MUTHOOT FINANCE LIMITED Vs. V P JOSE

JUDGEMENT

(1.) THE appellants are the opposite parties in CC.183 /11 in the file of CDRF, Idukki. The appellants are under orders to refund a sum of Rs. 2,930 to the complainant with interest at 18% from 3.8.2011 and also to pay Rs. 1,500 towards cost and that if the amounts are not paid within 30 days from the date of receipt of the order the amount would carry 12% interest from the date of default.

(2.) IT is the case of the complainant that he had availed a gold loan of Rs. 28,000 from the opposite parties on 2.8.2010. At the time it was told that the interest for the loan is 18% for 3 months and after that it is 20%. On 3.8.2011 when the complainant approached the opposite party for redeeming the loan they have charged Rs. 36,390. A total amount of Rs. 5,459 was charged towards interest. The complainant was liable topay only Rs. 33,459. The opposite parties has charged Rs. 2,931 in excess. The same is sought to be refunded.

(3.) THE opposite parties have filed version contending that as per the terms of the gold loan the interest fixed was 18% if the amount is paid within 9 months and the rate will be 24% thereafter. After one year the rate will be 27%. There will be a penal interest also deducting 2 from the total number of months which will be the percentage of penal interest.