Karnataka

Chitradurga

CC/18/2017

Sannabasappa S/o Shivappa - Complainant(s)

Versus

Mr.Banuprakash,The Managing Director - Opp.Party(s)

Sri.D.I.Syed Swaleha

15 Jun 2017

ORDER

COMPLAINT FILED ON:14.02.2017

DISPOSED      ON:15.06.2017

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHITRADURGA.

 

CC.NO: 18/2017

 

DATED:  15^th JUNE 2017

PRESENT: - SRI. T.N. SREENIVASAIAH  : PRESIDENT                                   B.A., LL.B.,

                   SRI.N. THIPPESWAMY        :MEMBER

                                 B.A., LL.B.,   

……COMPLAINANT	Sanna Bosappa, S/o Shivappa, Age: 62 Years, Agriculturist, Near Veeranjaneya Swamy Temple, Dam Road, Chilakanahatti village, Hosapet, Bellary District.      (Rep by Sri. D.I. Syed Swaleha, Advocate)
V/S
…..OPPOSITE PARTIES	1. Mr. Banuprakash, The Managing Director, Genius Organic, Revolution Limited, APMC Yard, Near 4th Block, Sheep Market, Chitradurga-577502.   2. Mr. Sreenivasalu, Manager, Genius Organic, Revolution Limited, APMC Yard, Near 4th Block, Sheep Market, Chitradurga-577502.   3. M. Pramoda, FDA, Genius Organic, Revolution Limited, APMC Yard, Near 4th Block, Sheep Market, Chitradurga-577502.   4. Guru, Section Officer, Genius Organic, Revolution Limited, APMC Yard, Near 4th Block, Sheep Market, Chitradurga-577502.   (ex-parte)

ORDER

SRI. T.N. SREENIVASAIAH:   PRESIDENT

The above complaint has been filed by the complainant u/Sec.12 of the C.P Act, 1986 for the relief to direct the OPs to pay a sum of Rs.6,06,000/- towards compensation along with interest at 18% p.a from the date of complaint till realization and such other reliefs.

2.     The brief facts of the case of the above complainant are that, he is an agriculturist by profession maintaining his family out of agricultural income.  It is further submitted that, OPs have its Zonal Office in middle Karnataka comprising of 7 to 8 Districts in and around Chitradurga District.  The OPs have been carrying business of supply of fertilizers and manures to the farmers in the area and the OPs had 2-3 agents to each District to advertisement and for sale of their product.  Accordingly, agents very oftenly visiting Hospet and surrounding area canvassing the benefit of the fertilizers which are used for agricultural purpose, so that the farmers can get good yield and good returns.  It is further submitted that, the agents of the OPs very much prevailed on the complainant to open a retail outlet to sell the product that may be purchased by the complainant.  The innocent complainant become found the canvas made by the agents of OPs and complainant approached the office of the OPs and enquired about the assurances given by the agents of OPs.  The OPs also impressed the complainant to purchase the fertilizers, manures from them and to sell said product.  The OPs also assured the complainant that, they will depute the experienced guides who would demonstrate the mode of usage of product at appropriate times and regular intervals.  It is further submitted that, complainant expecting good returns by sale of the products of OPs raised hand loans from friends and relatives to the tune of Rs.5,00,000/- and in addition he invested the said amount together with the funds available in his hands and opened retailed outlet at Hospet by paying monthly rent of Rs.8,000/- p.m and purchased product from OPs in the year 2014 to the tune of Rs.4,00,000/- on different dates in the month of July to October 2014.  The OPs have delivered their products to the complainant at his outlet as per Invoice and bills.  After receiving the products from the OPs, the complainant put them for sale in outlet.  Some farmers purchased products from the complainant and began to use in their lands.  The complainant very oftenly called the OPs disputes the guides as assured for which the OPs did not do so.  The farmers who purchased fertilizers from complainant began to complain that, the fertilizers purchased are of no use.  Simultaneously they were returning the purchased product from the complainant.  It is further submitted that, the complainant approached the OPs and submitted his grievances and complainant insisted the OPs to receive back the unsold fertilizers from the complainant to refund the amount.  Accordingly, in the beginning OPs advised the complainant to get back the unsold fertilizers by paying luggage etc., which will be refunded along with bill amounts.  Accordingly, the complainant has re-transported the fertilizers from Hospete to Chitradurga and delivered the fertilizers to the complainant on 17.02.2015 and on 08.12.2015 and the OPs have acknowledged the receipt of fertilizers from complainant and then demanded for repayment of returned goods.  The OPs requested the complainant that they will refund through cheque by post in due course.  The complainant waited for a long time expecting refund of amount from OPs but, turned in vain.  At last complainant approached the OPs in person and demanded for refund of cost of returned products and once again the OPs assured the complainant that they will refund the amount through cheque within a week.  The OPs are waiting for funds from their head office.  However, the complainant received a cheque bearing No.964309 dated 30.04.2016 for a sum of Rs.20,000/- in the month of August 2016.  The complainant was surprised to receive the cheque for Rs.20,000/- only and approached the OPs again for which the OPs requested the complainant to encash the said cheque for the present and OPs are arranging for refund of entire balance amount.  With this assurance, the complainant presented the said cheque to State Bank of Mysore at Vidyanagara Layout Branch, Chitradurga but, the said cheque was returned to complainant from the Bank stating that, Funds insufficient.  It is further submitted that, the complainant got issued legal notice to all the OPs on 13.10.2016 by RPAD but, the said envelops returned unserved again, again the complainant got issued legal notice on 18.01.2017, the same was returned unserved.  The complainant lodge a complaint before the Kote Police Station at Chitradurga on 29.09.2016 for which the Police authorities have issued an endorsement stating that, the grievance of complainant is a civil dispute and advised to approach to competent Court of Law.  The complainant is a consumer with the OPs for having purchased the fertilizers from OPs upon their false assurances and thus, the OPs have practiced unfair trade practice and cheated, by rendering deficiency of service to the complainant and exposed to financial loss of Rs.6,00,000/-.    The cause of action for this complaint has arisen at Chitradurga in the month of October-2014 on 17.02.2015, 08.12.2015, 13.10.2016 and 18.01.2017  when ultimately the complainant got issued legal notice to the OPs and dishonor of cheque for Rs.20,000/- in the month of September 2016   which is within the jurisdiction of this Forum and therefore, prayed for allowing the complaint.  

