Nation Other News 11 Jul 2016 Forum verdict: Finan ...

Forum verdict: Financier asked to pay for failure in returning gold

DECCAN CHRONICLE. | RAKESH NAIR
Published Jul 11, 2016, 1:55 am IST
Updated Jul 11, 2016, 1:55 am IST
The company contested that the gold was disposed after she failed to repay the loan and interest.
Representational image
 Representational image

Thiruvananthapuram: The National Consumers Disputes Redressal Commission (NCDRC) has directed a major gold finance company to pay Rs 1.14 lakh for failing to furnish gold that was pledged by a borrower who had taken a loan. As per the complaint filed by Lathika C of Nedungolam, Kollam, she pledged gold ornaments weighting 52 grams with the local Muthoot Finance branch in September 2003 and took a loan of Rs 21,000.

She approached the concerned branch of the financier in April, 2004, to redeem the ornaments by paying the loan amount with interest. However, they said the ornaments were transferred to their head office by mistake. The woman had relocated to Ernakulam and for a short while lost track of the issue.  In July 2011, she again approached the finance company but it was in vain.  She then moved the Kollam District Consumer Redressal Forum. She did not turn up during the hearing and the complaint was dismissed.

 

Eventually, she went to the National commission after she did not get a favourable judgment during an appeal at the State Commission. The company contested that the gold was disposed after she failed to repay the loan and interest.  However, they could not provide evidence that a notice was served in this regard to Lathika.

With no satisfactory contention coming from the financier, the NCDRC directed the company to pay the current value of the gold ornaments which was stated to be Rs 1.14 lakh after adjusting the principal amount lent to the complainant, along with the agreed interest. Advocate Lakshmi N. Kaimal appeared for the petitioner.

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Location: India, Kerala




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