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 pay Rs.3,445/- to the complainant being the excess amount charged from the complainant towards gold loan along with Rs.5,000/- as compensation.
2. Brief of the complaint:- The complainant pledged gold ornaments with opposite party on 07.09.2013 for a sum of Rs.20,000/-. On 10.10.2014, the complainant approached the opposite party to remit the gold loan and to take back the gold, the opposite party charged Rs.27,445/- in total towards gold loan for a period of 13 months. The opposite party collected the amount against RBI rules. The complainant was forced to pay the amount due to the demand of opposite party. Aggrieved by this the complaint is filed.
3. On receipt of complaint, notice was issued to opposite party and opposite party approached before the Forum and filed version. In the version the opposite party contented that the complainant availed Rs.20,000/- as gold loan for 3 months at a rate of interest of 22% per annum. The rate of interest increased after 3 months due to the non-payment within 3 months and it increased to 30%. If no payment within 6 months, for every month, 1% of interest will be increased. The complainant executed the agreement after fully understanding and agreeing the terms and conditions. The complainant pledged gold ornaments prior to this and repaid it as per terms. The opposite party is running the institution as per RBI rules.
4. On perusing the complaint, version and documents, the Forum raised the following points for consideration:-
1. Whether there is any deficiency of service 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 and Ext.A1(2). The opposite party had no oral evidence. But the opposite parties documents are marked as Ext.B1 and B2. Ext.B1 and B2 are the same documents which is marked as Ext.A1 and Ext.A1(2). Ext.B1 is the original agreement between the complainant and opposite party. In the original agreement, the rate of interest shown as 22% per annum. The Forum is of the opinion that the opposite party can levy only 22% interest for the whole year for the gold loan. Further increase of interest per month is contrary to law and executing such an agreement is void ab-initio. The total loan amount is Rs.20,000/-. The rate of interest is 22% per annum, so the interest for the whole year will be 20,000 x 22/100= 4,400/-. So the interest for 13 months will be Rs.4,766/-. The repayable amount will be Rs.24,766/-. Notice charge is Rs.85/-. So the total amount will be Rs.24,766+85=Rs.24,851/-. The total amount charged from the complainant by the opposite party is Rs.27,445/-. So there is an excess of Rs.2,594/- is charged by opposite party from the complainant against law. The Forum found that levying excess interest from the complainant is unfair trade practice from the part of opposite party. So the Point No.1 is found accordingly.
6. Point No.2:- Since Point No.1 is found in favour of complainant, the complainant is entitled to get cost and compensation.
In the result, the complaint is partly allowed and the opposite party is directed to pay Rs.2,594/- (Rupees Two Thousand Five Hundred and Ninety Four) only being the excess amount levied from the complainant towards gold loan. The opposite party is also directed to pay Rs.500/- (Rupees Five Hundred) only as compensation and Rs.500/- (Rupees Five Hundred) only 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 28th day of February 2015.
Date of Filing:13.10.2014.
PRESIDENT :Sd/-
MEMBER :Sd/-
MEMBER :Sd/-
/True Copy/
Sd/-
PRESIDENT, CDRF, WAYANAD.
APPENDIX.
Witness for the complainant:-
PW1. Sudharshanan. Complainant.
Witness for the Opposite Parties:-
Nil.
Exhibits for the complainant:
A1. Copy of Gold loan Receipt. dt:10.10.2014.
A1(2). Copy of Gold Loan Agreement..
Exhibits for the opposite party:-
B1. Gold loan Receipt. dt:10.10.2014.
B2. Gold Loan Agreement.
Sd/-
PRESIDENT, CDRF, WAYANAD.
a/-
