IN THE CONSUMER DISPUTES REDRESSAL COMMISSION, ALAPPUZHA
Wednesday the 11th day of May, 2022.
Filed on 09.09.2021
Present
- Sri.S.Santhosh Kumar. BSc.,LL.B (President )
- Smt. C.K.Lekhamma .B.A, LLB (Member)
In
CC/No.195/2021
between
Complainants:- Opposite party:-
Sri. Philipose Monichan 1. Kerala Housing Finance Ltd
Thengampally Grace Villa 2nd Floor, Pan African Plaza
Asramam Ward, Avalookkunnu.P.O M.G.Road, Trivandrum-695001
Alappuzha-688006 (Exparte)
(party in person) 2&3. G.Unnikrishnan Nair
Chairman cum,
Managing Director
Kerala Housing Finance Ltd.
2nd Floor, Pan African Plaza
M.G.Road, Trivandrum-695001
(Mullasseril House Kannamkodu
Muri, Adoor)
(Exparte
4&5. Komala Unnikrishnan(Director)
Kerala Housing Finance Ltd
-do- - do -
(Exparte)
6&7. Sri. N. Krishnan Nair
Director cum General Manager
Kerala Housing Finance Ltd
Vadakkekara House,
Vazhottukonam, Vattiyurkavu
Trivandrum-695013
(Exparte )
8. Sri .N.Krishnan Nair
Director Cum General manager
Kerala Housing Finance Ltd
Vadakkekkara House,
Vazhottukonam, Vattiyoorkavu
Trivandrum-695013
9. Sri G. Suresh Kumar, Director
Kerala Housing Finance Ltd
Pan African Plaza, 2nd Floor,
M.G.Road, Trivandrum
10. P. Parameswaran, Director
-do- -do-
11. B. Ajithkumar, Director
-do - -do-
12. Shajahan.P.G, Director
-do- -do-
13. S.Sureshkumar, Director
-do- -do-
14. S.Sukumaran, Director
Kerala Housing Finance Ltd
Pan African Plaza, 2nd Floor,
M.G.Road, Trivandrum
15. Adv. B. Manmadhan, Director
-do- -do-
16. Bittu Abraham Samuel
Chartered Accountant, Trustee
Kerala Housing Finance Ltd
Pan Afircan Plaza, 2nd Floor
M.G.Road, Trivandrum
17 &18 . Smt. Vijayalakshmi Jayakumar
Branch Manager, Kerala Housing
Finance, Ltd. Alleppey Branch
Aayirappally, House, Muthukulam
South, Mamood Junction
Kareelakulangara, Alappuzha (Adv. R.Sankarankutty)
19. The District Police Chief
Office of the District Police Chief
Alappuzha.
20. The Sub Inspector of Police
Police Station, Pulinkunnu
ORDER
SMT. C.K.LEKHAMMA(MEMBER)
1. Brief facts of the complainant’s case are as follows:-
The complainant had made 9 deposits with the opposite parties 1 to 4 and the 1st opposite party is a service provider in the field of finance and the other opposite parties 2 to 4 are its managing director and directors. The complainant purchased following fully paid up secured redeemable bonds of Rs.1000/- each from the opposite party and they had issued bond certificate with option for redemption at any time after 12 months with interest at the assured rate of 12% per annum.
BOND NO | DISTINTIVE NO | ALLOTMENT DATE | MATURITY DATE | DEPOSIT AMOUNT | MATURITY VALUE |
3106/ALPY | 228408 to 228507 | 20/6/2011 | 20/9/2014 | Rs.1,00,000 | Rs.1,00,000 |
3108/ALPY | 228548 to 2228722 | 24/6/2011 | 24/9/2014 | Rs.1,75,000 | Rs.1,75,000 |
3145/ALPY | 231190 to 231239 | 4/7/2011 | 4/10/2014 | Rs.50,000 | Rs.50,000 |
3168/AlPY | 233167 to 233216 | 19/7/2011 | 19/10/2014 | Rs.50,000 | Rs.50,000 |
850E/ALPY | 48275 to 48474 | 25/4/2013 | 25/7/2016 | Rs.2,00,000 | Rs.2,00,000 |
998/F/ALPY | 59844 to 59943 | 30/6/2014 | 30/9/2017 | Rs.1,00,000 | Rs.1,00,000 |
1007/F/ALPY | 60559 to 60758 | 30/6/2014 | 30/9/2017 | Rs.2,00,000 | Rs.2,00,000 |
5024/ALPY | 179717 to 179816 | 8/10/2015 | 8/1/2019 | Rs.1,00,000 | Rs.1,00,000 |
5025/ALPY | 179817 to 179916 | 8/10/2015 | 8/1/2015 | Rs.1,00,000 | Rs.1,00,000 |
The deposit amount is the maturity value since the agreement is that interest in these cases will be given on monthly basis, as also noted in the temporary receipt.
