Sri.G.V.Balasubramanya,<br /> Member<br /> <br /> 1. The Complainants have come up with this Complaint under section 12 of the Consumer Protection Act, 1986 with his grievance that the opponent is a society registered under the Co-operative Societies Act, that he had invested a total sum of Rs.3,70,000/- in fixed deposits during various periods as under:-<br /> FDR No. Amount Date of Deposit Date of Maturity Rate of Interest<br /> 718/104/3 20,000 14.09.2006 14.10.2007 8%<br /> 655/38/3 1,50,000 19.06.2004 19.01.2009 12%<br /> 656/36/3 2,00,000 19.06.2004 19.01.2009 12%<br /> <br /> The interest on the deposits was being transferred to the Savings Bank Accounts maintained by the 1st complainant. Although the Opposite parties paid the interest promptly during the first year, they started defaulting the payment. The complainants worried at the prospect of losing their retirement benefits deposited with the Opposite party, sought to withdraw the fixed deposit amount prematurely, but the opponents turned a deaf ear. Thereafter, they got a legal notice issued on 16.03.2006, but the opponents did not respond. The complainants alleging deficiency in service by the Opposite parties in not refunding the fixed deposit amounts of Rs.3,70,000/-, have prayed for ordering refund of fixed deposits with accrued interest and to award suitable compensation. <br /> 2. The opponents have filed a common version admitting investment of money by the Complainant and issue of fixed deposit receipts to them. They have stated that they have paid interest till January, 2007. They have, further, admitted that the complainants have sought premature withdrawal of the deposits. They have further contended that an enquiry under section 64 of the Karnataka Co-operative Societies Act was in progress AND until that enquiry is completed they are not able to pay. <br /> 3. From the above contentions, following points for determination arise.<br /> 1. Whether the Complainant proves that there is deficiency in service of the opponents?<br /> 2. To what relief the Complainant is entitled?<br /> 4. Heard both sides and perused the records. Our findings are as under:-<br /> Point no.1 : In the Affirmative.<br /> Point no.2 : See the final order.<br /> <br /> REASONS<br /> <br /> 5. Point no. 1:- As could be gathered from the version and the affidavit evidence filed by the opponents, they have not denied investment of Rs.3,70,000/- by the Complainants with them in fixed deposits, nor have they denied that the complainants sought premature withdrawal. The opponents have also not disputed that they have not paid the amounts under fixed deposits. Therefore, the only question that needs to be answered is whether it amounts to deficiency?<br /> 6. The opponents have not denied their liability to pay the maturity value of the fixed deposit receipts amounting to Rs.3,70,000/-. They have taken shelter that an enquiry under section 64 of Karnataka Co-operative Societies Act was in progress and hence they cannot pay any amount. They have, also, contended rather weakly that premature withdrawal will result in reduction of interest on the deposits. <br /> 7. The enquiry contemplated under section 64 of the Societies Act has nothing to do with the claim of the Complainants and is not a bar for settling the claim of the Complainants. That enquiry contemplated is only with regard to the internal affairs or management of the society and therefore, in our view is not a bar. Therefore, the opponents have not come up with any sustainable objection for the claim of the Complainants. So far as payment of interest is concerned it is seen from the ledger extract of the complainants’ account that interest has been credited upto February, 2007. Hence, the Opposite party is liable to pay interest that falls due after February, 2007 until the date of repayment of principal amount. Therefore, under these circumstances, we hold that there is deficiency in the service of opponents in not allowing premature withdrawal of the fixed deposits. In the result, we answer point no.1 in the affirmative and pass the following order:- <br /> ORDER<br /> <br /> 1. The Complaint is allowed.<br /> 2. The opponents are jointly and severally are held liable to repay the complainants fixed deposits amounting to Rs.3,70,000/- subject to rules governing premature withdrawals. The repayment shall be made within 2 months failing which the principal amount of Rs.3,70,000/- shall be payable at the agreed rate of interest until the date of payment.<br /> 3. The opponents shall also pay compensation of Rs.3,000/- to the Complainant with the cost of this Complaint quantifying to Rs.1,000/-.<br /> 4. Give a copy of this order to each party according to Rules.<br />