 3.    On service of notice, OPs did not appear through                    Advocate or in person and hence placed ex-parte. 

 4.    Complainant has examined as PW-1 by filing affidavit evidence and the documents Ex.A-1 to A-22 were got marked.

5.     Arguments heard. 

6.     Now the points that arise for our consideration for decision of above complaints are that;

(1)  Whether the complainant proves that the OPs have committed deficiency of service and unfair trade practice and entitled for the reliefs as prayed for in the above complaint?

              (2) What order?

        7.     Our findings on the above points are as follows:-

        Point No.1:- Partly in Affirmative.

        Point No.2:- As per final order.

REASONS

8.     It is not in dispute that, complainant is an agriculturist by profession maintaining his family out of agricultural income.  OPs have its Zonal Office in middle Karnataka comprising of 7 to 8 Districts in and around Chitradurga District and have been carrying out business of supplying fertilizers and manures to the farmers in the area and the OPs had 2-3 agents to each District to advertisement and for sale of their product.  Agents are very oftenly visiting Hospet and surrounding area canvassing the benefit of the fertilizers which are used for agricultural purpose, so that the farmers can get good yield and good returns.  The agents of the OPs are very much prevailed on the complainant to open a retail outlet to sell the product that may be purchased by the complainant.  The innocent complainant became fond with the canvas made by the agents of OPs and approached the office of the OPs and enquired about the assurances given by the agents of OPs.  The OPs also impressed the complainant to purchase the fertilizers, manures from them and to sell said product.  The OPs also assured the complainant that, they will depute the experienced guides who would demonstrate the mode of usage of product at appropriate times and regular intervals.  Complainant was expecting good returns by sale of the products of OPs raised hand loans from friends and relatives to the tune of Rs.5,00,000/- and in addition he invested the said amount together with the funds available in his hands and opened retailed outlet at Hospet by paying monthly rent of Rs.8,000/- p.m and purchased product from OPs in the year 2014 to the tune of Rs.4,00,000/- on different dates in the month of July to October 2014.  The OPs have delivered their products to the complainant at his outlet as per Invoice and bills.  After receiving the products from the OPs, the complainant put them for sale in outlet.  Some farmers purchased products from the complainant and began to use in their lands.  The complainant very oftenly called the OPs disputes the guides as assured for which the OPs did not do so.  The farmers who purchased fertilizers from complainant began to complain that, the fertilizers purchased are of no use.  Simultaneously they were returning the purchased product from the complainant.  The complainant approached the OPs and submitted his grievances and complainant insisted the OPs to receive back the unsold fertilizers from the complainant to refund the amount.  Accordingly, in the beginning OPs advised the complainant to get back the unsold fertilizers by paying luggage etc., which will be refunded along with bill amounts and re-transported the fertilizers from Hospete to Chitradurga and delivered the fertilizers to the complainant on 17.02.2015 and on 08.12.2015 and the OPs have acknowledged the receipt of fertilizers from complainant and then demanded for repayment of returned goods.  The OPs requested the complainant that they will refund through cheque by post in due course.  The complainant waited for a long time expecting refund of amount from OPs but, turned in vain.  At last complainant approached the OPs in person and demanded for refund of cost of returned products and once again the OPs assured the complainant that they will refund the amount through cheque within a week stating that they are waiting for funds from their Head Office.  However, the complainant received a cheque bearing No.964309 dated 30.04.2016 for a sum of Rs.20,000/- in the month of August 2016.  The complainant was surprised to receive the cheque for Rs.20,000/- only and approached the OPs again for which the OPs requested the complainant to encash the said cheque for the present and will arrange for refund of entire balance amount.  With the assurance given by the OPs, the complainant presented the said cheque to State Bank of Mysore at Vidyanagara Layout Branch, Chitradurga but, the said cheque was returned with a shara “Funds insufficient”.  The complainant is a consumer with the OPs for having purchased the fertilizers from OPs upon their false assurances and thus, the OPs have practiced unfair trade practice and cheated, by rendering deficiency of service to the complainant and exposed to financial loss of Rs.6,00,000/-.   

