Order-7.
Date-20/09/2017.
Shri Rabideb Mukhopadhyay, Member
This is an application u/s.12 of the C.P. Act, 1986.
Complainants’ case in short is that theyjoint certificate holders and that they being persuaded of attractive return by the agent of O.P., invested an amount of Rs 11,50,000/- on various dates as below.
Sl. No.Investment No. Invested AmountDateof InvestmentMaturitydateMaturity Amount
- TZ00004547 Rs 400000/- (22.11.12) 27.6.13 22.11.2015 Rs 400000/-
- TZ00004548 Rs 300000/- (30.01.13) 27.6.13 30.01.2016 Rs 300000/-
- TL00001579 Rs 150000/- (20.03.13) 22.3.13 22.09.2018 Rs 300000/-
- TC00159773 Rs 300000/- (30.01.13) 24.6.13 30.07.2018 Rs 600000/-
The complainants stated that the first two investments were made on a promise of monthly return amount of Rs 7000/- till date of maturity and the last two investments were Fixed Deposit Schemes and returnable as double the amounts as promised in the certificates issued by the OPs. Receipts and certificates are marked as Letter-A collectively as stated by the complainants.
The complainants also stated at para-5 that OPs invested the money of the complainant to acquire plot of land at Alchemist Infra Realty Ltd. and transferred the investment in the plot/villa/apartment in the housing project of OPs at Park Avenue, Talwandi, Bhai, Tehsil-Zeera, Dist. Firozpur, Punjab and issued customer IDs vide Nos. TZ00004547, TZ00004548, TL00001579 and TC00159773 for the respective period as stated in the certificates and the maturity value of Real Estate Investment shall be Rs 1600000/- except monthly returnable interest of first two investments till 22.11.2015 and 30.01.2016 amounting to Rs 4000/- and Rs 3000/- respectively. Photocopies and certificates issued by ATIL are annexed and marked as Letter-B collectively.
At complaint para-7, it is stated that with regard to first two investments vide TZ00004547 and TZ00004548, OPs paid monthly return of interest amounts of Rs 4000/- and Rs 3000/- till the month of May, 2015 against promised period of 22/11/2015 and 30/01/2016 respectively and as such OPs committed gross deficiency in service to the complainant. As the dates of maturity were 22/11/2015 and 30/01/2016 respectively for the first two investments, the complainants are stated to have handed over original papers on 15/9/2015 and 23/5/2016 respectively to the OPs under acknowledgements (Annex- Letter-C) to get back the matured amounts along with due monthly returnable interests. The complainants stated that even after expiry of specified time on 22/11/2015 and 30/01/2016 respectively, OPs failed and neglected to refund the matured amount of Rs 7000/- even after repeated requests.
Finding no other alternative, the Complainants sent a letter to the OPs through Registered Post on 04/8/2016 but the OPs refused to accept the letter and the returned envelop (marked as Letter-D) contained remark ‘Refused’ and the OPs failed to do any needful till date of lodging the case.
The complainants lost faith on the conduct of OPs as stated above and sent a letter dated 30/5/2017 to OPs through their Ld. Advocate through Speed Post with the request to OPs to return the last two investments amounts after deducting applicable taxes, administrative cost etc. But the letter was returned with postal remark Left and again same request was made to OPs by letter dated 05/6/2017 but as per Track Report, one postal comment was unclaimed and the other was Item delivery attempted-addressee absent. The complainants thereby did not get their hard-earned money and the OPs grabbed the entire money of the complainants. (Photocopies of letters dated 30/5/2017 and 05/6/2017, returned envelops and T/Rs are marked as Letter-E).
As stated, the complainant being an employee of a private organization had no facility of pension, PF or ESI after retirement and the entire amount was deposited with the OPs with the expectation of high return but for non-return of the amounts by OPs, complainants are under starvation with great financial stringency and the lady complainant has been suffering from various incurable diseases.
The Complainants have prayed for return of Rs 1600000/- along with unpaid monthly return of Rs 171000/- as on June, 2017 as regard to first two investments with 12 percent interest from the date of filing of the case, Rs 200000/- as compensation and Rs 20000/- as litigation cost.
Despite service of Summons, none appeared from the side of the OPs to contest the case and the case has proceeded ex parte against the OPs.
Point for Decision
- Whether the OPs are deficient in rendering service to the Complainants?
- Whether the OPs have indulged in unfair trade practice?
- Whether the Complainantsare entitled to get the relief as prayed for?
Decision with Reasons
We take up all the points together for the sake of brevity and convenience of discussion.
We have perused the documents on record i.e. photocopy of letters dated .04.8.2016addressed to OP’s Directorsent registered and 30/5/2017 addressed to OP sent through Speed Post by the Complainant/ Advocate and other documents on record, i.e. copies of certificates, receipts of money, application form for plot/villa/apartment.
At the outset it needs mention that originally there were two OPs in the cause title but subsequently on a petition of the complainants, OP-2 was expunged at the risk of the complainants vide this Forum order dated 22/8/17 but they by ink correction tried to make the second address of OP-1 as OP-2. This is not allowed.
It appears that the Complainantno.1 (legal heir-Jayasree Mitra)purchased a certificate of Property being allotment No.AIRL/RX00034324, investing an amount of Rs. 400,000/-, date of maturity of the certificate in question is 22.11.2015, investment date is 22.11.2012 and the Receipt dated 20/11/2012 says that the money taken was on account of application money for allotment of proportionate share in land and development charges for 3 years as per Application No.RE01300245 dated 20/11/2012.
