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 a compensation of Rs.1,00,000/- and also to pay the excess amount of interest collected by the opposite party from the complaint.
2. Brief of the complaint:- The complainant pledged 368.9 grams of gold ornaments with opposite party and received Rupees seven lakhs at a rate of 7% interest per annum. After one year, the complainant paid Rs.1,00,000/- towards the loan amount on 18.04.2013. On 16.12.2013 the complainant again paid Rs.10,000/- towards the loan amount. The complainant took back the gold ornaments on 31.01.2014 by paying the entire loan amount with interest, the opposite party collected Rs.7,67,259/- for closing the loan. The opposite party received Rs.8,77,259/- towards the loan repayment from the complainant in toto. The interest rate calculated by the opposite party is exorbitant and without any basis. At the time of availing loan, opposite party agreed to collect only 7% interest for the loan. The opposite party collected excess interest from the complainant. Aggrieved by this, the complaint is filed.
3. On receipt of complaint, notice was issued to opposite party and opposite party appeared before the Forum and filed version. In the version of opposite party, the opposite party contented that the loan was under conventional gold loan scheme at 14.75% interest rate. However while taking the application and giving the acknowledgment slip, the interest was mentioned as 7% inadvertently since it was system generated printed form for all loans. This was happened because the forms and the correction of interest rate in the form was not done. The 7% interest is applicable to agricultural gold loan only. There is no deficiency of service or unfair trade practice from the part of opposite party.
4. On perusal of complaint and version the Forum raised the following points for consideration:-
1. Whether there is any deficiency of service from the part of opposite parties?
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. The opposite party also filed proof affidavit and is examined as OPW1 and Ext.B1 and B2 are marked. On perusal of Ext.A1 document, it is seen that Annual interest shown is 7% for the loan availed by the complainant from opposite party. The total grams of gold pledged is 368.9 grams. Date of pledge is on 04.04.2012. The Ext.B1(1) to (4) document is with respect to Agricultural Gold loan with a rate of interest 7% per annum. The Ext.B2 document is the application for gold loan, wherein in the 1st page, the rate of interest shown is 7% per annum. In the 2nd stage, the rate of interest is written in ink as 14.75% per annum. In Ext.B2, the date of application total grams of gold, required loan, address of part etc are all in typed letters and figures. But the interest rate shown in the 2nd page of Ext.B2 document is written in ink as 14.75% per annum. The case of the opposite party is that the Ext.B2 document is a general form used for all gold ornaments loans and the rate of interest shown as 7% is a mistake from the part of opposite party. The Forum is of the opinion that the opposite party should be more vigilant in doing these cases. The explanation given by the opposite party is not convincing. On going through Ext.B2 and Ext.A1 document, it is seen that the rate of interest is 7% per annum. If a mistake happened in Ext.B2 document, how the same mistake continued in Ext.A1 gold loan token issued to the complainant. When a dispute arises as regards to the rate of interest, the opposite party should answer it with the support of documents. The documents shows that the rate of interest is 7%. The handwriting of rate of interest as 14.75% is doubtful. So by analyzing the entire evidences, it is found that there is deficiency of service from the part of opposite party. The point No.1 is found accordingly. The calculation of rate of interest is Rs.7,00,000 x7% interest per month for 12 months and another 10 months. Total 22 months, so the calculation is as follows:-
7,00,000x7/100 = Rs.49,000/- for one year.
Next year - 7,49,000x7/100 =Rs.52,430/-
The total interest payable for 22 months - Rs.1,01,430/-
So the total loan amount payable - Rs.8,01,430/-
Total amounts collected by the opposite party is Rs. - 8,77,259/-
Excess amount collected by opposite party - Rs.75,829/-
6. Point No.2:- Since the 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 to the complainant Rs.75,829/- (Rupees Seventy Five Thousand Eight Hundred and Twenty Nine) as excess amount collected by the opposite party from the complainant. The opposite party is directed to pay Rs.5,000/- (Rupees Five Thousand) only as compensation and Rs.2,000/- (Rupees Two Thousand) only as cost of the proceedings. The opposite party shall comply the Order within 30 days from the date of receipt of this order failing which the complainant is entitled to get 12% interest for whole sum thereafter.
Dictated to the Confidential Assistant, transcribed by him and corrected by me and Pronounced in the Open Forum on this the 28th day of May 2015.
Date of Filing:19.09.2014. PRESIDENT :Sd/-
MEMBER :Sd/-
MEMBER :Sd/-
/True Copy/
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PRESIDENT, CDRF, WAYANAD.
APPENDIX.
Witness for the complainant:-
PW1. Hamza. Complainant.
Witness for the Opposite Party:-
OPW1. Rajesh. Manager, SBT, Kottapadi Branch, Meppadi.
Exhibits for the complainant:
A1. Copy of Receipt. dt:04.04.2012.
Exhibits for the opposite party:-
B1(Series). 1. Copy of Circular No.AGRI/20/2008.
2. Copy of Circular No.AGRI/16/2009.
3. Copy of Circular No.AGRI/15/2010.
4. Copy of Circular No.AGRI/10/2011.
B2. Gold Loan Application. dt:04.04.2012.
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PRESIDENT, CDRF, WAYANAD.
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