FILED ON: 27.10.2009<br /> DISPOED ON: 08.01.2010 <br /> BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE (URBAN)<br /> <br /> 8th JANUARY 2009<br /> <br /> PRESENT :- SRI. B. S. REDDY PRESIDENT<br /> SMT. M. YASHODHAMMA MEMBER <br /> SRI. A. MUNIYAPPA MEMBER <br /> <br /> COMPLAINT No.2514/2009<br /> <br /> <br /> COMPLAINANT<br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> OPPOSITE PARTIES<br /> <br /> <br /> <br /> <br /> S. Shivkumar,<br /> S/o Sri Srikantaiah,<br /> Aged about 42 years,<br /> # 362, Ananda Marga,<br /> Opp: Post Office,<br /> Siddartha Nagar,<br /> Mysore - 570 011.<br /> <br /> <br /> V/s.<br /> <br /> <br /> 1. Green Country Agro <br /> Foods Ltd.,<br /> No.346, 3rd Floor,<br /> Manandi Court, 27th Cross,<br /> 3rd Block, Jayanagar,<br /> Bangalore – 560 011. <br /> <br /> 2. The Manager,<br /> The National Co-operative <br /> Bank Ltd.,<br /> A.D. Halli Branch, <br /> No.82/2, 1st ‘A’ Main, <br /> M.C. Layout, Vijayanagar,<br /> Bangalore – 560 040.<br /> <br /> <br /> <br /> <br /> <br /> O R D E R<br /> <br /> SRI. B.S. REDDY, PRESIDENT<br /> <br /> The complainant filed this complaint under Section 12 of the CP Act 1986, seeking direction against opposite party No.2 (herein after called as O.P) to pay the maturity value of the FDRs to the tune of Rs.75,479/- with future interest and litigation cost of Rs.5,000/- on the allegations of deficiency in service on the part of the OP-2. <br /> <br /> 2. In the complaint it is stated that the complainant invested sum of Rs.1,20,000/- and Rs.30,000/- total Rs.1,50,000/- in Green Country Agro Foods Ltd., i.e., OP-1 as an investment in the year 1999. For the same OP-1 has given two Yogakshema Nidhi Certificates through National Co-operative Bank Ltd., i.e., OP-2 as a partial security to his investment. The maturity value of certificate No.007306 is Rs.60,383/- as on 01.07.2009 and the maturity value of certificate No.007442 is Rs.15,096/- as on 07.09.2009. OP-1 failed to pay the monthly interest due; then complainant approached OP-1 to take back his investment, but the company was not able to pay the investment amount due to financial crises. Ultimately the company OP-1 was closed OP-1 authorized the complainant to get partial of his investment through Yogakshema Nidhi Certificates given to him after 10 years on the maturity date. Complainant approached OP-2 by surrendering original Yogakshema Nidhi Certificates and authorization letter from OP-1; OP-2 was not ready to pay the money stating that they are not able to pay to the complainant. Hence the complainant felt deficiency in service on the part of OP-2 in to not paying maturity value of the FDRs; filed this complaint seeking necessary reliefs. <br /> <br /> 3. Complainant filed memo to pass orders only against OP-2 as OP-1 is winded up. <br /> <br /> 4. On appearance, OP-2 filed the version contending that OP-1 has invested the alleged sum of Rs.16,800/- and Rs.4,200/- with it to yield benefits and OP-2 has issued Yogakshema Nidhi Certificates to OP-1. OP-1 has closed its business and winded up without giving any authorization to OP-2. The customers of OP-1 started approaching OP-2 for the matured amount invested by OP-1; OP-2 in order to safeguard its interest suggested the parties to obtain appropriate Court order against the OP-1 and to obtain authorization with original FDR. It is stated that complainant is not Consumer to OP-2 as such there is no transaction between the parties. FDR is not a negotiable instrument; the obligation of repayment / payment of matured amount by the OP-2 to complaint will not arise. The complaint is not maintainable; the question of deficiency in service will not arise. OP-2 is ready to pay the matured amount subject to the terms that no objection letter from OP-1 for the latest date, submission of original FDR and authority letter. OP-2 has to follow TDS provision on FD as per Income Tax Act, interest will be paid as per the present banking practice / norms at 3.5% only from the date of maturity of deposit, hence it is prayed to dismiss the complaint. <br /> <br /> 4. The complainant filed affidavit to substantiate the complaint averments and produced documents. <br /> <br /> 5. After perusing the complaint averments and affidavit evidence of the complainant; the documents produced, it becomes clear that the complainant had invested a sum of Rs.1,50,000/- in OP-1 Green Country Agro Foods Ltd., in the year 1999. As a partial security for the said investment OP-1 has given two numbers Yogakshema Nidhi Certificate No.007306 the maturity value of Rs.60,383/- maturity date on 01.07.2009 and Yogakshema Nidhi Certificate bearing No.007442 the maturity value of Rs.15,096/- as on 07.09.2009. OP-1 is already closed and the same has been winded up as submitted by the complainant. The authority letter has been issued by OP-1 authorising OP-2 to pay the proceeds of the maturity value of both FDRs to the complainant after maturity date. After the maturity date the complainant produced the authority with FDRs but OP-2 has not obliged to pay the proceeds of the FDRs. On account of the same complainant approached this Forum. The authority letters of OP-1 authorizes OP-2 to pay proceeds of the FDRs to the complainant and the FDRs are also duly discharged by OP-1 with a direction to OP-2 to pay the proceeds of the maturity value to the complainant after maturity date. Therefore we are of the view that in view of authority letter issued by OP-1 with duly discharged FDRs presented for payment of the proceeds; OP-2 was not justified in refusing to pay the amount to the complainant. OP-2 is entitled to deduct the Income Tax following TDS provisions on FDRs. Accordingly we proceed to pass the following: <br /> <br /> O R D E R<br /> <br /> The complaint filed by the complainant is allowed. OP-2 is directed to pay the maturity value of Yogakshema Nidhi Certificate No.007442 A.C. No.516/99 and Yogakshema Nidhi Certificate No.007306 A.C. No.380/99 to the complainant on his production of original FD receipts and authority letter by following TDS provisions on FD as per Income Tax Act with interest at 3.5% p.a. from the next day of the respective maturity dates of the FDRs till realization within 4 weeks from the date of communication of this order. In view of the nature of dispute no order as to costs.<br /> <br /> (Dictated to the Stenographer and typed in the computer and transcribed by him, verified and corrected, and then pronounced in the Open Court by us on this the 8th day of January 2010.) <br /> <br /> <br /> MEMBER MEMBER PRESIDENT<br /> <br /> Snm: <br />