BEFORE THE III ADDITIONAL BANGALORE URBAN

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,

                                                                                       BENGALURU – 560 027.                              

DATED THIS THE 18^th DAY OF NOVEMBER, 2021

CONSUMER COMPLAINT NO. 532/2020

PRESENT:                                                          

Sri.C.V.Maragoor, B.com, LL.M.             ….      PRESIDENT

Smt.L.Mamatha, B.A., (Law), LL.B.….          MEMBER

COMPLAINANT

H.C. Leelavathi,

W/o H V Sreenivasa Murthy,

Aged about 72 years,

Residing at No.132, TF2,

Third Floor Sri Sai Comforts,

3^rd Main, 4^th Cross,

Kenchenahalli,

BHEL Layout, R.R. Nagar,

Bangalore-560098.

Rep. by its GPA Holder,

Sri. H V Sreenivasa Murthy

V/s

OPPOSITE PARTIES:

1. Kanva Star Resorts,

Corporate Office No.861,

Kanva Sri Sai Complex,

W.C.R. Road, 2^nd Stage,

Modi Hospital Road,

Basaveshwara Nagar,

Bangalore-560086.

Rep. by Authorised Signatory.

2. Sri N Nanjundaiah,

Managing Partner Registered Office,

No.361, 2^nd Floor, 19^th Main,

Adj to. Dincon Hospital,

Rajajinagar, Bangalore-560010.

3. Chief Operation Office,

Kanva Star Resorts,

Survey No.1/5 & 1/6,

Mariyanpalya,

Bangalore North Taluk,

Bangalore

   (Exparte)

BY SMT L. MAMATHA., MEMBER

******

//ORDER//

1. This complaint is filed under section 35 of Consumer Protection Act, 2019 against the opposite parties to refund of Rs.8,25,000/- and balance salary Rs.10,000/- per month from 01.09.2019 till 01.06.2020 and allowances of Rs.10,000/- per month till the disposal of case along with 18% interest for both balance amount and principle amount of Rs.8,25,000/- and direct the opposite parties to pay compensation of Rs.2,00,000/- for mental and physical agony and  also to pay Rs.1,00,000/- as compensation for deficiency in service.

2. The case of the complainant in brief as under:-

The complainant states that opposite parties are running business in the name and style of Kanva Souharda Co-operative Credit, Kanva Fashion Limited and Kanva Star Resorts.It has number of branches around Bangalore to collect deposits under monthly income schemes, like Kanva Suvarna Vidhi Scheme and Star Resort advance membership scheme.The above business was carried out at respective area office of Kanva Souharda Co-operative Credit office under different account heading.Complainant submitted that Kanva Star Resort’s representatives were distributing door to door printed pamphlets through its office bearers and staffs. In the complainant’s area in which they were published job opportunities part time, full time, holidays advisor, senior holiday advisor for gents, ladies, house wife, retired person can ear Rs.15,000/- to Rs.50,000/-.Based on this, the complainant has contacted Vijayanagar Branch and met senior officer who explained about Kanva group business on their infrastructure financial status etc. and also huge amount invested by the retired government officials and others in Kanva group were introduced.Opposite parties were informed that one can invest their money or can introduce their friends or relatives and earn commission. The Complainant and her husband have attended few meetings of investors held at Vijayanagar branch and heard motivational speech given by senior manager, general manager, other branch managers and some of the retired government officials who have invested in opposite parties group.

