FINAL ORDER/JUDGEMENT

Smt. SAHANA AHMED BASU, Member,

Brief facts of the case are that, the complainants  have availed gold loan under ‘360 days gold loan policy’ by mortgaging their ancestral gold jewelries before the OPs 26% per annum and such loan was for 1 year. Complainant no. 1 & 2 have availed gold loan of Rs.1,58,100/-(Loan No. 00504/MUL/007388, customer ID No. 005040000010042) and  Rs.1,97,700/-(Loan No. 00504/MUL/007390, customer ID No. 005040000010138) respectively on 06/01/2021and complainant no.3 has availed gold loan of Rs.1,49,000/- (Loan No. 00504/MUL/000727, customer ID No.005040000010228) on 15/12/2020respectively @ 26% interest.Receipt of payment issued by the OPs was received by the Complainants no.1 & 2 on 04/02/2021 and by the Complainant no.3 on 13/01/2021. The principal Due date of those loans was 01/01/2022. Due to Covid-19 complainants had gone through financial crisis and could not repay the loan amount to the OPs and informed the OP2 about the hardship in repaying the loan amount but promised to repay the same by May,2022. Considering the genuine facts and circumstances and as per the policy of the company OP2 verbally assured complainants that they can repay the due loan by May,2022. Accordingly complainants went to office of the OP2 on 12/05/2022 and OP2 directed complainants to clear the due amount on 16/05/2022. Later on 16/05/2022 was declared as holiday and every banking sector was closed on that day for which the complainant could not withdraw necessary amounts from the bank. Complainants contacted the OP2 and told him the scenario and OP2 asked them to come to the branch office on the next day i.e. 17/05/2022. Upon approaching the concerned staffs regarding repayment of the due loan amount on 17/05/2022 complainants came to know that their mortgaged gold jewelries were sold through auction by the OPs. Complainants asked the concerned staffs why without issuing any single notice to them about the auction said mortgaged jewelries were auctioned and sold but no one answered. Moreover when complainants informed them about their conversation with OP2 they came to know that said Branch Manager had already retired. Thereafter the complainant no.1 lodged a G.D. before the OIC, Shakespeare Sarani P.S. on 17/05/2022 and sent a legal notice to OP2 on 19/05/2022. But no steps were taken by the OPs. Hence the consumer complaint to get justice.

OPs despite service of notice of the complaint have failed to file Written Version within the limitation provided u/s 38(2) of the Consumer Protection Act, 2019. No request for condonation of delay or extension of time for filing written version is made. Therefore, right of the OPs to file WV is closed.

Complainant has filed his evidence by way of affidavit supporting the allegations made in the complaint.

Ld. Advocate for the complainant has taken us through the consumer complaint as also the evidence adduced of the complainant. On perusal of photocopies ofLoan sanction letters and money receipts dated 04/02/2021 and 13/01/2021, issued by the OP1 to the Complainant nos. 1, 2 & 3, it is clear thatvide those Loan sanction letters and money receiptscomplainants availed Gold Loan oftotal sum of Rs.5,04,800/- under ‘360 days gold loan policy’ by mortgaging total 147.700 gm goldto OPs. It is also clear from those documents on record that Complainants no.1 & 2 had agreed to repay the loan amount @ 26%interest within01/01/22and Complainant no.3 had agreed to repay the loan amount within 10/12/2021. Admittedly complainants fall default to repay the due loan amount with charged interest within the stipulated period. Complainants have alleged that despite verbal correspondence with the OP2 namely S. Joseph John (then Branch Manager) who directed and assured the complainants to clear their due amount on 17/05/2021, OPs have sold the mortgaged ornaments of the complainants through auction without issuing any notice to the complainants.It is established fact that verbal communications or correspondences have no acceptance or value in the eye of law but as the OPs have opted not to file written version despite service of notice of complaint, the above allegations of the complainant is deemed to have been admitted as correct.

OPs are fully aware that they are liable to issue notice to the borrowers before selling the ornaments pledged through an auction. Photocopy of the TERMS AND CONDITIOS annexed with the Loan sanction letter issued by the OPs goes to show that in the Clause 7 it is categorically mentioned:

In case of any default on the part of the borrower to repay the loan amount together with interest/charges within the due date  or earlier as demanded by the company, company has legitimate right to initiate legal proceedings against the borrower and/or sell the ornaments pledged through an auction process by giving14 days prior notice to the borrower at the address given in the application for loan and appropriate the amount so received towards the loan amount, interest and other charges as mentioned below.

In view of the abovementioned fact it appears to us that complainants mortgaged their valuable ornaments to the OPs with full trust andto recover the loan amountthe OPs have sold said ornaments through auction deliberately depriving the complainantsfrom their lawful rightby illegal manner. Thus, the OPs have violated their own terms and conditions and adopted unfair trade practice, and in fact, selling 147.700 gm Gold mortgaged by the borrowers through auction without any intimation to them is no doubt a deceitful manner of trade. Undoubtedly complainants have suffered mental agony, pain and harassment. To get the relief, complainant has to wage a long drawn and tedious legal battle.

Based on the foregoing discussion, we are of the view that complainants are entitled to get relief/reliefs along with compensation and litigation cost.

 Thus, the consumer complaint is allowed with following directions:-

             OPs are jointly and severally directed to either return the mortgagedgold jewelries to the complainants or to return equivalent amount of gold so mortgaged by the complainants to themsubject to repayment of the due loan amount with interest by the complainantsas per terms and conditions of the loan agreement within 60 days from the date of this order.

OPs are jointly and severally directed to pay Rs.25,000/- only as compensation for mental agony, pain and harassment to the complainant within the stipulated period.

OPs are jointly and severally directed to pay a sum of Rs.10,000/- as cost of litigation to the complainant within the stipulated period.

With these directions the present consumer complaint stands disposed of.

Copy of the Judgment be given to the parties as per rules.