PRESIDENT, DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, SAMBALPUR

Consumer Case No- 30/2022

Present-Dr. Ramakanta Satapathy, President,

  Sri. Sadananda Tripathy, Member,

Manoj Kumar Agrawal.

S/O- Late Mahavir Agrawal,

R/O-A1/4, Celebrity Home,

At/Po/Dist-Raipur-492099, C.G.                                   ………..…..Complainant

Vrs.

1. Om Prakash Ray, Head Sahara Office,

Laxmi Puja Chowk, At/Po-Burla-768017,

Dist-Sambalpur. Mob-7978667014.

2. Siba Narayan Swain, Head, Sambalpur Branch,

M/S Sahara India Financial Corporation of India,

2^nd floor Hansini Tower, Ainthapali, Sambalpur-768004.

3. M/S Sahara India Financial Corporation of India

2^nd floor Hansini Tower, Ainthapali, Sambalpur-768004.

4. Sahara Q Shop Unique Products Range Limited,

Sahara India Bhawan, 1, Kapoorthala Complex,

Aligani, Lucknow-226024.

5. Saharayn Universal Multipurpose Society Limited,

Regd. Office-195, Zone-1, In front of D.B.Mall,

M.P. Nagar, Bhopal, Madhya Pradesh-462011   .. ………..Opp. Parties

Counsels:-

1. For the Complainant                   :-         Sri. R.N.Debta, Advocate & Associates
2. For the O.P.s                                 :-         Sri. R.K.Samantaroy & Associates

DATE OF HEARING :11.07.2022, DATE OF JUDGEMENT : 22.08.2022

           Presented by Dr. Ramakanta Satapathy, PRESIDENT,

1. The case of the Complainant is that while the Complainant was staying at Burla, the O.P. No.1 and one Prabir Singh Menu, Authorised Agent collected Rs. 1.00 lakh on different dates with 15% interest payable during May 2012. The O.P. No.1 & 2 on repeated approach also failed to repay the maturity value of Rs. 1,18,200/- and suggested to invest again. Finding no way the Complainant invested with O.Ps and in the certificate no maturity was written. When asked about maturity date the O.P. No.1 & 2 stated that maturity will be after six years. The details of receipts are as under:

The six fixed deposits were again on the request of O.P. No.1 & 2, when shown difficulty of company invested with Saharun Universal Multipurpose society Ltd. and maturity date 11.09.2021.

The details of six fixed deposits are as follows:

After maturity again the Complainant approached the O.P. NO.1 to 3 but on the ground of financial difficulties the O.P. No.1 to 3 suggested to reinvest in other schemes of the company. Till date the maturity value has not been paid by the O.Ps. Notice was also given but the O.Ps did not respond. The notice was returned with endorsement ‘deceased’ from Parbinder Singh Minu. Notices issued to Saharayan Universal Multipurpose Society, Bhopal received back with endorsement ‘office sealed according to court’s order’. The O.P. No.1 cunningly avoided to receive the notice. The O.Ps collected the deposits in the name of Sahara Pariwar and defrauded the Complainant, cheated him.

2. The case of the O.Ps is that the society is a Co-operative Society under the multi-state Co-operative Societies Act-2002. The O.Ps do not give service rather the members constitute the co-op. Society. The Complainant as a member of the Co-op. Society is not a Consumer. Sec.84 of the Act provides special mechanism to entertain disputes, thereby challenged the jurisdiction of this Commission.

The O.Ps not uttered a single word regarding investing made by the Complainant. One O.P. Roy, sector worker E.C. 159100212 appeared before the Commission and admitted the investment made by complaint and undertook to repay the amount with interest within one month. On admission the representative was directed to execute personal bond of Rs. 5.00lakhs and the bond was accepted.

As this is a complaint case we are not concerned with the execution part but on admission of the representative present directed to execute bond for his submission before the Commission.

3. After perusal of the documents filed by both the parties the following observations are made:

The maturity date of the Six no. of fixed deposits are 11.09.2021 and the total maturity value is Rs. 4,40,000/- on 04.04.2022. Sri. R.N.Debta, Advocate issued pleader notice to the parties. The O.Ps are totally silent on the pleader notice.

The following issues are framed for determination of the case.

1. Whether the Complainant is a consumer of the O.Ps being a member of the multipurpose Co-operative Society?
2. Whether this Commission has jurisdiction to entertain the complaint, when alternative remedy is available u/s 84 of the Multipurpose co-op. Societies Act, 2002?
3. Whether the O.Ps are deficient in their service?
4. What relief the Complainant is entitled to get?

Issue No.1 Whether the Complainant is a consumer of the O.Ps being a member of the multipurpose Co-operative Society?

          The Co-operative Societies under the Multi-purpose Co-op. Socities Act, 2002 are constituted to perform multi-purpose business on co-operative basis like the State Co-operative Societies. Multipurpose Co-operative are covering their business to different states. When management of the affairs of the Co-op. Society comes the disputes is guided under section 84 of the said Act, 2002 and the Arbitration and conciliation Act, 1996 is also applicable for speedy disposal of the case.

          The Co-operative when performing business activities under the guidelines of Reverse Bank of India it becomes a banking organization who receives deposits, pay interest and in the alternative grants loan and interest.

          The Complainant invested Rs. 4,40,000/- with the O.Ps and the O.Ps by granting fixed deposit receipts agreed to pay the maturity value on 11.09.2021. Both the parties entered in to a contract, the O.Ps agreed to pay the maturity value, the amount deposited is the consideration. Here it is purely a banking practice. The O.Ps are to provide proper service to the Complainant. Accordingly, the Complainant is a consumer of the O.Ps within the terms of the C.P. Act, 2019.

          The issue is answered in favour of the Complainant.

Issue No.2 Whether this Commission has jurisdiction to entertain the complaint, when alternative remedy is available u/s 84 of the Multipurpose co-op. Societies Act, 2002?

          In the present case the parties have entered in to a contract and the O.P. organization is deficient in its service by not providing maturity value. Accordingly this Commission has jurisdiction to entertain the case.

          No doubt Sec. 84 of the Multi-purpose Co-op. Societies Act, 2002 has its own dispute resolution procedures and the Arbitration and conciliation Act, 1996, Industrial Disputes Act, 1947 etc. are applicable. The Consumer Protection Act, 2019 is a welfare legislation for the welfare of the consumers. The Multipurpose co-operative societies Act, 2002 does not bar the jurisdiction of this Commission as it gives alternative remedy with ‘deficiency in service’ and for defective goods. The C.P. Act, 2019 has the overriding effect connected with special legislations.

          The issue is answered against the O.Ps

Issue No.3   Whether the O.Ps are deficient in their service?

          From the supra discussion it is clear that the O.Ps are deficient in their service by not repaying the maturity value of the fixed deposits to the Complainant in time.

          The issue is answered in favour of the Complainant.

Issue No.4 What relief the Complainant is entitled to get?

          The Complainant after not getting the maturity value has passed through mental agony and as harassed by the O.Ps, accordingly entitled for relief.

          It is ordered:

ORDER

          The Complaint is allowed on contest against the O.Ps. the O.Ps are jointly and severally liable to pay the maturity value of Rs. 4,40,000/- as on 11.09.2021 to the Complainant and 12% interest thereon till repayment. The O.Ps are to pay the above amount within one month from the receipt of this order failing which the O.Ps are liable to pay compensation of Rs. 1.00lakh to-wards harassment and mental agony, and litigation expenses of Rs. 10,000/-

          Order pronounced on this 22^nd day of August 2022.

          Supply free copies to the parties.