IN THE CONSUMER DISPUTES REDRESSAL FORUM, KOLLAM
DATED THIS THE 30TH DAY OF September 2015
Present: - Smt. G.Vasanthakumari, President
Adv. Ravisusha, Member
Adv.M.Praveen Kumar, Member
CC.No.150/2013
Prabhathkumar.P. : Complainant
S/o Purushothaman
From Ambadi Veedu
Altharamoodu, Alamcode
Thiruvananthapuram
Now residing at Pooja Dale
Navodaya Nagar -8
Asramom P.O
Kollam
[By Adv. S.Sureshkumar, Kollam]
V/S
1. The General Manager : Opposite parties
Manapuram Finance Limited
Manappuram House
Valappad
Thrissur - 680567
2. The Branch Manager
Manapuram Finance Limited
Building No.XXXV/541
Opposite Co-operative building, 1st floor
Ramapuram, Kavanadu P.O
Ramankulangara
Kollam – 691003
[By Adv. C.Rajeev, Kollam]
ORDER
ADV. M. PRAVEEN KUMAR, MEMBER
Complainant’s case is that the complainant had availed a gold loan from the 2nd opposite party on 11/11/2011 by pledging gold ornaments for Rs.1,10,000/- (Rupees one Lakh Ten Thousand only) as PLD No. 106710700006665. He could not make any repayment either towards interest or towards loan amount for three months after availing the loan, due to his wife’s treatment for Cancer at the Regional Cancer Centre, Thiruvananthapuram. On completion of three months from the date of loan 08/02/2012 he was demanded by the 2nd opposite party to
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renew the loan by resetting it to Rs.1,26,000/- which includes Rs.16,000/- as interest of the above loan. On 01/01/2013 he has remitted Rs.13,907/- towards the loan amount by way of receipt No.1102943 and on 25/04/2013 he has remitted Rs.25,050/- in the same loan by way of receipt No.2100178. On 30/07/2013 the 2nd opposite party has intimated the complainant through an email that the ornaments pledged in the said loan account will be auctioned if the full payment for closing the loan is not remitted within 30/08/2013. The complainant was not specifically intimated about the total amount due and what is the rate of interest charged on his loan. When he visited the 2nd opposite party for getting detailed statement of the loan repayment and rate of interest they have advised him to remit Rs.1,54,000/- without giving him any clarification as to the rate of interest and the deductions of the amount he had already remitted. The actions of the 2nd opposite party amount to unfair trade practice and deficiency in service. They have violated all the guidelines of the RBI regarding rate of interest and the procedures to be adopted for auctioning the pledged articles. A notice demanding the statement of account of the said loan was sent to the opposite parties on 27/08/2013. But in the mean time the complainant has got reliable information that the opposite parties are taking hasty steps to sell the pledged ornaments by illegal methods. Hence the complainant come before the Forum for directing the opposite parties to issue proper statement of account of the loan transaction made by the complainant with the 2nd opposite party with loan No.PLD.No.106710700006665, directing the opposite parties to refrain from auctioning the pledged articles without affording sufficient opportunity to the complainant to clear the loan as prescribed by law, directing the opposite parties to pay a compensation of Rs.10,000/- to the complainant making them jointly and severally liable and directing the opposite parties to pay the entire cost of this petition.
Opposite parties filed version contending that the complainant had taken a gold loan from the Ramankulangara branch of opposite party no.2, but the loan availed by the complainant was Rs.1,26,000/-(Rupees one lakh twenty six thousand only) as per pledge No.0106710700006665. The complainant had already taken loan amount of Rs.1,26,000/- on 11/11/2011. So the statement that the same pledge has been renewed with same amount along with accrued interest of Rs.16,000/- is only an imaginary one. The complainant had not made regular payment as per the agreed terms and conditions of the gold loan. It is false that the complaint was not specifically intimated about the total amount due and what is the rate of interest charged. The
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rate of interest was disclosed to the complainant at the time of availing the loan and it is specifically stated in the pawn ticket issued to the complainant. As per the terms and conditions of loan, the complainant is liable to pay interest @ 25.08%for 1 to 90 days, 28.08% for 91 to 180 days and 30% above 181 days. The opposite parties fulfilled all the stipulations made by the Reserve Bank of India. There is no deficiency in service or unfair trade practice from the part of the opposite parties. The opposite parties had not violated any guidelines of the RBI regarding rate of interest or the procedures to be adopted for auctioning the pledged articles. As per the guidelines on fair practice code issued by RBI, the duty of the opposite party is to disclose rate of interest to the borrower or customer in the application form. The opposite parties, after complying with all the required legal formalities, had granted the loan to the complainant. The pledged articles of the complainant have not been auctioned by the opposite parties. Hence dismissed the complaint with compensatory cost.
The points that would arise for consideration are:-
(1). Whether there is any deficiency in service or unfair trade practice on the part of the opposite parties?
(2). Reliefs and costs?
The evidence in this case consists of the oral testimony of PW1 and DW1 and documentary evidence Exts P 1 to P7 and D1 to D7.
