DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, PALAKKAD
Dated this the 28th day of January 2021
Present : Sri.V.P.Anantha Narayanan, Member (President I/c)
: Smt.Vidya.A, Member Date of Filing: 20/02/2020
CC No.30/2020
Shyamkumar - Complainant
S/o.Sivan Nair,
Puthenveedu, Elanadu
Chelakkara, Thrissur District
(By Adv.K.Sasidharan)
Vs
The Manager
Muthoot Finance Ltd,
Sulthanpet,
Palakkad – 678 001 Palakkad - Opposite party
O R D E R
By Sri.V.P.Anantha Narayanan, (President I/c)
The facts of the case are briefly explained as follows:
The complainant has many years of money transactions (gold loan) with the opposite party. On 17/5/2019 the complainant pledged gold ornaments before the opposite party (Loan No.00124MSL/49364, 00124/MSL/5005800124/TOS/16) and took loan for an amount of Rs.2,80,000/- (Rupees Two lakh eighty thousand only). When the complainant approached the opposite party to close the loan and get back the gold ornaments pledged with the opposite party, the opposite party informed the complainant that there is dispute between the opposite party and the employees hence the loan cannot be closed as such. So many times the complainant approached the opposite party to close the loan and get back the gold ornaments, but the opposite party ignored complainant’s request by telling excuses. Then the complainant filed a complaint before the Town North Police Station on 18/11/19 and after that the opposite party returned the gold ornaments on 27/11/19 closing the loan. At the time of closing the loan the opposite party asked for three months extra interest. According to the complainant he is not bound to pay three months interest because the complainant was ready to close the loan before three months and approached the opposite party to close the loan. So complainant pleads that the opposite party is bound to return the interest. The complainant is a noble person in this society and due to the fault of the opposite party the complainant and his wife were compelled to attend marriage and other functions without wearing gold ornaments which caused to degrade complainant’s position in the society. Due to the act of the opposite party the complainant suffered mental agony and stress and hence the opposite party is liable to give compensation to the complainant.
According to the complainant the act of the opposite party is deficiency in service and the opposite party is bound to close the loan whenever the complainant was ready to pay and asked the opposite party to close the loan. According to the complainant the delay caused to close the loan is due to default of the opposite party who is responsible for the liability. Complainant further pleads that the complainant’s right to return the loan and get back the gold ornaments pledged for loan is clear violation of law and amounts to deficiency in service. This act of the opposite party caused to the complainant loss of money and mental agony and hence the opposite party is liable to pay compensation to the complainant. Hence the complainant prays to this Honourable Forum to direct the opposite party to pay damages of Rs.50,000/- and the extra interest paid Rs.29,242/- and also to pay Rs.5,000/- being the cost of this proceedings.
The complaint was admitted and notice was issued to the opposite party to enter his appearance and file his version, but notice to opposite party was returned stating “unclaimed” Hence notice deemed to be served, name called absent and opposite party set exparte.
Complainant filed chief affidavit. Opposite party did not file version, his name called absent and set exparte. From the side of the complainant Exts.A1 to A13 were marked.
The following issues arise for consideration by this Forum in this case
1.Whether there is any deficiency in service and unfair trade practice from the part of the opposite party
2.If so, the cost and relief available to the complainant.
Issues 1 & 2 in detail
Complainant has filed Exts.A1 to A13 to prove his pleadings. Ext.A1 is loan sanction letter issued by the opposite party to the complainant which shows customer ID No., facility, CRM Code, name and address of the borrower, Selected scheme, loan No. and amount of loan as Rs.73,000/- period of loan as 360 days, principal due date, payment mode, rate of interest upto 360 days, mode of computation of interest as monthly rests which proves that the opposite party has sanctioned Rs.73,000/- loan to the complainant. Ext.A2 is loan sanction letter issued by the opposite party to the complainant which shows the customer ID No. CRM code, name and address of the complainant, facility, selected scheme, loan No. amount of loan as Rs.23,000/-, period of loan as 360 days, principal due date, payment mode, rate of interest upto 360 days, mode of calculation of interest as monthly rests which proves that Rs.23,000/- loan was sanctioned by the opposite party firm to the complainant. Ext.A3 is virtual account information statement issued by the opposite party firm to the complainant which shows virtual account number, amount to be remitted as on 25th November 2019 as Rs.3,24,804/- which shows various loan accounts taken by the complainant from the opposite party firm, amounts to be remitted by the complainant and total amount to be remitted as Rs.3,24,804/-. Ext.A4 shows Rs.80,829/- remitted by the complainant on 27/11/19 by cash towards the loan interest from the complainant. Ext.A5 shows Rs.24,849/- collected from the complainant on 27/11/19 towards loan interest Ext.A6 shows Rs.19,518/- collected by the opposite party firm from the complainant on 27/11/19 towards loan plus interest. Ext.A7 is gold loan ledger as on 27/11/2019 which shows details of transactions between 17/5/2019 to 27/11/2019 made by the complainant with the opposite party firm. Ext.A8 shows amounts to be remitted through virtual account as on 30/10/2019 on various loans taken by the complainant from the opposite party firm. Ext.A9 is a lawyer notice dated 30/10/2019 sent by the complainant to the opposite party firm requesting the latter to close the gold loan and return the gold ornaments pledged with the opposite party firm. Ext.A10 is a receipt dated 25/11/19 issued by Palakkad Town North Police Station to the complainant for receiving from the complainant a complaint in respect of gold loan taken by the complainant from the opposite party firm which proves that complainant has filed a complaint in the town north police station, Palakkad regarding gold loan availed by the complainant from the opposite party firm. Ext.A11 is a letter issued to the complainant by SI of police of town north police station. Ext.A12 is a registered lawyer notice sent by complainant’s counsel to the opposite party to refund to the complainant three months interest and Rs.25,000/- as compensation. Ext.A13 is acknowledgement card received from the opposite party which proves that registered lawyer notice sent to the opposite party has been received by the opposite party.
