that since the complainant defaulted to pay the loan amount inspite of repeated demands the pledged gold jewels were auctioned legally after following the procedures. This opposite party denies the allegation that opposite party 1 and 2 had sold the gold ornaments without giving any information to the complainant and without following the legal requirements. Also states that there is no deficiency of service on the part of the opposite party and hence this complaint in not maintainable. Further states that the complaint filed by the complainant in 2017 for the auction held in 2015 is barred by limitation. Therefore prayed that this Hon’ble Forum may be pleased to dismiss the complaint with costs.
4. Proof affidavit of complainant filed, Ex.A1 to Ex.A21 were marked. Proof affidavit of opposite parties 1 to 3 filed. Ex.B1 to Ex.B11 were marked. Written argument of complainant filed. Written arguments of opposite parties 1 to 3 filed. Oral arguments of both sides heard.
5. The Points that arises for consideration are:
1. Whether there is any deficiency in service on the part of the opposite
parties 1 to 3?
2. Whether the complainant is entitled for relief as claimed in the
complaint?
3. To what other relief, the complainant is entitled to?
6. POINT NOS. 1 and 2: The complainant availed a Jewel loan of Rs.2,21,500/- from the first opposite party by pledging her Jewells of 120 grams of Gold. The original receipt was marked Ex.A2. The main contention of the complainant is that the first opposite party without following the procedures established by law, sold her Jewels in public auction to appropriate loan amount. Per contra the opposite party in their written version contented that the complainant was duly informed through the register post with acknowledgment and further they also gave paper publication which was marked as Ex.B11. Her name was fixed in second place. But there was no address, but on going through the Section 176 of the Indian Contract Act 1872, it emphasised personal notice to the borrower. In the present case the opposite party contented that they issued personal notice as well as paper publication. But they failed to produce any documents with regard to personal notice issued to the complainant and the same was duly served. Therefore, we find that the first opposite party did not follow the procedure established by Law and it is clear that there is regularity in selling the complainant’s Jewels in public auction for appropriate Loan amount. Therefore there is a deficiency in service on part of the first opposite party. Hence, these Point Nos. 1 and 2 are decided in favour of the complainant.
7. Point No.3: In Point Nos.1 and 2, we have decided that there is a deficiency in service on the part of the first opposite party. The first opposite party is hereby directed to return the complainant’s gold jewels of 120 grams as mentioned in the complaint on receipt of the loan amount of Rs.2,21,500/- (Rupees Two Lakhs Twenty One Thousand and Five Hundred only) with 7% interest p.a. from 08.05.2012 to till the date of this order from the complainant, interest if any paid by the complainant may be deducted. In the alternative the first opposite party is hereby directed to pay a sum of Rs.5,81,880/- (Rupees Five Lakhs Eighty One Thousand Eight Hundred and Eighty only) the present market value of the jewels after deducting the loan amount of Rs.2,21,500/- (Rupees Two Lakhs Twenty One Thousand and Five Hundred only) with 7% interest p.a. from 08.05.2012 to till the date of this order to the complainant and also the opposite parties are jointly or severally directed to pay a sum of Rs.1,00,000/- (Rupees One Lakh only) as compensation for deficiency in service and mental agony and also to pay a sum of Rs.10,000/- (Rupees Ten Thousand only) towards cost to the complainant. This Point No.3 is also answered accordingly.
