Kerala

Idukki

CC/238/2016

Rathi - Complainant(s)

Versus

The Manager SIB - Opp.Party(s)

Adv.Shiji Joseph

29 Nov 2019

ORDER

DATE OF FILING :12/08/16

IN THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI

Dated this the 29^th day of November 2019

Present :

SRI. S. GOPAKUMAR PRESIDENT

SMT.ASAMOL P. MEMBER

CC NO. 238/2016

Between

Complainant : Rathi, W/o Late Pandian,

Residing at Power House Kara,

Chinnakkanal Village Udumbanchola Taluk.

(By Adv: Shiji Joseph)

And

Opposite Party : The South Indian Bank Ltd.,

Thrissur,

Represented by its Branch Manager,

Chinnakkanal P.O., Chinnakkanal Village,

Udumbanchola Taluk.

 

O R D E R

SRI. S. GOPAKUMAR (PRESIDENT)

 

The case of the complainant is that,

 

The complainant's husband Pandian has pledged gold ornaments with the opposite party's branch on 17/03/15 and 05/05/15 which were numbered as 17695 and 18051 respectively. These loans were due for closure on 16/03/16 and 04/05/16 respectively. This person also availed two other gold loans having numbers 653 and 19169 are due on 18/08/16 and 30/09/16. While so, the borrower died on 14/11/15. The borrower Pandian has made the complainant being his wife, as the nominee in this gold loans. The security of gold belongs to the complainant. Since the complainant is the nominee, she is entitled to get the gold articles at the time of closing the loan.

 

On 11/04/16, the complainant approached the opposite party and requested to release the gold ornaments by remitting full loan dues. But the opposite party refused to accept the loan amount from the complainant.

(Cont....2)

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He insisted the production of succession certificate to get the ornaments released. Mean while the complainant fell ill for some time and again on 27/05/16, the complainant approached the opposite party and requested him to allow her to remit the interest for the loans. Then also the opposite party refused to receive the money or renew the loan account. The complainant had offered to pay the entire loan amounts to the opposite party and to keep in abeyance of the auctioning of the gold till a succession certificate is produced. But the opposite party refused to accept the prayer of the complainant.

 

While so, the complainant has to be falsely implicated in a criminal case. Hence the complainant could not move for the legal documents demanded by the opposite party. The opposite party has also planned to auction loan Nos.653 and 19169 which are due on 18/08/16 and 30/09/16. The opposite party had already auctioned the gold loans numbers 17695 and 18051, these are due on 16/03/16 and 04/05/16, without complying the statutory formalities prescribed by the Reserve Bank of India.

 

The complainant further averred that the opposite party under no circumstances has the authority to auction the pledged gold ornaments without giving registered notice to the complainant. If the opposite party is allowed to conduct auction of the gold pledged in loan numbers 653 and 19169, the complainant will be put into irreparable loss. The opposite party is unduly interested to dispose of the above gold ornaments in auction without regard for the law and procedure and are vitiated by fraud and illegality. Hence alleging deficiency in service and unfair trade practice against the act of the opposite party, complainant filed this petition seeking relief such as to direct the opposite party to release the gold in loan numbers 653 and 19169 to the complainant as the nominee of the borrower deceased Pandian and further direct the opposite party to procure the gold ornaments in loan nos 17695 and 653 or return the gold or similar ornaments. Further direct the opposite party to pay compensation and cost.

 

Upon notice opposite party entered appearance and filed detailed reply version. Opposite party contented that as per the Banking Regulation Act and Banking Companies Nomination Rules, Nomination facilities are available only for

(Cont....3)

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deposit accounts, safe deposit lockers and safe custody of Articles and the same is not available for loans. Though the opposite party is not aware that the pledged gold ornaments belong to the complainant, and it is not correct that the complainant is entitled to receive the gold articles as the nominee of her late husband.

