DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, PALAKKAD
Dated this the 23rd day of September, 2022
Present : Sri.Vinay Menon V., President
: Smt.Vidya A., Member
: Sri.Krishnankutty N.K., Member
Date of Filing: 04/08/2020
CC/77/2020
Vasudevan,
S/o.Kanthaswamy,
Residing at C T Palayam,
Kollengode P.O,
Palakkad-678 506.
(By Adv.P C Sivadas) - Complainant
Vs
1. The Branch Manager,
J M J Finance Ltd.,
K V N Building, Pollachi Road,
Kollengode, Palakkad- 678 506.
2. The Chief Manager,
J M J finance Ltd.,
Door NO. 21/349/29,
West Fort Tower, Civil Line road,
Poothole P.O, Thrissur-680 002. - Opposite parties
(OPs are Ex-Parte)
O R D E R
By Smt.Vidya A., Member
Pleadings of the complainant in brief.
1. The complainant availed a financial assistance from the opposite party to the tune of Rs.30,000/- on 21.07.2017. It was informed by the officials of the opposite parties that the company is a Non-Banking financial company registered with RBI and the transactions are under RBI norms. On that bonafide belief the complainant entered into the transaction with the opposite parties and availed the loan on daily repayment basis. The opposite parties informed that the interest will be 18% per annum and if he commits default, there will be 2% penal interest. Upto January 2018, repayments were made on daily basis and the opposite parties issued a pass book and daily collection through their staff was made from the complainant’s shop and issued receipts and endorsed the same in the pass book also. During January 2018, there was balance in the said loan and the opposite party offered a conversion of the same to a fresh loan and on 31.01.2018, the old loan was converted into a new loan. The repayments started from 24.02.2018 and the complainant made payments upto 30.10.2019 amounting to Rs.27,700/- for which the opposite party issued small slips and collection staff made entries in the pass book.
The complainant received a notice from the opposite parties in November 2019 demanding exorbitant amount without considering the repayments made by the complainant. When enquired about this to 1st opposite party, they informed that the period of the loan is already over and whatever is paid is only to be accounted towards the interest. According to them, principal and interest is still due. The complainant then discontinued payments and resorted to make complaints to authorities. Then the opposite parties called for settlement. They demanded Rs.72,000/- as full and final settlement amount which is against the norms issued by RBI. It can be see that the opposite parties charged high rate of interest which is illegal and against RBI norms.
So this complaint is filed to
(a) to account the repayments made by the complainant properly.
(b) to charge the interest as per the rate fixed by RBI.
(c ) to pay compensation of RS.10,000/-
(d) to pay the cost of the litigation and such other reliefs as the Forum finds just and proper.
2. After admitting the Complaint, notice was issued to the opposite party. 1st opposite party was present at the time of first hearing and filed a statement that the matter relating to this complainant is pending before the Arbitration Tribunal ,Thrissur and the complainant’s property is attached in connection with that. Later on, there was no representation from the 1st opposite party and they did not file version or evidence to prove their contention and they were set ex-parte. 2nd opposite party also did not appear even after the receipt of notice and they were set ex-parte.
3. Complainant filed proof affidavit in evidence and Ext A1 to A3 marked. Heard the complainant.
4. Main points to be considered
(1)Whether there is any Deficiency in service/Unfair Trade Practice on the part of opposite
parties?
(2) Whether the complainant is entitled to the reliefs claimed?
(3) Reliefs as cost & compensation.
Points 1 to 3 are considered together
5. Complainant’s contention is that he availed a loan of Rs.30,000/- from the 1st opposite party on 21.07.2017 on daily repayment basis at the interest rate of 18% per annum (2% penal interest in case of default). Upto January 2018, he made repayments on daily basis. For that a pass book was provided by the opposite party and entries were made in the pass book by their collection staff and also issued receipts for the same.
6. The complainant produced the original pass books which are marked as Ext A1 & Ext A2. In Ext A2 entries of collection are made from 22/07/2017 to 09.01.2018.
The total amount deposited by the complainant during that period is Rs.5600/-. (There is an error in the calculation in the pass book and omitted Rs.200/-). The complainant has stated in his affidavit that during the month of 2018 there was balance in the said loan and the opposite party offered a conversion of the same to a fresh loan and the repayment started from 24.02.2018 and the complainant made payments upto 31.10.2019. The total amount paid by him towards the loan is Rs.27,700/-. Ext A1 shows the payments upto 31.10.2019 amounting to Rs.27,700/-.
So from Ext A1 & A2, it can be seen that the complainant made a total payment of Rs.33,300/- to the opposite party.
7. Ext A1 pass book did not contain the particulars such as Loan amount, Loan Date, closing date etc.
The complainant’s grievance is that the opposite party has not properly accounted the payments made by him and demanded Rs.72,000/- towards full and final settlement.
From Ext A1 & A2, it can be seen that the complainant had regularly made payments upto 31.10.2019 and paid a total of Rs.33,300/-
Complainant has stated that opposite party is a company registered under companies Act & doing financial business as per statutory regulations. There is a fiduciary relationship between the complainant & opposite parties. The opposite parties are statutorily bound to maintain transparent financial dealings, with access to the complainant to verify his accounts.
So the complainant is entitled to get his payments properly accounted with interest as per RBI guidelines.
Since the opposite party remained ex-parte, the evidence adduced by the complainant stands unchallenged.
The conduct of the opposite party demanding exorbitant amount without considering the payments made by the complainant is a clear Deficiency in service and Unfair Trade Practice on their part and would have definitely caused mental agony to the complainant. This made him file this complaint before the Commission causing financial loss also. The opposite parties are liable to compensate the complainant for that.
So we direct the opposite parties (1) To furnish statement to the complainant incorporating the deposits made by him including the interest due as per the RBI norms. (2) To pay a compensation of Rs.10,000/- for the Unfair Trade Practice and Deficiency in service on their part and to pay Rs.5000/- as cost of this litigation.
The above amounts are to be paid within 45 days of receipt of this order, failing which the opposite parties are liable to give Rs.250/- as solatium per month or part thereof till the date of payment.
Pronounced in open court on this the 23rd day of September, 2022.
Sd/-
Vinay Menon V
President
Sd/-
Vidya.A
Member
Sd/-
Krishnankutty N.K.
Member
APPENDIX
Exhibits marked on the side of the complainant
Ext.A1 – Pass book issued by the OPs (784)
Ext.A2 – Pass book issued by the OPs
Exhibits marked on the side of the opposite party:Nil
Witness examined on the side of the complainant:Nil
Witness examined on the side of the opposite party:NIL
Cost : 5000/- (Rupees Five thousand only).
