ORDER

BY SRI.H.R.SRINIVAS, PRESIDENT.

This is the Complaint filed by the Complainant U/S Section 35 of Consumer Protection Act 2019, against the Opposite Parties (herein referred in short as O.Ps) alleging the deficiency in service in not refunding the amount deposited with them and for refund of the same along with interest and for other reliefs as the Commission deems fit.

2.      The brief facts of the complaint are that;

The complainants being the mother and daughter saved their hard earned money and deposited with OPs who are running a finance under Popular Finance along with other business as Popular Traders.  Complainant 1 deposited Rs.4,50,000/- on 26.10.2019 for a period of one year to be payable on 26.09.2020, Rs.1,50,000/- deposited on 09.04.2019 due to be paid on 09.04.2022 and Rs.5,50,000/- on 28.02.2018 due payable on 28.02.2024.  The second complainant deposited Rs.4,82,000/- on 13.08.2019 to be payable on 13.08.2020 and Rs.2,00,000/- on 31.10.2019 to be payable on 05.10.2020.  When they sought for withdrawal of the said deposits, OP branch informed them that they will pay the amount after some time.  Till the pandemic there were no problems at all in respect of the payments.  Only after the pandemic OP did not pay the amount and the same was delayed.  When they again requested and demanded for refund of the amount during the month of March 2020, they were informed that the same would be paid in April and afterwards during September 2020.  The act of not refunding the amount along with interest amounts to deficiency in service.  OP1 is the Branch Manager in Bangalore whereas OP2 is one of the Directors.  Since there is deficiency in service and unfair trade practice by OPs in not returning the amount they prayed the forum to allow the complaint.

3.      Upon the service of notice, OP1 appeared before the Commission and filed her version contending that the complaint is not maintainable against her as she is appointed as Manager having no financial powers to take any decision.  OP1 do not have any concern with other sister establishment of OP2.  After covid 19 pandemic due to the lockdown all the branches of Popular Finance and trade were closed and the functioning of the branches were restricted and the payments and withdrawals were deferred and they were closed due to many police complaints against the partners.  Even the Kerala police arrested the partners and investigation is going on.  The complainants are aware of the business of Popular Finance Company and also knew their partners. To earn more interest than they would get from bank, they voluntarily invested their amount.  They were aware of the scheme under popular traders and not under popular finance.  The receipts produced for the amount deposited by the complainants is issued from popular traders and not from the Popular Finance.  

4.      There is no allegation of any kind against OP1 as she is only the Manager looking after the affairs of the branch.  She is the Manager of Popular finance and not Popular Trader.  She has denied the allegation that the top management were engaged in unfair trade practice without proper license, permission from RBI and they have mislead the depositors and cheated them and misappropriate the funds and there is deficiency in service as not correct.  She is not liable to refund the amount claimed by the complainant as she has no power /authority to deal with the cash transaction.  Complainants may be entitle for refund but not from OP1, whereas, they can get the said amount from the Popular Traders managed by the Managing Director, Managing Partner, the Chief Executive officer, the Chief Operating Officer and the Regional Managers. The staff and the depositors gave complaint against the management before the Superintendent of Police, Pathenamthitta, Kerala, who acted upon and arrested the partners of the Popular Finance/Traders and even CBI investigation is going on.  On the orders of Hon’ble High Court of Kerala the cash, assets, gold, bank accounts have been attached and also ordered to close the business of all the branches and the owners bank account were frozen and even the office were attached. Hence no payment is possible by OP1.  Complaint against OP1 is only as a formality as she has nothing to do with the affairs of the finance.  Hence prayed the Commission to dismiss the same.

5.      Since the notice sent to OP2 was not served, paper publication was ordered to be taken in a newspaper which has a local circulation and inspite of the publication of the notice, OP2 Thomas Daniel the Managing Director of Popular Traders did not appear and has placed exparte.

6.      In order to prove the case, complainant and OP1 have filed their affidavit evidence and produced documents. Arguments Heard. The following points arise for our consideration:-

1) Whether the complainants have proved deficiency in service on the part of the Opposite Parties?

