A P SECRETARIAT STAFF COOP SOCIETY LTD V/S B. LAKSHMAN RAO - Consumer Court Case

Andhra Pradesh

StateCommission

FA/1708/06

B. LAKSHMAN RAO - Complainant(s)

Versus

A P SECRETARIAT STAFF COOP SOCIETY LTD - Opp.Party(s)

MR. C.RAMA KUMARI

02 Feb 2009

ORDER

First Appeal No. FA/1708/06

(Arisen out of Order Dated null in Case No. of District Kurnool)

1. B. LAKSHMAN RAO

F.NO. 102 B D.NO. 7-1-220 GIRIJA ESWAR APTS D.K. ROAD BULKAMPET HYD

BEFORE:

PRESENT:

ORDER

A.P. STATE CONSUMER DISPUTES REDRESSAL COMMISSION

AT HYDERABAD.

F.A. 1708/2006 against C.C 243/2006, Dist. Forum-I, Hyderabad.

Between:

B. Lakshman Rao

S/o. Late B. Balarama Rao

Age: 63 years, Retd. Govt. Servant

Flat No. 102B, D.No. 7-1-220

Girija Eswar Apartments

D.K. Road, Bulkampet

Hyderabad. *** Appellant/

Complainant

Vs.

The President

A.P. Secretariat Staff Co-op Society Ltd.

Secretariat, Hyderabad. *** Respondent/

Opposite Party

Counsel for the Appellant: C. Rama Kumari

Counsel for the Respondent: M/s. K. Ram Reddy

QUORUM:

HON’BLE SRI JUSTICE D. APPA RAO, PRESIDENT

SMT. M. SHREESHA, MEMBER

FRIDAY, THE THIRTEENTH DAY OF FEBRUARY TWO THOUSAND AND NINE

Oral Order: (Per Hon’ble Justice D. Appa Rao, President)

*****

Aggrieved by the order of the Dist. Forum in not awarding interest while granting the amounts covered under the FDRS the complainant preferred this appeal.

2) The case of the complainant in brief is that he was a retired government servant invested an amount of Rs. 2,00,000/- on 8.2.2000 in the name of his wife with maturity amount of Rs. 4,00,000/- after a period of five years two months, invested Rs. 30,000/- on 21.10.2000 in the name of his wife with maturity amount of Rs. 60,000/- after a period of five years two months and Rs. 3,00,000/- on 20.7.2000 in the name of his daughter with maturity amount of Rs. 6,00,000/- for a period of five years and 2 months with respondent co-operative society in FDRs.

After the maturity date when he presented the FDRs the respondent co-operative society issued post dated cheques Dt. 6.12.2006, 6.4.2007 and 9.2.2007 respectively with a delay of 16 months, 15 months and 20 months respectively. In fact, he was entitled to the full amount with interest. Not paying the interest for this period amounts to deficiency in service and therefore prayed that the amounts covered under the FDRs with interest be paid together with compensation of Rs. 1 lakh and costs of Rs. 5,000/-.

3) The respondent co-operative society resisted the case. While admitting that it has issued the FDRs and they were presented on their respective maturity dates but could not be paid, in view of the fact that the President of the society demised in the month of August, 2005. The Co-operative Appellate Tribunal passed an order disqualifying the present body. When a review petition was filed stay was granted. All this was happened during the period from 14.7.2005 to 7.3.2006. The complainant accepted the cheques knowing fully well that the respondent society was obliged to pay only those amounts with permissible rate of interest as per Byelaw 16 (a)(ii) wherein the rate of interest shall be calculated @ 2% less than the rate of interest charged from the shareholders. When the post dated cheques were accepted, they have discharged their responsibility. There was no malafide intention in giving those post dated cheques. Since the management was not effective between 14.7.2005 and 7.3.2006 the amounts could not be paid. The complainant is not entitled to any interest and therefore prayed that the complaint be dismissed.

4) The complainant in proof of his case filed his affidavit evidence and got Exs. A1 to A11 marked, while the respondent co-operative society got Ex. B1 blank fixed deposit application and Ex. B2 copy of Byelaws marked.

5) The Dist. Forum after considering the evidence placed on record opined that the Byelaws are not applicable to depositors when they applied for FDR as no rule enjoins the applicability of the Byelaws. While allowing the complaint it directed the respondent co-operative society to pay the differential amount within one month with costs of Rs. 3,000/-. It did not award interest.

6) Aggrieved by the said decision, the complainant preferred this appeal contending that the Dist. Forum did not appreciate the facts in correct perspective. It ought to have awarded interest @ 12% p.a., from the date of maturity of above FDRs and @ 9% from the date of complaint.

7) It is an undisputed fact that the respondent society agreed to pay the amounts covered under the FDRs with interest on the due dates. It could not pay for whatever reason. The delay was 16months, 15months and 20 months respectively as was earlier pointed out. Under the FDRs the society agreed to pay double the amount on maturity viz., interest @ 20%. Since the society had committed default in payment of amount, necessarily, the complainant was entitled to interest though not at the rate mentioned in the FDRs, a reasonable interest which the banks would pay on the FDRs. The contention that was taken by the society that the Bye-laws stipulate that the rate of interest shall be calculated @ 2% less than the rate of interest charged from the shareholders. That rate of interest was stipulated for the shareholders of the society, and not to the depositors. The complainant was entitled to the amount with interest @ 12% p.a., from the date of maturity till the date of complaint and @ 9% p.a., from the date of complaint till the date of realization. The said rate cannot be said to be high. The Dist. Forum ought to have awarded interest subsequent to the date of maturity.

8) In the result the appeal is allowed modifying the order of the Dist. Forum. The respondent society is directed to pay interest on the said amount @ 12% p.a., from the date of maturity till the date of complaint and @ 9% p.a., from the date of complaint till the date of realization with costs in the appeal computed at Rs. 1,000/-. Time for compliance four weeks.