The petitioner, Purujit Dutta has filed the instant case against, the Manger, Muthoot Finance Ltd., Kochi, Kerala herein opposite party 1 & the Manager, Muthoot Finance Ltd. Krishnagar Branch, Krishnagar, herein OP No. 2 under Section 12 of the Consumer Protection Act, 1986.
Case of the petitioner in brief:-
The petitioner obtained a loan amounting to Rs. 32,500/- from the OP No. 2 on 21.06.13 by pledging certificate ornaments by way of collateral security being loan A/C No. 01391-MXL-7276. The said loan was finally settled on 16.10.14 at Rs. 44,026/-. The petitioner noticed that at the time of setting the loan the OPs charged a huge amount of floating interest & penal interest which is against the R.B.I. rules & regulations. The said company also did not provide the loan sanction letter & loan agreement letter which is mandatory as per R.B.I. Rules & Regulations. The cause of action arose when the petitioner served a lawyer’s letter upon the OPs on 11.11.14 & when the same remained unattended within the schedule period of time. Finding no other alternative the petitioner has come before this forum for relief with the following prayer:-
- Direction upon the OPs to provide the interest rate chart loan sanction letter & loan agreement letter.
- Direction upon the OPs to refund the additional interest charged on 16.10.14 along with compensation & litigation cost.
The OPs have contested the case by filing written version. They have denied most of the allegations of the petitioner save & except the fact of disbursing loan of Rs. 32,500/- against the gold deposit of (17.70-2.70) = 15gms on 21.06.13 to the petitioner and recovery of the said loan on 16.10.14 for an amount of Rs. 44,026/-. The OPs also submit that the Ld. Advocate of the petitioner intentionally avoided to take the letter dtd. 05.12.14 which was sent by the OP in reply of the legal notice served by the petitioner after settlement of the loan. The letter thus was returned back to the OP with a remark “unclaimed”. According to the OPs the complainant took the loan amount with a promise to pay off the same within 12 months but failed to comply the same & never paid any interest within 15 months & 25 days. Then on 16.10.14 the complainant approached to the office of the OP & settled the loan amount of Rs. 44,026/- on the same day. The petitioner was well aware about the facts, charges & interest of the company and after full settlement of the loan issued a notice upon the OPs on 05.12.14 with a malafide intention to file this instant case. Hence, the OPs pray for dismissal of the complaint being vexatious & frivolous with exemplary cost to the petitioner.
Both parties filed written arguments, documents and only the petitioner adduced evidence & OPs were not interested to file affidavit-in-chief in their favour. From all of these we frame the following issues for proper adjudication of the case.
1) Whether the petitioner a consumer under the OPs?
2) Whether the OP suffer from deficiency in service?
3) Whether the petitioner is entitled to get relief from the OPs as prayed for?
DECISIONS WITH REASONS
Point No.1.
The petitioner is a consumer under the OPs, as the latter was financed the petitioner by disbursing loan of Rs. 32,500/- in lieu of interest. The relationship between the financier & the customer is within the orbit of the Consumer Protection Act, 1986 as service provider & consumer.
Point Nos. 2 & 3
Both the points are taken up together for the sake of convenience & brevity.
From the pleadings of the petitioner & documents submitted by him we find from the loan disbursement letter (Annexure – 1) that Muthoot x-press loan (RBI Licence Reg. No. N1600167) disbursed a loan amount of Rs. 32,500/- to the petitioner for 12 months on 21.06.13 having the following schedule for rate of interest & the same was agreed by the petitioner :-
Rate of Interest Period
20% 3 months
21% 6 months
24% 12 months
Here the petitioner has repaid the loan after 15 months 25 days i.e., he has to pay the interest @ 24% on the loan amount. The forum after calculating Rs. 32,500/- for 15 months 25 days @ 24% finds that the OP was entitled to get Rs. 10,258/- but instead of that charged to Rs. 11,476/- along with penal interest. The OPs failed to satisfy the forum regarding the penal interest clause. So far the documents are concerned the petitioner has paid an additional interest of Rs. (11,476/- - 10,258/-) = Rs. 1218/-. Hence OPs are deficient in their services and the petitioner is entitled to get relief from the OPs.
The DD paid is correct.
Hence,
Ordered,
That, the case CC/2014/169 be and the same is allowed on contest against the OPs with cost. The OPs are directed to pay Rs. 1,218/- to the petitioner jointly & severally along with compensation of Rs. 3,000/- and litigation cost of Rs. 2000/- within one month from the date of order, in default, the total decretal amount of Rs. 6,218/- (1,218/- + 3,000/- + 2,000/-) will carry an interest of Rs. 18% from the date of order till final payment.
Let a copy of this judgment be delivered to the parties free of cost.
