IN THE CONSUMER DISPUTES REDRESSAL COMMISSION, KOLLAM

DATED THIS THE     31^st  DAY OF MAY 2022

Present: -    Sri. E.M.Muhammed Ibrahim, B.A, LLM. President

      Smt.S.Sandhya   Rani. Bsc, LLB ,Member

   Sri.Stanly Harold, B.A.LLB, Member

    CC.No.270/2020

1. George Mathew,

         S/o T.Mathai,

        Mulamoottil Palavila Reji Bhavan,

        East Kundara , Kollam 691 501.

      (By Adv.Saju George & Adv.S.Riyas)

2. Reji George,

        W/o George Mathew,

        Mulamoottil Palavila Reji Bhavan,

       Kundara East P.O., Kollam 691 501.

      (By Adv.Saju George & Adv.S.Riyas)                         :         Complainants

V/s                                                                                

1. Popular Traders,

              Popular Towers, Vakayar P.O.,

              Pathanamthitta rep.by its Managing partner

               Mr.Thomas Daniel @ Roy Daniel                              :        Opposite parties

         689698.

2.      Mr.Thomas Daniel @ Roy Daniel,

              Managing Partner, Popular Dealers,

              Popular Towers, Vakayar P.O.,

             Pathanamthitta

             689698.

3.      T.Mathunni Panicker,

                  Kaleelil Plavila Raju Bhavan,

                  Ambipoika P.O, Kundara,

                   Kollam 691501.

4.      Y.Mathew Panicker,

                   Manager, Popular Dealers, Kundara

                 Pallimukku Branch, Kundara, Kollam

                  residing at Mathews Bhavan,

                 Punnamukku, Perumpuzha P.O.,

                   Kollam 691504.

ORDER

Sri.Stanly Harold, B.A.LLB, Member

          This is a case based on a complaint filed U/s 35 of the Consumer Protection Act 2019.

          The averments in the complaint in short are as follows:-

          The complainants are teachers and now they are permanently residing in the address shown above.

          The 1^st opposite party is a partnership firm having its registered office at Vakayar, Pathanamthitta and branches at various places including Kundara, Kollam District.  The 2^nd opposite party is the managing partner of the 1^st opposite party, the 3^rd opposite party is the present branch manager of the 1^st opposite party’s Kundara branch and the 4^th opposite party was the former manager of the 1^st opposite party at Kundara branch from the very inception till 2019.  The complainants had made all the deposits mentioned hereunder during the tenure of the 4^th opposite party as the manager of the Kundara Pallimukku branch.

          The 4^th opposite party had approached the complainants introducing himself that he is the branch manager of the 1^st opposite party at Kundara branch and that his branch is receiving deposits from the public.  At that time the 4^th opposite party assured the complainants that the amount deposited in the 1^st opposite party’s firm is secured and that the deposit amount would fetch a profit share/interest @ 12 % p.a.  He further assured that the deposit amount with agreed profit share/interest @ 12 % shall be given to the depositors on the due date shown in the deposit receipt.  He had further assured that the complainants that the 1^st opposite party is a highly reputed financial institution  having several years experience and that the amount deposited is secured and the maturity amount assured is guaranteed.  The 4^th opposite party also assured the complainant that they are ready and willing to return the deposit amount either on its maturity or on demand.  The 4^th opposite party was discharging his duties as the branch manager as per the direction of the 1^st and 2^nd opposite parties.  Believing the representation made by the 4^th opposite party as true and genuine, the complainants had jointly deposited an amount of Rs.1,00,000/- on 28.02.2015 vide receipt No.0401772 dated 28.02.2015.  The period of the said deposit is 66 months from the date of the deposit.  While so the complainants came to understand that the opposite parties committed gross financial irregularities in respect of the deposits made by the complainants and other depositors.  The complainants went to the office of the 1^st opposite party at Kundara Pallimukku branch 28.08.2020 for demanding the maturity amount inclusive of the agreed profit share.  Thereupon it was revealed that the Kundara Pallimukku branch of the 1^st opposite party was closed and 3^rd opposite party was found absconding.  The complainants had enquired about the opposite parties and thereupon it was revealed that the opposite parties had misappropriated the amounts of the depositors including the complainant and thereafter they absconded by closing all the branches.

