By. Sri. Chandran Alachery, Member:
The complaint is filed under section 12 of the Consumer Protection Act for an Order directing the opposite party to charge interest only as per the rule of Reserve Bank for the gold loan from 24.09.2013 onwards and direct the opposite party to receive such interest and principle and to return the gold ornaments to the complainant or else, the opposite party may be directed to auction the gold ornaments and give balance amount to the complainant after deducting the principle loan amount with lawful interest as per RBI rules and also to pay Rs.20,000/- as compensation and Rs.5,000/- as cost of the proceedings.
2. Brief of the complaint:- The complainant on 10.09.2013 availed gold loan as per Loan Number F 1444 and as per No. F1493 from opposite party for a sum of Rs.1,81,000/- and Rs.37,000/- respectively for an interest of 24% per annum. The complainant remitted Rs.10,956/- as interest in gold loan No.F1444 on 11.12.2013. The complainant pledged Rs.115.7 grams of gold ornaments. The complainant was fell in ill certain period and paid huge amount for treatment. In 2014 October the complainant received two Registered notices from the opposite party demanding to remit the loan amount with interest. If not remitted, the gold ornaments will be auctioned on 17.11.2014. Thereafter, the complainant's friends one Mr. Umesh, S/o. Sasidharan, Elengical House, Valavayal Post and Mr. Ramanandan, S/o. Balakrishnan, Kalloor 66 and One Najumudheen, S/o. Khader, Vykampurath House went to the office of opposite party on 17.11.2014 and demanded to furnish the exact repayment amount and one month time to remit the amount. The opposite party furnished the exact amount in GL Account No.F1444. Which is Rs.1,81,000/- as principle and Rs.56,410/- as interest. In GL Account No.F1493 which is Rs.37,000/- as principle and Rs.14,498/- as interest. The grand total amount is Rs.2,88,988/- and granted one day for remitting the amount. The opposite party promised that the gold ornaments will be returned if the full amount is remitted on 18.11.2014. Accordingly, the complainant and his friends went to the office of opposite party on 18.11.2014 at 10.00 AM to remit the amount and understood that the gold ornaments are already auctioned on 17.11.2014 contrary to the promise of opposite party. The opposite party did not inform the complainant about the details of auction to the complainant. The opposite party charges an interest at the rate of 24% per annum against the RBI rules. Aggrieved by this the complaint is filed.
3. On receipt of complaint, Notices were issued to opposite party and opposite party appeared before the Forum and filed version. In the version, the opposite party stated that the opposite party never levy 24% interest for the gold loan. The complainant signed the gold loan agreement after fully admitting the terms and conditions. The opposite party is running the firm as per RBI rules. The complainant remitted Rs.10,956/- only towards the interest and thereafter never turned upon. The rate of 24% interest is only for those who remits interest properly. If any default is there, 3% additional interest will be levied for every 3 months. There is no deficiency of service and unfair trade practice from the part of opposite party.
4. On perusal of complaint, version and document the Forum raised the following points for consideration:-
1. Whether there is any deficiency of service and unfair trade practice from the
part of opposite party?
2. Relief and cost.
5. Point No.1:- The complainant filed proof affidavit and is examined as PW1 and documents are marked as Ext.A1 to A5. On perusing the documents, it is found that the complainant availed a total sum of Rs.2,18,000/- in two gold loan accounts on 10.09.2013. It is also found that the opposite party had auctioned the gold ornaments on 17.11.2014. The opposite party admitted it in the version. According to the complainant, the rate of gold per gram is Rs.2,572/- on 17.11.2014. According to opposite party, the rate of Gold loan per gram on 17.11.2014 is Rs.2,510/- only. As per records, it is seen that the complainant have to pay interest for 14 months till the date of auction. On verifying the Ext.A1 and Ext.A2 documents issued by opposite party to the complainant, it is seen that the rate of interest is 22% per annum. It is also noted in the Ext.A1 and A2 documents that the rate of interest will move to 24% per annum from original date of pledge if interest is not serviced in the first month and interest slab will be increased for continued default. The Forum is of the opinion that once rate of interest is fixed as 22%, the opposite party can charge only 22% interest through out the year and violation of it is against law and RBI rules. So the complainant is liable to pay interest at the rate of 22% for 14 months. So the calculation will be as follows:-
Principle Loan amount in two Accounts
ie Rs.1,81,000+37,000. = Rs. 2,18,000.00
Interest at the rate of 22% p.a for 14 months
(2,18,000x22/100x14). = Rs. 55,953.00.
Less interest remitted by the complainant on 11.12.2013. = Rs. 10,956.00.
Balance interest + principle amount payable by the complainant.
(Rs.2,18,000 + 44,997). = Rs. 2,62,997.00.
Rate of Gold per gram as on 17.11.2014 as admitted by
Opposite party. = Rs.2,510/ per gram.
The total value of gold ie 115.7 grams x Rs.2,510 as on 17.11.2014.= Rs.2,90,407.00
6. As on 17.11.2014, the complainant is liable to pay only Rs.2,62,997/- and the opposite party received Rs.2,90,407/- as auction amount. Hence the complainant is entitled to get back the balance amount of Rs.27,410/- from the opposite party bearing the excess amount. So by analyzing the entire evidences, the Forum found that the levying of excess amount by was of levying excess interest is a deficiency of service and unfair trade practice from the part of opposite party. Point No.1 is found accordingly.
7. Point No.2:- Since the Point No.1 is found in favour of complainant, he is entitled to get cost and compensation.
In the result, the complaint is partly allowed and the opposite party is directed to pay Rs.27,410/- (Rupees Twenty Seven Thousand Four Hundred and Ten) to the complainant with 12% interest from 17.11.2014 till payment and the opposite party is also directed to pay Rs.1,500/- (Rupees One Thousand and Five Hundred) as compensation and Rs.1,000/- (Rupees One Thousand) as cost of the proceedings. The opposite party shall comply the Order within 30 days from the date of receipt of this Order.
Dictated to the Confidential Assistant, transcribed by him and corrected by me and Pronounced in the Open Forum on this the 3rd day of September 2015.
Date of Filing:19.03.2015.
PRESIDENT :Sd/-
MEMBER :Sd/-
MEMBER :Sd/-
/True Copy/
Sd/-
PRESIDENT, CDRF, WAYANAD.
APPENDIX.
Witness for the complainant:-
PW1. Jomon. Complainant.
Witness for the Opposite Parties:-
Nil.
Exhibits for the complainant:
A1. Copy of Receipt. Dt:10.09.2013.
A2. Copy of Receipt. Dt:24.09.2013
A3(1). Copy of Gold Loan Ledger.
A3(2). Copy of Notice. Dt:22.10.2014.
A4. Copy of Notice. Dt:22.10.2014.
A5. Copy of Calculation Statement.
Exhibits for the opposite parties:-
Nil.
Sd/-
PRESIDENT, CDRF, WAYANAD.
a/-
