Jharkhand

Bokaro

CC/16/53

Pradeep Kumar Pandey - Complainant(s)

Versus

The Managing Director, Muthoot Finance Ltd. - Opp.Party(s)

31 Jan 2022

ORDER

1. Complainant has filed this case with prayer for direction to O.Ps. to release entire Gold Ornaments by receiving the principal amount of Rs. 69,000/- in favour of the complainant and further for  exemption to pay interest on the loan.   Further it is prayed to direct the O.Ps. to pay Rs. 5,00,000/- as compensation to the complainant for mental torture etc.
2.    Complainant’s case in brief is that the complainant and his wife Laxmi Pandey availed loan by keeping the Gold Ornaments with the O.Ps. as collateral  security. Further case is that O.P. No.1 is Managing Director of Muthoot Finance Ltd. and O.P. No.2 is its Branch Manager. Further case is that due to urgent need of money complainant and his wife availed loan by deposit of their golden ornaments time to time since 2011 to 2013 as per table given in the complaint petition and they paid interest as indicated in the complaint petition. Further case is that O.P. No.2 gave assurance to the complainant and his wife that identity of each loan will always remain separate and they will have opportunity to release their ornaments one by one separately on payment of principal amount with interest accrued thereon. Further case is that on 21.04.2014 on request to release the item of loan head EPL 624 by deposit of its principal with interest O.P. No.2 refused to do so and told the complainant to pay whole interest of all loan head then he would consider to release any item on payment of its principal on it. Complainant approached O.P. No.1 by application dt. 30.09.2015 but no action was taken. Further case is that O.P. No.2 amalgamated all loan heads in one loan number by taking all loan papers from the complainant and his wife and started to blackmail them to grab the ornaments and delay its release on one or other pretext and lastly threaten by a legal notice dt. 05.01.2016 to clear the interest with principal amount of Rs. 213227/- till 25.01.2016 otherwise gold ornaments shall put in auction on 27.01.2016 said notice was replied on 20.01.2016 and complainant approached O.P. No.2 personally but having no effect. Further case is that O.Ps. have knowingly put the matter of release in abeyance and created a heavy amount in the name of interest in order to grab the gold in the name of auction sale because complainant was not able to pay entire amount at a time.  Further case is that complainant and his wife have paid interest regularly till 2014 thereafter, it become dues due to change of policy of the O.Ps. as they betrayed from their first version hence complainant is not liable to pay accrued interest whatever may be. Hence this case has been filed with above mentioned prayer.
3.      O.Ps. appeared and they filed joint written version mentioning therein that the complainant is guilty of misleading this Hon’ble Forum and in presenting distorted version. The correct fact rather true fact is that the wife of the complainant availed three loan facility of Rs. 6000/- dt. 27.11.2010, Rs. 22000/- dt. 15.12.2010 and Rs. 14000/- dt. 14.12.2010 vide loan A/c No. XPL-115, EPL-70 and EPL-068 respectively against collateral security of her gold ornaments and later on all those loan accounts have been closed and pledged ornaments were released in her favour. Further case is that complainant also availed loan facility of Rs. 27000/ vide A/c No. PPL-1078 dt. 03.12.2011 against pledge of Gold Ornaments which was closed on 03.12.2012 after payment of all dues. Again on 03.12.2012 complainant obtained fresh loan of Rs. 1,17,300/- vide A/c No. MSL-2082 dt. 03.12.2012 after pledge of gold ornaments as collateral security and agreed loan turm was for 12 months as per annexure OP-1. Further case is that on 21.04.2014 total interest on said loan was Rs. 45,634/- in which Rs. 23,634/- was paid by the complainant on 21.04.2014 and as per request of the complainant and scheme of the O.Ps. a new loan was sanctioned with the balance interest of Rs. 22000/- and principal amount of Rs. 1,17,300/- accordingly new loan A/c No. MSL-4471 of Rs. 1,39,300/- was opened and complainant had further undertaken to repay the said loan with interest within a further period of 12 months to which he is not honoring and without payment of money he has filed this case. The copy of second loan paper is annexure O.P. No.2. When complainant was unable to repay the amount hence legal notice dt. 05.01.2016 (Annexure O.P. -3) was issued with direction to pay the loan with interest on or before 25.01.2016 but complainant has not complied it. Further case is that complainant is a chronic defaulter who has not come before this Hon’ble Forum with clean hands and has in fact suppressed material facts from this Forum. Complainant has to comply the provisions of section 176 of the Indian Contract Act 1872. Para 1 of the complaint petition has been admitted. There is no specific admission or denial in respect to contents of para 2, 3, 4 and 5 of the complaint petition. Para 6,7 ,8,9,10,11, 12 of the complaint petition have been denied.
4.      On perusal of the pleadings of the parties following questions are liable to be decided by this Commission:-

1. Whether there was any terms and conditions of sanction of loan in respect to loan A/c No. 4471 dt. 21.04.2014 that the complainant will have liberty to get it be released in part ?
2.   That whether the complainant is entitled to get relief as prayed ?

