6.12.08

Sri. K. Gopalan, President

This is a complaint filed under Section 12 of the Consumer Protection Act for an order directing the opposite parties to refund Rs 3600/- with Rs 800/- as interest and postal charge

As per the averments of complainant he invested a sum of Rs 3,600/- with M/s. Goodway .Business Corporation Ltd through one of their agents by purchasing 100 points @ Rs 36 per point. Complainant was under the impression that M/s. Goodway Business Corporation Ltd will repay the said sum of Rs 3600/- with attractive interest thereon after 2 years. The opposite party issued him a registration certificate which undated. It was mentioned therein that he had been granted a wonderfull opportunity to earn. He was not made aware of the conditions in the registration certificate while accepting the investment. It it was mentioned while canvassing he would not have enrolled as a member. He prays for an order directing the opposite party to pay a sum of Rs 3600/- with prevailing rate of interest @ 11% offered by Bank which comes to Rs 800/- plus postal charges.

The opposite party No.1 filed version contending that the petitioner has invested Rs 3600/- with opposite party No.1 is false. The contention that he has purchased 100 points @ Rs 36/- per point through one of the agents is not correct. The company has not appointed any agent to do its business. Moreover the petitioner has not mentioned the name of the agent and what was his role in the business. The allegation in the complaint is a concocted story cooked for the purpose of a case. The complainant has joined and registered as a Business Promotor of the company. As a business promotor he had got registration to do multi level marketing business under the company. Moreover it is an on line business and the complainant joined in the company through on line after accepting the terms and conditions of the business. Obtaining a registration for doing multilevel marketing is not sufficient to get income from the company. To get income from the company the petitioner either market the products of the company to enroll new business promoters under him. As per the terms of the company, at least, he has to promote the business of the company by enrolling two or more business promoters under him or he has to market the products of the company directly. But he neither enrolled any business promotor nor marketed any product. Hence the opposite party is not liable to give any amount to the complainant. The averments in the complaint that the petitioner did not know the conditions of the company is false. The petitioner has joined in the company through on line, and hence he is bound by the rules and regulations of the company. The amount he paid to the company was only the registration fees and not the investment as claimed by the petitioner. Hence the complainant has no right to claim the profit of the company. Hence to dismiss the complaint.

2^nd opposite party was represented but no version filed. Subsequently opposite parties called absent and set exparte.

On the above pleadings the following issues were taken for consideration.

1. Whether there is any deficiency on the part of opposite party?

2. Whether the complainant is entitled for any relief as prayed in the complaint?

3. Relief and cost.

   The evidence consist of the oral testimony of PW1 and Exts. A1 & A2.

   Issues 1 to 3:

   The complainant adduced evidence in tune with the pleadings. Complainant deposed in the chief that he has deposited Rs 3600/-with the opposite party. Complainant says that he has purchased 100 points at the rate of 36 per point through one of the agent of Ist opposite party. Ext. A1 registration certificate proves that the complainant was a member of Good way Business Corporation. Ext. A1 certificate also reveals that he has paid Rs 3600/-. All the particulars of certificate is shown written under the sub title Free Membership ( 100 points). It is quite evident from Ext.A1 that opposite party no.1 issued registration certificate on receiving an amount of Rs 3600/-. The opposite party has contended that complainant became member of the company through on line. The main contention of the opposite party is that complainant had joined and registered as a business promotor of the company and the amount paid was only the registration fees and not the investment. It is shown in Ext. A1 Free Membership(100 points).This is a misleading sentence. There is every possibility to believe that the “100 points “ written on certificate stands represent the benefit one going to get in future. Ext. A1 is a misleading certificate and the opposite party issued this certificate to mislead and managed to obtain the amount from the complainant. Complainant has deposed that the opposite party has promised to give back the amount. But it is not given. Complainant , who is a man of 70 years could be easily mislead by the opposite party No.1 and extracted the amount. The Ext. A1 is only a worthless certificate good for nothing but only an instrument attractively used for this type of unfair trade practice. As per the version, the opposite party expected the complainant a senior citizen aged above 70 years either to market the product of the company or enroll new business promotors under him. The purpose of registering the name of the complainant as a promotor of the company is only to get the amount Rs 3600/-. A man of ordinary prudence cannot expect that a man of over 70 years will be able to act as a business promotor of a company. It is also interesting to note that if the complainant is not marketing the products of the company the next choice left open to him is to enroll new business promotors under him. These new business promotors will also make payments of deposit same as that of the complainant had done. So there is no difficult to understand how the complainant trapped into this circle. This chain action is the way by which the opposite party is managed to get complainant joined and registered as a business promotor of the company. This is a clear unfair trade practice. Thus we are of opinion that Ist opposite party is liable to refund the amount of Rs 3600/- with cost of this proceedings Rs 250/-. The issues 1 to 3 found in favour of complainant.

   In the result,the complaint is allowed directing the Ist opposite party to refund Rs 3600/-( Rupees three thousand six hundred only) together with Rs 250/-( Rupees two hundred and fifty only) as cost of this proceedings to the complainant within one month from the date of receiving this order, failing which the complainant is allowed to execute the order against the opposite party under the provisions of Consumer Protection Act.

   Sd/- Sd/- sd/-

MEMBER MEMBER PRESIDENT

APPENDIX

Exhibits for the complainant

A1.Copy of the registration certificate issued by OP dt.26.1.06

A2.Copy of the letter sent to OP etc. dt.28.2.08

Exhibits for the opposite parties: Nil

Witness examined for the complainant

PW1, Complainant

Witness examined for the opposite parties: Nil

/forwarded by order/

Senior Superintendent

Consumer Disputes Redressal Forum, Kannur