F.A.No.840/2011 against C.C.No.60/2010 District Forum, Nizamabad

Between

The Secretary Large Seized Co-operative

Society Limited, Pothangal Village,

Kotagiri Mandal, Dist.Nizamabad,

Represented by its Secretary, Venkateshwar

Rao, S/o.Srinivas Rao.                                          ..Appellant/

                                                                        opposite party  

And

M.Shiva Murthy S/o.Madappa,

Aged 47 years, Occ:Service,

R/o.Yellammagutta,

Nizamabad, Nizamabad District.                            Respondent/

                                                                        Complainant

F.A.No.842/2011 against C.C.No.58/2010 District Forum, Nizamabad

Between

The Secretary Large Seized Co-operative

Society Limited, Pothangal Village,

Kotagiri Mandal, Dist.Nizamabad,

Represented by its Secretary, Venkateshwar

Rao, S/o.Srinivas Rao.                                          ..Appellant/

                                                                        opposite party 

And

M.Sumathi, W/o. Shiva Murthy,

Aged 32 years, Occ:Employee,

R/o.Yellammagutta,

Nizamabad, Nizamabad District.                            Respondent/

                                                                        Complainant

F.A.No.843/2011 against C.C.No.59/2010 District Forum, Nizamabad

Between

The Secretary Large Seized Co-operative

Society Limited, Pothangal Village,

Kotagiri Mandal, Dist.Nizamabad,

Represented by its Secretary, Venkateshwar

Rao, S/o.Srinivas Rao.                                          ..Appellant/

                                                                        opposite party 

And

M.Suresh, S/o.Veerabadraiah,

Aged 29 years, Occ:Business,

R/o.Yellammagutta,

Nizamabad, Nizamabad District.                            Respondent/

                                                                        Complainant

Counsel for the Appellant               :  M/s T.Durga Reddy

(common in all appeals)

Counsel for the Respondent           :  Mr.T.L.K.Sharma

(common in all appeals)

QUORUM:  SMT.M.SHREESHA, HON’BLE Incharge President

AND

SRI S.BHUJANGA RAO, HON’BLE MEMBER. 

MONDAY, THE TWENTY FIRST DAY OF January,

TWO THOUSAND THIRTEEN

Order (Per Smt.M.Shreesha, Hon’ble Incharge President)

***

        Since all these appeals deal with similar facts, they are being disposed of by a common order.

F.A.No.840/2011:     

Aggrieved by the order in C.C.No.60/2010 on the file of District Forum, Nizamabad, the opposite party preferred this appeal.

The brief facts as set out in the complaint are that the complainant  attracted by the scheme of the opposite party society deposited the following sums as follows:

        The complainant submitted that the deposits matured on the respective dates mentioned and after maturity, the complainant approached the opposite party and surrendered the deposit receipts and requested to pay the maturity amount.  But the Secretary of the opposite party stated that the said amount would be credited to the Savings Bank account of the complainant and the complainant can withdraw the same at a later date.  The complainant submitted that accordingly the opposite party credited the maturity amount of the deposits in S.B. account No.2179 of the complainant on three occasions i.e. Rs.1,10,000/- on 14-5-2004, Rs.1,32,000/- on 29-5-2004 and Rs.1,26,000/- on 5-7-2004.  The complainant submitted that thereafter he was in need of money and requested the opposite party to allow him to withdraw the amount from his SB account but the opposite party did not allow him to withdraw the same stating that there are no funds.  The complainant submitted that had the opposite party permitted to withdraw the amount, he would have deposited the same in any other bank or  real estate and would have gained profits and due to non refund of the amount, he underwent lot of mental agony.  The complainant submitted that he made an application before the District Collector on 18-7-2006 explaining his grievance that the opposite party did not pay the amount and also interest thereon.  The complainant further submitted that he approached the District Legal Services Authority, Nizamabad for settlement of the issue and on receipt of notices, the opposite party appeared and agreed to pay the maturity amount and did not agree to pay interest from the date of maturity till the date of payment and accordingly paid the maturity amount and the matter was closed on 22-6-2009 as the complainant wanted to approach civil court for claiming interest and accordingly a docket order was passed.  The complainant submitted that the opposite party paid only Rs.3,68,000/- to the complainant which is the maturity value but failed to pay the  interest on the said deposit at 18% p.a. from the date of maturity of respective deposits as follows:

i)                  From 27-5-2004 till 28-4-2009 59 months @ 18% p.a. amounting to Rs.2,52,225/-;

ii)                From 28-4-2009 to 31-7-2010 15 months @ 18% p.a. amounting to Rs.56,750/-.

The complainant submitted that at the request of the complainant, the opposite party permitted him to withdraw small amounts of Rs.10,000/- on each occasion,  eight times, but did not allow him to withdraw the full maturity amount and also did not pay interest on the full maturity amount.  Hence the complaint for a direction to the opposite party to pay interest of Rs.3,08,975/- @ 18% p.a. on the said deposit from the date of its maturity value till 31-7-2010 and also direct opposite party to pay Rs.1,00,000/- towards compensation and loss along with future interest @ 18% p.a. and costs.