5. For decision of point A it is essential to extract para 5,6,9 and 10 of the terms and conditions of the loan agreement paper dt. 21.04.2014 which are as follow:-

5. “The loan amount along with interest is repayable on demand made by the Company. Even if not demanded, the loan has to be repaid with interest within 12 months. In case the value of the gold ornaments given as collateral security comes down below the total dues payable, the borrower has to immediately compensate differential amount, either in cash or by pledging additional gold ornaments of proportionate weight/value to off-set the difference. In the event of failure on the part of the borrower to do so, the Company shall have the right to demand the borrower to repay the loan amount together with interest and other charges any time during the currency of the loan.

6. In case the loan amount together with interest is not repaid within the due date or earlier as demanded by the Company, the Company has the right to initiate legal proceedings against the borrower and/or sell the gold ornaments in public auction by giving 14 days’ prior notice to the borrower at the address given by the borrower and set off the amount so received towards the loan amount, interest and other charges. If the amount realized through auction is higher than the total amount due from the borrower, then the excess amount realized will be refunded to the borrower either in cash or by cheque within 30 days from date of realization of the amount.

1.  
2.  

9 Only the person who has been sanctioned the loan has the right to get back the ornaments pledged as security after repayments of the loan together with interest. This sanction letter should be surrendered to the Company at the time of closure of the loan.

10. The gold ornaments pledged as security will be released to the borrower on repayment of all dues. If any right of set off is be exercised, the borrower shall be given due notice with the full particulars of the claims”.

6           On careful perusal of loan agreement paper it appears that there is  no any terms and conditions for release of the pledged ornaments in piece meal rather it has to be released on payment of entire loan amount with agreed interest accrued thereon.

7           Though at para 5 and 6 of the complaint petition it has been mentioned that at the time of sanction of loan O.P. No.2 has assured the complainant and his wife that identity of each loan will remain separate and they will have opportunity to release the ornament one by one separately on paying principal amount with interest accrued thereon but no such evidence has been brought on record. Further it is mentioned that on 21.04.2014 complainant tried to get release the item of loan head EPL-624 by deposit of its principal with interest which was refused. It appears that there is no evidence of the complainant on these facts rather the loan related to EPL-624 was already released much earlier however no evidence has been brought on record to show that said loan is existence. All the documentary evidence are contradicting the facts mentioned in the complaint petition. No paper has been brought on record to show that all previous loans where having separate  identity on 21.04.2014 and on that very day all have been merged by the O.Ps. against the will of the complainant.  The annexure number O.P. 2 is copy of the loan A/c No. 4471 dt. 21.04.2014 and it shows that loan has been sanctioned only in the name of complainant on pledge of total 16 golden items which are Bangles-2, Ring-4, Chain-1, Studs -8 and Locket-1. The receipt submitted by the complainant shows that last interest has been paid on 21.04.2014 and since then no interest on the loan has been paid by him.

8         In light of the above discussion we are of the opinion that complainant has miserably failed to prove its case that there was any terms and conditions of loan to get the pledged ornaments be released in part on part payment related to its value. Hence in our opinion complainant is not able to get any relief in his favour. Accordingly both questions A and B are being decided against the complainant.

9       Hence this case is liable to be dismissed. However, considering the prevailing situation of Covid-19 pandemic as well as the fact that after superannuation of the President of this Commission on 10/06/2019 this Commission was lying vacant, hence matter was dragged for a long period for which complainant cannot be held liable. Therefore, some leniency is required to be taken in respect to realization of the amount of interest. Accordingly, this case is being dismissed with direction to the complainant to pay normal interest on the loan amount of Rs. 1,39,300/- from 21.04.2014 within 6 months which will end on 31.07.2022 and O.Ps. shall receive the amount with due receipt to the complainant and thereafter, in case of failure in payment till 31.07.2022 with normal interest by the complainant O.Ps. will have liberty to act in accordance with law as per agreement arrived at between the parties. However, in the facts of the case parties shall bear their own costs.