We have closely examined the affidavits and documentary evidences of the complainant and observe that on 17/5/2019 complainant pledged his gold ornaments before the opposite party firm and took loan for Rs.2,80,000/- (Rupees Two lakhs eighty thousand only) and the complainant has approached the opposite party firm many times to close the loan and get back the gold ornaments pledged by him with the opposite party. We also observe that complainant filed a complaint in the town north police station on 18/11/19 and only after that the opposite party returned the gold ornaments on 27/11/19 and at the time of closing the loan, opposite party charged three months extra interest from the complainant. The failure of the opposite party to close the loan of the complainant and return the pledged gold ornaments to him, though the complainant approached the opposite party several times to close the loan constitutes grave deficiency in service and unfair trade practice on their part. It is also a grave unfair trade practice on the part of the opposite party to charge three months extra interest because we observe that the complainant was ready to close the loan before three months and approached the opposite party for that purpose many times. We also view that the complainant and his wife had to attend marriage and other functions without wearing gold ornaments which must definitely have caused to degrade the position of the complainant and his wife in the society which happened due to the acts of the opposite party of not allowing the complainant to close the loan and not returning the pledged gold ornament with the opposite party firm which also must have caused huge mental agony to the complainant and his family. Thus the act of the opposite party to refuse to close the loan of the complainant, whenever complainant approached the opposite party firm to close the loan created a lot of loss of pride and prestige to the complainant and consequently he had to suffer a lot of mental agony also. Further complainant is seen to have suffered financial loss because he was asked by the opposite party to pay three months extra interest also. Thus it is clear to us that opposite party has committed grave deficiency in service and unfair trade practice which caused the complainant and his family to suffer huge loss of pride and mental agony and much financial loss.
Hence we decide to allow the complaint.
We order the opposite party firm to refund to the complainant extra interest of Rs.29,242/- (Rupees Twenty nine thousand two hundred and forty two only) received by the opposite party firm from the complainant, we also direct the opposite party firm to pay to the complainant Rs.20,000/- (Rupees Twenty thousand only) as compensation for the deficiency in service and unfair trade practice committed by the opposite party and Rs.2,000/- (Rupees Two thousand only) by way of cost of this proceedings.
The order shall be executed within one month from the date of receipt of this order; otherwise complainant is also entitled to receive interest @9% per annum on the total amount due to him from the date of this order till realization.
Pronounced in the open court on this the 28th day of January 2021.
Sd/-
V.P.Anantha Narayanan
Member (President I/c)
Sd/-
Vidya.A
Member
Appendix
Exhibits marked from the side of complainants
Ext.A1 is loan sanction letter dated 19/6/2019 issued by the opposite party to the
complainant
Ext.A2 is loan sanction letter dated 29/7/2019 issued by the opposite party to the
complainant
Ext.A3 is virtual account information statement dated 25/11/2019 issued by the opposite
party firm to the complainant
Ext.A4 shows Rs.80,829/- remitted by the complainant on 27/11/19 by cash towards
the loan interest from the complainant.
Ext.A5 shows Rs.24,849/- collected from the complainant on 27/11/19 towards loan
interest
Ext.A6 shows Rs.19,518/- collected by the opposite party firm from the complainant on
27/11/19 towards loan plus interest.
Ext.A7 is gold loan ledger as on 27/11/2019 which shows details of transactions between
17/5/2019 to 27/11/2019 made by the complainant with the opposite party firm.
Ext.A8 shows amounts to be remitted through virtual account as on 30/10/2019 on various
loans taken by the complainant from the opposite party firm.
Ext.A9 is a lawyer notice dated 30/10/2019 sent by the complainant to the opposite party
firm requesting the latter to close the gold loan
Ext.A10 is a receipt dated 25/11/19 issued by Palakkad Town North Police Station to the
complainant
Ext.A11 is a letter issued to the complainant by SI of Police of town north police station.
Ext.A12 is a registered lawyer notice sent by complainant’s counsel to the opposite party to
refund to the complainant three months interest and Rs.25,000/- as compensation.
Ext.A13 is acknowledgement card
Exhibits marked from the side of opposite party
Nil
Witness examined on the side of complainant
Nil
Witness examined on the side of opposite party
Nil
Cost
Rs.2,000/-
