LAWS(NCD)-2018-1-175

MANAPURAM FINANCE LTD Vs. B R SRINIVAS MURTHY

Decided On January 17, 2018
Manapuram Finance Ltd Appellant
V/S
B R Srinivas Murthy Respondents

JUDGEMENT

(1.) The complainant/respondent availed a gold loan from the petitioner against pledge of jewellery. The petitioner charged interest @ 27% per annum on the first loan and @ 26% per annum on the subsequent loans taken by the complainant against the pledge of jewellery. The complainant was ready to pay interest @ 14% per annum which, according to him, was the maximum permissible interest. That request having not been accepted, he approached the concerned District Forum by way of a consumer complaint. The complaint was resisted by the petitioner primarily on the ground that the rate of interest was a matter governed by contract between the parties. The District Forum, vide its order dated 08. 06. 2011, directed the petitioner to return the jewellery pledged by the complainant on receiving the principal amount alongwith simple interest @ 9% per annum. A sum of Rs. 20,000/- was awarded as compensation to the complainant.

(2.) Being aggrieved from the order passed by the District Forum, the petitioner approached the concerned State Commission by way of an appeal. Vide impugned order dated 01. 08. 2017, the State Commission dismissed the said appeal. Being still aggrieved, the petitioner is before this Commission by way of this revision petition.

(3.) The learned counsel for the petitioner submits that the complainant had consciously agreed to pay interest @ 26% p. a. / 27% p. a. and that is why interest at the aforesaid rate was demanded from him.