The redemption dates specifically mentioned on each bonds the complainant had demanded the amount covered by the bond certificate with accrued interest 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 complainant, the said act of the opposite parties 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 complainant had suffered loss on account of such unfair trade practice. The opposite parties were not care 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 following amounts to the complainant
SL.No | BondNo | Maturity Amount | Monthly Interest Due | Amount for 39 months |
1 | 3106/ALPY | Rs.1,00,000 | Rs.1000 | Rs.39,000 |
2 | 3108/ALPY | Rs.1,75,000 | Rs.1,895 | Rs.73,937 |
3 | 3145/ALPY | Rs. 50,000 | Rs.541 | Rs.21125 |
4 | 3168/ALPY | Rs.50,000 | Rs.500 | Rs.19,500 |
5 | 850 E/ALPY | Rs.2,00,000 | Rs.2,333 | Rs.91,000 |
6 | 998/F/ALPY | Rs.1,00,000 | Rs.1000 | Rs.39,000 |
7 | 1007/F/ALPY | Rs.2,00,000 | Rs.2000 | Rs.78,000 |
8 | 5024/ALPY | Rs.1,00,000 | Rs.916 | Rs.35,750 |
9 | 5025/ALPY | Rs,1,00,000 | Rs. 916 | Rs. 35,750 |
TOTAL | | 10,75,000 | | Rs.4,33,062 |
Hence the complaint is seeking following directions.
1. To direct the opposite parties to refund aforesaid amount of Rs.10,75,000/- with balance interest to the complainant.
2. To pay Rs. 2,00,000/- towards damages for mental agony.
3. To pay Rs. 1,00,000/- towards cost of the proceedings.
2. Version of the 5th opposite party in brief are as follows:-
The complaint is not maintainable either in law or on facts. This opposite party is an employee of the 1st opposite party, the company and she is not personally liable for the alleged transaction between the complainant and opposite parties 1 to 4. Further the 1st opposite party is a company registered and governed under the companies Act. Being an employee of the said company this opposite party is not personally liable to the transactions of said company. This opposite party has no direct knowledge of the investment and transactions between the complainant and the opposite parties 1 to 4. The 5th opposite party is specifically denied the allegations leveled against her in the complaint that under her influence the complainant deposited money to the 1st opposite party. The 5th opposite party has pleaded that she is not liable to the alleged claim and she is incorporated on the party array only to harass her and thus prayed for dismissal of the complaint against her.
3. The following points raised for consideration are that:
1. Whether the complainant is entitled to get any reliefs sought for?
2. Whether 5th opposite party is liable for the disputed transactions?
3. Reliefs and cost if any?
4. The complainant adduced oral evidence Ext.A1 to A10, A11series, Ext.A12, were marked. The opposite parties 1 to 4 remained absent after receipt of notice from this Commission. Hence declared them exparte. Opposite party No.5 appeared through the counsel. Thereafter we heard the complainant and the counsel for the 5th opposite party. It is found that the opposite party No.6 is an unnecessary party.
5. Point No 1 and 2:-
Ext.A1 to A9 bond certificates are the evidence of deposits by the complainant out of which Ext.A2 & A5 bond certificates, the depositors are the complainant and his father Devasia and in Ext.A3 certificate the depositors are Devasia and Grace Shanuja. As per Ext.A10 death certificate revealed that said Devasia died on 2/6/2013. The complainant pleaded in his complaint that he is the sole nominee of the deposits. Moreover he promptly informed about it the 5th opposite party and requested to transfer these deposits to the name of the him.
