BEFORE THE ADDITIONAL BENCH DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT MYSURU.
Consumer Complaint (C.C.)No. 1441/2016
Complaint filed on 24.08.2016
Date of Judgement.28.06.2018
PRESENT : 1. Shri Ramachandra M.S., B.A., LL.B.,
PRESIDENT
2. Shri Thammanna,Y.S., B.Sc., LL.B.,
MEMBER
Complainant/s : 1. Smt. A.S. Bramarambha,
W/o Late Mahadev
Aged about 65 years,
R/at No. 82/A,
East of BED College,
1st Cross, Kamakshi Hospital Road,
Saraswathipuram,
Mysore.
(Sri. G.B. Shivaraja Gowda., Advocate)
V/s
Opponent /s : 1. M/s Chanakya Finance
Corporation(R).
No. 381, 1st Floor, 2nd cross,
Benki Nawab Street,
Mandi Mohalla ,
Mysore,
Represented by its Managing Parter;
Sri. A.L. Nanjundaraje Urs,
S/o Late Lingaraje Urs,
Aged about 60 years,
R/at No. 725/O, 2nd cross,
Vishwamanava Double Road,
Kuvempunagar,
Mysore.
2. Sri. M.K. Biddappa
S/o M.K. Kariyappa
Aged about 53 years
R/at No. 20, K. Badaga Village,
FNC College, Post,
Madikeri -571201.
3. Smt. Leelavathi
W/o M.Shivanna
Aged about 61 years
R/at No. 453, 1st cross,
1st stage, Gayathripuram,
Mysuru-570019.
4. Smt..Nagarathna
W/o R. Srinivas,
Aged about 57 years
R/at No. 834, 1st cross,
Kamatageri, Mandi Mohall,
Mysuru.
5. Smt. H.N. Dakshayani
W/o R. Ramesh,
Aged about 54 years
R/at No. 834, 1st cross,
Kamatageri, Mandi Mohall,
Mysuru.
6. Sri. Jayaprakash
S/o Late Appavoo Pillai,
Aged about 63 years
R/at No. 3047, 1st cross,
1st stage,Gokulam,
Mysuru-570002.
7. Smt. Lalitha
W/o T.V. Venkataramu,
Aged about 61 years
R/at No. 3, Gokulam,
4th stage, Manjunathapura,
Mysuru.
8. Sri A.M. Monappa
S/o A.P. Mandappa,
Aged about 55 years
R/at No. 20/41 , Near Health Office,
Madikeri.
( OP Nos. 1,3 to 8 Exparte and OP No.2 deleted)
Nature of complaint | : | Deficiency in service |
Date of filing of complainant | : | 24.08.2016 |
Date of Issue notice | : | 19.10.2016 |
Date of Order | : | 28.06.2018 |
Duration of proceeding | : | 1 year 10 month 4 days |
SHRI RAMACHANDRA . M.S.,
PRESIDENT
JUDGEMENT
The complainant filed the complaint under section 12 of the C.P.Act 1986, against the opposite parties seeking a direction to refund the fixed deposit total amount of Rs. 4,05,000/- along with 12% interest per annum on the FD from the date of investment to till the date of realization and to pay compensation and costs etc.,
2. That the complainant submits that, the complainant is the person who has deposited the amounts with the opposite party no.1 on the basis of chanakya Finance Corporation’s promise of payment of attractive rates of interest and prompt repayment of the principle amount and interest thereon either after maturity or otherwise.
3. The complainant submits that, the opposite party is the firm registered under the provisions of the Indian Partnership Act and it is managed by opposite parties. The respondent no.2 to 9 are the partners of the said finance corporation.
4. The complainant submits that on 27.08.2009 have deposited a sum of Rs. 1,00,000/- on 26.11.2009 have deposited a sum of Rs. 2,00,000/- in total the complainant have deposited a sum of Rs. 3,00,000/- at the rate of 12% per annum, with the opposite party. That the CFC for having accepted the receipt of the deposit, and has passed the Fixed deposit receipt bearing LF No. 60/29 and 385/29 with opposite party by in incorporating therein the particulars and terms of the deposit accepted. That all the FD receipt has been renewed by the opposite party time to time.
5. The firm, opposite party no.1 having complied with the requisite formalities has been carrying on the business of Financial Activities of lending and borrowing money besides accepting deposits, assuring to the depositor for the prompt re payment of the deposited amount, whether before or after the date of maturity of the same, and assuring to the depositors the service of interest thereon at the regular intervals (Monthly, quarterly, half yearly and yearly as the case may be) the complainant stated that in the process, the consideration for arrangement consists of the fact that the firm CFC is enabled to use the funds deposited with it for the purpose of its business.
