F.A.No.823/2007  against C.C.No.150/2007, Dist. Forum-II,Visakhapatnam.   

Between:

Baby Rowthu Leela Prasanna,

D/o. Sri R.V.V.G.P.G.Pandu,

Hindu, aged 10 years, being minor

 Rep. by her father Sri R.V.V.G.P.G.Pandu,

S/o.Polayya, Hindu, aged 30 years,

Occupation-agriculture, residing at D.No.202/10,

Sanjeeva Nagar, Opp:S.C.Boys Hostel,

Gokavaram, Gokavaram Mandal,

East Godavari District.                                                 …Appellant/

                                                                           Complainant

       And

1.M/s. Kiran Krishna Agro-Tech Limited,

   Represented by its Chairman and Managing Director,

   Situated at 6-3-788/24, Opposite Gold Spot,

    Punjagutta, Hyderabad – 500 016.

2. M/s. Kiran Krishna Real Estates

     and Constructions (P) Ltd.,

    represented by its Managing Directors,

    situated at D.No.50-40-13A, TPT Colony,

    Seethammadhara,

    Visakhaptnam – 530 013.

3. Sri Vallabaneni Krishna Prasad,

    S/o.Paddaiah,  D.No.50-40-13A, TPT Colony,

    Seethammadhara,

    Visakhaptnam – 530 013.

4. Sri P.Anand  Babu, S/o.Babu Rao,

    D.No.50-40-13A, TPT colony,

    Seethammadhara,

    Visakhaptnam – 530 013.                                       Respondents /

                                                                      Opp.parties

F.A.No.824/2007  against C.C.No.152/2007, Dist. Forum-II,Visakhapatnam.   

Between:

Karry Pydithalli, S/o.Raja Babu,

Hindu, aged 40 years, Damireddipalli village,

Kadiyam Mandal,

East Godavari District – 533 126.                             … Appellant/

                                                                             Complainant

       And

1.M/s. Kiran Krishna Agro-Tech Limited,

   Represented by its Chairman and Managing Director,

   Situated at 6-3-788/24, Opposite Gold Spot,

    Punjagutta, Hyderabad – 500 016.

2. M/s. Kiran Krishna Real Estates

     and Constructions (P) Ltd.,

    represented by its Managing Directors,

    situated at D.No.50-40-13A, TPT Colony,

    Seethammadhara,

    Visakhaptnam – 530 013.

3. Sri Vallabaneni Krishna Prasad,

    S/o.Paddaiah,  D.No.50-40-13A, TPT Colony,

    Seethammadhara,

    Visakhaptnam – 530 013.

4. Sri P.Anand  Babu, S/o.Babu Rao,

    D.No.50-40-13A, TPT colony,

    Seethammadhara,

    Visakhaptnam – 530 013.                                       Respondents /

                                                                      Opp.parties

F.A.No.825/2007  against C.C.No.176/2007, Dist. Forum-II,Visakhapatnam.   

Between:

Baby Rowthu Haritha

D/o. Sri Rambabu,

Hindu, aged 11 years, being minor

 Rep. by her father Sri Rambabu

C/o.R.Palayya, Hindu, aged 40 years,

Occupation-driver , residing at D.No.202/10,

Sanjeeva Nagar, Opp:S.C.Boys Hostel,

Gokavaram, Gokavaram Mandal,

East Godavari District.                                                 …Appellant/

                                                                           Complainant

       And

1.M/s. Kiran Krishna Agro-Tech Limited,

   Represented by its Chairman and Managing Director,

   Situated at 6-3-788/24, Opposite Gold Spot,

    Punjagutta, Hyderabad – 500 016.

2. M/s. Kiran Krishna Real Estates

     and Constructions (P) Ltd.,

    represented by its Managing Directors,

    situated at D.No.50-40-13A, TPT Colony,

    Seethammadhara,

    Visakhaptnam – 530 013.

3. Sri Vallabaneni Krishna Prasad,

    S/o.Paddaiah,  D.No.50-40-13A, TPT Colony,

    Seethammadhara,

    Visakhaptnam – 530 013.

4. Sri P.Anand  Babu, S/o.Babu Rao,

    D.No.50-40-13A, TPT colony,

    Seethammadhara,

    Visakhaptnam – 530 013.                                       Respondents /

                                                                      Opp.parties

Counsel for the Appellants          :    M/s. CH.R.Vasantha Kumar            

Counsel for the Respondent       :       Mr.V.Gowrisankar rao-R1 to R3      

         CORAM: SMT. M.SHREEHA, HON’BLE MEMBER

                                        AND

                SRI K.SATYANAND, HON’BLE MEMBER

MONDAY,THE THIRTY FIRST DAY OF AUGUST, 

TWO THOUSAND NINE.

