IN THE CONSUMER DISPUTES REDRESSAL COMMISSION, KOLLAM

DATED THIS THE     28^th 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.234/2020

1. Dr.Sunil George,

S/o George Oommen, aged 51 yrs,

Thattupurackal,

Thevally Nagar-22,

Kollam 691 009.

(By Adv.M.I.Alexander Panicker)

2. Shereen Sunil,

W/o Dr.Sunil George,

Aged 46 years,

Thattupurackal,

Thevally Nagar-22,

Kollam 691 009.

(By Adv.M.I.Alexander Panicker)                             :           Complainants

V/s                                                                                                     

1. Mary Rani Popular Nidhi Ltd.

(Incorporated U/Companies Act),

Door No.XIII/526, Popular Tower Annex,

Vakayar, Pathanamthitta 689 698.

2. Rinu Marium Thomas,

D/o Thomas Daniel,

Managing Director, Mary Rani Popular Nidhi Ltd.,

Indikattil House, Vakayar,

Konni, Pathanamthitta 689 698.

3. Prabha Thomas,

W/o Thomas Daniel,

Director, Mary Rani Popular Nidhi Ltd.,

Indikattil House, Vakayar,

Konni, Pathanamthitta 689 698.

4. Thomas Daniel,

The Managing Partner,

Popular Finance/Popular Group

Indikattil House, Vakayar,

Konni, Pathanamthitta 689 698.                                :          Opposite parties

5. Ria Ann Thomas,

   D/o Thomas Daniel,

        Partner,

Popular Finance/Popular Group

Indikattil House, Vakayar,

Konni, Pathanamthitta 689 698.

6. Reba Mary Thomas,

D/o Thomas Daniel,Partner,

Popular Finance/Popular Group,

Indikattil House, Vakayar,

Konni, Pathanamthitta 689 698.

7. Martin J.Gomez,

S/o J.Gomez,

Branch Manager, Mary Rani Popular Nidhi Ltd.,

High School Junction, Kollam 691 013.

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 mutually husband and wife.  The 1^st complainant is Dentist and the 2^nd complainant is a Teacher employed in unaided private school.

          The 1^st opposite party is claimed to be company incorporated under the Companies Act, 2013 with its registered office at Vakayar, Pathanamthitta District.  The 2^nd opposite party is claimed to be its Managing Director.  The 3^rd opposite party is the mother of the 2^nd opposite party and is claimed to be Director of the above company.  The 4^th opposite party is the father of 2^nd opposite party and husband of 3^rd opposite party and is the Managing Partner of their Parent Firm called Popular Finance.  The 5^th and 6^th opposite parties are sisters of the 2^nd opposite parties who are partners of Popular Finance.  The 7^th opposite party is the Manager of its Branch at High School Junction, Kollam.  Opposite parties 2 to 6 claim to be the partners of business firms in the name and style Popular Finance and its sister concerns.

          During the last 10 years the opposite parties had opened their branches at many parts of Kerala and one was opened at High School Junction, Kollam with sign boards of Popular Finance, so as to mobilize funds and to do finance business.  Extensive media campaign and marketing was done by the opposite parties to attract customers.  The sudden spurt of development of the business firms of the Popular Finance gained public attention and confidence in them.  The opposite parties were very cautious and prompt in repayment and payment of monthly interest to those who want to collect interest monthly.  All on a sudden the opposite parties had placed a sign board of the 1^st opposite party company outside the branch office of Popular Finance without change of original sign board and cunningly posted a reputed person of the locality as its Branch Manager, who is none other than the 6^th opposite party.  The 3^rd opposite party belongs to the church of the complainant so she and many members of the church had trusted the opposite parties and had entrusted their saving to the opposite parties for a long time.  The complainants had an intention to deposit their savings in some banks and got attracted to the wide publicity through newspaper, electronic media, social media and on direct canvassing through agents and officials of the opposite parties, the complainants too were made to believe that the opposite parties are reliable and trust worthy private financiers and they are authorized and competent to receive deposits and would return the deposited amount with interest as promised.  The complainants had deposited their savings in the 1^st opposite party company and the following receipts were issued in the name of the 1^st opposite party company so as to acknowledge the liability of the opposite parties to the complainant.  Details of the acknowledgment of liability in the form of receipts are shown below:-

1. Fixed Deposit Receipt No.1020391900065 dated 17/09/2019 for Rs.5,00,000/-
2. Fixed Deposit Receipt No.1020392000017 dated 17/06/2020 for Rs.1,12,500/-
3. Fixed Deposit Receipt No.1020392000018 dated 17/06/2020 for Rs.1,94,400/-
4. Passbook, Savings/Recurring deposit A/c No.1900091 for Rs.8,000/-(from 06.01.2020 to 06.01.2021 @ Rs.1,000/- per month)

Branches of the opposite parties remained closed during Covid 19 Pandemic lock down period.  After lifting of lockdown restrictions also the functioning of the branches were restricted and to those who want to withdraw their deposits were not paid immediately and started deferring payments on lame excuses.  The complainants had also approached the said branch office of the opposite parties to get back their deposits but not paid.  Slowly the complainants realized that the financial institutions run by the opposite parties are being closed and customers started lodging complaints to the police and police registering cases against the opposite parties and the opposite parties absconded with an intention to flee away to foreign countries.  The police had arrested the opposite parties who owned and acted as partners of Popular Finance and investigation is going on to search and find the huge amounts they received and diverted. 