9.     In support of his contention, the complainant has filed his affidavit evidence and reiterated the contents of complaint and relied on documents like Invoices dated 15.10.2014 and 16.07.2014 marked as Ex.A-1 and Ex.A-2, Credit note dated 15.10.2014 for Rs.50,078/- marked as Ex. A-3, Credit note dated 15.10.2014 for Rs.21,910-02 marked as Ex.A-4, Receipt dated 15.12.20015 for Rs.60,000/- for having paid towards office rent and labour charges for the period from 01.04.2015 to 30.09.2015 marked as Ex.A-5, Receipt dated 15.12.20015 for Rs.60,000/- for having paid towards office rent and labour charges for the period from 01.10.2014 to 31.03.2015 marked as Ex.A-6, receipt for having paid a sum of Rs.10,000/- towards transport of goods in mini lorry bearing No.KA-36 A-6896 on 07.12.2015 marked as Ex.A-7, receipt for having paid a sum of Rs.10,000/- towards transport of goods in mini lorry bearing No.KA-36 A-6896 on 17.02.2015 marked as Ex.A-8,  Details of returned materials marked as Ex.A-9, Final revised statement dated 17.02.2015 marked as Ex.A-10, Copy of the FIR dated 29.09.2016 marked as Ex.A-11, Endorsement issued by the Kote P.S.I, Chitradurga dated 29.09.2016 marked as Ex.A-12, complaint given to the Sub-inspector, Rural Police Station, Chitradurga marked as Ex.A-13, Legal Notice dated 08.11.2016 and 18.01.2017 marked as Ex.A-14 and Ex.A-15, Postal receipts marked as Ex.A-16, 4 returned refused postal covers with acknowledgements marked as Ex.A-17, letter dated 08.12.2016 issued by Santhosh S/o Sannabosappa to OP No.1 marked as Ex.A-18, returned cheque dated 30.04.2016 for Rs.20,000/- issued by the OPs to the complainant marked as Ex.A-19, Legal Notice dated 13.10.2016 in cheque bounce case marked as Ex.A-20, Postal receipts marked as Ex.A-21 and returned postal covers with acknowledgements with a shara “No such addressee returned to sender” marked as Ex.A-22.

 