 

Opposite party further contented that, it is false that on 11/04/16, the complainant approached the opposite party and requested to release the gold ornaments after receiving the full loan payment and opposite party refused to accept it. Complainant has not made any requests. Opposite party was always ready to receive any sort of remittance which it is entitled to receive towards the gold loan. It is not true that the complainant on 27/05/16 again approached them and requested to allow her to pay the interest for the loans and renew it. Back by all means welcome the payment of any dues which it is entitled to. Hence nothing prevented the complainant to make the payment through the counter against the gold loans of her late husband. No prudent man can imagine the bank will hinder the payments of defaulted gold loans. On the other hand she could have easily transferred the amount from any bank to this loan account in case there was any resistance for accepting cash as alleged in the complaint.

 

Opposite party further contented that the loan having Nos.653 is not existing and only loan No.19169 is outstanding. Opposite party admitted they recovered the loan amount in gold loan Nos.17695 and 18051 by auction. The said loans became due as on 16/03/16 and 04/05/16 respectively and the security gold was auctioned after complying all the statutory formalities laid down in this regard. The third gold loan by the husband of the complainant bearing No.19169 for Rs.97,000/- fell due on 30/09/15 and is ripe for auction, complainant had paid Rs.11,000/- in this account on 25/10/16. This itself proves that the bank never declined to accept cash towards closure of the account. Hence if the complainant remitted the amount in other two loans, the bank would have accepted the same as done in this gold loan. Facts beings so, the allegation against the opposite party is false and hence the complaint is liable to be dismissed.

 

(Cont....4)

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Evidence adduced by the complainant by way of proof affidavit and documents. Complainant was examined as PW1 and Ext.P1 to Ext.P7 were marked. Ext.P1 is the copy of bank pass book, Ext.P2 (s) are the token 4 in numbers of gold loans, Ext.P3 is the receipt issued by the society, Ext.P4 is the original pass book, Ext.P5 is the loan token of the loan No.17695, Ext.P6 is the loan token of loan No.18051, Ext.P7 is the copy of death certificate.

 

From the opposite party side manager of the opposite party bank was examined as DW1. Ext.R1 to Ext.R4 marked. Ext.R1 is the copy of circular, Ext.R2 is the gold loan pledge form of loan No.17695, Ext.R3 is the auction notice of gold loan No.17695 dated 01/04/16, Ext.R4 is the letter from the Regional Office of the opposite party, Ext.R5 is the gold loan pledge form of loan No.18051, Ext.R6 is the Auction Notice of gold loan No.18501, Ext.R7 to Ext.R10 are the communication by the opposite party bank and that Regional Office, Ext.R11 is the gold auction register copy verified with its original.

 

Heard,

 

The point that arose for consideration is whether there is any deficiency in service from the part of opposite parties, and if so, for what relief the complainant is entitled to ?

 

The Point:- We have heard the complainant and had gone through the evidence on records. It is an admitted fact that, the Pandian the husband of the complainant availed loan from the opposite party's bank by pledging the gold ornaments. Later on he dead on 14/11/15. As per the version of the complainant being the nominee of this loan, she approached opposite party bank for paying the loan amount but the opposite party manager was reluctant to recover the amount and denied to release the gold ornaments. He insisted for production of succession certificate.

 

The learned counsel for the complainant argued that the complainant had offered to pay the entire loan amount with interest for the opposite party and requested to keep in abeyance of the auctioning of the gold till a succession certificate is obtained. But the opposite party by discarding her request

(Cont....5)

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auctioned the ornaments in loan Nos. 17695 and 18051 without complying the statutory formalities prescribed by the RBI. Being the nominee of these loans complainant is entitled to get the ornaments released on payment of the loan dues. The opposite party is unduly interested to dispose off the complainant's gold ornaments in auction without any regard for the law and procedure and all his proceedings in the said regards are vitiated by fraud and illegality. Hence the complainant is entitled to get back the gold ornaments which is auctioned by the opposite party bank illegally.

 

On the other hand the learned counsel for the opposite party submitted that as per Banking Regulation Act and Banking Companies Nomination Rules, Nominee facilities is available only for deposit accounts, safe deposit lockers and safe custody of Article. The auction fact is that the complainant's husband had availed 3 gold loan bearing No.17695 for Rs.6000/- on 17/03/15, 18051 for Rs.1,18,400/- on 05/05/2015 and 19169 for Rs.97,000/- on 01/10/2015. complainant after the death of her husband once came to the bank and made an enquiry about the gold loans availed by her husband. It was explained to her that the first two loans were fell due on 16/03/16 and 04/05/16. It was also explained to her that the loan account can be closed by paying the principal along with interest, but for the release of gold, proof and consent of all legal heirs of the deceased pawner is necessary. Complainant after getting herself convinced as above, left the bank and did not turn up further and opposite party bank was compelled to auction the gold of above said loans on 31/05/16 and 05/08/16 respectively after complying formalities. Except the enquiry and promise, the complainant did not turn up for payment as alleged in the complaint. Matter being so, no deficiency in service and unfair trade practice had happened on the part of the opposite party.