Now the complainants are convinced that the opposite parties were engaged in unfair trade practices and were fraudulently conducted financial business without proper license or permission from RBI.  The opposite parties were deliberate to mislead the public with false claims and they were deliberate to cheat customers who trusted them.  They were deliberate to receive deposits on false promises and forging documents in the name of paper firms.  They have forged and fabricated documents and misappropriated the amount entrusted to them so as to cause unlawful loss to the complainants and unlawful gain to the opposite parties.  There is deficiency in service on the opposite parties as private financiers and the opposite parties failed on their service by undertaking and promise to repay the amount with agreed rate of interest.  Total amount due as per the above 4 accounts is Rs.8,14,900(Rupees Eight lakhs fourteen thousand nine hundred only).  The complainant are also entitled to get the promised rate of interest @ 11% for the whole amount.  Interest will come to Rs.63,440/-.  Thus totally an amount of Rs.8,78,340/- is due from the opposite parties.

The complainants on understanding that 1^st opposite party, is also a fake company run by the opposite parties approached the 6^th opposite party and informed him that they wish to get back the promised amount but payment was deferred on lame excuses.  The complainants had contacted the other opposite parties in person and requested to refund the entire deposit amount by closing all accounts prematurely, but the opposite parties were not ready to return the amount so that the loss and injury caused to the complainants can never be equated.   The complainants find no other alternative than to approach judicial forums to redress their grievances.  Hence the complaint.

Notice issued from the Forum/Commission returned unserved stating that the whereabouts of the opposite parties are not known.  Thereafter paper publication was effected.  Then also opposite parties 1 to 6 failed to appear before the commission so opposite parties 1 to 7 set exparte.

1^st complainant filed proof affidavit by reiterating the averments in the complaint and got marked Exts.P1 to P4 documents.  Heard the counsel for the complainants and perused the records.  Ext.P1 is the original Fixed Deposit receipt for Rs.5,00,000/- bearing No.1020391900065 dated 17.09.2019 and maturity date on 17.06.2023 in the name of Dr.Sunil George 1^st complainant.  Ext.P2 is the original Fixed Deposit receipt for Rs.1,12,500/- bearing No.1020392000017 dated 17.06.2020  and maturity date 17.09.2021 in the name of Dr.Sunil George.  Ext.P3 is the original Fixed Deposit receipt for Rs.1,94,400/- bearing No.1020392000018 dated 14.06.2020 and maturity dated 14.09.2021 in the name of Shereen Sunil.  Ext.P4 is original passbook in the name of Dr.Sunil George A/c No.1900091 for Rs.8,000/- from 06.01.2020 to 06.01.2021 @ Rs.1,000/- per month.

         The unchallenged averments in the affidavit coupled with Ext.P1 to P4 documents would establish prima facie that the  complainants Dr.Sunil George and Shereen Sunil deposited Rs. 8,14,900/- in their name at the 1^st opposite party company.  It is clear from Ext.P1 to P4 documents that the opposite parties have promised 11% interest share of profit per annum and maturity dated are 17.06.2023, 17.09.2021 and 14.09.2021. 

          The unchallenged averments in the affidavit would indicate that the opposite parties had misappropriated the entire amount deposited by customers including the complainants and thereafter closed the branch office and absconded without delay the deposited or its share of profit to the depositors.  Hence there is deficiency in service and unfair trade practice on the part of the opposite parties. 

In the circumstances the complainant is entitled to get an order directing opposite parties pay Rs.8,78,340/- deposited amount with the offered share of profit shown in Ext.P1 to P3 receipts from the date of receipt of the amount till the date of the order and thereafter the interest @ 9 % per annum till the date of payment.

          In the result complaint stands allowed in part in the following terms.

Opposite parties 1 to 7 are directed to return the amount covered by Ext.P1 to P3 receipts and Ext.P4 to the complainants along with agreed share of profit interest from the respective date of deposit/investment within 45 days from the date of receipt of a copy of this order failing which the complainants are at liberty to recover the amount covered by Exts.P1 to P3 receipts and Ext.P4 passbook along with the agreed share of profit from the date of investment  till the date of order and thereafter interest @ 9% per annum from the date of order till realization from the opposite parties No.1 to 7 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  28^th   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.P1             : Original Fixed Deposit receipt for Rs.5,00,000/- bearing No.1020391900065

                          dated 17.09.2019

Ext.P2             :Original Fixed Deposit receipt for Rs.1,12,500/- bearing No.1020392000017

                         dated 17.06.2020   

Ext.P3                         : Original Fixed Deposit receipt for Rs.1,94,400/- bearing No.1020392000018

                          dated 14.06.2020 

Ext.P4                         : Original passbook in the name of Dr.Sunil George A/c No.1900091 for

                          Rs.8,000/- from 06.01.2020 to 06.01.2021 @ Rs.1,000/- per month.

Witnesses Examined for the opposite party:-Nil

Documents marked for opposite party:-Nil