FA.No.1537/2006 against CD.No.423/2004 District Consumer Forum-II, Hyderabad.

Between:

V.Rajamallaiah, S/o.Butchaiah,

Aged about 45 years,

C/o.H.No.2-2-16/1/B, E-8, D.D.Colony,

Raja Rajeswari, Hyderabad – 7.

…Appellant/Complainant.

And

M/s.Nagarjuna Finance Limited,

(Incorporated under Companies Act, 1956)

Rep. by its Managing Director, Mr.S.Chari,

And CMD K.S.Raju, H.No.1-2-597/12,

Valmikinagar, Domalaguda,

Hyderabad.

…Respondent/Opp.Party.

Counsel for the Appellant        :  Mr. V.Gourisankara Rao.

Counsel for the Respondent    :  Respondent served.

QUORUM: HON’BLE SRI JUSTICE D.APPA RAO, PRESIDENT,

AND

SRI K.SATYANAND, MEMBER.

THURSDAY, THE EIGHTEENTH DAY OF JUNE,

TWO THOUSAND NINE.

Oral Order (Per Hon’ble Sri Justice D.Appa Rao, President)

*******   

1.         This is an appeal preferred by the complainant against the order of the District Consumer Forum-III, Hyderabad in partly allowing his complaint, while rejecting the amount payable towards maturity together with interest.

2.         The case of the complainant in brief is that he made four deposits of Rs.10,000/- each on 07.05.1997, wherein the opposite party Nagarjuna Finance Limited agreed to pay with interest at 20.11% for a period of five years either to the complainant or to his survivors.  After the period of maturity, he submitted the four original F.D.Rs to the opposite party in order to pay the amount.  Having acknowledged, they did not pay.  Therefore, he filed a complaint for recovery of the maturity amounts covered under the four F.D.Rs together with interest at 24% per annum, besides compensation of Rs.50,000/- and costs of Rs.5,000/-.

3.         The opposite party did not choose to contest despite the receipt of notice.

4.         The complainant in proof of his case filed his affidavit evidence and got Exs.A.1 to A.6 marked.

5.         The District Forum after considering the evidence placed on record opined that the complainant was entitled to the amount shown in the F.D.Rs.  Therefore, it directed the opposite party to refund Rs.40,000/- with interest at 12% per annum from 07.05.2002 till the date of payment, besides Rs.4,000/- towards compensation and costs of Rs.1,000/-.

6.         Aggrieved by the said order, the complainant preferred this appeal contending that the District Forum ought to have granted Rs.25,000/- towards maturity value and subsequent interest and compensation.

7.         The point that arises for consideration is whether the complainant/appellant is entitled to the maturity amount together with interest, compensation and costs?

8.         It is an undisputed fact that the complainant had made four deposits each Rs.10,000/-, evidenced under Exs.A.1 to A.4, wherein the respondent agreed to pay interest at 20.11% the maturity period being 60 months viz five years.  In other words, the respondent agreed to pay Rs.25,000/- under each of four Fixed Deposit Receipts by 07.05.2002.  On calculation, the rate of interest stipulated under Exs.A.1 to A.4 would come to Rs.15,000/-, altogether the respondent had to pay Rs.25,000/- by 07.05.2002 under each of the four fixed deposit receipts.  Undoubtedly, the District Forum had opined that the complainant was entitled to interest from the date of maturity ignoring the fact that the complainant had deposited the amount on 07.05.1997, wherein he was entitled to interest till the date of maturity viz. 07.05.2002 which works out to Rs.25,000/-.  Therefore, the complainant is entitled to Rs.25,000/- under each fixed deposit receipt, altogether Rs.1,00,000/-.  Since the respondent did not pay the amount on the date of maturity, he was liable to pay interest at 12% it being a finance company, till the date of payment.  The District Forum awarded compensation of Rs.4,000/- towards mental agony which we feel just and moderate and seeks no interference.

9.         In the result, the order of the District Forum is modified and the appeal is allowed.  Consequently, the complainant is entitled to the amount of Rs.1,00,000/- together with interest at 12% per annum from 07.05.2002 till the date of realization together with compensation of Rs.4,000/- and costs of

Rs.1,000/- awarded by the District Forum.  The complainant is also entitled to the costs of Rs.5,000/- in this appeal.  Time for compliance four weeks.          

PRESIDENT   

MEMBER   

DT: 18.06.2009