3. The Opposite parties have showed the offer to the complainant dated 08.07.2019 signed by Sri. Nanjundaiah, Managing Partner of opposite parties.  As per that offer if the holiday advisor makes business of depositing Rs.8,25,000/- within 31.07.2019, then he will be eligible for field allowances of Rs.10,000/- per month for a period five years subject to maintaining this business of Rs.8,25,000/- throughout the tenure of five years (i.e. 60 months).  Based on this, the complainant has invested Rs.8,25,000/- on 25.07.2019  by NEFT/RTGS through Vijaya Bank. The Opposite party states that advance membership deposit amount of Rs.8,25,000/- will be returned after five years if the member does not utilize any facilities in opposite parties resort during five years period.  Opposite parties issued receipt bearing no.604 in the name of Kanva Star Resorts dated 25.07.2019.  It is also mentioned in the receipt about holiday advisor code number as HA01258 and up to five years if the complainant not utilize the membership limits advance amount will be refundable without interest.  Opposite parties were also issued appointment letter making complainant as holiday advisor for investing of Rs.8,25,000/- worth of business towards Kanva Star Resorts membership and she will be eligible for Rs.10,000/- per month as field allowance for a period of next 60 months from 27.07.2019.  The Complainant got first month field allowance on August, 2019 but from October month onwards till this day field allowance has not credited or paid to the complainant.  Complainant enquired branch manager of opposite parties but opposite parties was informed that there will be slight delay due to slow recovery in collection and it will be regular from January, 2020.  But opposite parties were failed to comply with their assurance.  Due to this the complainant has suffered physically and mentally.  On 24.06.2020 complainant has sent notice but till date the opposite parties have not replied nor paid deposit amount.  Hence, this complaint.

4. Despite receipt of notice with copy of complaint, the opposite parties were failed to appear before this Commission hence, they have been placed exparte.

 5. In support of the complainant’s case the complainant Smt.H.C.Leelavathi has filed her affidavit by way of evidence and produced documents which are marked as Exs.P1 to P12.

6. We have heard the arguments of the complainant and the points that would arise for our determination are as under;

1. Whether the complainant proves deficiency of service on the part of opposite parties?
2. Whether the complainant is entitled to reliefs sought in the complaint?
3. What order? 

7. Our findings on the above points are as under:-

1. POINT NO.1  : In the affirmative
2. POINT NO.2  : In the partly affirmative
3. POINT NO.3   : As per the final order for

                       the following;

:REASONS:

8. POINT NO.1:- Even though the opposite parties has been placed exparte, it is the duty of this Commission to consider the case of the complainant on merits.

9. On perusing the pleadings along with documents produced by the complainant, it reveal that the opposite party no.1 registered office and opposite party no.2 is Managing Partner and opposite party no.3 is one of the branch office and they are running business in the name and style of Kanva Souharda Co-operative Credit, Kanva Fashion Limited and Kanva Star Resorts. The Opposite parties representative were distributing door to door printed pamphlets through their employees and published job opportunities part/full time holiday advisor/senior holiday advisor for gents, ladies, house wife, retired person who can earn Rs.15,000/- to Rs.50,000/- per month.  Opposite parties were informed the complainant that one can invest his own money or can introduce friends or relatives and earn commission.  Based on this, the complainant deposited Rs.8,25,000/- on 25.07.2019 through NEFT/RTGS.  Opposite parties informed that the complainant can get Rs.10,000/- as field allowances every month and deposit amount will be returned after five years if the member does not utilize any facilities in opposite parties resort during five years period.  To substantiate this fact, the complainant filed her affidavit.  In support of the sworn testimony, the complainant produced copies of printed pamphlets, copy of destination dated 08.07.2019, copy of customer acknowledgement, original receipts, original letter of opposite parties, copy of bank passbook and copy of the complainant’s letter.  By looking into these documents it clearly shows that the complainant has availed the service of opposite parties by depositing Rs.8,25,000/- on 25.07.2019.  The opposite parties were acknowledged the receipt for the said amount. As per the assurances the opposite parties shall pay Rs.10,000/- every month as field allowance to complainant and provide holiday packages to complainant.  But opposite parties have paid field allowance only for the month of August and September, 2019.  Till today opposite parties neither provided holiday package nor paid monthly field allowances.  So on 24.06.2020 the complainant has sent notice to opposite parties.  But opposite parties neither replied nor refunded the deposit amount or provided holiday packages.  The evidence of the complainant remains unchallenged.  Therefore, from the evidence available on record, it clearly goes to show that the opposite parties were neither paid monthly field allowances nor provided holiday package (resort facilities) services to the complainant.  If at all opposite parties were paid monthly field allowance, holiday packages or refunded deposit amount to the complainant, the opposite parties would have appeared and filed their version and evidence.  But opposite parties were failed to appear thereby, the opposite parties have impliedly deemed to have admitted all the allegations made against them in the complaint.

