By Arun Pratap Singh
Garhwal Post Bureau
Kashipur (Udham Singh Nagar), 10 Aug: The District Consumer Commission, Udham Singh Nagar, has directed UCO Bank to return the gold ornaments pledged by a consumer against a gold loan, along with compensation, holding that failure to ensure the safety and return of the pledged ornaments amounted to deficiency in consumer service.
The order was passed on a complaint filed by Sheetal Aggarwal, a resident of Jaspur, through her counsel Nadeemuddin. In her complaint before the District Consumer Commission, Udham Singh Nagar, Aggarwal stated that she had availed a gold loan of Rs 3.22 lakhs from the Jaspur branch of UCO Bank for her personal requirements after being influenced by the bank’s advertisements and the attractive features of the gold loan explained by its officers and employees. She had also relied upon the bank’s assurance regarding the safety of the gold ornaments pledged against the loan.
According to the complaint, Aggarwal repaid the loan along with interest, amounting to Rs 3.98 lakhs in November 2020. Following the repayment of her loan to the bank, she submitted a written application to the bank seeking the return of her gold ornaments. The bank neither returned the pledged ornaments nor provided any valid reason for its failure to do so.
Aggarwal subsequently sent a legal notice to the bank through her advocate, but the bank neither replied to the notice nor returned the ornaments. She thereafter approached the District Consumer Commission seeking an order directing the bank to return the gold ornaments pledged against the loan and to pay compensation for the loss and mental agony caused due to deficiency in consumer service.
In its defence, the bank stated that the ornaments had been stolen from the bank’s branch on July 11, 2018, allegedly by a bank peon, Dushyant Kumar, who was subsequently suspended. The bank further stated that an FIR had been registered in connection with the incident and a charge-sheet had also been filed. According to the bank, the complainant had been informed about the theft over the telephone. The bank also claimed that, as part of an attempt to settle the matter, it had sent a settlement letter by post offering compensation of Rs 4.357 lakhs to the complainant. The bank denied any deficiency in consumer service and sought dismissal of the complaint.
The District Consumer Commission, comprising president Rajiv Kumar Khare, member Naveen Chandra Chandaula and member Dr Manila, heard the arguments put forward by the complainant’s counsel as well as the counsel appearing for the bank. After considering the submissions and the material on record, the Commission held that the gold ornaments had been pledged with the bank against the loan and that the bank was responsible for ensuring their safety and returning them to the consumer after repayment of the loan. The Commission held that failure to keep the pledged ornaments safe and return them to the complainant amounted to deficiency in the service by the bank.
In its order earlier this month, the Commission directed UCO Bank to return, within 45 days from the date of the order, the 144.120 grams of 24-carat gold ornaments pledged by the complainant, provided the ornaments had been recovered by the bank after the theft. The Commission directed that, if the ornaments had been recovered, they should be returned to the complainant in the same condition.
The Commission further directed that, if the bank is unable to return the said gold ornaments, it would have to pay the complainant an amount equivalent to the market value of the gold as prevailing on 30 November, 2020, the date on which the loan was fully repaid. However, the amount would also carry simple interest at the rate of 6 percent per annum from 30 November, 2020, onwards until the date of actual payment.
In addition to the value of the ornaments and interest, the Commission directed the bank to pay Rs 5,000 to the complainant as compensation for mental agony and an additional amount of Rs 2,000 towards the litigation expenses.
