Tamil Nadu

North Chennai

CC/124/2022

Mr.V.Sukumar,D/o.Vellai pandian - Complainant(s)

Versus

M/s.Ganesh pawn Broker - Opp.Party(s)

R.Muthukumar

14 Feb 2024

ORDER

Complaint presented on  :30.12.2020  Date of disposal            :14.02.2024

 

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,

CHENNAI (NORTH)

@ 2^ND Floor, T.N.P.S.C. Road, V.O.C. Nagar, Park Town,

Chennai – 600 003.

 

PRESENT: THIRU. G. VINOBHA, M.A., B.L.           : PRESIDENT

                               TMT. KAVITHA KANNAN, M.E.,         : MEMBER-I

              THIRU V. RAMAMURTHY, B.A., B.L., PGDLA : MEMBER-II

 

C.C. No.124/2022

DATED THIS WEDNESDAY THE 14^th DAY OF FEBRUARY 2024

                                

Mr.V.Sukumar,

D/o.Vellaipandian,

No.16, Amudham Nagar

Kodungaiyur,

Chennai-600 118

                                                                                           …..Complainant

..Vs..

 

M/s.Ganesh Pawn Broker,

Rep by its Properitor

No.27, Amudham Nagar,

•  

Chennai-600 118.....Opposite Party

 

 

Counsel for Complainant              : M/s.R.Muthukumar

Counsel for Opposite party          : Exparte

 

ORDER

 

TMT. KAVITHA KANNAN, M.E., MEMBER-I

 

          This complaint has been filed by the complainant as against the opposite party under section 35 of the Consumer Protection Act 2019 praying to direct the opposite party to receive the actual principal and interest amount from the complaint and return back the gold necklace weighing 28gram, to pay a sum of Rs.1,00,000/- towards compensation for unfair trade practice and mental agony  and other costs.

 

1.Complaint in Brief

The complainant stated that he pledged his gold necklace to the opposite party for a sum of Rs. 50,000/- on 06-05-2017 and the opposite party insisted the complainant to pay only simple interest and hence won't be demanding any EMI thereafter. The complainant states that when he approached the opposite party to return the jewel after receiving the 16% interest demanded exorbitant interest and also threatened the complainant that if the complainant does not pay exorbitant interest the opposite party will action the pledged jewels without following the trade norms which the complainant alleges as Deficiency of service and issued a legal notice on 16-12-2020 which was returned as refused, aggrieved by the opposite party the complainant filed a complaint before this commission.

 

 

Points for consideration

 

1.Whether the complainant  is a consumer as per Consumer Protection Act 2019?

2.Whether there is Deficiency of Service  on the opposite party?

3.Whether the complainant is entitled for return of the gold chain and  compensations as alleged in the complaint? If so, to what extent?

 

The complainant filed proof affidavit, written arguments and documents Ex.A1 to A3 are marked on their side.  The Opposite party remained exparte.

Point No:1&2

1) As per complaint, the complainant submitted that he had pledged a 28g gold Necklace with the opposite party under Invoice No.8571 dated 06-05-2017 and availed a sum of Rs.50,000/-and an 16% interest per annum to be paid as EMI for the mortgage loan as per the mortgage bill. The complainant alleged that at the time of pledging the opposite party requested the complainant to pay a simple interest and promised no more interest would be demanded in future.

          2) The complainant submitted that when he first approached the opposite party in December 2020 with an idea to pay the principal and interest in order to redeem the pledged jewel he was surprised to know that the opposite party demanded exorbitant interest and also threatened the complainant to auction the jewel if his demand was not complied by the complainant.

3) The complainant alleged that he was very much ready to pay the interests as per the norms of the agreement that is 16% but which was not heed by the opposite party. The complainant further alleged that the complainant‘s legal notice dated 16-12-2020 to receive the principal amount along with interest at the rate of 16% per annum was returned with an “Refused” endorsement. Hence the complainant finds the opposite party Deficient in Service and hence the filing of the complaint.