6. Thereafter, the complainant states that the nature of the transaction described supra pregnant with it the comprehension of transaction, namely providing service for consideration, and that, as such the complainant answers the description or definition of consumer, in clear terms, as defined under the provisions of consumer protection act.
7. The complainant states that as per the terms of the deposit, the CFC has been under obligation to pay the interest to the complainant at the rate of 12% per annum on the deposited amount that the CFC has been under the obligation to repay the deposited amount with interest accrued thereon whenever the repayment is claimed or demanded whether the repayment is sought before or after maturity of the same.
8. The complainant submits that the CFC has not paid interest from November 2013 at the rate of 12% at monthly rents. That, in fact, thereafter, n spite of repeated requests and the demands made personally and over the phone, the CFC has not paid any amount either towards the principle or towards the interest accrued as due thereon. That inspite of the demand made by the complainant the opposite parties have neither repaid said deposited amount with interest nor taken any steps to repay the said amount.
9. The complainant submits that, after the date of demand made, the CFC had been and has been under obligation to make repayment of the interest accrued thereon on the date when the demand is made.
10. Thereafter, the complainant submits that the CFC has committed default both in making repayment of the amount deposited as well as in making payment of the interest accrued thereon; that, by taking shelter under the plea that both CFC and the partners do not have sufficient liquidity to refund the fixed deposit, the CFC and is partners have been on one pretext or the other, postponing the compliance of the demand made. Hence this complaint.
11. The complainant submits that, the CFC has utterly failed to render service to the complainant/depositor or the investor in the manner prescribed and accepted and a promised and under taken with respect to both repayments of the deposited amount and with regard to the payment of interest accrued thereon. Therefore, the complainant submits that, the default committed by the CFC its managing partner and partners has resulted in the deficiency in service. Hence this complaint.
12. Notice to the opposite party duly served opposite party no.1,3 to 8 placed exparte , opposite party no.2 is deleted
13. The complainant filed chief examination affidavit and documents produced, in support of his contention, arguments heard, and reserve for orders.
14. The points arose for out consideration are:-
- Whether the claim is barred by limitation ?
- Whether the complainant establishes that there is deficiency in service on the part of opposite party by not refunding the FD amount to the complainant and thereby he is entitled for the reliefs?
- What order?
15. Our findings on the aforesaid points are as follows;
Point No.1 In the negative
Point No. 2: In the affirmative
Point No.3: As per the final order for the following:
REASONS
16. Point no:1:- The point of limitation is not applicable to this complaint. For the reason that the cause of action in this complaint is “Continuing cause of action ” as long as opposite party repay the FD amount. This principles is laid down by the Hon’ble National Commission and also apex court of India in its judgments. When such being the case the complaint is filed well within limitation period. Hence point no.1 is answered in the negative.
17. Point no.2:- The complainant relied upon the documents in support of his case FD receipt issued by opposite party firm has been placed on record. The two FD receipt nos. 685, 024, confirms that the complainant had deposited totally amount of Rs. 3,00,000/- with opposite party firm. Further the FD receipt got matured subsequently. As such the opposite party firm is liable to honour the FD receipt and to pay the accrued interest till date to the complainant. In spite of issue of the notice demanding to pay the FD receipt amount with accrued interest opposite party has neither complied nor replied. This clearly shows the deficiency on the part of opposite parties. Therefore, the complainant entitled for the FD receipt amount along with agreed interest at the rate of 12% p.a. Further, the complainant is entitled for compensation for the mental agony, hardship and inconvenience caused by opposite parties. Hence point no 2 is answered in the affirmative.
18. Point no.3:- From the above discussion we hereby proceed to pass the following :-
ORDER
- The complaint is hereby allowed in part.
- The opposite parties are jointly and severally liable to pay the two FD receipts amount totally of Rs. 3,00,000/- to the complainant, along with interest at the rate of 12% p.a from 05.11.2013 to till the date of payment. within 60 days of this order
- The opposite parties are jointly and severally liable to pay Rs. 5,000/- towards compensation for the mental agony, hardship caused and Rs. 3,000/- towards deficiency in service and Rs.3,000/- towards costs of the proceedings, to the complainant, within 60 days of this order.
- In default to comply the opposite party shall pay interest at 12% p.a. on the said total sum of Rs. 11,000/- from the date of this order till payment.
- In case of default to comply this order, the opposite party shallundergo imprisonment and also liable for fine under section 27 of
the CP Act, 1986.
- Give copies of this order to the parties as per rules.
((Dictated to the stenographer transcribed, typed by her, transcript corrected by us and then pronounced in open court on the 28th JUNE 2018)
Shri Thammanna Y.S., Shri Ramachandra M.S.,
Member. President.