It also appears that said Complainant no.1 purchased jointly with his wife Jayasree Mitra certificate of Property(legal heir Ahana Mitra) being allotment No.AIRL/RX00037496, investing an amount of Rs. 300,000/-, date of maturity of the certificate in question is 30.11.2016, investment date is 30.01.2013 and the Receipt dated 29/01/2013 says that the money taken was on account of application money for allotment of proportionate share in land and development charges for 3 years as per Application No.RE03934187 dated 29/01/2013.
There is no mention of returning monthly return as well. But as the complainants stated and received monthly interest and the OPs remitted the money and, of course, OP did not controvert this claim of the complainants, we agree that the OP sent monthly interests to the complainants for these investments, amounting to Rs 4000/- and Rs 3000/- respectively.
The complainants stated that said monthly interests were paid by OP up to May, 2015. So, actually, the monthly interests remain due are Rs 4000/- into 6 months plus Rs 3000/-into 8 months, i.e. Rs 48000/- up to the dates of maturity of the above two investments in addition to the principals of Rs 400000/- plus Rs 300000/-, i.e. Rs 700000/-.
It appears further that complainant no.1 deposited Rs 150000/- on 20.03.2013 in terms of application No. TA00028442 dated 20.03.2013 through cheque (the Application being signed
both by the complainant no.1 jointly with Jayasree Mitra, his wife), and complainant no.1 jointly with Jayasree Mitra, his wife deposited Rs 300000/- on 30.01.2013 in terms of application No. RE03934186 dated 28.01.2013 through cheque on account of Application money for allotment of proportionate undivided share in land and development charges for 6 years, to expire on 30.01.2019 with maturity amount of Rs 600000/-.
We also find that the OP exhibited a cold behaviour and failed and neglected to pay either the invested amount or the interest for the first two investments after maturity. We find that the OPs have utilized the invested amount of the Complainants for their own ulterior gain without returning either the invested amount or the interest payable on the said amounts. We think that OPs have demonstrated a gesture of deficiency of service and unfair trade practice as well because the OP trapped the complainants by alluring high gain/return of the complainants and acted as trickster by way of giving monthly interest in the first two investments. The complainants filed a list of suffered investors who faced the same fate at the dazzling flagship project of the OP which has never found the light of successful completion but the OP utilized the money of numerous confused investors. This is highly unfair trade practice continued by the OP. So, the complainants should be given relief.
In as much as the last two investments are concerned, it is fact that both of them have not yet got matured. So, apparently, it may mean that in those two cases, the OP is not deficient. But the fact remains that experiencing the deficiency in service of the OP in the first two investments, the complainants lost faith in the OP and out of anxiety of not getting the invested money, complainants appealed in the stated letters for returning of the invested money for the last two investments also. But in spite of the provision at para-4 of the certificates (customer ID nos.TC00159773 for maturity value of Rs 600000/- and TL00001579 for maturity value of Rs 300000/-) issued by C.S.JOLLY, Director of OP, for refunding the amounts with appreciable compensation, OP did not respond to the appeal of complainants. The rate of Interest designed by the OP in case of last two investments shows that for ID No. TC00159773, investment is doubled in 5 years i.e. rate of simple interest is 20 percent and for ID No. TL00001579, investment is doubled in 5 years 6 months meaning rate of simple interest is 18.18 percent. So, we can take such rates of interests for our calculations.
The complainants along with other co-suffers at the hands of OP ran from pillar to post and approached to the office of the C.A.Department for mediation of their grievances but in vain due to non-participation of OP.
Despite service of Summons none came from the side of the OPs to challenge or to controvert the case of the Complainants. The Evidence on Affidavit filed by the complainants remains unchallenged and uncontroverted. We find that OPs have collected money from the public at large and subsequently, utilized the same for their own benefit and ulterior gain. We think that the gesture on the part of the OPs is a dishonest and malafide one and the sole object of the OP is to extract and extort the money from the public at large. In absence of any
contrary or controverted material on record and as the Evidence on Affidavit filed by the Complainants remainsunchallenged and uncontroverted, we think that the OPs are guilty on deficiency of service and unfair trade practice as well.
Consequently, the case merits success
Hence,
ORDERED
That the instant case be and the same isallowed ex parte against the OP in terms of sec 13(2)(b)(ii) of the C. P. Act, 1986 as amended so far.
The OPis directed to refund Rs 700000/- (deposited in the first two investments) plus unpaid interest of Rs 48000/- with 9 percent interest on both the amounts w.e.f. 1st June, 2015 till realization and Rs.150,000/- with 18.18 percent simpleinterest from 20/03/2013(date of deposit) and Rs 300000/- with 20 percent simple interest from 30/01/2013 (date of deposit), till date of actual payment,within one month from the date of this order.
The OPis furtherdirected to pay an amount of Rs.20, 000/- to the Complainants for causing harassment, mental pain and agony and Rs 5000/- as litigation cost,within one month from the date of this order.
The OP is also directed to pay an amount of Rs.50, 000/- for indulging in unfair trade practice, to be deposited with this Forum within the said stipulated period.
Failure to comply with the order will entitle the complainants to put the order into execution under appropriate provisions of the C.P. Act.
Copy of the order be supplied to the parties as asked for.