        Oral Order: (Per  Smt M.Shreesha, Hon’ble Member)

                                                ***

        F.A.No.823/2007:

Aggrieved by the order  in C.C.No150/07  on the file of District Forum-II, Visakhapatnam,  the complainant preferred this appeal.

        The brief facts as set out in the complaint are that the complainant is a minor  and  is represented by her father who joined  as a member  in a  scheme floated by the  opposite parties known as “Kiran Krishna Agro Tech Limited”   on 17.5.1997  and deposited a sum of Rs.5,000/-  through an application bearing no.906  and the opp.parties have issued a bond on 19.6.1997,  its maturity value of  being Rs.1,75,000/-  and  date of maturity 17.11.2014  and also promised to  pay the maturity value  as on the date of its maturity.  The opposite parties discontinued the scheme and fixed redemption amount and promised to pay the same at later date  and on its failure agreed to pay interest at 16% p.a.   The opposite  parties refused to make payment on one pretext or the other  and finally made a publication in Enadu Telugu News Daily Local Edition dt.11.12.06 inviting the depositors to  approach for payment but did not pay the amount as entitled by the complainant.  Hence the complainant approached the District Forum to direct the opposite parties to pay a sum of Rs.87,500/- together with  interest @ 16% p.a. from the date of the complaint till the date of payment, to pay for compensation for causing mental agony and financial hardship at Rs.25,000/-  and to pay costs at Rs.1500/-.

        The opposite parties filed counter stating that the scheme floated  by them  under the  name and style of Kiran Krishna Agro Tech Limited  was  closed by them as per the directions of SEBI  and the SEBI  instructed them to refund the principal amounts deposited by  the investors and it was exempted from paying interest that accrued on the deposits   and hence the complainant is  not entitled to interest and is only entitled to claim for refund  principal amount deposited by her. The opposite parties submit that the complainant  is not entitled to claim for any compensation as there was no fault  on their part  in winding up of the said scheme.  The opposite parties  further stated that the  rate of interest and compensation claimed by the complainant are excessive and disproportionate to any standards of estimation and   prayed for dismissal of the complaint.     

        Based on the evidence adduced i.e.  Exs.A1 to A3 documents filed on behalf of the complainant and pleadings put forward, the District Forum   allowed the complaint in part directing  the  opposite parties to refund a sum of Rs.5000/- to the complainant together  with interest accrued thereon @ 12% p.a. from the date of filing of the complaint  i.e. 2.2.2007 till the date of actual realization  and  to pay  Rs.1,500/- towards compensation as well as costs of Rs.1000/-

        Aggrieved by the said order the  complainant preferred this appeal.

        The facts not in dispute are that the opposite parties invited fixed deposits  from the public and the complainant’s father invested a sum of Rs.5000/-  in the name of the complainant on 17.5.97 which is evident from Ex.A1.  The opposite parties issued a fixed deposit bond on 19.6.97 for a period of 17 ½   years, the date of maturity being 17.11.2014 (Ex.A2). It is also not in dispute that Kiran Krishna Agro Tech Limited has  wound up  and opposite parties  did not refund the amount  paid by the complainant.  It is the case of the opposite parties that SEBI instructed them to refund principal amounts  deposited by the investors and it is  exempted from payment of the  interest  amount and that there is no fault in winding up  the said scheme and even otherwise amount of compensation as well as rate of interest claimed by the complainant are excessive.  We observe from the record that the respondents/opposite parties have not filed any documentary evidence to support their contention that SEBI has directed them to pay only principal amount and not the interest.  The learned counsel for the appellant/complainant submitted that the opposite parties have not filed any documentary evidence  in support of their contention that there is a direction from SEBI to pay only the principal  amount.  The District Forum has awarded interest at 12% p.a. from the date of filing of the complaint and it is the main prayer of the appellant/complainant that interest at 16% p.a. ought to have been awarded and also interest has to be  awarded from the date of deposit till the date of payment and not from the date of filing of the complaint. We are of the considered view that 12%  interest  awarded by the District Forum is reasonable but however  since the deposit made by the complainant is in the year 1997 we award this interest from the date of deposit i.e. 19.6.97  till the date of realization.  Hence this appeal is allowed in part      modifying the order of the  District Forum with respect to  date of awarding interest only i.e District Forum awarded  interest from 2.2.2007  i.e.  the date of filing of the complaint, but we modify  this date to 19.6.97 i.e. date when the opposite parties have issued Fixed Deposit Bond .

        In the result this appeal is allowed in part with respect to date of awarding interest i.e. interest at 12% p.a. is to be calculated from the date of issuance of Fixed Deposit  Bond  i.e. 19.6.97 while we confirm the  rest of the order of the District Forum.  Time for compliance four weeks.

F.A.No.824/2007 and F.A.No.825/2007  are also allowed in part  with the afore mentioned directions and they  are being disposed of by this common order.  

                                                        MEMBER

                                                        MEMBER

                                                        Dt.31.8.2009