Andhra Pradesh

Nellore

CC/103/2016

Vaddadi Subba Rao, S/o. Late V.Sathyanarayana Murthy - Complainant(s)

Versus

1. The Infrastructure Development Finance Company Limited, rep. by its managing Director - Opp.Party(s)

Penubaku Venu, C.Chandra Kumari

18 Aug 2017

ORDER

 

Date of Filing     :31-10-2016

                                                                                                Date of Disposal:18-08-2017

 

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM:NELLORE

Friday, this the 18^th day of   AUGUST, 2017

 

          Present: Sri Sk.Mohd.Ismail, M.A., LL.B., President

                    Sri K. Umamaheswara Rao, M.A., B.L., Member

                            Sri M. Subbarayudu Naidu, B.Com., B.L., LL.M., Member

 

C.C.No.103/2016

 

Vaddadi Subba Rao,

S/o.Late V. Sathyanarayana Murthy,

Hindu, Aged 62 years,

Retired  Junior Accounts Officer (APSPDCL),

D.No.1-153, Nagamma Colony,

Behind Duty’s Seva Samsta,

A.K.Nagar Post, Nellore,

S.P.S.R.Nellore District.                                                                       ..… Complainant   

                                                                           Vs.

 

1.	The Infrastructure Development Finance    Company Limited, Represented by it’s Managing Director, Registered Office, KRM Tower, 8th Floor, No.1 Haminton Road, Chetpet, Chennai-600031, Tamil Nadu State.
2.	The Karvy Stock Broking Limited, (Share Market Section), Represented by it’s Branch Manager, Anil Kumar Buildings, 2nd floor, Gandhi Nagar, Near Sunday Market, Nellore, S.P.S.R.Nellore District.
3.	The Karvy Stock Broking Limited, Represented by it’s Managing Director, Registered Office: Karvy House, No.46, Avenue-4, Street No.1, Banjara Hills, Hyderabad-500034.                                                              ..…Opposite parties

                                                           

   .

            This complaint coming on  08-08-2017  before us for hearing in the presence of                Sri Penubaku Venu,  advocate for the complainant and opposite parties 1 and 3 called absent and opposite party No.2 present and having stood over for consideration till this day and this Forum made the following:

 

 

 

ORDER

                       (ORDER BY  SRI K. UMAMAHESWARA RAO, MEMBER)

 

 

       The complainant filed complaint under section 12 of C.P.Act, 1986 prays the Hon’ble Forum to direct the opposite parties 1 to 3 to pay maturity amount of Rs.29,400/-  under IDFC long terms Infrastructure Bonds – Tranche 2 with interest @ 24% p.a., from  22-02-2016 to till realization  of the bond and to pay compensation of Rs.1,00,000/- for negligence and deficiency in service and also to direct the 2^nd opposite party to return the two empty SBH Cheques bearing Nos.465459, 465460 along with costs.

 

2. The brief facts of the  complaint are as follows:

 

    The complainant purchased four IDFC long terms Infrastructure Bonds – Tranche 2  worth Rs.20,000/-  from the 1^st opposite party on 21-02-2011.  The said bonds  got  tax exemption under section 80 CCE .Income Tax Act,  The each bond value is Rs.5,000/- but the 1^st opposite party  instead of four bonds issued a single bond bearing no.38355527 on 21-02-2011 in favour of the complainant.  The complainant submit that as per terms of the  bond all the bonds amount  shall be locked for a period of 5 years from the date of allotment and should not be traded until the expiry of the lockin period i.e., upto  20-02-2016.  Subsequently, the complainant presented Dematerialization request form through the opposite parties 2 and 3.  The complainant surrendered the said bond to the 2^nd opposite party on 23-02-2016 i.e., prior to its maturity date 21-02-2021 by complying the bon terms and conditions.  Further the 2^nd opposite party took two SBH empty cheques bearing Nos.465459, 465460 from the complainant for  demat account purpose. But, the 1^st opposite party rejected the complainant dematerialization request form on 29-06-2016 stating reasons’ “Name mismatch”.  Later the complainant known the same and requested the 2^nd opposite party to take appropriate steps for correction,  but, the 2^nd opposite party  deafear  to comply the said request .  The complainant also issued legal notice to the opposite parties 1 to 3 on 10-08-2016 requesting for correction, but, the opposite party received the same and did not respond.  So, the acts of the opposite party come under the purview of deficiency of service.  Hence, the complaint.

 

3.   After admission of the complaint, notices were issued to opposite parties 1 to 3. The opposite parties 1 to 3 received the notices and the opposite party Nos.1 to 3 are remained absent and they are not filed their written version.

 

4.  The complainant filed his affidavit as PW1 on13-06-2017 and  in support of his case got marked Exs.A1 to A8 and also filed written arguments on 27-07-2017.

 

5.  Heard arguments of the complainant and perused the pleadings,  documentary evidence placed on record and considered the written arguments filed.

 

6)  Now, the points that arise for determinations are:

       1) Whether there is deficiency in service on the part of the

           opposite parties as pleaded?

        2) Whether the complainant is entitled for the reliefs sought for?

        3) To what relief?

