IN THE CONSUMER DISPUTES REDRESSAL  COMMISSION, KOLLAM

Dated this the  28^th  Day of  February  2022

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

        Smt.S.Sandhya Rani, Bsc, L.L.B,Member

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

                                                    CC.226/20

Valsa George                                               :         Complainant

W/o George Oommen

Thattupurackal

Thevally Nagar-22

Kollam-691009.

[By Adv.M I Alexander Panicker]

V/s

1.           Mary Rani Popular Nidhi Ltd.       :         Opposite parties

(Incorporated U/Companies Act)

Door No.XIII/526, Popular Tower Annexe

Vakayar, Pathanamthitta-689698.

2.         Rinu Marium Thomas

D/o Thomas Daniel,

Managing Director, Mary Rani Popular Nidhi Ltd.

Indikattil House,

Vakayar, Konni, Pathanamthitta-689698.

3.         Prabha  Daniel

W/o Thomas Daniel

                  Director

Mary Rani Popular Nidhi Ltd.

Indikattil House,

Vakayar, Konni, Pathanamthitta-689698.

4.         Thomas Daniel

The Managing Partner

Popular Finance/Popular Group

Indikattil House,

Vakayar, Konni, Pathanamthitta-689698.

5.        Ria Ann Thomas

D/o Thomas Daniel,

                  Partner

                  ..do..

6.         Martin J.Gomez

S/o J.Gomez

Branch Manager

Mary Rani Popular Nidhi Ltd.

High School Junction, Kollam-691013

Residing at Thushara, Near Taluk Office

​                  Kollam-691001.

FINAL  ORDER

Smt.S.Sandhya Rani, Bsc, L.L.B,Member

                This is a case based on a complaint filed u/s 12 of the Consumer Protection Act 1986.

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

          The complainant here is a very old lady and leading a retired life.  Opposite party No.1  is claimed to be a company incorporated under the Companies Act 2013, 2^nd opposite party is its Managing Director.  3^rd opposite party is the mother of 2^nd opposite party and also is claimed to be the director of 1^st opposite party company.  4^th opposite party is the father of 2^nd opposite party and husband of 3^rd opposite party and he is the Managing partner of their parent firm called Popular Finance.  5^th opposite party is another sister of 2^nd opposite party and is a partner of Popular Finance and 6^th opposite party is the Manager of its Branch at High school junction, Kollam.  Opposite parties 2 to 6 are claiming to be partners of business firms in the name and style Popular Finance and its sister concerns. 

The said Popular finance is successfully functioning gold loan firm which was established in the year 1965 by the founder chairman T.K.Daniel having its head office at Vakayar, Pathanamthitta district.  During the last 10 years the opposite parties had opened their branches throughout Kerala and outside Kerala so as to mobilize funds and 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 opposite parties 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. 

          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 said Manager under his influence on people of the locality had campaigned that the 1^st opposite party is incorporated by opposite parties 2 to 5 so as to expand their financing business and has special license to do banking business and money will be secure in the new company.  The 3^rd opposite party belonged to the church of the complainant, so she and many members of the said church had trusted the opposite parties and had entrusted their savings to the opposite parties for a long time.  The complainant again 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 complainant too was 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 complainant had deposited their savings and were not drawing interests so the amounts got accumulated and from their accounts the following receipts were issued in the name of  Popular Traders so as to acknowledged the liability of the opposite parties to the complainant.  All the 4 accounts shown below are in her accounts and hence she is entitled to recover the amount from the opposite parties.  Details of the acknowledgement of liability in the form of receipts are shown below:-

1. Fixed Deposit Receipt No.1020391800095 dated 22.02.2019 for Rs.7,47,000/-.
2. Fixed Deposit Receipt No.1020391900041 dated 30.06.2019 for Rs.1,12,500/-.
3. Fixed Deposit Receipt No.1020391900102 dated 03.01.2020 for Rs.1,00,000/-
4. Pass book, Savings/Recurring deposit A/c No.1800016 for Rs.1,05,000/- (from 24.11.2018 to 24.11.2020 @ Rs.5000/- 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 complainant had also approached the concerned branch office of the opposite parties to get back their due amount but not paid.  Slowly the complainant 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 all the opposite parties and investigation is going on to search and find the huge amounts they received and diverted.  Now the complainant is convinced that the opposite parties were engaged in unfair trade practices and were fraudulent to conduct 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 complainant and unlawful gain to the opposite parties.  There is deficiency in service of 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 4receipts is Rs.10,64,500/-.  The complainant is also entitled to get the promised rate of interest 12% p.a on the whole amount from its w.e.f date.    Totally Rs.20,500/- is  due from the opposite parties by way of interest.  Thus totally an amount of Rs.10,85,500/- is due to the complainant from the opposite parties.  The said amount may be considered as the loss incurred to the complainant. The complainant even before expiry of the respective periods shown in the receipts wished to get back the promised amount, but was deferred on lame excuses.  The complainant had contacted the 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 complainant can never be equated.  Hence the complaint.

