Kerala

StateCommission

A/15/76

v v manu - Complainant(s)

Versus

the manager muthoot finance - Opp.Party(s)

rajesh r

29 Sep 2016

ORDER

KERALA STATE CONSUMER DISPUTES REDRESSAL

COMMISSION  VAZHUTHACAUD, THIRUVANANTHAPURAM

APPEAL NO.76/15

JUDGMENT DATED:29.09.2016

 

PRESENT : 

JUSTICE SHRI. P.Q. BARKATHALI                         :  PRESIDENT

SHRI.V.V. JOSE                                                          : MEMBER

V.V. Manu,

S/o Vipinan, Padmavilas,

Mudakkal West, Kollam.                                                   : APPELLANT

                                                           

(By Adv: Sri. Rajesh R)

 

            Vs.

 

The Manager,

Muthoot Finance Limited,

Chamakkada Branch,                                                       : RESPONDENT

Municipal Building, Chamakkada,

Kollam-691 001.

 

(By Adv: Sri.C.S. Rajmoahn)

 

 

JUDGMENT

 HON.JUSTICE.P.Q.BARKATHALI : PRESIDENT

 

This is an appeal filed by the complainants in CC.282/12 on the file of Consumer Disputes Redressal Forum, Kollam challenging the order of the Forum dated, December 30, 2014 in so far as Forum ordered interest at the rate of 18% per annum.

2.      The case of the complainants as testified by the first complainant as PW1 and as detailed in the complaint before the Forum in brief is this:-

Complainant purchased gold coins worth 200gm on August 22, 2011from the opposite party. The agreement was to pay 10% of the prevailing market value at the time of purchase and the balance amount shall be disbursed by the opposite party as loan on the security of gold coins pledged with them.  The loan has to be repaid in 12 equal monthly instalments with interest at reasonable rate.  At the time of purchase complainants paid Rs.70208/- being 10% of the value of the gold coins.  A loan of Rs.5,58,200/- was sanctioned by the opposite party towards the balance amount which has to be repaid in 12 monthly equal instalments starting from September 20, 2011.  Complainants were not able to pay the instalments.  Therefore opposite party issued notice to the complainant on September 22, 2012 demanding Rs.7,25,000/-.  Opposite party has charged interest, penal interest and incidental charges which is exorbitant.  The rate of interest is not mentioned in the demand notice.  Alleging deficiency of service on the part of the opposite parties complainants sought a direction directing the opposite party to reduce the rate of interest.  They also claimed compensation.

3.      The opposite party is M/s Muthoot Finance Limited, represented by its Manager of Chamakkada Branch, Kollam.  He in his version admitted transaction, but contended that complainants have not paid the instalments in time and that therefore opposite party is entitled to claim interest, penal interest and incidental charges.  He prayed for the dismissal of the complaint.

4.      Complainant was examined as PW1 and Exts.P1 and P2 were marked on his side and Ext.D1 was marked on the side of the opposite parties.  On an appreciation of evidence the Forum found that opposite party is entitled to interest at the rate of 18% per annum and directed the complainant to repay the loan amount with interest at 18% per annum from September 20, 2011 onwards and to pay a compensation of Rs.5000/- and a cost of Rs.1500/-.  Complainant has filed the appeal contending that interest awarded by the Forum is excessive.

5.      Heard both the counsels.

6.      The only question which arises for consideration is, whether the interest awarded by the Forum is excessive?

7.      Forum has directed the complainant to repay the loan amount of Rs.5,58,200/- with 18% interest from September 20, 2011 onwards.  Counsel for the respondent/opposite party argued that as the complainants have agreed to pay interest at that rate they are bound to pay the same.  There is no substance in the above contention.  In Ext.D1 the pledge form, the rate of interest is not mentioned.  Therefore it cannot be said that complainants have agreed to pay at interest as claimed by the opposite party.  Interest awarded by the Forum appears to be excessive.  Taking into consideration all these aspects we are of the view that interest at the rate of 15% per annum would be reasonable.

In the result appeal is allowed in part.  The order of the Forum is modified to the effect that complainants are directed to repay the loan amount of Rs.5,58,200/- with interest at the rate of 15% per annum from September 20, 2011 onwards.  In all other aspects the finding of the Forum is confirmed.

 

JUSTICE P.Q. BARKATHALI:  PRESIDENT

 

V.V. JOSE : MEMBER

VL.