Mr. K.N. Srinivas Shastry The Managing Director of V/S Radhika V.K. (21) yrs - Consumer Court Case

Karnataka

Raichur

DCFR 87/07

Radhika V.K. (21) yrs - Complainant(s)

Versus

Mr. K.N. Srinivas Shastry The Managing Director of - Opp.Party(s)

V Sripad

29 Feb 2008

ORDER

DIST. CONSUMER DISPUTES REDRESSAL FORUM
DIST. CONSUMER DISPUTES REDRESSAL FORUM,DC Office Compound, Sath Kacheri
consumer case(CC) No. DCFR 87/07

Radhika V.K. (21) yrs						...........Appellant(s)
Vs.
Mr. K.N. Srinivas Shastry The Managing Director of Mr. Yadunath Kolar						...........Respondent(s)

BEFORE:

Complainant(s)/Appellant(s):

OppositeParty/Respondent(s):

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ORDER

This is a complaint filed by the complainant U/s. 12 of C.P. Act against the two Respondents as detailed above for deficiency of service. The brief facts of the complaint are as under:- 2. The complainant has deposited a sum of Rs. 50,000/- with Respondent No-1 through Respondent NO-2 by way of Demand Drafts on 09-01-05 the Respondents have given Receipt-Cum-Investment Certificates bearing NO. 34858/10-1-2005 to the complainant for the said deposited amount and have agreed to pay interest thereon at the rate of 5% On 24-08-07 and also on other subsequent days the complainant had been to the office of Respondent No-2 to withdraw his entire deposited amount together with upto date interest there on as she was in need of it for family necessity. But it was locked. Therefore she got issued a legal notice on 03-09-07 through her Advocate by Speed Post Acknowledgement Due and Under Certificate of Postings to both the Respondents. In the meantime she met other investors/depositors who had not been repaid their money. Thus a common notice was also issued wherein the name of this complainant appear at Sl.No.10 in the said notice. The said legal notices have been duly served on both of them. The Respondent NO-2 has given reply to her legal notice on 29-09-07. However both the Respondents have failed to pay back her invested amount. The Respondents are bound to repay the deposited/invested amount on demands together with up to date of interest as shown in the certificates. The act and attitudes of both the Respondents amounts to deficiency in service. Despite the service of legal notice Respondents have failed and neglected to repay the deposited sum together with upto date interest. The failure of Respondents in not making the payment of the invested money amounts to deficiency in service. The complainant has been suffering both mentally and physically as the Respondents have failed to repay her legitimate claim and she has been put to great loss. Hence for all these reasons complainant has prayed for a direction to the Respondents to refund/pay back her deposited/invested amount along with interest at the rate of 24% p.a. from the date of deposit till realization together with current and future interest and to pay Rs. One Lakh as compensation for mental tension, torture & harassment etc., 3. In-response to service of notice, both the Respondents remained absent when called out and there was no representation either through their Authorized Agent or Lawyer. So both the Respondents have been placed Ex-parte. 4. During the course of enquiry the complainant has filed her sworn affidavit as evidence and has got marked (4) documents at Ex.P-1 to Ex.P-4. Heard the arguments of the counsel for complainant and perused the records. 5. The following points arise for consideration and determination:- 1.Whether the complainant proves deficiency in service by both the Respondents in not making payment of her invested/deposited amount together with agreed rate of interest in-spite of her repeated demands, as alleged? 2.Whether the complainant is entitled for the relief sought for? 6. Our finding on the above points are as under:- 1.In the affirmative. 