Order-21.
Date-18/07/2016.
This is an application u/s.12(1)(a) of the C.P. Act, 1986.
The case of the complainant, in short, is that he invested a sum of Rs.1 lakh in Flexi Potato Purchase Bond vide Serial No.40210 issued by the OP company on 10-09-2012 vide policy No.B1110047361. The promise of return of the investment was to be 1.2 times to double (including principal) on or about 09-09-2013 on the bond as per terms and conditions of the total final return should have been Rs.1,20,000/- on the bond. After lapse of stipulated period the complainant approached the OP Company for the refund of its matured value but in vain. The OPs had a sitting with the agents of the OPs in respect of the refund. But the OP company did not pay any amount as per resolution of said sitting. The complainant repeatedly approached the OP Company by letter requesting to pay the matured amount but the company is maintaining stony silence. Hence, this case.
On the other hand, OPs have contested the case by filing written objection contending inter alia, that the OP has no intention to grab the invested money and is always willing to refund the money after maturity date but unfortunately SEBI passed an order dated 09-07-2013 to the effect that the OPs be restrained from accessing the securities market and they have been prohibited from buying, selling and otherwise dealing in the securities market and SEBI already feezed the account of the OP. The OPs are, therefore, unable to refund the matured value to the complainant. It is also alleged that the complainant cannot be treated as a consumer because he purchased the flexi potato bond under the SEBI Act. OPs have prayed for dismissal of the case.
Point for Decision
- Whether the OP practiced unfair trade upon the complainant and public at large?
- Whether the complainant is entitled to get the relief as prayed for?
Decision with Reasons
We have perused the pleadings of the parties and the documents lying on record. It appears that the complainant has purchased potato bond of Rs.1 lakh from the OPs in respect of Flexi Potato Purchase on 10-09-2012. As per the said bond the total purchase price was Rs.1 lakh and the date of sale was 09-09-2013 and the return on investment value was Rs.1,20,000/- (inclusive principal). We have perused the copy of Flexi Potato Purchase Bond, money receipts, proceeding of the meeting dated 13-07-2013 between the parties regarding the payment of matured value. But we find that OPs have failed and neglected to repay the final return within the stipulated period. It is also admitted by the OPs that the return on investment value was Rs.1,20,000/-. It is argued from the side of the OPs that SEBI freezed the account of the OPs. So, the OPs are unable to refund the maturity value to the complainant. We are afraid we cannot accept such argument because a person or organization is always bound by the law of the land. If somebody commits a crime or forgery or fraud he must face the consequences. Bond is not Share. The complainant has prayed for redressal against the OP-financial organization and we think that the case is governed under the definition of ‘service’ as envisaged under C.P. Act. Moreover, Section 3 of the C.P. Act empowers this Court to entertain this case. We think OP Company has committed unfair trade practice upon the complainant and public at large. Obviously, they are also guilty of deficiency of service.
In result, the case succeeds.
Hence,
Ordered
That the instant case be and the same is allowed on contest against the OPs.
OPs are hereby directed jointly and severally to pay maturity value amounting to Rs.1,20,000/- with due post maturity interest at the rate of9 percent p.a. along with litigation cost of Rs.10,000/- till the final payment within one month from the date of this order.
OPs are further directed to pay compensation of Rs.30,000/- to the complainant for causing harassment and mental agony within the stipulated period of time.
OPs are also directed to pay an amount of Rs.30,000/- (inclusive of Rs.1,000/- for adjournment cost, not paid) for practising unfair trade to be paid to this Forum within the said period.
In case of non-compliance of the order complainant will be at liberty to put the decree into execution and in that case OPs have to pay penalty at the rate ofRs.100/- per diem till full and final satisfaction of the decree.
