Date of Filing : 02.09.2020

Date of Disposal:19.07.2021

BEFORE THE KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BENGALURU (PRINCIPAL BENCH)

DATED:19^th JULY 2021

PRESENT

HON’BLE Mr JUSTICE HULUVADI GRAMESH : PRESIDENT

Mr KRISHNAMURTHY B. SANGANNANAVAR: JUDICIAL MEMBER

Mrs DIVYASHREE M:LADY MEMBER

APPEAL No 537/2020

1.  Shri Sadashiv

    S/o Shri Ratnappa Karajagi

    Aged about 80 years

    Occ: Agriculturist

    R/at Sadashiv Nagar

    Belgavi-590 001

2. Shri Vishwanath

    S/o Shri Sadashiv

    Aged about 40 years

    Occ: Agriculturist

    R/at Sadashiv Nagar

    Belgavi- 590 001                                                        Appellants 
    (By Dr J S Halashetti)

                                           -Versus-

1. Shri Kallappa

    S/o Shri Ningappa Sooji,

    Aged :82 Years,

    Occ:Agriculturist,

    R/o Nidashoshi Village-581 236,

    Tq:Hukkeri, Dist:Belagavi.

2. Smt Muragevva

    W/o Shri Basavaraj Sooji,

    Aged :30 Years, Occ: Housewife,

    R/o Nidasoshi Village, -581 236

    Tq: Hukkeri,

    Dist:Belagavi.                                                         Respondents

:ORDER:

Mr JUSTICE HULUVADI G RAMESH : PRESIDENT

1.       This is an Appeal filed under Section 41 of Consumer Protection Act 2019 by against the Order dated 03.01.2020 passed in Consumer Complaint No.2031/2019 by District Consumer Disputes Redressal Commission, Belagavi.

2.       The facts in brief in the Complaint are that the Complainants have invested their money with the OP Society as detailed below:

as they were in need of money, approached the OPs and personally requested the OPs for refund of the proceeds in the matured FDRs & the premature FDR amount with interest, but the OPs on one or other pretext postponed the same and committed deficiency in service.  It is alleged by the Complainants that they deposited the amount based on the advice of OP’s staff and on a good hope & belief on the Chairman and all Board of Directors of the Society.  OPs have received huge amounts not only from them but also from various other public at large and promised that after maturity they will pay amount with interest, but not acted as promised.  Hence, they got issued demand notice on 26.07.2019 to OPs calling upon to release the FD amount with agreed Rate of Interest. Inspite of service of notice, OPs neither replied nor complied with the demands made therein.  Therefore, alleging deficiency in service lodged the present Complaint, seeking direction to the OPs for return of FD amounts with interest.

On service of Notice, OPs remained absent and as such they are placed ex-parte.

3.       The District Commission on hearing the arguments of the Complainants and by considering the Pleadings &Evidences led in by the Complainants, deemed it fit to allow the Complaint in part, directing the OPs to return the matured FD amounts with interest@ 9% p.a from the date of maturity till realisation and the proceeds of the FD where pre-matured claim has been lodged, within 60 days from the date of the Order with cost of Rs.3,000/-

4.       Aggrieved by the said Order, OP Nos.9 and 13 are in Appeal  seeking to set aside the Impugned Order by allowing the Appeal.

5.       Heard the Learned Counsel for the Appellants.

6.       The Learned Counsel for the Appellants submitted that the Appellants had resigned from the post of Directors of the Society way back in the year 2014itself and as on the date of passing the Impugned Order and that they were no more Directors of the Society and this being the case, no liability can be fastened on the Appellants. Further he submits that, in the Complaint no allegation of fraud was made against the Appellants, hence, they are not liable to pay any amount as they were not knowing about the proceedings in the Complaint as they have not received any Notice and as such they were placed ex-parte.

7.  It is observed from the records that the Complainants have invested their hard money on different dates with the OPs Society by way of Fixed Deposit Receipt and when they were in need of money, approached the OPs for release the proceeds of the Matured & pre matured claimed amount is not in dispute, as the OPs went on postponing the return of money on or the other pretext.  The District Commission after holding an enquiry, passed the Impugned Order directing that the OPs are jointly & severally liable to return the proceeds of the FDRs with interest.  In the facts & circumstances of the case, it is noticed that the Directors have neither withdrew any amount deposited by the Depositors in the Society nor played any fraud.  In other words, as the Appellants have already resigned from their respective post of Directors of the Society and deposited amount are in the custody of the Society, for any reason, the Society only is responsible for the same.  In this context, the Impugned Order passed against the Appellants/OP 9 & 13 is not proper, as they were in no way concerned with the present case.  To this extent, the liability fastened against OPs 9 & 13 is interfered with, by modifying the Impugned Order. Further issuance of Notice to the Respondents is with dispensed with.  Hence, the following

O R D E R

          Appeal is allowed in part and consequently the Impugned Order dated 03.01.2020 passed in Consumer Complaint No.2031/2019 by the District Consumer Disputes Redressal Commission, Belagavi is hereby modified, directing the other OPs to return the proceeds of the respective FD Receipt amounts with interest @ 9% interest p.a from the date of maturity in respect of FDRs listed at Sl Nos 1 to 7 in Para 2 above and pre-matured payment in respect of FDR listed at Sl No 8 of Para 2 above, till realisation with cost of Rs.3,000/- to the Complainants, within one month from the date of receipt of this Order and the Complaint against OPs 3 & 9 is hereby Dismissed.

The parties to the Appeal are directed to bear their own costs.

The amount in deposit is ordered to be transfer to the District Commission for disbursement to OP3 and 9.

Send a copy of this Order to the District Commission as well as to the parties concerned, immediately

Lady Member                    Judicial Member                President

*s