 

          4) Perused documents and averments in the complaint and after listening to the oral arguments of the complainant it is observed that the complainant had pledged his 28gram gold jewel under invoice No:8571 dated 06-08-2017 to the opposite party receiving Rs50,000/- as per ExA1 which also read that the “Rate of Interest was 16% per annum and the duration for redemption of the jewel was 1 year”. However, the complainant had failed to redeem the jewel and no further explanation is given on the same. The complainant has issued a legal notice on the opposite party as per ExA2 which was returned as “Refused to Receive” and the same is evident vide ExA3. The complainant had pledged his gold jewel and had taken a loan from the opposite party who is a pawner.  On perusal of documents it is proved that the complainant after receiving Rs.50,000/- in 2017 had never turned up to the opposite party neither to pay his interest or the principal in order to redeem the jewel but has approached the opposite party in the 1^st week of December 2020 when it is alleged that the opposite party had demanded exorbitant and refused to return the jewels. Hence the complainant has issued Ex.A2 legal notice to the opposite party which was returned has refused and thereafter filed this complaint before this commission the complainant counsel by relying upon sec 2 (42) of CP Act 2019 contended that since the complainant has borrowed amount from the opposite party who is doing licensed pawn broking business and hence alleged that such a transaction will come under the banking, financing service rendered by the opposite party and further as per the decision reported in 1^st appeal no.A/162/2014 of Karnataka SCDRC between H.N.Ragavendra alias Raghu Vs K.V.Venkatesh dated 07.03.23 wherein it was held that the opposite party is liable to return the gold ornaments or to pay the present market value of gold ornament to the complainant by treating the complainant as a consumer such an order was passed in the above said complaint similarly in the present complaint also it is found from Ex.A1 that on 06.05.2017 the complainant has received Rs.50,000/- by pledging 28 grams of gold jewels to the opposite party and hence such pledging will come under the definition of service rendered by the opposite party and hence the complainant is a consumer and entitled to maintain this complaint. Point.No.1 is answered accordingly.

 

          5) On merits also there is no doubt the complainant pledged his jewel weighing 28g to the opposite party and borrowed Rs.50,000/- promising a payment of 16% interest per annum under ExA1 on 06-05-2017. However, the complainant had issued a legal notice on the opposite party only on 16-12-2020 as per ExA2 which is more than 2 years from the date of redemption i.e. 06-5-2017. Admittedly the complainant has not paid any amount either towards principal or interest from 06.05.2017 till this date as per Ex.A1 the complainant has to redeem the jewels within one year and the rate of interest mentioned in Ex.A1 in 16%p.a . Though it is alleged by the complainant that the opposite party claimed exorbitant interest there is no proof for the same and further there is no proof regarding the excessive rate of interest claimed by the opposite party at any event the demand of excessive interest by the opposite party and refusing to return the jewels by accepting principal amount with interest at 16%p.a as agreed in Ex.A1 and not returning the jewels and refusing to receive the legal notice will go to show that the opposite party is not incline to return the jewels to the complainant. As per the arguments advanced by the complainant till this date the jewels were not auctioned by the opposite party and no auction notice was received by the complainant hence it is deemed that the jewels are in the custody of the opposite party which he is liable to return to the complainant by receiving the principal amount of Rs.50,000/- with simple interest at 16%p.a from 06.05.2017 till this date and the act of the opposite party in not returning the jewels by demanding exorbitant interest amounted to deficiency in service on the part of opposite party. Point.No.2 is answered accordingly.

         

Point No. 3

 

Based on finding in Point No.1 and 2 since there is deficiency in service on the part of opposite party and hence the complainant is entitled for return the gold necklace weighing 28grams by paying principal amount of Rs.50,000/- with simple interest at 16%p.a from 06.05.2017 till date of payment or to pay the present market value of the gold ornament to the complainant within two months and further the complainant is entitled for Rs.10,000/- towards compensation for mental agony and deficiency in service caused by the opposite party. Point No.3 answered accordingly.

 

In the result the complaint is partly allowed.  The opposite party is directed to return the gold necklace weighing 28grams to the complainant after receiving principal amount of Rs.50,000/- with simple interest at 16%p.a from 06.05.2017 till date of payment or to pay the present market value of the gold ornament to the complainant within two months and further the opposite party is directed to pay Rs.10,000/- towards compensation for mental agony and deficiency in service and to pay Rs.5000/- towards cost of the complaint. The above said compensation amount shall be paid to the Complainant within two months from the date of receipt of the copy of this order, failing which the above said amount shall carry 9% interest from the date of order to till the date of payment.

 

Dictated by Member-I to the Steno-Typist taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Commission on this the 14^th February 2024.

 

 

MEMBER I                         MEMBER – II                       PRESIDENT

 

 

LIST OF DOCUMENTS FILED BY THE COMPLAINANT:

 

Ex.A1	06.05.2017	Bill given by opposite party
Ex.A2	16.12.2020	Legal Notice
Ex.A3		Return Cover

 

 

 

 

 

 

 

LIST OF DOCUMENTS FILED BY THE  OPPOSITE PARTY:

 

No documents

 

 

 

MEMBER – I                       MEMBER – II                      PRESIDENT