IN THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, KOLLAM

                                            C.C.No. 302/2021

PRESENT

SMT. S.K.SREELA, B.A.L, LL.B, PRESIDENT

      SMT. S.SANDHYA   RANI. BSC, LL.B, MEMBER

  SRI.  STANLY HAROLD, B.A.LL.B, MEMBER

                                      ORDER DATED:   26-06-2023

BETWEEN

1.   C.Joy, Lijo Bhavan,

Thulayil Thazathil, Cherumoodu,

Vellimon P.O.,

Kollam 691511.

2. Sosamma Joy,

Lijo Bhavan,

Thulayil Thazathil, Cherumoodu,

Vellimon P.O.,

Kollam 691511.                                                               :         Complainants

(By Adv. P.Sajeev Babu) 

AND

1.  Popular Traders Popular Towers,
2.  

(Incorporated under the Companies Act 2013),

Rep.by its Managing Director Thomas Daniel

689 698: Opposite Parties

2.  Popular Dealers,

Popular Towers, Vakayar

(Incorporated under the Companies Act 2013),

Rep.by its Managing Director Thomas Daniel

689 698

3. My Popular Marine Products LLP,

Registered Office:10/1, 13/575, Popular Tower,

Vakayar P.O., Konni, Pathanamthitta 689 698

Rep.by its Designated Partner Thomas Daniel

4. Saan Popular Traders LLP,

Regd.Office:Door No.13/522, Popular Tower,

Vakayar P.O., Konni,

Pathanamthitta- 689 698

(Registered under the Partnership Act),

Rep.by its Designated Partner,

Rinu Mariam Thomas

5. 5. Saan Popular Traders LLP,

Regd.Office:Door No.13/522, Popular Tower,

Vakayar P.O., Konni,

Pathanamthitta- 689 698

(Registered under the Partnership Act),

Rep.by its Designated Partner,

Reba Mary Thomas

6. Y.Mathew Panicker,

Former Branch Manager ,

Popular Finance,

Kundara, Residing at Maliyekkal Mathew Bhavan,

Punnamukku, Perumpuzha P.O., Kollam 691504

7. T.Mathunni Panicker,

Branch Manager,Popular Finance,

Kundara residing at Plavila Thekkathil

Raju Nivas Ambipoika, 691501.

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 2^nd complainant is the wife of the 1^st complainant.  The 1^st, 2^nd and 3^rd opposite parties are the Managing Partners as well as designated partners of company registered under the Indian Companies Act 2013 in the name and style Popular Traders, Popular Dealers and My Popular Marine Products LLP.  The 4^th and the 5^th opposite parties are the designated partners of the San Popular Traders LLP, 6^th opposite party is the former Branch Manager and 7^th opposite party is the present Branch Manager of the opposite parties 1 to 5. 

The opposite parties 1 to 5 advertised in the newspaper dailies and other publications that they are offering interest @ 12% per annum to those who have made deposit with them as fixed deposit for a particular period with the liberty to withdraw the accrued interest in each and every month quarterly or annually as desired by the depositors.  The 6^th and 7^th opposite parties also personally approached the complainant and made believe the complainants that if the complainants deposit a sum of money as fixed deposit in the opposite parties’ company as fixed deposit for a particular period, the company would pay interest @ 12% per annum with the liberty to withdraw the accrued interest in each and every month, quarterly or annually by the complainants.