 

On perusing the evidence on record it is seen that, even though the complainant approached the opposite party bank to enquire about the loan status, she failed to remit any amount in the loan account discussed above. It is not believable that the opposite party bank refused to accept the loan dues from the complainant, even though she attempted to remit it. As stated in the reply version no prudent man can imagine that bank will hinder the payments of defaulted gold loans. More over the complainant can easily remit the loan

(Cont....6)

 

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amount through the cash counter without obtaining any permission from the manager. In a loan account anybody can remit the loan dues but the person or the authorized person can legaldy entitled to receive the security from the bank, and it is a common law. Hence the version of the complainant that, she approached the opposite party and tried to remit the loan amount is cannot be believable and having no legal footing. On the other hand the complainant miserably failed to produce any document showing that, she is requested the opposite party to keep the gold in abeyance from auction by writing. Since there is no evidence to convince the Forum that the complainant submitted written request to the opposite party for allowing her to remit the loan dues or keep away from the further proceedings in the loan account, due to the death of her husband, Forum is not in a position to consider the averments in the complaint.

 

On the other hand the version of the opposite party that there is no nominee facility in such type of loan can be acceptable. On perusing the evidence produced by the opposite party it is seen that, opposite party send registered auction letter in the name of the borrower and all these letters are returned as “addressee expired”. On perusing these documents, it is very clear that the opposite party bank issued these notice to the address which is given by the borrower at the time of availing the loans. It is an admitted fact that the complainant is also residing or conducting business in the same address. Normally as intimated by her, the postman returned the letter as addressee dead. Even after the knowledge of these notice also, the complainant has not take any steps to remit the loan due by any means, even though there is so many measures to remit the loan amount in the respective loan account. Hence the allegation leveled against the opposite party bank in this matter is cannot sustainable and acceptable, and having no legal footing.

 

On perusing Ext.R1 to Ext.R11 documents, it is seen that opposite party conducted auction proceeding in the above said gold loan after complying all the legal formalities and as per law.

 

(Cont....7)

 

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On the basis of above discussion, Forum is of a considerable view that in this case opposite party acted bonafidely and as per law and no deficiency in service can be alleged against them in this case. Hence the complaint dismissed. No order to costs.

 

Pronounced in the Open Forum on this the 29^th day of November, 2019.

 

Sd/-

SRI. S. GOPAKUMAR (PRESIDENT)

Sd/-

SMT. ASAMOL P. (MEMBER)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Cont....8)

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APPENDIX

Depositions :

On the side of the Complainant :

PW1 - Rathi, W/o Pandian

On the side of the Opposite Party :

DW1 - Sudheesh K.S.

Exhibits :

On the side of the Complainant :

Ext.P1 - The copy of bank pass book

Ext.P2(s) - The token 4 in numbers of gold loans

Ext.P3 - The receipt issued by the society

Ext.P4 - The original pass book

Ext.P5 - The loan token of the loan No.17695

Ext.P6 - The loan token of loan No.18051

Ext.P7 -The copy of death certificate.

On the side of the Opposite Party :

Ext.R1 -The copy of circular

Ext.R2 -The gold loan pledge form of loan No.17695

Ext.R3 -The auction notice of gold loan No.17695 dated 01/04/16

Ext.R4 -The letter from the Regional Office of the opposite party

Ext.R5 -The gold loan pledge form of loan No.18051

Ext.R6 -The Auction Notice of gold loan No.18051

Ext.R7 to Ext.R10 -The communication by the opposite party bank and that

Regional Office

Ext.R11 -The gold auction register copy verified with its original.

 

 

Forwarded by Order,

 

SENIOR SUPERINTENDENT