IN THE CONSUMER DISPUTES REDRESSAL COMMISSION, ALAPPUZHA
Tuesday the 28thday of December, 2021.
Filed on 06.11.2020
Present
- Sri.S.Santhosh Kumar. BSc.,LL.B (President )
- Smt. C.K.Lekhamma .B.A, LLB (Member)
In
CC/No.285/2020
between
Complainants:- Opposite parties:-
1. Sri.P.N Balakrishnan 1. Kerala Housing Finance Ltd
S/o Neelakandan 2nd Floor, Pan African Plaza
Krishnavilasam M.G.Road, Trivandrum-695001
Bharanikkavu North
Kattanam Village, Mavelikkara 2. G.Unnikrishnan Nair
S/o GovindaPillai,
2. Smt.Usha Balakrishnan Managing Director
W/o Balakrishnan Kerala Housing Finance Ltd.
-do- -do- 2nd Floor, Pan African Plaza
(Adv. Stephan. J.Daniel) M.G.Road, Trivandrum-695001
3. SureshkumarGanadharanPillai
Director, Kerala Housing Finance
Ltd, 2nd Floor, Pan African Plaza
M.G.Road, Trivandrum-695001
4. PazhoorParameswaran, Director
Kerala Housing Finance Ltd
2nd Floor, Pan African Plaza
M.G.Road, Trivandrum-695001
5. Krishnan Nair Narayanan Pillai
Director,Kerala Housing Finance
Ltd. 2nd Floor, Pan African Plaza
M.G.Road Trivandrum-695001
6. Branch Manager
Kerala Housing Finance Ltd.
Naha Building ,Medamukku
Kayamkulam
O R D E R
C.K.LEKHAMMA(MEMBER)
Brief facts of the complainant’s case are as follows:-
The first complainant is the husband of the 2nd complainant.
The first opposite party is a service provider in the field of finance and the other opposite parties 2 to 5 are its managing director and directors. The complainant purchased 500 fully paid up secured redeemable bonds of Rs.1,000/- each from the opposite party and they issued bond certificate on 27.07.15 with maturity period on 27.01.21 with option for redemption at any time after 6 months with interest at the assured rate of 13% per annum.
In exercise of the option for early redemption after 6 months on 27.06.2019 the complainants had demanded the amount covered by the bonds certificate with accrued interest @ 13% per annum but the opposite parties had not cared to honour their commitment nor did they make any attempt to pay the amount ie, redemption value as on that date as demanded by the complainants the said act of opposite party amounts to deficiency of service. The assurance made by the opposite parties at the time of transactions appears to be a false representation intended to cheat the customers and loot money from them is nothing short of an unfair trade practice from the part of them. The complainants had suffered loss on account of such unfair trade practice. The opposite parties were not cared to pay the redemption value as demanded by the complainants, the complainants made suffered acute mental agony on that count. Complainant is entitled to get compensation from the opposite parties. The opposite parties are liable to pay Rs.5,00,000/- (Five lakhs) covered by the 500 fully paid up secured redeemable bond of Rs.1,000/- as certified in the bond certificate issued by the company on 27.07.15 with accrued interest @ 13 % per annum from 27.7.15 till payment of the amount.
The opposite parties failed to pay the said demands made by the complainants, the complainants had caused to send lawyers notice to the opposite party on 24.09.19. The opposite parties were evaded from receiving the notice hence all those notices were returned as unserved. Hence the complainants approached this Commission for following reliefs sought against the opposite parties.
- To direct the opposite parties to pay the redemption value of the 500 fully paid up secured redeemable bonds having face value of Rs.1000/- each covered by bond certificate issued by the company on 27.7.15 to the complainants with the assured 13 % interest from 27.7.15 till payment.
- To award Rs.50,000/- towards damages for mental agony.
- To award Rs.10,000/- towards cost of the proceedings.
2. The following points raised for consideration are that:-
1. Whether the complainant is entitled to get the relief sought for?
2. Relief and cost if any?
3. The 1st complainant filed chief affidavit along with 4 documents and those were marked as Ext.A1 to A4. The opposite parties remained absent after receipt of notice from this Commission. Hence declared them exparte. Thereafter we have heard the complainants counsel.
4. Point No.1
Ext.A1 is the bond certificate No.6543 KYLM dated 27.7.15, Ext.A2 is the copy of lawyer’s notice dated 24.09.2019, Ext.A3 is the postal receipt dated 25.09.2019, Ext.A4 is the returned advocate notices.
On perusal of Ext.A1 bond certificate dated 27.7.15 it revealed that the complainants had purchased 500 fully paid up non-convertible secured redeemable bonds of Rs.1,000/- each as per Ext.A1 bond certificate issued by the opposite parties on 27.7.15 with maturity date on 27.01.21 with option for redemption at any time after 6 months with interest at the assured rate of 13% per annum. Accordingly the complainants opted early redemption after 6 months on 27.6.19, the complainant had demanded the amount covered by Ext.A1 with assured interest @ 13 % per annum. But opposite parties have failed to abide the promise as they assured and did not make any attempt to pay the amount ie, the redemption value as on that date as demanded by the complainant. So the complainant had caused to send Ext.A2 lawyer notice dated 24.09.19 to the opposite parties but they were evaded from receiving the notice.
The complainant’s case stands well sustained by the evidence put on record by the complainant. The opposite parties remained absent even after the receipt of notice from this Commission. In the absence of contrary evidence we are of the view that the case of the complainants is believable and they are entitled to realise Rs.5,00,000/- (Five lakhs) ie, the redemption value of the 500 fully paid up secured redeemable bonds having face value of Rs.1000/- each as per Ext.A1 bond certificate along with assured 13 % interest from 27.7.15 the date of issuance of Ext.A1 till the payment from the opposite parties.
The 1st opposite parties being a financial institution incorporated as per the provisions of the Companies Act and other opposite parties 2 to 5 are its managing director and directors hence all are bonds to abide by the terms and conditions assured by them. But they have committed breach of promise as well as deficiency of service towards the complainants. Therefore opposite parties 1 to 6 are jointly and severally liable to pay compensation for said count to the complainant and also opposite parties are liable to pay litigation cost to the complainants.
Point No.2
Accordingly, we allowed the complaint direct as follows:-
- The opposite parties are jointly and severally liable to pay Rs.5,00,000/- (Five lakhs) with interest @ 13 % per annum from 27.7.15, till realization and Rs.50,000/- (Fifty thousand) towards compensation to the complainant.
- The opposite parties are jointly and severally liable to pay Rs.1,000/- each as litigation cost to the complainants.
The order shall be complied within one month from the date of receipt of the copy of this order.
Dictated to the Confidential Assistant, transcribed by her corrected by me and pronounced in open Commission on this the 28th day of December, 2021.
Sd/-Smt. C.K.Lekhamma (Member)
Sd/-Sri.S.Santhosh Kumar (President)
Appendix:-
Evidence of the complainant:-
Ext.A1 - Bond certificate
Ext.A2 - Copy of lawyer’s notice
Ext.A3 - Postal receipt
Ext.A4 - Returned advocate notices
Evidence of the opposite parties:-NIL
// True Copy //
To
Complainant/Oppo.party/S.F.
By Order
Assistant Registrar
Typed by:- Sa/-
Compared by:-
