Tamil Nadu

South Chennai

CC/106/2019

N Thiagarajan - Complainant(s)

Versus

M A Salim, M/s Civil Enging Enterprises - Opp.Party(s)

M/s G B Sabaridas

03 Feb 2020

ORDER

 

                                                                                 Date of filing  : 03.05.2019

                                                                                   Date of Order : 03.02.2020

                                                                                  

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (SOUTH)

@ 2^ND Floor, T.N.P.S.C. Road, V.O.C. Nagar, Park Town, Chennai – 3.

 

PRESENT: THIRU. M. MONY, B.Sc., L.L.B, M.L.                    : PRESIDENT

TR. R. BASKARKUMARAVEL, B.Sc., L.L.M., BPT., PGDCLP.  : MEMBER

 

C.C. No.106/2019

DATED THIS MONDAY THE 03^RD DAY OF FEBRUARY 2020

                                 

N. Thiagarajan,

S/o. Mr. M. Narayanasami,

No.25 D, Pari Street,

Gandhi Nagar,

Saligramam,

Chennai – 600 093.                                                        .. Complainant.                                                     

..Versus..

 

1. M.A. Salim,

Proprietor,

M/s. Civil Engineering Enterprises,

Plot No.221, K.K. Salai,

Kaveri Rangan Nagar,

Saligramam,

Chennai – 600 093.

 

2. M.A. Salim,

Proprietor,

M/s. CEE Investments,

Plot No.221, K.K. Salai,

Kaveri Rangan Nagar,

Saligramam,

Chennai – 600 093.                                                 ..  Opposite parties.

 

Counsel for the complainant  :  M/s. G.B. Sabari Das & another

Opposite parties 1 & 2            :  Exparte

 

ORDER

THIRU. M. MONY, PRESIDENT

       This complaint has been filed by the complainant against the opposite parties 1 & 2 under section 12 of the Consumer Protection Act, 1986 prays to refund a sum of Rs.16,25,000/- together with interest at the rate of 16% p.a. from 01.11.2018 to 03.04.2019 which is for 153 days which works out to Rs.1,08,986/- besides cheque bounce charges of Rs.118/- and to pay a sum of Rs.2,00,000/- towards compensation for mental agony, stress, deficiency in service and unfair trade practice caused to the complainant with cost to the complainant.

1.    The averments of the complaint in brief are as follows:-

The complainant submits that on 31.07.2017, he entered into a Construction Agreement with the opposite parties for purchase and construction of residential flat No.G1, Ground Floor measuring 650 sq. ft. in “A” Block in the proposed residential apartments known as “Shree Hari Nagar” formerly known as Sri Mookambikai Nagar Extension together with UDS of 371/1800 sq. ft. at Goparasanallur Village & Noombal Village, Poonamallee Taluk, Thiruvallur District in the project promoted by the opposite parties known as Salem’s Golden Park”.  In pursuant to the Agreement, the complainant paid a sum of Rs.17,25,000/- as demanded by the opposite parties out of the cost of total construction amount of Rs.20,35,400/-.  The complainant submits that the opposite parties informed him as the authorities concerned declined to issue building approval.   The opposite parties are unable to complete the project.  The opposite parties instead of returning the amount of Rs.17,25,000/- had stated that he is unable to pay the same immediately and hence, converted the above money and invested in the opposite party’s sister concern, M/s. CEE Investments.  

2.     The complainant submits that the opposite parties agreed to pay the interest of 16% p.a. of Rs.23,000/- as monthly interest for the next six months thereon.  The complainant states that he is being a Senior Citizen, the opposite parties made him to run pillar to post to get his hard earned money invested with the opposite parties.   At last, the opposite parties has issued a cheque in favour of the complainant dated:11.11.2018 vide cheque No.730621 drawn on Punjab National Bank, Saligramam Branch for Rs.17,25,000/- .   The complainant presented the said cheque with the Tamil Nadu State Apex Co-operative Bank Limited, Kodambakkam Branch and the same was dishonoured for the reason ‘Funds Insufficient’ vide return Memo dated:30.01.2019 besides charged the complainant for cheque bounce Rs.118/-.  The complainant submits that he repeatedly demanded the opposite parties to refund the amount but they kept on making false promise.   The opposite parties has utilized the complainant’s money for his business and committed deficiency in service and unfair trade practice.   The act of the opposite parties caused great mental agony and inconvenience to the complainant.   Hence, the complaint is filed.

3.     Inspite of receipt of notice, the opposite parties 1 & 2 has not appeared before this Forum and hence, the opposite parties 1 & 2 were set ex-parte.

4.     Though the opposite parties 1 & 2 remained Ex-parte, this Forum is to dispose of this compliant fully on merits with available materials evidences before this Forum. 

5.     In such circumstances, in order to prove the allegations made in the complaint, the proof affidavit is filed by the complainant as his evidence and also documents Ex.A1 to Ex.A6 are marked.  

6.      The points for consideration is:-

1. Whether the complainant is entitled to get refund of a sum of Rs.16,25,000/- towards principal amount with interest at the rate of 16% p.a. from 01.11.2018 to 03.04.2019 for 153 days which works out to Rs.1,08,986/- besides cheque bounce charges of Rs.118/- as prayed for?
2. Whether the complainant is entitled to a sum of Rs.2,00,000/- towards deficiency in service, mental agony and stress caused to the complainant with cost as prayed for?

