Before the District Forum Kurnool

Sri K.V.H. Prasad, B.A., LL.B., President

And

Smt C. Preethi, M.A., LL.B., Member

Sri R. Ramachandra Reddy, B.com LL.B, Member

Friday the 28^th day of January, 2005

C.D.No.128/2004

1. C.L.Narayana,

S/o C.Ramaiah,

1. C.Subba Rao,

S/o C.L.Narayana,

Both are residence of Near MRO Office,

Bethamcherla Village and Mandal,

Kurnool District.                      . ..Complainant represented by their counsel

                                                              Sri.G.Nagaraju, Advocate.

-Vs-

M/s Medinova Diagnostic Services Limited,

Represented by its Managing Director,

Regd. Office, 6-3-652,

Kautilya 3^rd Floor,

Somajiguda,

Hyderabad.                              . . . Opposite party

O R D E R

(As per Sri R.Ramachandra Reddy, Member)

CC.No.128/2004

1.       This consumer dispute case of the complainant is filed under section 12 and 14 of the C.P. Act, 1986 seeking a direction on the opposite party to pay him and his father for two membership deposit receipt of Rs.7,850/- each with interest at the rate of 18 percent per annum from the date of the maturity till realization, Rs.5,000/-as compensation and Rs.5,000/-costs of this case and any such other relief or reliefs which the complainant is entitled in the circumstances of the case.

2.       The brief facts of the complainant’s case are that the complainant and his father has deposited an amount of Rs.5,000/- each from 22-06-1999 to 21-06-2002 with the opposite party for a refundable matured amount of Rs.7,850/- each vide Member Ship deposit receipt No.1029/XII and 1028/XII dated 22-06-1999.  The complainant and his father sent the said original membership deposit receipts to the opposite party for realization of maturity amount.  The opposite party has acknowledged the same on 10-12-2002 as per Ex.A2 and Ex.A1.  On expire of the maturity period in-spite of several demands the opposite party did not refund the said due amount and hence the complainants got issued personal notice on 16-09-2003 to the opposite party (Ex.A3) through the professional courier service vide receipt No.815491 dated 16-09-2003 (Ex.A4) and the opposite party did neither complied the demand for refund the matured amount nor replied to the said notice.  The above said lapsive conduct of the opposite party constrained the complainant to resort to the Forum for redressal of the claim of maturity amount of Rs.7,850/-, for two membership deposit receipts Rs.5,000/- towards compensation and Rs.5,000/- towards costs of this compliant.

3.       In pursuance of the receipt of the notice of this Forum as to this case of the complainant the opposite party neither appeared before this Forum nor contested the case of the complainant filing any written version with any deference and there by remained exparte.

4.       While such is so with the opposite party, the complainant in substantiation of its case relied upon the documentary record in Ex.A1 to Ex.A4 besides to his sworn affidavit in reiteration of the complaint averments.

5.       Hence, the point for consideration is whether the complainant has made out the case of deficiency on the part of the opposite party towards him entitling him for the reliefs sought?

6.       The Ex.A1and Ex.A2 are the acknowledgement receipts letter dated 10-12-2002 of opposite party for M.D.R.No.1028/XII and 1029/XII, which were matured on 21-06-2002 for Rs.7,850/- each.  The Ex.A3 is the office copy of the personal notice dated 16-09-2003 caused on the opposite party demanding the payment of the maturity amount of the Ex.A1 and Ex.A2 to the complainant and his father, this defaltive conduct of the opposite party in not refunding the amount so far and hence holding the opposite party liability not only to the maturity amount of Rs.7,850/- each, but also to the interest from the date of the maturity till the date of payment.  The Ex.A4 courier receipt of Professional Courier Service dated 16-09-2003 bearing No.815491 for sending Ex.A3.  The facts so envisaging in Ex.A1 to A4 and the complaint averments and the complainant’s sworn affidavit in reiteration of its case are neither denied nor rebutted by the opposite party and hence there appears every bonafidies in the claim of the complainant.

7.       When a Company or Firm invites deposits on a promise of attractive rates of interest or attractive sums it is a service and the depositor is a Consumer as per the decision of the Honorable National Consumer Disputes Redressal Commission, New Delhi in Neela Vasantha Raji -Vs- Amog Industries reported in 1993(3) CPR Page 345.

8.       When the amount under the deposit with accrued benefit not released to the depositor by the financial institution, the said conduct of the not honoring the said commitment amounts to deficiency and the Financial Institution is  liable to refund the accrued amount with 12 percent interest as per the decision of the Honorable Maharastra State Consumer Disputes Redressal Commission, Mumbai in Sanchyani Savings and Investments (India) Limited -Vs- Vastla Baba Saheb Gai Quard reported in I (2003) CPJ Page 260.

9.       In the present case also the opposite party’s firm inviting the public deposits on a promise of the payment of matured amount on tenure of 3 years from the date of deposit did not keep up the said commitment to the complainant by avoiding the payment of the matured amount.  Thus the said lapsive conduct of the opposite party is amounting to deficiency of service complainant consumer depositor and thereby the grievances of the complainant and his father are covered under the supra stated decisions holding the liability of the opposite party for refund of the accrued matured amount with interest at 12 percent per annum from the date of the maturity and compensation of Rs.1,000/-for suffered mental agony at the deficient conduct of the opposite party and costs of Rs.1,000/- as the complainant was driven by the opposite party to the Forum for redressal.

10.     Therefore, in the result, the complaint is allowed directing the opposite party to pay the matured amount of Rs.7,850/- each under two Matured Deposit
Receipts  i.e., Rs.15,700/- with interest at 12 percent per annum from the date of the maturity till realization and Rs.1,000/- towards costs within a month of the receipt of this order.

          Dictated to the Stenographer, typed to the dictation, corrected by us, and pronounced in the Open Court this the 28^th day of Januuary, 2005.

MEMBER                                          PRESIDENT                                       MEMBER

APPENDIX OF EVIDENCE

Witnesses Examined

For the complainant :Nil                                     For the opposite party :Nil

List of exhibits marked for the complainant:-

Ex.A1          Acknowledgement of opposite party dated 10-12-2002 as to the receipt of M.D.R.No.1028/XII matured on 21-06-2002 for Rs.7,850/- of the complainant No.2 C.Subba Rao.

Ex.A2          Acknowledgement of opposite party dated 10-12-2002 as to the receipt of M.D.R.No.1029/XII matured on 21-06-2002 for Rs.7,850/- of the complainant No.1 L.Narayana.

Ex.A3          Office copy of letter dated 16-09-2003 addressed by complainant No.1 to opposite party.

Ex.A4          Courier receipt No.815491 dated 16-09-2003 as Ex.A3 sent to opposite party.

List of Exhibits Marked for the opposite party:- Nil

MEMBER                                          PRESIDENT                                       MEMBER