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TAMIL NADU STATE CONSUMER DISPUTES REDRESSAL COMMISSION
R. Regupathi, President,J. Jayaram, Jidicial Member and Tmt. P. Bakiyavathi, Member
K. PARAMESWARAN - Appellant
Versus
G.E. MONEY FINANCIAL SERVICES LTD. AND ANOTHER - Respondents
C.C. No. 51 of 2009
Decided on : 09-07-2014
Consumer Protection Act - Loan Dispute - [Arbitration and Conciliation Act, Consumer Protection Act] - The court held that the complaint was maintainable before the State Consumer Commission despite the arbitration agreement. The State Consumer Commission had territorial jurisdiction to entertain the complaint. The court also ruled that the State Consumer Commission had jurisdiction to entertain the complaint, and the opposite parties were guilty of unfair trade practice and deficiency in service. The complainant was awarded compensation for the loss of original documents and mental agony.
Fact of the Case:
The complainant availed a loan from the opposite parties and deposited original documents as security. After discharging the loan, the opposite parties did not return all the original documents, leading to a dispute.
Finding of the Court:
The court found that the complaint was maintainable before the State Consumer Commission, which had territorial jurisdiction to entertain the complaint. The court also held that the opposite parties were guilty of unfair trade practice and deficiency in service, and awarded compensation to the complainant.
Issues: The issues included the maintainability of the complaint before the State Consumer Commission, territorial jurisdiction, and the liability of the opposite parties for unfair trade practice and deficiency in service.
Ratio Decidendi: The court ruled that the complaint was maintainable before the State Consumer Commission despite the arbitration agreement. It also held that the State Consumer Commission had territorial jurisdiction to entertain the complaint and had jurisdiction to rule on the unfair trade practice and deficiency in service.
Final Decision: The complaint was allowed in part, directing the opposite parties to pay total compensation of Rs. 9 lacs to the complainant, along with costs of Rs. 10,000.
ORDER
Thiru J. Jayaram, Judicial Member - The case of the complainant is as follows:
The complainant availed loan of Rs. 40 lacs from the opposite parties, and for this purpose, at the time of availing the loan, he deposited the following original documents with the opposite parties: (a) Original Sale Deed registered as Doc No. 2408/1963, dated 27.4.1963, SRO: Coimbatore; (b) Original Sale Deed registered as Doc No. 1714/1975, dated 25.4.1975, SRO: Coimbatore; (c) Will dated 28.3.2006, registered as Doc No. 1820/2006, SRO: Coimbatore; (d) Receipt No. 1659; (e) Receipt Nos. 1897 and 1898; (f) Encumbrance Certificate, dated 28.2.2003; (g) Tax Receipt, dated 22.3.2005; and (h) Tax Receipt, dated 22.3.2005. The opposite parties agreed to release additional loan as and when required by the complainant, but however, the opposite parties refused to release the additional loan as agreed to, and so the complainant decided to avail Home Equity Loan from Cholamandalam DBS Finance Limited for Rs. 75 lacs on depositing the original title deeds and other relevant documents. Though the Cholamandalam DBS Finance Ltd. agreed to disburse loan of Rs. 75 lacs, they released only Rs. 40 lacs being the amount due and liable by the complainant to the opposite parties, in order to discharge the loan with the opposite parties and accordingly the loan with the opposite parties was completely discharged; but the opposite parties did not return all the original documents deposited with them, and out of all 8 documents entrusted to them only 6 original documents were returned and two documents viz. two original sale deeds were not returned on the pretext that the two sale deeds are not traceable. In these circumstances, the Cholamandalam DBS Finance Ltd. released a total amount of Rs. 60 lacs and they refused to release further amount of Rs. 15 lacs since the two original sale deeds were not produced by the complainant. Not returning the two original sale deeds by the opposite parties amounts to unfair trade practice and deficiency in service on the part of the opposite parties, and hence the complaint praying for direction to the opposite parties to produce the two sale deeds dated 27.4.1963 registered as Doc. No. 2408/1963 at SRO: Coimbatore; and Sale Deed dated 25.4.1975, registered as Doc No. 1714/1975, SRO: Coimbatore and to pay a sum of Rs. 30 lacs as compensation for mental agony and hardship and to pay costs of the proceedings.
2. The opposite parties filed their version stating as follows: As per the agreement between the complainant and the opposite parties, any dispute that may arise between the parties has to be decided under the Arbitration and Conciliation Act and so the State Consumer Commission cannot entertain the complaint. Further, the State Consumer Commission has no territorial jurisdiction to entertain the complaint. Further, the dispute requires detailed evidence to be adduced which only Civil Courts have jurisdiction to do so, and the State Consumer Commission cannot entertain the complaint.
3. The two original sale deeds are misplaced and lost and not traceable and so they are not in a position to return the two documents. Proof affidavit of the complainant filed along with 13 documents filed and marked as Ex. A1 to A13 on the side of the complainant. The 2nd opposite party filed proof affidavit, adopted by the 1st opposite party. No document filed on the side of the opposite parties:
Ex. A1 is the communication dated 1.6.2009 to the opposite parties;
Ex. A2 is the cheque dated 31.5.2009 issued by Cholamandalam DBS Finance Ltd. in favour of the opposite parties;
Ex. A3 is the communication dated 29.7.2009 addressed to the complainant by the opposite parties;
Ex. A4 is the undated communication addressed to the complainant by the opposite parties;
Ex. A5 is the paper publication issued by the opposite parties, dated 31.7.2009;
Ex. A6 is the legal notice dated 15.9.2009 by the complainant;
Ex. A7 is the No Objection Certificate dated 16.9.2009
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