 

7) POINT NOS 1 AND 2:  As per the pleadings and evidence on record we can understand that the complainant purchased four IDFC long terms Infrastructure Bonds worth Rs.20,000/- from the 1^st opposite party on 21-02-2011 by way of sending amount through demand draft  drawn on Syndicate Bank, Dargamitta, Nellore.  To prove the same the complainant filed Ex.A1 acknowledgement slip.   The value of each bond is Rs.5,000/- for which, the 1^st opposite party issued a single bond in favour of complainant.   Further, the said bond contained lock in period of 5 years i.e.,   21-02-2011 to till          20-02-2016 and the maturity date is 21-02-2021 and also buy back dated is 22-02-2016.  To prove the same, the complainant filed Ex.A4 bond.  In this case, the complainant after the buyback date i.e., 23-02-2016 submitted dematerialization request form along with two empty SBH cheques to the 2^nd opposite party.  But, the said form was rejected on 29-06-2016 stating the reasons “name mismatch” by the 3^rd opposite party.  In that connection, the complainant made request to the 2^nd opposite party for correction/rectification along with issuing Ex.A5 legal notice date 10-08-2016 to the opposite parties 1 to 3.  The opposite parties though received the notice but they did not respond.  So, failure to pay the  complainant’s maturity amount without any valid reason amounts to deficiency in service on the part of opposite parties 1 to 3.   

 

8)     In this case, the opposite parties without any lawful reason withhold the  complainant’s bond maturity amount and also caused mental agony to the complainant.  So under the facts and circumstances of the case, we are of the view that  the complainant is entitled the maturity bond amount of Rs.29,400/- with interest @9% p.a., from the date of issuing legal notice i.e. 10-08-2016 till the date of realization from the opposite parties 1 to 3.  Further, the complainant also claimed Rs.1,00,000/- towards compensation for negligence and deficiency of service along with costs.  After considering the case facts, we are of the view an amount of Rs.3,000/- for compensation for negligence and deficiency of service along with costs of Rs.2,000/- is reasonable.  Further, the 2^nd opposite party is also directed to  return  the two SBH  empty cheques bearing Nos.465459, 465460 to the complainant.  In view of the above discussion,  we answered the  point Nos. 1 and 2 in favour of the complainant and against the opposite parties         1 to 3.

         In view of our answering point Nos. 1 and 2 in favour of the complainant and against the opposite parties 1 to 3.   Accordingly, the complaint filed by the complainant is allowed.

9)  POINT NO.3 :IN THE RESULT, the complainant is partly allowed and directing the opposite parties 1 to 3 to pay maturity bond amount of Rs.29,400/- (Rupees twenty nine thousand four hundred only) with interest @9% (nine)p.a., from the date of legal notice i.e. 10-08-2016 to till the date of realization  and to pay Rs.3,000/- (Rupees three thousand  towards compensation for negligence and deficiency of service along with costs of Rs.2,000/-(Rupees two thousand only) to the complainant. Further, the 2^nd opposite party is also directed to return  the two SBH  empty cheques bearing Nos.465459, 465460 to the complainant. The opposite parties 1 to 3  directed to  comply the order  within  45 days from  the date of receipt of this order.   

         Typed to dictation to the Stenographer transcribed by her, corrected  and pronounced by us in the open  Forum, this the 18th day of  AUGUST, 2017.

              Sd/-                                          Sd/-                                            Sd/-

         MEMBER                                MEMBER                                PRESIDENT

 

 

 

 

                                                APPENDIX OF EVIDENCE

Witnesses Examined for the complainant

 

PW1

13-06-2017

Vaddadi Subba Rao, S/o.Late V.Satyanarayana Murthy, Hindu, aged about 62 years, retd. Junior Accounts Officer, H.No.1-153, Nagamma Colony, Behind Duties Seva Samstha, A.K.Nagar, Nellore, SPSR Nellore District.

 

Witnesses Examined for the opposite parties

 

NIL-

 

                             EXHIBITS MARKED FOR THE COMPLAINANT

 

Ex.A1	02-02-2011	Acknowledgement slip for application no.5129751, stands in the name of the applicant issued by the 2nd opposite party.
Ex.A2	11-06-2016	The original dematerialization request form serial no.167069, client ID No.19236754.
Ex.A3	29-06-2016	Inter office memo rf. initial rej/29-06-2016/538177 stands in the name of Karvy stock broking limited.
Ex.A4	21-02-2011	The original IDFC Bond bearing certificate  no.IDBO 383552 stands in the name of the complainant Vaddadi Subba Rao issued by the IDFC limited.
Ex.A5	10-08-2016	Office copy of legal notice issued by the counsel of the complainant to the opposite parties 1 to 3 by regd. Post with ack. due.
Ex.A6	10-08-2016	Duly served ack. due on the 1st opposite party.
Ex.A7	10-08-2016	Duly served ack. due on the opposite party no.2.
Ex.A8	10-008-2016	Duly served ack. due on the opposite party no.3  track consignment bearing No. ARN 672286508 along with regd. `postal receipt.

 

                         EXHIBITS MARKED FOR THE OPPOSITE PARTIES

 

-NIL -

                                                                                                                               Id/-

                                                                                                                     PRESIDENT

 

 

 

 

 

 

 

 

 

 

 

Copies to:

 

1.	Sri Penubaku Venu, Advocate, Venkatagiri Town, S.P.S.R.Nellore District.
2.	The Infrastructure Development Finance    Company Limited, Represented by it’s Managing Director, Registered Office, KRM Tower, 8th Floor, No.1 Haminton Road, Chetpet, Chennai-600031, Tamil Nadu State.
3.	The Karvy Stock Broking Limited, (Share Market Section), Represented by it’s Branch Manager, Anil Kumar Buildings, 2nd floor, Gandhi Nagar, Near Sunday Market, Nellore, S.P.S.R.Nellore District.
4.	The Karvy Stock Broking Limited, Represented by it’s Managing Director, Registered Office: Karvy House, No.46, Avenue-4, Street No.1, Banjara Hills, Hyderabad-500034.

 

Date when free copy was issued: