- (1.) THE complainant pledged gold jewels with the opposite party and raised loan. When the complainant went to redeem the jewels, he was informed by the Bank that the pledged jewels have been sold in auction. Therefore, the complaint has been filed alleging deficiency in service. According to the complainant that after appropriating the sale proceeds, there is still balance due towards the jewel loan. A sum of Rs. 9,906/ - which was available in the account of the complainant which he had with the opposite party was appropriated towards the loan account. The contention of the complainant is that this action is also illegal since the amount he held with the opposite party represented the amount received by way of provident fund and family benefit fund. Therefore, the deduction of Rs. 9,906/ - from the Provident Fund Account is illegal and thus there is deficiency in service.
(2.) THE lower Forum dismissed the complaint. Hence, the complainant has filed this appeal.
(3.) THE contention of the appellant that the sale of jewels by the opposite party amounts to deficiency in service cannot be accepted at all. The jewel loan of Rs. 12,900/ - was granted on 13.4.1995. The complainant failed to pay any amount towards jewel and thus failed to redeem the jewels. The opposite party published a notice in Dinamalar stating that the ornaments would be sold in public auction. It was accordingly sold on 7.4.1998 in public auction. Notice of publication was also sent to the complainant but it was returned unserved. Therefore, the opposite party has followed the procedure and has in exercise of right of lien and pursuant to the conditions of pledge has sold the jewels in auction. The National Commission has held in the decision reported in [1996 (1) 19 (NS)] that the Bank has a general lien and is entitled to retain the ornaments deposited by the constituents as security in respect of any advance owing to the Bank. To the same effect is the decision of the National Commission rendered in R.P. No. 289/96 dated 11.4.1997 where the National Commission has held that the transaction is only a money transaction and the provisions of the Consumer Protection Act will not apply.;