2) Whether the complainants are entitled to the relief prayed for in the complaint?

7.     Our answers to the above points are:-

POINT NO.1:            In the Affirmative

POINT NO.2:            Partly in the affirmative.

                                For the following.

REASONS

8.     POINT No.1 AND 2:-

   Perused the complaint, version, affidavit evidence and the documents produced by respective parties.  Complainant1 has produced the receipts bearing Nos, 0575624 for Rs.4,50,000/-, 0530220 for Rs.1,50,000/- and 0530050 for Rs.5,50,000/-(Total Rs.11,50,000/-) and Complainant No.2 has produced receipts bearing Nos. 0530272 for Rs.4,82,000/- and 0575623 for Rs.2,00,000/-(Total Rs.6,82,000/-) which clearly shows that they have deposited the amount mentioned therein for the period mentioned in it and further agreed to share the profit at 12% on the said amount. It is the bounden duty of the OP2 and Popular Trader to refund the amount as and when the depositor in this case the complainants, seek for refund of the amount subject to the terms and conditions from the dates deposits were received.  Further the complainants have sought for closure of deposits and sought for refund of the amount. Even they have made several correspondences to that effect. 

9.     On the other hand OP1 has categorically stated that she is only an employee of Popular Finance/Trade and has no role to play and take to any decision financially.  She has produced her appointment order.  Further she has produced various police documents i.e., FIR, charge sheet and the order entrusting the investigation to the Central Bureau of Investigation.

10.   When all these facts and circumstances are taken into consideration, along with the paper publications regarding the affairs of the Popular Finance Ltd., wherein there is a order of attachment of finances, assets, cash and gold and also seizure of the Popular Finance branches by Kerala High Court which clearly reveals that even the Head quarters of Popular Finance has been attached by the order of the court, which clearly shows that the said finance has cheated many people in not refunding the money deposited by them including of these complainant.  Hence we answer point No.1 in the affirmative and in the result complainants are entitled for refund of Rs.11,50,000/- and Rs.6,82,000/- along with interest at 12% p.a., from the date of respective deposits till payment of the entire amount.  Act of OPs put the complainants into lot of mental agony, physical hardship and financial loss for which we direct OP2 to pay a sum of Rs.50,000/- towards damages and Rs.10,000/- towards litigation expenses.  Hence we answer point No. 2 partly in the affirmative and in the result we pass the following;

ORDER

1. Complaint is allowed in part with cost against OP2 and other Directors of Popular Finance/Popular Traders who have received the amount from the complainants.
2. OP2 and other directors of Popular Finance/Popular Traders are directed to refund Rs.11,50,000/- and Rs.6,82,000/- along with interest at 12% p.a., from the respective dates of deposits, till payment of the entire amount.
3. OP2 and other directors are also directed to pay a sum of Rs.50,000/- towards damages and Rs.10,000/- towards litigation expenses to the complainants.
4. Complaint against OP1 is dismissed.
5.  The OP2 is further directed comply the above order within 30 days from the date of receipt of this order and submit the compliance report to this forum within 15 days thereafter.
6. Send a copy of this order to both parties free of cost.

Note:You are hereby directed to take back the extra copies of the Complaints/version, documents and records filed by you within one month from the date of receipt of this order failing which the same will be weeded out/destroyed.

(Dictated to the Stenographer over the computer, typed by him, corrected and then pronounced by us in the Open Forum on this 16^TH DAY OF MAY 2022)

MEMBER                 MEMBER                PRESIDENT

ANNEXURES

1. Witness examined on behalf of the Complainant/s by way of affidavit:

Copies of Documents produced on behalf of Complainant/s:

Ex P1: Letter written by the complainant to OPPOSITE PARTY dated 10.04.2020 and 02.09.2020

Ex P2: Copy of the receipts(5 in Nos.)

Ex. P3: Letter written by the complainant to OPPOSITE PARTY dated 09.03.2020

2. Witness examined on behalf of the Opposite party/s by way of affidavit:

• NIL -

Copies of Documents produced on behalf of Opposite Party/s

• NIL -

MEMBER                 MEMBER                       PRESIDENT

HAV*