By falling into the colourful advertisement in both printed and visual media by the opposite parties 1 to 5  and also believing the words of 6^th and 7^th opposite parties, on 23.08.2019, the 1^st complainant deposited Rs.3,00,000/- before the 7^th opposite party as fixed deposit for a period of 12 months and on 04.09.2018 the 2^nd complainant deposited Rs.2,00,000/- before the 7^th opposite party (authorized manager of the 1^st opposite party) as fixed deposit for a period of 12 months and on 31.12.2019 the 1^st complainant deposited Rs.1,00,000/- before the 1^st opposite party as fixed deposit for a period of 12 months and on 17.01.2020 the 1^st complainant deposited Rs.1,00,000/- before the 3^rd opposite party as fixed deposit for a period of 12 months and on 20.02.2020 the 1^st complainant deposited Rs.1,00,000/- before the 4^th, 5^th and 7^th opposite parties as fixed deposit for a period of 12 months.  When the 1^st and 2^nd complainants made the above said deposits before the opposite parties, opposite parties 4, 5 & 7 convinced the 1^st complainant that the amount deposited was as fixed deposit for a period of 12 months @ 12% interest per annum.  In the said fixed deposit receipts the opposite parties agreed to pay interest @ 12% per annum allowing the complainants to withdraw the fixed deposit amount along interest on the maturity dates shown in each and every fixed deposit receipts.  When the complainants made the fixed deposits before the opposite parties, the complainants became the consumers of the opposite parties.  In the fixed deposit before the 2^nd opposite party with receipt No.0154032 deposited by the 1^st complainant, interest has been given for the deposited amount till 24.02.2020, through the bank account.  In the fixed deposit before the 1^st opposite party with receipt No.0568228 deposited by the 2^nd complainant interest has been given for the deposited amount till 04.09.2020, by hand.  In the fixed deposit before the 1^st opposite party with receipt No.0575974 deposited by the 1^st complainant interest has been given for the deposited amount till 31.08.2020 by hand.  In the fixed deposit before the 3^rd opposite party with receipt No.LLP-AAJ-1621-0008058 interest has been given for the deposited amount till 14.05.2020, through the bank account.  In the fixed deposit before the 4^th and 5^th opposite parties with receipt No.LLP-AAR-1797-0000109 deposited by the 1^st complainant the interest has been given for to the deposited amount till 14.05.2020 through the bank account.

On 15.09.2020 complainants came to know that the opposite parties are not returning the fixed deposit amount as well as regular monthly interest to the subscribers promptly as done in the previous years. Hence, they approached the opposite parties 1 to 7 to release the amount due to them along with interest from the date of deposit of the amount till payment, prior to the maturity dates shown in the above fixed certificates.  But thereafter the opposite parties failed to pay the said agreed amount to the complainants.  Thereupon the complainants made several demands to the opposite parties to pay the arrears of interest and also to return the principal fixed deposit amount. But the opposite parties failed to return the amount along with interest covered by the said fixed deposit. There is contractual violation, deficiency in service and also unfair trade practice on the part of the opposite parties. Now it is seen that the opposite parties had closed their offices. Hence the complaint.

Notice has issued to the opposite parties and they failed to appear before the Commission hence they were set exparte.  The complainant filed chief affidavit in lieu of chief examination and reiterated the averments in the complaint and got marked Ext.P1 to P7 documents.  Ext.P1 is the advertisement published by the opposite parties.  Ext.P2 is the fixed deposit receipt No.0154032 A/c No.1029991903149/12 dated 23.08.2019 for Rs.3,00,000/- in the name of C. Joy.  Ext.P3 is the fixed deposit receipt No.0568228 A/c No.1020381900331/12 dated 04.09.2019 for Rs.2,00,000/- in the name of Sosamma Joy.  Ect.P4 is the fixed deposit receipt No.0575974 A/c No.1020381900651/12 dated 31.12.2019 in the name of Joy C.  Ext.P5 is the Certificate of Contribution to LLP No.AAJ-1621 A/c No.1029991904546/12 dated 17.01.2020 in the name of Joy C.  Ext.P6 is the Certificate of Contribution to LLP No.AAR-1797 A/c No.1029991900099 dated 20.02.2020 in the name of Joy C.  Ext.P7 is the statement of accounts from the    Union Bank of India, Kundara branch dated 23.05.2018.

Based on the uncontroverted testimony of the complainant and the supporting documents, Ext.P1 to P7, it can be safely concluded that the complainants have presented sufficient evidence to support their case and justify the relief they are seeking.

It is important to note that the opposite parties had acknowledged receiving the fixed deposit amount deposited through Union Bank of India, Kundara branch, on multiple occasions, as evidenced by the documents provided. However, after specific dates ie; 24.02.2020, 04.09.2020, 31.08.2020 and 14.05.2020, the opposite parties failed to provide the complainants with the agreed interest or return the principal amount.