During cross examination PW1,the complainant deposed that he did not produce succession certificate and he is not a sole legal heir there are other legal heirs. Hence we are of the opinion that the amount covered under Ext.A2, A3 & A5 documents are to be distributed only after the production of succession certificate.
On perusal of the evidence on records it is understood that as per Ext.A1 to A9 bond certificate the complainant is entitled to get Rs.10,75,000/- being the maturity amount with balance interest of Rs.4,33,062/- from the opposite parties 1 to 4 and also they are also liable to pay further interest of the maturity amount.
As contented by the 5th opposite party, that the relationship of debtor and creditor is between the complainant and the 1st opposite party and it seems from Ext.A1 to A9 bond certificates. The terms and conditions of contract entered into between the complainant and the 1st opposite party is embedded in those certificates. Moreover, there is a specific recital in Ext.A1 to A9 bonds that as per the application was submitted by the complainant before the opposite parties 2 to 4 and they issued Ext.A1 to A9 bonds. The said facts are admitted by PW1 during the cross examination. The said recital in Ext.A1 to A9 is the substance of the contract. It is to be noted that in view of the above itself debars the complainant from raising a contention that upon the instigation of 5th opposite party the complainant deposited the amount covered under Ext.A1 to A9 bonds. Moreover, such allegations in the complaint is against the terms of the contract embedded in Ext.A1 to A9 bonds. The 5th opposite party being the employee of the 1st opposite party, constituted and governed under the Companies Act is not personally liable to discharge the liability of the 1st opposite party. Ext.A1 to A9 documents are not fastening any liability to the 5th opposite party.
The complainants case stands well sustained by the evidence put on record by him. The opposite parties 1 to 4 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 complainant is believable. The 1st opposite party being a financial institution incorporated as per the provisions of the Companies Act and other opposite parties 2 to 4 are its managing director and directors hence all are bound 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 complainant. Therefore opposite parties 1 to 4 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 complainant. It is discussed earlier that complainant’s deceased father is also the co-depositor in Ext.A2 , A3 &A5. The amount covered under said documents with interest is to be disbursed only with respect to the succession certificate and in the said circumstances the complainant is bound to produce succession certificate for accepting the amounts covered under said certificates. The remaining amount covered as per Ext.A1 , A4 and A6 to A9 with interest, the complainant is entitled to recover from the said opposite parties.
6. Point No.3:-
Accordingly, we allow the complaint in part and direct as follows:-
1. The opposite parties are jointly and severally liable to pay the amounts covered under Ext.A1 ,A4 and A6 to A9 with interest @ 12% from the date of deposit covered under said certificates, till the maturity of each deposit and thereafter pay interest @9% per annum till realization, to the complainant for each deposits .
2. The opposite parties are jointly and severally liable to pay Rs. 60,000/- (Rupees Sixty thousand only) towards compensation for deficiency in service and also to pay Rs.1000/- each as litigation cost to the complainant.
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 11th day of May, 2022.
Sd/-Smt. C.K.Lekhamma(Member)
Sd/-Sri.S.Santhosh Kumar(President)
Appendix:-Evidence of the complainant:-
Ext.A1 - Bond Certificate 3106/ALPY dtd. 20/6/2011
Ext.A2 - Bond Certificate 3108/Alpy dtd.24/6/2011
Ext.A3 - Bond Certificate 3145/Alpy dtd.4/7/2011
ExtA4 - Bond Certificate 3168/Alpy dtd.19/7/2011
Ext.A5 - Bond Certificate 850/E Alpy dtd.25/4/2013
Ext.A6 - Bond Certificate 998/F Alpy dtd. 30/6/2014
Ext.A7 - Bond Certificate 1007/F Alpy dtd 30/6/2014
Ext.A8 - Bond Certificate 5024 ALPY dtd.8/10/2015
Ext.A9 - Bond Certificate 5025 ALP
Ext.A10 - Death Certificate
Ext.A11series - Temporary Receipts
Ext. A12 - Surety certificate
Ext.A13 - Surety letter
Ext.A14 - Agreement
Evidence of the opposite parties:-Nil
///True Copy ///
To
Complainant/Oppo. party/S.F.
By Order
Assistant Registrar
Typed by:- Br/-
Compared by:-
