KERALA STATE CONSUMER DISPUTES REDRESSAL COMMISSION

VAZHUTHACAUD, THIRUVANANTHAPURAM

APPEAL NO.213 /2007

JUDGMENT DATED: 06.02.2010

PRESENT:-

JUSTICE SHRI.K.R.UDAYABHANU               :         PRESIDENT

SHRI.M.K.ABDULLA SONA                             :         MEMBER

1.       The Integrated Finance Co.Ltd.,         

          Registered Office, “Vairams”,

          112, Thayagaraya Road, T.Nagar,                 :        APPELLANTS

          Chennai – 690 017.

2.       Integrated Finaice Co.Ltd.,

          Opp.Ammachiveedu, Temple,

 Kollam Collectorate, Kollam.

(By Adv.Sri.George T. Thechettu)

                      Vs

G.Koshy Paniker

Thekke Attathu Sujo Bhavan                                  :        RESPONDENT

Punnamukku,

Kundara

Kollam.       

(By Adv.Sri.G.K.Nampoothiri)

JUDGMENT

JUSTICE SHRI.K.R.UDAYABHANU      :         PRESIDENT

                   The appellants are the opposite parties in C.C.No.260/06 in the file of CDRF, Kollam.  The appellants are under orders to pay to the complainant a sum of Rs. 2,91,560/- towards the return of F.Ds and Rs.1,42,000 /- towards the value of bonds to the complainant with interest 9% per annum from the date of complaint and also to pay Rs.10,000/- towards  costs.

                    The case of the complainant is that he attracted by the advertisement of the opposite party/Finance Company deposited amounts in fixed deposits ie,

F.D.No.    Date of Deposit   Maturity date         Amount          Total amount

0157685       22.09.2001           22.09.2006    Rs.20,000/-          Rs.36,850/-

0157687       22.09.2001           22.09.2006    Rs.30,000/-          Rs.55,275/-

0157688       22.09.2001           22.09.2006    Rs.30,000/-          Rs.55,275/-

187744        13.09.2002           13.09.2007    Rs.40,000/-          Rs.72,080/-

178688        06.02.2002           06.02.2007    Rs.40,000/-          Rs.72,080/-

The amount of the above deposits on maturity to be paid is Rs.2,91,560/-.  He also deposited amounts in redeemable bonds in the company as noted below.

Total bonds  Certificate No.      Date of allotment   Date of redemption

32                         02793                   02.02.2001            01.02.2006

30                         02794                    02.02.2001            01.02.2006

20                         02796                    02.02.2001            01.02.2006

30                         02905                    02.02.2001            01.02.2006

30                         01908                    02.02.2001            01.02.2006

          The total value of the 142 bonds at the rate of Rs.1,000/- liable to be returned on the date of redemption ie,01.02.2006 is Rs.1,42,000/-.  Despite repeated demands the amounts were not paid.  He has sought for the return the above amounts ie Rs.4,33,560/- with interest and cost.

          The opposite party filed version admitting the deposits and purchase of bonds.  It is contended that unable to return the amount when all of the depositors applied for withdrawal at the same time they have filed an application before the Hon’ble High Court of Madras for approval of its scheme under Sec.319 of the Companies Act and that the same is pending.  Hence it is contended that the complaint is liable to be dismissed.

 The evidence adduced consisted of the testimony of PW1 the complainant and DW1 the Power of Attorney holder of the opposite party and Exts.P1 to P10 and D1 to D3.

The complainant has produced the copies of the FD receipts and redeemable bonds vide Exts.P1 to P9.

The opposite party have produced the orders passed the Madras High Court in Company petition No.654 of 2005.  It was admitted that the Division Bench of the High Court of Madras has dismissed the application for the sanction of the scheme.  The counsel for the appellant has contended that the matter is pending before the Supreme Court and that it will be taken up soon.  However, the appellant has not produced any order of the Supreme Court staying operation of proceedings initiated at the instance of the deposits and bond holders.  In the circumstances and in view of the fact that the receipt of depositors and issuance of bonds stands admitted we find that the appellants are liable to pay the amounts.  Hence the order of the Forum directing to pay the amounts with interest at 9% per annum from the date of the complaint is only to be upheld.  All the same, amount of costs ordered ie, Rs.10,000/- is reduced to Rs.5,000/-. With the above modification the order of the Forum is confirmed.  The appellants are directed to pay the amounts to the complainant within 4 months without failing which the complaint would be entitled for interest at 12%  per annum from today.

In the result, the appeal is allowed in part as above.

JUSTICE K.R.UDAYABHANU                :         PRESIDENT

M.K.ABDULLA SONA                             :         MEMBER

Kb.