8. In the result this complaint is allowed. The first opposite party is hereby directed to return the complainant’s gold jewels of 120 grams as mentioned in the complaint on receipt of the loan amount of Rs.2,21,500/- (Rupees Two Lakhs Twenty One Thousand and Five Hundred only) with 7% interest p.a. from 08.05.2012 to till the date of this order from the complainant, interest if any paid by the complainant may be deducted. In the alternative the first opposite party is hereby directed to pay a sum of Rs.5,81,880/- (Rupees Five Lakhs Eighty One Thousand Eight Hundred and Eighty only) the present market value of the jewels after deducting the loan amount of Rs.2,21,500/- (Rupees Two Lakhs Twenty One Thousand and Five Hundred only) with 7% interest p.a. from 08.05.2012 to till the date of this order to the complainant and also the opposite parties are jointly or severally directed to pay a sum of Rs.1,00,000/- (Rupees One Lakh only) as compensation for deficiency in service and mental agony and also to pay a sum of Rs.10,000/- (Rupees Ten Thousand only) towards cost to the complainant within one month from the date of receipt of this order, failing which the above amounts shall carry interest at the rate of 9% per annum from the date of this order to till the date of realization.
Dictated to the steno-typist transcribed and typed by her corrected and pronounced by us in the open Commission on this the17th August, 2022.
Sd/- Sd/- Sd/-
MEMBER – I MEMBER – II PRESIDENT
LIST OF COMPLAINANT SIDE DOCUMENTS:
Ex.A1 - - SBI jewel loan Receipts
Ex.A2 - SBI Memo given by the SBI Arcot
Ex.A3 – 18.02.2013 - SBI payment receipt for Rs.13,000/-
Ex.A4 – 10.04.2013 - Loan repayment cash deposit challan
Ex.A5 - 10.05.2013 – SBI receipt request for Rs.1,00,000/-
Ex.A6 – 10.12.2013 - SBI payment receipt for Rs.5000/-
Ex.A7 – 19.10.2015 - Loan Repayment cash deposit rejected
Ex.A8 – 27.10.2015 - Copy of letter to ACPIO / CPIO code RTI Act
Ex.A9 – 21.11.2015 - Copy of RTI Act reply letter from SBI Regional Office CPIO
Ex.A10-18.12.2015 - Copy of Registration to CPIO
Ex.A11- 18.01.2016 - Copy of reply letter from CPIO
Ex.A12- 16.05.2016 - Copy of Complaint letter to General Manager SBI Redressal
Ex.A13- 23.05.2016 - Copy of reply from Branch Manager Arcot
Ex.A14- 07.07.2016 - Copy of Complaint Reminder letter to General Manager SBI
Redressal
Ex.A15- 18.09.2016 - Copy of Consumer Grievance Redressal day
Ex.A16 -11.01.2017 - Copy of E-mail letter from ombudsman
Ex.A17-29.11.2016 - Copy of e-mail complaint to Ombudsman reply by Branch
Manager, SBI, Arcot
Ex.A18-14.02.2017 - Copy of notice before filing Consumer Complaint SBI Branch
Manager
Ex.A19-14.02.2017 – Copy of notice before Consumer complaint to regional
Manager SBI, CPIO
Ex.A20- 21.03.2017 - Copy of petition under RTI Act to Superintendent of Post
Office
Ex.A21- 10.04.2017 - Copy of RTI reply copy of Superintendent of post office
Arakkonam Division
LIST OF OPPOSITE PSRTIES SIDE DOCUMENTS:
Ex.B1-08.05.2012 - Copy of application cum Appraisal for loans against gold /silver
ornaments
Ex.B2-08.05.2012 - Copy of Loan sanction letter
Ex.B3-08.05.2012 - Copy of Demand promissory note for Rs.2,21,500/-
Ex.B4-08.05.2012 - Copy of Loan against sanctions of gold ornaments
Ex.B5-08.05.2012 - Copy of internet rate signed by complainant
Ex.B6-06.05.2015 - Copy of Auction notice send to complaint
Ex.B7-06.05.2015 - Copy of True extract of postage book maintain by the opposite
party
Ex.B8- 24.08.2015 - Copy of paper publication
Ex.B9- 09.09.2015 - Copy of Banker cheque
Ex.B10 - Copy of Account
Ex.B11-25.08.2015 –Dhina Thanthi Tamil news paper
Sd/- Sd/- Sd/-
MEMBER – I MEMBER – II PRESIDENT