2.As per final order for the following REASONS POINT NO.1:- 7. It is the case of the complainant that she has deposited a sum of Rs. 50,000/- with the Respondents Firm by way of Demand Drafts on 10-01-05 for which the Respondents have given Receipts-Cum-Certificates agreeing to repay the same with interest at 5% p.a. It is also her case that on 24-08-07 and also on other subsequent days she had been to the office of Respondent No-2 to withdraw her deposited amount thereon as she was in need of money for family necessity. But it was locked. Therefore she got issued legal notice on 03-09-07 through her Advocate by Speed Post Acknowledgement Due and Under Certificate of Postings to both the Respondents. In the meantime she met other investors/depositors who had not been repaid their money and came to know that the Respondents have duped the people and thus put the public including the complainant into loss. Thus a common legal notice was also issued wherein the name of the complainant appear at Sl.No-10 in the said notice. The said legal notice has been duly served on both the Respondents. The Respondent No.2 has given reply on 29-09-07. However both of them have failed to pay back her invested amount. The Respondents are bound to repay the deposited/invested amount on demands together with up to date interest as shown in the certificate. The act and attitudes of the Respondents amounts to deficiency in service. Despite the service of legal notice both the Respondents have failed and neglected to repay the deposited sum together with upto date interest. The failure of Respondents in not making the payment of the invested money amounts to deficiency in service and due to which she suffered both mentally and physically and was put to great loss. 8. The complainant has filed original Receipt cum- Investment Certificates at Ex.P-1, and office copy of legal notice at Ex.P-2 she has also produced Delivery Sheet (Web Site) to show service of legal notice on Respondent No-1 at Ex.P-3 and has produced reply notice given by Respondent No-2 at Ex.P-4. From a close perusal of Ex.P-1 Receipt-cum-Investment Certificates it amply shows that the complainant has invested/deposited amount with the Respondents who had agreed to repay the same with interest as mentioned therein. As stated above in-spite of service of legal notice, the Respondents failed to repay the same which amounts to deficiency in service. Further, even to the notice issued by this Forum to their respective address, both Respondents remained absent and there was no representation on their behalf and so they have been placed Ex-parte. These factors together go to show that the Respondents are deficient in service in not making payment of respective invested amount to the complainant along with agreed rate of interest. Further the conduct of the Respondents in remaining absent in the proceedings before this Forum in-spite of service of notice shows that, for the reasons best known to them they have remained absent and therefore we hold that the complainant has proved deficiency in service by both the Respondents and so Point No-1 is answered in the affirmative. POINT NO.2:- 10. The complainant has sought for direction to the Respondents for refund of their respective deposited/invested amount of Rs. 50,000/- together with interest at 24% p.a. from the date of deposit till realization and for awarding compensation of Rs. One Lakh for mental tension & harassment etc. In view of our discussion and finding on point No-1, the complainant is entitled for refund of her deposited/invested amount with agreed rate of interest from the date of investment till the date of complaint filed by her and future interest at 10% p.a. on the invested amount of Rs. 50,000/- from the date of complaint till realization. As regard the claim of compensation is concerned having regard to the facts and circumstances of the case as discussed above we feel justification to allow a global compensation of Rs. 5,000/- including cost of litigation. In this view of the matter we pass the following order: ORDER The complaint of the complainant is allowed in part. Both the Respondents jointly and severally shall refund the deposited/invested amount of Rs. 50,000/- to the complainant together with agreed rate of interest at 5% p.a. from the date of deposit till date of complaint filed in this Forum and future interest at 10% p.a. from the date of said complaint till realization on the invested amount. Respondents shall also to pay a global compensation of Rs. 5,000/- including cost of litigation. Both the Respondents shall comply this order within two months from the date of receipt of copy of this order. Office to furnish certified copy of this order to the complainant and to both the Respondents who are Ex-parte, forth with free of cost. (Dictated to the Stenographer, typed, corrected and then pronounced in the open Forum On 29-02-08.) Sd/- Sd/- Sd/- Smt.Pratibha Rani Hiremath, Sri. Gururaj Sri. N.H. Savalagi, Member. Member. President, Dist.Forum-Raichur. Dist-Forum-Raichur Dist-Forum-Raichur.

