KOSAMATTOM FINANCE (P) LTD Vs. ANIL RAVINDRAN

JUDGEMENT

(1.) The complainant/respondent pledged gold ornaments with the petitioner company in three separate accounts, in order to avail loan of Rs.21,000/-, Rs.24,000/- and Rs.22,000/- respectively. There was yet another pledge of a gold chain for taking a loan of Rs.8,500/- but admittedly the said pledge was redeemed by making payment to the petitioner company. However, since the complainant did not pay the loan taken from the petitioner, the gold pledged by him was sold by the petitioner company by way of an auction. The case of the petitioner company is that the gold was sold for a sum of Rs.76,384/- whereas the amount due from the complainant was Rs.79,754/-. The petitioner filed a civil suit against the complainant before Munsif Court, Cherthala for recovery of the aforesaid amount. Vide order dated 10-07-2009 the civil court held that the petitioner was entitled to recover a sum of Rs.3,905/- from the complainant, with interest at the rate of 6% per annum, on the original sum of Rs.3,370/- with effect from 31-05-2006 and was also entitled to the cost of the suit. The aforesaid judgment was passed by the civil court on merits after considering the defence set up by the complainant in his written statement.

(2.) The case of the complainant has been that the petitioner has recovered excess interest from him since interest was recovered at the rate of 18% per annum whereas it could not have been recovered at the rate of more than 14% per annum. This also has been the case of the complainant that no receipt was given to him for certain payments made by him.

(3.) The complainant on the other hand filed a complaint before the concerned District Forum on 03-03-2006 alleging deficiency in the services rendered by the petitioner company and seeking return of the gold on payment of the principal amount with interest after adjusting the excess amount awarded from him towards interest. The complainant also sought refund of the excess amount collected from him, besides cost of the proceedings and compensation amounting to Rs.10,000/-.