10.   On hearing the rival contentions of complainant and on perusal of the documents including the affidavit and documentary evidence, it clearly made that, complainant is an agriculturist by profession.  OPs have its Zonal Office in middle Karnataka comprising of 7 to 8 Districts in and around Chitradurga District and have been carrying out business of supplying fertilizers and manures to the farmers in the area and the OPs had 2-3 agents to each District to advertisement and for sale of their product.  The agents of the OPs are very much prevailed on the complainant to open a retail outlet to sell the product that may be purchased by the complainant.  The innocent complainant became fond with the canvas made by the agents of OPs and approached the office of the OPs and enquired about the assurances given by the agents of OPs.  The OPs also impressed the complainant to purchase the fertilizers, manures from them and to sell said product.  The OPs also assured the complainant that, they will depute the experienced guides who would demonstrate the mode of usage of product at appropriate times and regular intervals.  Complainant was expecting good returns by sale of the products of OPs raised hand loans from friends and relatives to the tune of Rs.5,00,000/- and in addition he invested the said amount together with the funds available in his hands and opened retailed outlet at Hospet by paying monthly rent of Rs.8,000/- p.m and purchased product from OPs in the year 2014 to the tune of Rs.4,00,000/- on different dates in the month of July to October 2014.  The OPs have delivered their products to the complainant at his outlet as per Invoice and bills.  After receiving the products from the OPs, the complainant put them for sale in outlet.  Farmers purchased products from the complainant and began to use in their lands.  But, the fertilizer supplied by the OPs to the complainant, the same was sold to the farmers was defective.  As per the document produced by the complainant clearly shows that, the complainant has purchased the fertilizers from the OPs and the OPs promised to take back the defected goods from the complainant and undertake to refund the amount paid by the complainant but, as per the documents the OPs have paid Rs.20,000/- only through cheque but, the same was returned as insufficient funds.  In all angle, we see that, the OPs have committed deficiency of service and unfair trade practice.  Hence, the OPs are liable to pay a sum of Rs.6,00,000/- to the complainant along with interest and Rs.10,000/- towards mental agony and Rs.5,000/- towards cost.    Accordingly, this Point No.1 is held as partly affirmative to the complainant.

 

          11.     Point No.2:- As discussed on the above point and for the reasons stated therein we pass the following:-

ORDER

It is ordered that, the above complaint filed by the complainant u/Sec.12 of C.P. Act is hereby allowed in part.

It is further ordered that, the OPs are hereby directed to pay a sum of Rs.6,00,000/- towards compensation to the complainant along with interest at the rate of 9% p.a from the date of complaint till realization. 

It is further directed the OPs are directed to pay                   Rs.10,000/- towards mental agony and Rs.5,000/- towards cost of the proceedings to the complainant.

It is further ordered that, the OPs are hereby directed to comply the above order within 30 days from the date of this order.

            (This order is made with the consent of Member after the correction of the draft on 15/06/2017 and it is pronounced in the open Court after our signatures)         

 

                                     

 MEMBER                                                   PRESIDENT

-:ANNEXURES:-

Witnesses examined on behalf of Complainant:

PW-1:  Complainant by way of affidavit evidence.

Witnesses examined on behalf of OPs:

-Nil-

Documents marked on behalf of Complainants:

01	Ex-A-1 & 2:-	Invoices dated 15.10.2014 and 16.07.2014
02	Ex-A-3:-	Credit note dated 15.10.2014 for Rs.50,078/-
03	Ex.A-4:-	Credit note dated 15.10.2014 for Rs.21,910-02
04	Ex.A-5:-	Receipt dated 15.12.20015 for Rs.60,000/-
05	Ex.A-6:-	Receipt dated 15.12.20015 for Rs.60,000/-
06	Ex.A-7:-	Receipt for having paid a sum of Rs.10,000/- towards transport of goods in mini lorry bearing No.KA-36 A-6896 on 07.12.2015
07	Ex.A-8:-	Receipt for having paid a sum of Rs.10,000/- towards transport of goods in mini lorry bearing No.KA-36 A-6896 on 17.02.2015
08	Ex.A-9:-	Details of returned materials
09	Ex.A-10:-	Final revised statement dated 17.02.2015
10	Ex.A-11:-	Copy of the FIR dated 29.09.2016
11	Ex.A-12:-	Endorsement issued by the Kote P.S.I, Chitradurga dated 29.09.2016
12	Ex.A-13:-	Complaint given to the Sub-inspector, Rural Police Station, Chitradurga
13	Ex.A-14 & 15:-	Legal Notice dated 08.11.2016 and 18.01.2017
14	Ex.A-16:-	Postal receipts
15	Ex.A-17:-	4 returned refused postal covers with acknowledgements
16	Ex.A-18:-	Letter dated 08.12.2016 issued by Santhosh S/o Sannabosappa to OP No.1
17	Ex.A-19:-	Returned cheque dated 30.04.2016 for Rs.20,000/- issued by the OPs to the complainant
18	Ex.A-20:-	Legal Notice dated 13.10.2016 in cheque bounce case
19	Ex.A-21:-	Postal receipts
20	Ex.A-22:-	Returned postal covers with acknowledgements with a shara “No such addressee returned to sender”

 

Documents marked on behalf of OPs:

-Nil-

 

MEMBER                                                            PRESIDENT

Rhr**