7.      On point:-

The opposite parties after receipt of notice has not entered appearance before this Forum and remained ex-parte.   The complainant has filed his proof affidavit and written argument.  Heard his Counsel also.   Perused the records namely; the complaint, proof affidavit and documents of complainant.  The complainant pleaded and contended that on 31.07.2017, he entered into a Construction Agreement with the opposite parties as per Ex.A1 for purchase and construction of residential flat No.G1, Ground Floor measuring 650 sq. ft. in “A” Block in the proposed residential apartments known as “Shree Hari Nagar” formerly known as Sri Mookambikai Nagar Extension together with UDS of 371/1800 sq. ft. at Goparasanallur Village & Noombal Village, Poonamallee Taluk, Thiruvallur District in the project promoted by the opposite parties known as Salem’s Golden Park”.  In pursuant to the Agreement, the complainant paid a sum of Rs.17,25,000/- as demanded by the opposite parties out of the total cost of construction amounts to Rs.20,35,400/- as per Ex.A2 (S) & Ex.A3.  

8.     Further the complainant pleaded and contended that the opposite parties informed him as the authorities declined to issue building approval, the opposite parties are unable to complete the project.  The opposite parties instead of returning the amount of Rs.17,25,000/- received from the complainant informed that he is unable to pay the same immediately and hence, converted the above money and invested in the opposite party’s sister concern, M/s. CEE Investments.  But no record produced.   Further the contention of the complainant is that the opposite parties have agreed to pay the interest of 16% p.a. of Rs.23,000/- as monthly interest for the next six months as per Ex.A3 and also a “Bond” executed by the opposite parties infavour of the complainant clause (b), (c), (d), (e) as per Ex.A2 (S) proves that the opposite parties has to refund the amount of Rs.17,25,000/- with interest 16% as agreed by the opposite parties.   Further the contention of the complainant is that he is a Senior Citizen.   The opposite parties made him to run pillar to post to get return of his hard earned money invested with the opposite parties towards apartment.   At last, the opposite parties paid a sum of Rs.1,00,000/- and has issued a cheque in favour of the complainant dated:11.11.2018 vide cheque No.730621 drawn on Punjab National Bank, Saligramam Branch for Rs.17,25,000/- as per Ex.A4.   The complainant presented the said cheque with the Tamil Nadu State Apex Co-operative Bank Limited, Kodambakkam Branch and the same was returned dishonoured for the reason ‘Funds Insufficient’ vide return Memo dated:30.01.2019 besides cheque bounce charges at Rs.118/- as per Ex.A5(S) proves the deficiency in service and unfair trade practice.  

9.     Further the contention of the complainant is that he repeatedly demanded the opposite parties to refund the amount but the opposite parties failed and made false promise.  The opposite parties have utilized the complainant’s hard earned money for his business and committed deficiency in service and unfair trade practice.   Since, the complainant is 79 years old Senior Citizen has undergone stress and strain due to the harassment and unfair trade practice the act of the opposite parties towards complainant not refunding his hard earned money is deliberate and purposeful proves unfair trade practice of the opposite parties. Considering the facts and circumstances of the case, this Forum is of the considered view that the opposite parties 1 & 2 shall jointly and severally liable to refund a sum of Rs.16,25,000/- with interest at the rate of 9% p.a. from the date of this complaint (i.e.) 03.05.2019 to till the date of this order (i.e.) 03.02.2020 to the complainant and to pay a sum of Rs.20,000/- towards compensation for mental agony with cost of Rs.5,000/- to the complainant.

In the result, this complaint is allowed in part.  The opposite parties 1 & 2 are jointly and severally liable to refund a sum of Rs.16,25,000/- (Rupees Sixteen lakhs twenty five thousand only) with interest at the rate of 9% p.a. from the date of filing of this complaint (i.e.) 03.05.2019 to till the date of this order (i.e.) 03.02.2020 to the complainant and to pay a sum of Rs.20,000/- (Rupees Twenty thousand only) towards compensation for mental agony with cost of Rs.5,000/- (Rupees Five thousand only) to the complainant.

The above amounts shall be payable within six weeks from the date of receipt of the copy of this order, failing which, the said amounts shall carry interest at the rate of 9% p.a. to till the date of payment.

Dictated  by the President to the Steno-typist, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the 03^rd day of February 2020. 

 

MEMBER                                                                                PRESIDENT

COMPLAINANT SIDE DOCUMENTS:-

Ex.A1	31.07.2017	Copy of Construction Agreement between the complainant and 1st opposite party
Ex.A2	11.05.2018	Copy of receipt No.144 dated:11.05.2018 as Investor Code.144/11/05/2018 for Rs.17,25,000/- issued by the 2nd opposite party to complainant
Ex.A3	11.05.2018	Copy of Demand Promissory Note for Rs.17,25,000/- issued by the 2nd opposite party to complainant
Ex.A4	11.11.2018	Copy of Cheque No.730621 for Rs.17,25,000/- drawn on Punjab National Bank issued by the 2nd opposite party in favour of the complainant
Ex.A5	30.01.2019	Copy of return Memo of the complainant banker, the Tamil Nadu State Apex Co-operative Bank Ltd., Kodambakkam Branch dishonoured for ‘Funds Insufficient’ with charges for cheque bounce at Rs.118/-
Ex.A6	07.03.2019	Copy of legal notice issued on behalf of the complainant and postal acknowledgement card dated:09.03.2019

 

 

MEMBER                                                                                                                                                                            PRESIDENT