IMPORTANT POINT
No deficiency in services rendered by bank can be established on account of bank exercising lien over jewellery due to outstanding in other loan accounts.

V.K.Jain, Presiding Member—The complainants in these matters are husband and wife. Shri S. Muniasamy, the complainant in Revision Petition No.2675 of 2014 being the husband and Mrs. M. Palaniselvi, complainant in Revision Petition No.2676 of 2014 being the wife.

2. The aforesaid complainants took loans from the petitioner bank against pledge of gold jewellery and executed separate applications cum letters of pledge for loan/overdraft against the said jewellery. Shri S. Muniasamy had taken an advance of Rs.1,84,400/- at the rate of 7% per annum or at such rates plus penal rates and compounded at such intervals as stipulated by the bank from time to time, whereas his wife M. Palaniselvi had taken advance of Rs.1,76,000/- on identical terms. The case of the petitioner bank is that in addition to the loan against pledge of jewellery several other commercial loans were taken by it by the aforesaid complainants. The details of the other loans taken by them

3. The husband had stood as guarantor for the loan taken by the wife. Similarly the wife had stood guarantor for the loan taken by the husband. This is also the case of the petitioner bank that both the complainants defaulted in payment of the aforesaid loans and as a result their accounts have been classified as non-performing assets.

4. The complainants approached the petitioner bank for return of the jewellery pledged by them by repaying the loan which they had taken against the said jewellery. The petitioner bank, however, did not agree to release the jewellery and sought to retain the jewellery against the amount due in the other loan accounts of the complainants. Being aggrieved, the complainants approached the concerned District Forum seeking the following reliefs:

1. directing respondent No.1 to give the true details of loan account number 209759 maintained by the petitioner with respondent No.1,

2. directing respondent No.1 to accept the complete amount in terms of the above said account from the petitioner and return the gold jewelleries kept by the petitioner in the loan account number 209759 within the time limit to be specified by this honorable forum,

3. an order be passed against the respondents to pay damages of Rs.50,000/- to the petitioner forwards the loss and damages caused to the petitioner because of deficiency of service and negligence of the respondents.

5. The complaints were resisted by the petitioner bank inter alia on the ground that the complainants had not come forward to settle their respective loan accounts and it had also initiated proceedings under the procedure of SARFAESI Act. The petitioner bank claimed that it was entitled to retain the jewellery till the outstanding in all the loan accounts were repaid.

6. The District Forum vide its order dated 30-05-2011 directed the petitioner bank as under:

“Finally, this petition is allowed and it is ordered that the respondent No.1 bank to provide the statements containing the details of the gold loan account number 208759 and in case of the petitioner repays the entire loan amount on the basis of production of the statement by respondent No.1, respondent No.1 to return the gold ornament pledged by the petitioner on 09-08-2009 in the respondent No.1 bank. Further, it is ordered that the respondents to pay a sum of Rs.10,000/- to the petitioner because of the deficiency of service of the respondents which caused mental tension, agony and the cost of the post of the petition. Time limit is two months.”

7. Being aggrieved from the order passed by the District Forum the petitioner bank approached the concerned State Commission by way of two separate appeals. Both the appeals were partly allowed by setting aside the direction relating to payment of compensation. Rest of the directions given by the District Forum were, however, maintained. Being still aggrieved the petitioner bank is before this Commission by way of these two separate revision petitions.

8. The applications/letters of pledge for loan/o