          Notice issued from this Forum/Commission returned un served stating that the  whereabouts  of the opposite parties are not known.  Hence notices were published in Indian Express daily and produced a copy of paper publication on 25.11.2021 and on that day the opposite parties No.1 to 6 were called absent and set exparte.

          Heard the counsel for the complainant and perused the records.  Ext.P1 is an original fixed deposit receipt indicates that the complainant has deposited Rs.7,47,000/- on 22.02.2019 with maturity date on 22.05.2022 at 12% interest.  Ext.P2 is an original fixed deposit receipt indicates that the complainant has deposited Rs.1,12,500/- on 30.06.2019 with maturity on 30.09.2020 at 11% interest.  Ext.P3 is an original fixed deposit receipt indicates that the complainant has deposited Rs.1,00,000/- on 13.01.2020 with maturity on 03.04.2021 at 11% interest.  Ext.P4 original pass book of Recurring deposit.  Account No.1800016 indicates that the complainant has deposited Rs.1,05,000/-.

          The unchallenged averments in the affidavit coupled with Ext.P1 to P4 documents would establish prima facie that the complainant has deposited Rs.10,64,500/- in her own name on 4 different dates and she is entitled to get share of profit on each deposit as shown in Ext.P1 to P3 and 11% per annum for the amount covered under Ext.P4 from the date of deposit onwards.

          However the branches of the opposite parties remained closed during Covid 19 pandemic lockdown period.  Though the lockdown was lifted they imposed restrictions for the functioning of the branches and those  who want to withdraw their deposits were not paid immediately and started deferring payment on lame excuses.  The complainant had approached branch office concerned to get back the amount due  but not paid.  Later the complainant realized that the financial institutions run by the opposite parties are being closed and customers started lodging complaints before police and accordingly cases were registered against the opposite parties and hence the opposite parties absconded with an intention to flee away foreign countries.  But the police has arrested the opposite parties and investigation is going on to search and find the huge amounts they received from various customers and diverted.  On evaluating the entire materials available on record we are of the view that the above act of the opposite parties would constitute deficiency in service and unfair trade practice.

          Though the complainant would claim in the complaint as well as in the proof affidavit that the total amount due as per 4 transactions is Rs.10,64,500/-.    The complainant are also entitled to get promised rate of profit for each investment right from the date of investment till the date of order and thereafter  entitled to realize the amount invested/deposited shown in Ext.P1 to P3 receipts and interest at the rate of 11% per annum from the date of deposit.

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

          Opposite parties are directed to return the amount covered by Ext.P1 to P4 receipts with agreed share of profit for the amount covered under Ext.P1 to P3 and interest at the rate of 11% per annum for the amount covered under Ext.P4 recurring deposit from the respective rate of deposit/investment till the date of order within 45 days from the date of receipt of a copy of this order failing which the complainant is at liberty to recover the amount covered by Ext.P1 to P4 receipts along with share of profit as stated above from the date of each till the date of order and thereafter interest @9% p.a till realization from opposite parties No.1 to 6 jointly and severally and from their assets.

Dictated to the Confidential Assistant  Smt. Deepa.S transcribed and typed by her corrected by me and pronounced in the  Open Commission this the  28^th   day of  February    2022.

S.Sandhya Rani:Sd/-

     E.M.Muhammed Ibrahim:Sd/-

                       Stanly Harold:Sd/-

                        Forwarded/by Order

                     Senior Superintendent

INDEX  

Witnesses Examined for the Complainant:-Nil

Documents marked for the  complainant

Ext P1 :  Fixed Deposit Receipt No.1020391800095 dated 22.02.2019 for Rs.7,47,000/-.

Ext P2:  Fixed Deposit Receipt No.1020391900041 dated 30.06.2019 for Rs.1,12,500/-.

Ext.P3 :  Fixed Deposit Receipt No.1020391900102 dated 03.01.2020 for Rs.1,00,000/-

Ext.P4:   Pass book, Savings/Recurring deposit A/c No.1800016 for Rs.1,05,000/- (from 24.11.2018 to 24.11.2020 @ Rs.5000/- per month)

Witnesses Examined for the opposite party:-Nil

Documents marked for opposite party:-Nil

S.Sandhya Rani:Sd/-

      E.M.Muhammed Ibrahim:Sd/-

                        Stanly Harold:Sd/-

                        Forwarded/by Order            

                        Senior Superintendent