BEFORE THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI

Dated this the 30th day of December, 2009

Present:

SRI.LAIJU RAMAKRISHNAN PRESIDENT

SMT.SHEELA JACOB MEMBER

SMT.BINDU SOMAN MEMBER

C.C No.111/2009

Between

Complainant : Kuriakose P.K.,

Puliamthanathu House,

Kattappana P.O,

Kattappana,

Idukki District.

(By Advs: Prazeeda K.Pillai & Lissy M.M.)

And

Opposite Parties : 1. The Director,

Muthoot Finance Pvt. Limited,

Muthoot Chambers, Banargee Road,

Ernakulam.

(By Adv: Jomon K. Chacko)

2. The Branch Manager,

Muthoot Finance Pvt.Limited,

Kattappana P.O,

Idukki Dist.

(By Adv: Jomon K. Chacko)

3. Beena John,

Sale Officer,

Muthoot Finance Pvt. Limited,

2^nd Floor, Infant Jesus Building,

Banargee Road, Cochin – 31.

O R D E R

SMT. BINDU SOMAN (MEMBER)

The complaint is filed against deficiency in service of the opposite party Muthoot Finance Private Limited.
 

On 14.11.2007 complainant availed a personal loan namely special super personal loan of Rs.78,000/- by pledging 98.600 grams of gold ornaments in the opposite party bank. At the time of loan, opposite party had given a token, their rate of interest was mentioned in that was 17% per annum. The date fixed for payment of interest was 12.2.2008, but the complainant could not pay any amount because of some financial problems. Thereafter complainant received a letter from 2^nd opposite party. He approached the opposite party for closing the loan, but the amount claimed was very high and so he cannot close the loan. Then he got written notice from opposite party on 9.5.2009 stating that the gold ornaments pledged with the 2^nd opposite party will be auctioned on 6.6.2009. Again the complainant approached the opposite party but the employees of opposite party were not ready to show the Statement of Account. The amount outstanding in his loan account is Rs.1,18,000/-. As per the contract, the complainant is liable to pay interest only Rs.19,890/- till 14.5.2009. Complainant is ready to remit this amount. But the 1^st and 2^nd opposite parties are not ready to receive the loan amount along with the interest. 1^st and 2^nd opposite parties authorized 3^rd opposite party to conduct sale of the pledged ornaments. Since the complainant filed a petition before the Forum.
 

2. Opposite party filed a written version. In the written version opposite party admitted the gold loan of the complainant. Version stated that, the rate of interest mentioned in the complaint is wrong, it was changed after three months. Complainant is a defaulter, he could not pay any amount in the stipulated period. Complainant never approached 2^nd opposite party for closing the loan. He never asked Statement of Accounts. As per the agreed terms and conditions, the opposite party changed interest rate. The complainant is bound to pay the interest and its penal interest as he agreed with the opposite party. Complainant was not turned up to close or renew the loan even after the stipulated date. The opposite party made arrangement to sale of the pledged ornaments in auction.
 

3. The point for consideration is whether there was any deficiency in service on the part of the opposite parties, and if so, for what relief the complainant is entitled to?

4. Complainant is examined as PW1 and marked Exts.P1 and P2. Opposite party submitted that they have no oral evidence.
 

5. The POINT:- PW1, the complainant stated in the deposition that he is ready to pay the agreed rate of interest. According to the complainant, the token of opposite party will reveal the rate of interest. Ext.P1 is the token received by the complainant, which shows the rate of interest as 17%. Opposite party denied it, they have their own right to change the interest rate on every three months. Ext.P2 is the auction notice. Opposite party could not adduce any oral evidence. No document filed on supporting their contention. In the written version opposite party admitted that they are a non-banking institution registered under Companies Act. Such an institution should follow strict rules regarding the rate of interest. Opposite party should disclose the rate of interest, penal interest and other charges to the customers. Hence we find there is unfair trade practice in the action of the opposite party.

Hence the petition allowed. The opposite parties are directed to release the gold ornaments weighing 98.600 grams to the complainant, after receiving the loan amount of Rs.78,000/- with 17% interest which is agreed. The opposite parties are also directed to pay Rs.1,500/- as cost of this petition within one month of receipt of a copy of this order, failing which the amount shall carry 12% interest per annum from the date of default.
 

Pronounced in the Open Forum on this the 30^th day of December, 2009

Sd/-

SMT. BINDU SOMAN (MEMBER)

Sd/-

I agree SRI. LAIJU RAMAKRISHNAN (PRESIDENT)

Sd/-

I agree SMT. SHEELA JACOB (MEMBER)

APPENDIX

Depositions :

On the side of Complainant :

PW1 - P.K. Kuriakose

On the side of Opposite Parties :

Nil

Exhibits :

On the side of Complainant :

Ext. P1 - Gold loan token issued by the opposite party to the complainant.

Ext.P2 - Auction notice dated 9.5.2009

On the side of Opposite Parties :

Nil