Judgment:
SHRI. S. CHANDRAMOHAN NAIR MEMBER
The order dated 28.3.2011 of CDRF, Idukki in CC.257/10 is being challenged of this appeal by the opposite party who is under directions to calculate the interest of the gold loan of the complainant at 12% per annum, up to the date of filing the complaint and redeem the gold ornaments to the complainant or in the alternative to pay the amount calculating the market value of the pledged ornaments as on the date of pledge after deducting 12% interest with cost of Rs.2,000/-, failing which the outstanding amount would carry interest at the rate of 12% per annum from the date of default.
2. The complainant had approached the Forum stating that he had availed a loan of Rs.85,000/- by pledging his gold ornaments of 60.500 gm. The complainant stated that it was attracted by the advertisement given by the opposite party that the interest would be only 12% and that at the time of availing the loan also the Manager of the opposite party assured the complainant that the interest would be 12% per annum. It is the case of the complainant that in the registered notice sent on 1.12.10, the rate of interest was not shown and when he approached the opposite party to redeem the gold ornaments they had demanded Rs.1,14,000/- instead of the amount of Rs.96,000/-. Alleging deficiency in service in trying to collect exorbitant interest from the complainant, the complainant prayed for directions to the opposite party to calculate the interest at 12% per annum as per the advertisement and assurance of the opposite party.
3. The averments in the complaint were strongly resisted by the opposite party. In the version, it was submitted that the opposite party never assured the complainant that the interest would be 12% and that at the time of availing the loan, the complainant was informed that the interest would be at Rs.2/- per month and it was due to non payment of the principal and interest that the complainant was informed that the ornaments would be sold in auction on 3.12.10. Contending that there was no deficiency in service or unfair trade practice, the opposite party prayed for the dismissal of the complaint.
4. The evidence consisted of the oral testimony of the complainant as PW1 and Exts.P1 to P5 on his side. On the side of the opposite party, Exts.R1 to R3 were marked.
5. Heard both sides.
6. The learned counsel for the appellant/opposite party vehemently argued before us that the order of the Forum below is without appreciation of the evidence on record and the contentions raised by the opposite party. It is submitted by him that at the time of availing the loan itself the complainant was appraised of the interest rate and that it was only at that rate that the complainant was directed to pay the principal amount and the interest. It is his very case that the Forum did not appreciate the fact that proper intimation was made to the complainant by notices and that the complainant could have redeemed the gold ornaments by paying the amounts. He has submitted before us that the opposite party is functioning under the strict principles and guidelines of the Reserve Bank of India and the opposite party is having about 1100 branches all over India.
7. Pleading for the position that the order is to be set aide, the learned counsel argued for allowing the appeal with costs.
8. On the other hand, the learned counsel for the respondent/complainant supported the findings and conclusions of the Forum below. It is submitted by him that the complainant was attracted by the paper publications produced as Ext. P5 and that the complainant had approached the opposite party and avail the loan believing that the interest would be 12% only. It is also his case that even the Manager had assured that the interest was only 12%. He has submitted before us that it was at the time of redeeming the loan that the opposite party demanded 24% interest which was not liable to be paid by the complainant. He has also a case that the opposite party had committed deficiency in service and unfair trade practice in not disclosing the interest rate in any of the documents given to the complainant. Contending that the appeal is liable to be dismissed, the learned counsel argued before us that the order is only to be upheld with compensatory costs.
9. On hearing both sides and also on perusing the records, we find that the Forum below has directed the opposite party to return the gold ornaments on payment of the principal amount with interest at 12% per annum. On perusing Ext.P5 produced by the complainant, it is clearly stated thus âLanguageâ
It is also seen that in any of the document given by the opposite party such as Ext.P1, P2 and P3 no rate of interest is shown. In our opinion, it is clear unfair trade practice committed by the opposite party. In the said circumstances, the order of the Forum below directing the opposite party to realise interest at 12% per annum is only just and reasonable. There is no cogent ground to interfere with the said findings of the Forum below. All the same, it is found that the complainant is directed to pay interest at the rate of 12% only up to the date of filing of the complaint. It is seen that such a direction cannot be upheld. The complainant is liable to pay interest till the date of payment of the amount for redeeming the gold ornaments. Apart from the said modification, all other directions of the Forum below are upheld.
10. In the result, the appeal is allowed in part with the only modification indicated above. Thereby, the complainant is liable to pay 12% interest per annum from the date of pledge till the date of payment and on payment of the principal amount and interest, the opposite party is directed to return the ornaments to the complainant pledged by him and in the alternative to pay the value of the pledged ornaments as directed by the Forum below. The complainant is also entitled for the cost of Rs.2000/- as contained in the order. However, in the facts and circumstances of the present appeal, the parties are directed to suffer their respective costs.
The office is directed to return the LCR along with a copy of this order to the Forum below urgently.