The Points:- In order to prove the case of the complainant, complainant filed a proof affidavit in lieu of his chief examination along with 7 documents. On the basis of the proof affidavit, he was examined as PW1 and documents marked as Exts P1 to P7 and D1 to D3 and legal manager represented by opposite parties filed proof affidavit and he was examined as DW1 and documents marked as Exts D4 to D7.
Here the crucial question arise for consideration is whether the opposite parties charged exorbitant amount as interest from the complainant and complainant is eligible to get pledged gold ornaments from opposite parties after paying the principal amount along with interest
Complainant had availed gold loan of Rs.1,10,000/- on 11/11/2011 from 2nd opposite party by pledging 78.9 grams of gold ornaments and later the loan was reset to Rs.1,26,000/- on 08/02/2012 by including the unpaid interest of Rs.16,000/- along with the capital amount. But counsel for the opposite parties argued that complainant had pledged the gold ornaments on
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11/11/2011 for Rs.1,26,000/ and no pledge was made by the complainant on 11/11/2011 for Rs.1,10,000/-. Opposite parties produced loan application form signed by the complainant and marked as Ext.D1, admitted by the complainant, clearly stated that the loan amount ie Rs.1,26,000/- on 11/11/2011. Pawn ticket produced by complainant and marked as Ext.P7 and copy of Pawn ticket marked as Ext.D3, admitted by both parties, also states the loan amount and date ie Rs.1,26,000/- on 11/11/2011. So it is clearly seen that complainant had availed a gold loan of amount Rs.1,26,000/- on 11/11/2011 from opposite parties.
Complainant side produced two receipts which were marked as Exts P2 and P3 stating the repayment of Rs. 13,907/- on 01/01/2013 and Rs.25,050/- on 25/04/2013. Which is admitted by opposite parties.
Counsel for the opposite parties argued that as per the terms and conditions of loan, complainant is liable to pay interest at the rate of 25.08% for 1 to 90 days that is up to reset period, the reset rate after reset period 91 to 180 days at the rate of 28.08% per annum and above 181 days at the rate of 30% per annum. But the counsel for the complainant pointed out that opposite parties violated the guidelines issued by the RBI and fair practice code – 2012. The guidelines which is marked as Ext.D7, in page No.4 regulation (Viii) (C ) and page No.6(ii). b.iii stated that the rate of interest should be annualized rates so that the borrower is aware of exact rates that would be charge to the account and there will be no penalty charged on delayed payment. Perusing the Ext D6 (statement of account) it is clearly see that opposite parties charged / calculated interest not on the basis of annualized rates which is against the RBI rules and also against Ext.D7. Moreover Ext.D1 (loan application form), D5 copy of pawn ticket, P7 shows the rate of interest ie 25.08% only.
Complainant side submitted that opposite parties has not comply all formalities before the auction of the pledged gold items. But opposite parties admitted and suggested that if complainant is ready to pay interest at the rate of 25.08% per annum along with principal amount, opposite parties released the pledged gold ornaments. Hence there is any question regarding the auctions of pledged items.
Opposite parties argued that complainant not remitted interest in time and they produced D3 letter which states that the complainant’s wife was treated at RCC TVM surgery and chemo conducted. Hence complainant requested to give some times to return the pledged items.
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Perusal of the documents produced and considering the facts, evidence and circumstances , we are constrained to believe that opposite parties charged exorbitant amount as interest for the pledged gold and also against the RBI rules hence opposite parties made unfair trade practice and deficiency in service on the part of opposite parties and complainant is liable to get relief.
In the result, the complaint is allowed in part. Opposite parties are directed to give pledged gold item of 78.9 grams, as per Ext.P7 document after receiving principal amount (Rs.1,26,000/-) with 18% interest per annum from the complainant. Opposite parties are further directed to pay Rs.10,000/- as compensation to the complainant and Rs .2500/-as cost to the proceedings. The order has to be complied with within one month from the date of receipt of this order.
Dated this the 30th day of September 2015.
G.VASANTHAKUMARI:Sd/-
ADV.RAVISUSHA: Sd/-
ADV.M.PRAVEENKUMAR: Sd/-
Forwarded/by Order
Senior Superintendent
I N D E X
PW.1:- Prabhathkumar.P
DW.1:-N.G.Priyalal
Ext.P.1:-Notice dated 17/04/2013
Ext.P.2:-Receipt dated 01/01/2013
Ext.P.3:-Receipt dated 25/04/2013
Ext.P.4:-Copy of email
Ext.P.5:-Advocate notice
Ext.P.6:-Postal receipts
Ext.P.7:-Pledged receipt
Ext.D.1:-Form
Ext.D.2:-Acknowledgment
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Ext.D.3:-Letter dated 31/08/2013
Ext.D.4:-Authorization letter dated 04/12/2014
Ext.D.5:-Office copy of Pawn ticket
Ext.D.6:-Statement of account
Ext.D.7:-Copy of guidelines issued by RBI