Opposite party filed counter resisting the complaint.  However, it admitted the deposits made by the complainant on different dates for a period of five years and the maturity value of the above amount comes to Rs.3,68,000/-.  Opposite party submitted that on the request of the complainant, it transferred the above said maturity amount of the above three F.Drs. to his S.B.account with due interest on maturity dates and the amount was lying in the account of the complainant from the respective dates.  Opposite party submitted that on 28-4-2009, the complainant has withdrawn an amount of Rs.2,85,000/- and prior to that he had withdrawn Rs.10,000/- on 7 occasions and Rs.12,000/- on one occasion and in total he had withdrawn Rs.3,67,000/- leaving a balance of Rs.1000/-.  Opposite party submitted that the complainant withdrew Rs.10,000/- on different dates i.e. 17-5-2004, 19-5-2004, 21-5-2004, 27-5-2004, 28-5-004, 29-5-04, 18-6-2004 and Rs.12,000/- on 15-6-2004.  Opposite party denied the complainant’s plea that he demanded the amount and the opposite party failed to pay the same with interest and submitted that no representation was made and it failed to pay the amount due to lack of funds.  Opposite party denied the other allegations made in the complaint and submitted that no notice of the petition dated 18-7-2006 alleged to have given by the complainant to District Collector was served on them.  Opposite party admitted that the complainant approached the District Legal Service authority and filed an application and it was numbered as C.P.No.16/2009 on 18-3-2009 and the petition was closed with an endorsement that both are present, memo filed by the petitioner and both parties did not agree for a compromise and requested to close the petition and petitioner wanted to file case against the opposite party.  Opposite party submitted that later the complainant withdrew the amount from the opposite party S.B.account and was not interested to prosecute the matter before Legal Services Authority and therefore he is estopped from claiming any interest on his amount in SB account.  Opposite party submitted that no formal compromise was entered between the parties in Lok Adalat but it was settled outside Lok Adalath and complainant took his amount from S.B. account without interest and had it not been so, there would have been such representation to the Legal Services Authority by the complainant and the complainant had withdrawn the amount waiving the interest and now he is not entitled to claim the same.  Opposite party denied the claim of interest on Rs.3,68,000/- at 18% p.a. to a tune of Rs.3,08,975/- and submitted that there is no deficiency in service and that the complainant is not entitled to interest of Rs.3,08,975/- at 18% p.a. as claimed by him or any future interest from 01-8-2010 and also  compensation of Rs.1,00,000/- and prayed for dismissal of the complaint with costs.

Based on the evidence adduced i.e. Exs.A1 to A3 and B1 to B8 and the pleadings put forward, the District Forum allowed the complaint in part directing the opposite party to pay interest @ 9% p.a.  on maturity values of Ex.B1(Ex.B3), Ex.B2(Ex.B7 & B4) and Ex.B8 from the date of their respective maturities after excluding the amounts of withdrawals in S.B. A/c. No.2179 in Ex.A3  to till the date  i.e. 27-4-2009 and thereafter the interest at 6% p.a. shall carry on accrued interest as on 27-4-2009 to till realization to the complainant together with costs of Rs.1,000/-.

Aggrieved by the said order, the opposite party preferred this appeal.

        The counsel for respondent/complainant filed written arguments in all the appeals.

        It is the complainant’s case that he deposited F.D.Rs. with the opposite party on different dates as mentioned in the complaint for a period of 5 years.  It is not in dispute that the F.D.R. values were doubled on the date of maturity and the amount was transferred to his S.B. Account No.2179.  It is the further case of the complainant that he was not allowed to withdraw the maturity value amounts at once from his S.B. Account  and he filed a representation on 18-7-2006 evidenced under Ex.A1 and also approached the Legal Cell Authority at Nizamabad and filed C.P.16/2009 for settlement.  Thereafter the appellant paid the maturity amount of Rs.3,68,000/- on  22-6-2009 but did not pay the interest.

        It is the case of the appellant society that the appellant is a co-operative society registered under the A.P. Co-op. Societies Act and submitted that the complainant never approached them for payment of the matured F.D.Rs. and denied that there were no funds available with them and it is only on the instructions of the complainant that the matured F.D.Rs. amount were transferred to the complainant’s S.B.Account.  The interest on the S.B.account is only.3.5% p.a. and the District Forum erred in granting interest at 9% p.a.  While we agree with the observation of the District Forum that there is deficiency in service on behalf of the opposite party society in paying the maturity values belatedly on 27-4-2009 and not allowing the complainant to withdraw the amounts at once, the District Forum has awarded 9% interest over the maturity amounts of the F.D.Rs. till 27-4-2009 after excluding the withdrawal amounts from S.B.account 2179, we are of the considered view that interest awarded by the District Forum thereafter at 6% p.a. is excessive and is modified to 3.5% p.a. on the accrued interest as on 27-4-2009 till realization.

        In the result this appeal is allowed in part and the order of the District Forum is modified only with respect to the interest rate awarded by the District Forum at 6% p.a. to be modified to 3.5% while confirming the rest of the order of the District Forum.  Time for compliance four weeks.

F.A.No.842/2011 and F.A.No.843/2011:

        For the same reasons as stated in F.A.No.840/2011, these appeals are also allowed in part and the order of the District Forum is modified only with respect to the interest rate awarded by the District Forum at 6% p.a. to be modified to 3.5% while confirming the rest of the order of the District Forum.  Time for compliance four weeks.

Sd/-Incharge President.

                                                                                     Sd/- Member.

JM                                                                                                      Dt.21-1-2013.