          As per the terms of the deposits, the opposite parties are bound to pay the agreed rate of 12% interest/profit share for the deposit amount of Rs.1,00,000/- without fail.  Further the opposite parties are legally liable to repay the deposit amount either on its maturity or on demand.  The complainants have also preferred a complaint in respect of the above matter before the SHO, Kundara Police Station on 01.09.2020 by registered post and on 04.09.2020 by online.  The police had already started investigation in respect of the complaint made by the complainants and other depositors.  The receipts herein produced is duly signed by the 2^nd and 4^th opposite parties on behalf of the 1^st opposite party.  Further the 3^rd opposite party was the branch manager of the 1^st opposite party on 28.08.2020, the date on which the amount became matured.  Hence all the opposite parties are

jointly, severally and  vicariously liable to indemnify the complainant for the deposit amounts with stipulated profit share/interest.

The complainants are legally entitled to get the amount with agreed profit share/interest mentioned in the deposits and the opposite parties are liable to repay the said amount to the complainants.  The act of the opposite parties amounts to deficiency in service and unfair trade practice.  Due to the act of the opposite parties, the complainants have suffered financial loss, mental agony and hardship which cannot be compensated in terms of money.  Hence the complaint.

Notice issued from the Commission returned unserved  stating that the opposite parties are not known.  Hence notice was served by effecting paper publication. The opposite parties 1 to 4 called absent and   set exparte.

The complainant filed proof affidavit by reiterating the averments in the complaints and got marked Exts.A1 and A2 documents .  Heard the counsel for the complainant and perused the records.  Ext.A1 is original FD receipt for Rs.1,00,000/- No. 0401772 A/c No. TLN004200000003934 dated 28/02/2015 in the name of George Mathew/Reji George.  Ext.A2 is the FIR registered by the Kundara Police Station.

The unchallenged averments in the affidavit coupled with Ext.A1 and A2 documents would establish that the complainants  George Mathew and Reji George have deposited Rs.1,00,000/- dated 28.02.2015 as per Ext.P1 original receipt.  It is clear from Ext.A1 receipt that the opposite parties have promised 12% share of profit/interest and maturity date is 28.08.2020 that they have agreed to repay the amount with agreed interest/share of profit either on maturity date or on demand.  By understanding that the opposite parties have committed gross financial irregularities in respect of the deposits made by the complainants and others.  Hence the complainant approached the 1^st opposite party’s office at Kundara and in August 2020 and demanded to pay the interest for the amount deposited till date.  Thereupon it was revealed that the opposite parties have misappropriated the entire amount deposited by the customer including the complainant closed the branch office and absconded without repaying the amount deposited or its share of profit to the depositors.  It is further clear from Ext.A2 that the complainant had filed a police complaint regarding the misfeasance, malfeasance and nonfeasance of the opposite parties.  Hence there is deficiency in service and unfair trade practice on the part of the opposite parties.  In the circumstances the complainants are entitled to get an order directing the opposite parties to repay Rs.1,00,000/- deposit along with offered share profit shown in Ext.A1 receipt from the date of receipt of the amount till the date of order and thereafter interest @ 9% p.a.till the date of payment.

          In the result complaint stands allowed in the following terms.

Opposite parties 1 to 4 are directed to return Rs.1,00,000/- covered by Ext.A1 receipt to the complainant along with 12% agreed share of profit/interest from the date of deposit/investment along with compensation Rs.10,000/- and costs Rs.5,000/- within 45 days from today failing which the complainants are at liberty to recover the amount covered by Ext.A1 receipt with agreed share profit from the date of deposit till the date of order and thereafter interest @ 9% per annum from the date of order till realization along with compensation and costs as ordered above from the opposite parties No.1 to 4 jointly and severally and from their assets.

Dictated to the Confidential Assistant  Smt. Minimol S. transcribed and typed by her corrected by me and pronounced in the  Open Commission this the 31^st  day of  May 2022. 

STANLY HAROLD:Sd/-

  E.M .MUHAMMED IBRAHIM:Sd/-

`                                                        S.SANDHYA RANI:Sd/-

Forwarded/by Order

                                                                                       Senior superintendent

INDEX

Witnesses Examined for the Complainant:-Nil

Documents marked for the  complainant

Ext.A1                        : Original FD receipt for Rs.1,00,000/- No. 0401772

                                   A/c No. TLN004200000003934 dated 28/02/2015

Ext.A2                        : The  FIR registered by the Kundara Police Station.

Witnesses Examined for the opposite party:-Nil

Documents marked for opposite party:-Nil