This is a complaint filed by the complainant U/s. 12 of C.P. Act against the two Respondents as detailed above for deficiency of service. The brief facts of the complaint are as under:- 2. The complainant has deposited a sum of Rs. 50,000/- with Respondent No-1 through Respondent NO-2 by way of Demand Drafts on 09-01-05 the Respondents have given Receipt-Cum-Investment Certificates bearing NO. 34858/10-1-2005 to the complainant for the said deposited amount and have agreed to pay interest thereon at the rate of 5% On 24-08-07 and also on other subsequent days the complainant had been to the office of Respondent No-2 to withdraw his entire deposited amount together with upto date interest there on as she was in need of it for family necessity. But it was locked. Therefore she got issued a legal notice on 03-09-07 through her Advocate by Speed Post Acknowledgement Due and Under Certificate of Postings to both the Respondents. In the meantime she met other investors/depositors who had not been repaid their money. Thus a common notice was also issued wherein the name of this complainant appear at Sl.No.10 in the said notice. The said legal notices have been duly served on both of them. The Respondent NO-2 has given reply to her legal notice on 29-09-07. However both the Respondents have failed to pay back her invested amount. The Respondents are bound to repay the deposited/invested amount on demands together with up to date of interest as shown in the certificates. The act and attitudes of both the Respondents amounts to deficiency in service. Despite the service of legal notice Respondents have failed and neglected to repay the deposited sum together with upto date interest. The failure of Respondents in not making the payment of the invested money amounts to deficiency in service. The complainant has been suffering both mentally and physically as the Respondents have failed to repay her legitimate claim and she has been put to great loss. Hence for all these reasons complainant has prayed for a direction to the Respondents to refund/pay back her deposited/invested amount along with interest at the rate of 24% p.a. from the date of deposit till realization together with current and future interest and to pay Rs. One Lakh as compensation for mental tension, torture & harassment etc., 3. In-response to service of notice, both the Respondents remained absent when called out and there was no representation either through their Authorized Agent or Lawyer. So both the Respondents have been placed Ex-parte. 4. During the course of enquiry the complainant has filed her sworn affidavit as evidence and has got marked (4) documents at Ex.P-1 to Ex.P-4. Heard the arguments of the counsel for complainant and perused the records. 5. The following points arise for consideration and determination:- 1.Whether the complainant proves deficiency in service by both the Respondents in not making payment of her invested/deposited amount together with agreed rate of interest in-spite of her repeated demands, as alleged? 2.Whether the complainant is entitled for the relief sought for? 6. Our finding on the above points are as under:- 1.In the affirmative. 2.As per final order for the following REASONS POINT NO.1:- 7. It is the case of the complainant that she has deposited a sum of Rs. 50,000/- with the Respondents Firm by way of Demand Drafts on 10-01-05 for which the Respondents have given Receipts-Cum-Certificates agreeing to repay the same with interest at 5% p.a. It is also her case that on 24-08-07 and also on other subsequent days she had been to the office of Respondent No-2 to withdraw her deposited amount thereon as she was in need of money for family necessity. But it was locked. Therefore she got issued legal notice on 03-09-07 through her Advocate by Speed Post Acknowledgement Due and Under Certificate of Postings to both the Respondents. In the meantime she met other investors/depositors who had not been repaid their money and came to know that the Respondents have duped the people and thus put the public including the complainant into loss. Thus a common legal notice was also issued wherein the name of the complainant appear at Sl.No-10 in the said notice. The said legal notice has been duly served on both the Respondents. The Respondent No.2 has given reply on 29-09-07. However both of them have failed to pay back her invested amount. The Respondents are bound to repay the deposited/invested amount on demands together with up to date interest as shown in the certificate. The act and attitudes of the Respondents amounts to deficiency in service. Despite the service of legal notice both the Respondents have failed and neglected to repay the deposited sum together with upto date interest. The failure of Respondents in not making the payment of the invested money amounts to deficiency in service and due to which she suffered both mentally and physically and was put to great loss. 8. The complainant has filed original Receipt cum- Investment Certificates at Ex.P-1, and office copy of legal notice at Ex.P-2 she has also produced Delivery Sheet (Web Site) to show service of legal notice on Respondent No-1 at Ex.P-3 and has produced reply notice given by Respondent No-2 at Ex.P-4. From a close perusal of Ex.P-1 Receipt-cum-Investment Certificates it amply shows that the complainant has invested/deposited amount with the Respondents who had agreed to repay the same with interest as mentioned therein. As stated above in-spite of service of legal notice, the Respondents failed to repay the same which amounts to deficiency in service. Further, even to the notice issued by this Forum to their respective address, both Respondents remained absent and there was no representation on their behalf and so they have been placed Ex-parte. These factors together go to show that the Respondents are deficient in service in not making payment of respective invested amount to the complainant along with agreed rate of interest. Further the conduct of the Respondents in remaining absent in the proceedings before this Forum in-spite of service of notice shows that, for the reasons best known to them they have remained absent and therefore we hold that the complainant has proved deficiency in service by both the Respondents and so Point No-1 is answered in the affirmative. POINT NO.2:- 10. The complainant has sought for direction to the Respondents for refund of their respective deposited/invested amount of Rs. 50,000/- together with interest at 24% p.a. from the date of deposit till realization and for awarding compensation of Rs. One Lakh for mental tension & harassment etc. In view of our discussion and finding on point No-1, the complainant is entitled for refund of her deposited/invested amount with agreed rate of interest from the date of investment till the date of complaint filed by her and future interest at 10% p.a. on the invested amount of Rs. 50,000/- from the date of complaint till realization. As regard the claim of compensation is concerned having regard to the facts and circumstances of the case as discussed above we feel justification to allow a global compensation of Rs. 5,000/- including cost of litigation. In this view of the matter we pass the following order: ORDER The complaint of the complainant is allowed in part. Both the Respondents jointly and severally shall refund the deposited/invested amount of Rs. 50,000/- to the complainant together with agreed rate of interest at 5% p.a. from the date of deposit till date of complaint filed in this Forum and future interest at 10% p.a. from the date of said complaint till realization on the invested amount. Respondents shall also to pay a global compensation of Rs. 5,000/- including cost of litigation. Both the Respondents shall comply this order within two months from the date of receipt of copy of this order. Office to furnish certified copy of this order to the complainant and to both the Respondents who are Ex-parte, forth with free of cost. (Dictated to the Stenographer, typed, corrected and then pronounced in the open Forum On 29-02-08.) Sd/- Sd/- Sd/- Smt.Pratibha Rani Hiremath, Sri. Gururaj Sri. N.H. Savalagi, Member. Member. President, Dist.Forum-Raichur. Dist-Forum-Raichur Dist-Forum-Raichur.