The available materials on record indicate that the complainants made repeated requests to the opposite parties for the withdrawal of their deposits, but the opposite parties refused to comply by withholding both the interest and principal amount. This clear and deliberate withholding of funds by the opposite parties amounts to illegal enrichment and demonstrates a breach of their contractual obligations. This indicates a deficiency in service and an unfair trade practice.

This case revolves around the complainants engaging the services of the opposite parties in exchange for payment. However, the opposite parties deliberately, unlawfully, and arbitrarily failed to fulfill their obligations and provide the agreed-upon service to the complainants. The opposite parties explicitly agreed to promptly pay interest on the fixed deposit amount on a monthly basis, as well as repay the fixed deposit amount upon maturity or upon the complainants' request. Nevertheless, the opposite parties failed to honor their commitments, thereby demonstrating clear deficiencies in their service provision to the complainants. This behavior constitutes a violation of the terms of their agreement, as well as unfair trade practices. Furthermore, the opposite parties' refusal to return the complainants' funds represents an illegal act of withholding money for their own illicit enrichment. Such actions further support the complainants' claims of contractual violation, deficiency in service, and unfair trade practices. Therefore, it is evident that the opposite parties' conduct in this case demonstrates clear instances of deficiency in service, contractual violation, and unfair trade practices. The complainants are justified in seeking redress for the damages and losses incurred as a result of the opposite parties' actions.

Therefore, based on the evidence presented, it can be concluded that the complainants have established their case and are entitled to the relief they are seeking.

 In the result we are of the view the complaint is only to be allowed in the interest of justice.  Therefore, the complainants are entitled to realize Rs.8,00,000/- together with interest @ 12% per annum and compensation of Rs.80,000/- and Rs.5,000/- as the costs of the proceedings from the date of the complaint till realization.

In the result complaint stands allowed in the following terms:-

1. The opposite parties 1 to 7 are directed to pay Rs.8,00,000/- with interest @ 12% per annum from the date of the order till realization.
2. The opposite parties 1 to 7 are further directed to pay Rs10,000/- as compensation and Rs.5,000/- towards costs to the complainants.
3. The opposite parties 1 to 7 are directed to comply with the above directions within 45 days from the date of receipt of the order failing which the complainants can initiate execution proceedings.                                                                                         

Dictated to the Confidential Assistant  Smt. Minimol S. transcribed and typed by her corrected by me and pronounced in the  Open Commission this the 26^th day of  June 2023. 

Sd/-

STANLY HAROLD

MEMBER

Sd/-

S.K.SREELA

PRESIDENT

Sd/-

S.SANDHYA RANI

MEMBER

                                                                              Forwarded/by Order                                                                                                          

               Senior superintendent

INDEX

Witnesses Examined for the Complainant:-Nil

Documents marked for the  complainant

Ext.P1    : Advertisement published by the opposite parties

Ext.P2    : Fixed deposit receipt No.0154032 A/c No.1029991903149/12 dated 23.08.2019

                 for Rs.3,00,000/- in the name of C. Joy

Ext.P3    : fixed deposit receipt No.0568228 A/c No.1020381900331/12 dated 04.09.2019

                for Rs.2,00,000/- in the name of Sosamma Joy

Ext.P4    : Fixed deposit receipt No.0575974 A/c No.1020381900651/12 dated 31.12.2019

                 in the name of Joy C

Ext.P5    : Certificate of Contribution to LLP No.AAJ-1621 A/c No.1029991904546/12

                 dated 17.01.2020 in the name of Joy C

Ext.P6    : Certificate of Contribution to LLP No.AAR-1797 A/c No.1029991900099

                 dated 20.02.2020 in the name of Joy C.  

Ext.P7   : Statement of accounts from the  Union Bank of India, Kundara branch dated 23.05.2018.

Witnesses Examined for the opposite party:-Nil

Documents marked for opposite party:-Nil