10. In this context, we may refer to the decision of Hon’ble National Commission reported in 2018(1) CPR Page No. 325(NC) in Kotak Mahindra Limited Old Prudential Life Insurance Limited v/s Dr. Nishi Gupta wherein it is held that non-filing of written version amounts to an admission of allegations made by the complainant in the consumer complaint.  The oral and documentary evidence produced by the complainant remained unchallenged and undisputed.  Therefore, there is no reason to disbelieve the evidence of the complainant.  Due to deficiency in service of opposite parties, the complainant has suffered mental agony and financial loss.  Inspite of repeated request, the opposite parties never bothered to fulfill the demand of the complainant.  This clearly shows that there is deficiency of service on the part of opposite parties.  Hence point no.1 is answered in the affirmative and infavour of the complainant.

11. POINT NO.2 and 3:- In view of the finding recorded on the point no.1 holding in affirmative, the next aspect is to be considered about the relief to which the complainant is entitled.

12. The complainant sought for refund of Rs.8,25,000/- and  balance salary of Rs.10,000/- per month from 01.09.2019 till 01.06.2020 and allowances of Rs.10,000/- per month till disposal of the case along with interest @ 18% for both balance and principal amount which claim is not fully justifiable.  It is proper to award refund of Rs.8,25,000/- along with interest @ 10% from the date of deposit (25.07.2019) till the date of realization and Rs.25,000/- as compensation for mental agony and Rs.5,000/- as cost of litigation to the complainant. The complainant is not entitled for field allowance since the opposite parties has not agreed to provide service or failed to provide service to the complainant.  On the contrary the complainant has not sought resorts service from the opposite parties.  

13. Accordingly, we answer point No. 2 and 3 in the partly affirmative and in favour of complainant and proceed to pass the following;

 ORDER  

         The complaint filed u/s 35 of Consumer Protection Act, 2019 by complainant against the opposite parties is allowed holding that there is deficiency in service on the part of opposite parties.

       The Opposite party no.1 to 3 are directed to refund Rs.8,25,000/- along with interest @ 10% per annum from the date of deposit (25.07.2019) till the date of realization.

       The Opposite parties are further directed to pay a sum of Rs.25,000/- to the complainant as compensation for causing mental agony and Rs.5,000/- as litigation cost.

       The opposite parties are directed to pay aforesaid amount within 30 days from this date otherwise, it carries interest @ 8% per annum from the date of complaint till realization.

       Supply free copy of this order to both the parties and return extra copies of the pleading and evidence to the parties.

 (Dictated to the Stenographer, typed by her, the transcript corrected, revised and then pronounced in the open Commission on 18^th day of November, 2021)                                            

1. (MAMATHA)       (C. V. MARAGOOR)
2. MEMBER              PRESIDENT

//ANNEXURE//

Witness examined for the complainants side:

• who being the complainant filed her affidavit.

Documents marked for the complainant side:

1. Original GPA dated 14.08.2020.
2. Copies of Printed Pamphlets of Kanva
   Resort (Two in Number).
3. Copy of destination dated 08.07.2019.
4. Original copy of customer acknowledgement dated 25.07.2019 (Bank of Baroda).
5. Original copy of receipt bearing no.604 dated 25.07.2019 of Kanva Star Resort.
6. Original letter dated 27.07.2019 by opposite part.
7. Xerox copy of Vijay Bank passbook of complainant.
8. Copy of Notice dated 24.06.2020.
9. Postal receipt (three in number).
10. Postal cover (three in number).
11. Copy of the complainant’s letter.
12. Copy of letter from Postal Department.

Witness examined for the opposite party side:                  

Exparte

Documents marked for the Opposite Parties side:

-NIL-

1.          (L. MAMATHA)            (C.V. MARAGOOR)

                       MEMBER                       PRESIDENT