Date of filing:7.3.2014
Date of Disposal:13.10.2014
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESAL FORUM-II::
VIJAYAWADA, KRISHNA DISTRICT.
Present: SMT N. TRIPURA SUNDARI, B. COM., B. L., PRESIDENT (FAC)
SRI S.SREERAM, B.COM., B.A., B.L., MEMBER
MONDAY, THE 13th DAY OF OCTOBER, 2014.
C.C.No.63 OF 2014
Between :
1. Mukkamala Nageswara Rao, S/o Venkata Subba Rao, Hindu, 63 years, Retd., Employee, R/o Door No.54-13-43/5, Plot No.275, Lakshmi Nivas Apartment,Srinivasa Nagar Bank Colony, Vijayawada – 8.
2. Mukkamala Bhagyalakshmi, W/o M.Nageswara Rao, Hindu, 56 years, Properties, R/o Door No.54-13-43/5, Plot No.275, Lakshmi Nivas Apartment, Srinivasa Nagar
Bank Colony, Vijayawada – 8.
….. Complainants.
And
1. M/s Sri Siva Mutually Aided Co-operative Thrift Society Ltd., Rep., by its Chairman Ogirala Gangadhara Rao, 23-7-3, Giri Street, Satyanarayanapuram, Vijayawada–11.
2. Ogirala Gangadhara Rao, S/o Mallikarjuna Rao, Hindu, 70 years, Chairman of M/s Sri Siva Mutually Aided Co-operative Thrift Society Ltd., Plot No.3,Krishna Towers, Vivekananda Colony, Tangellamudivari Street, R.R.Gardens, Autonagar, Vijayawada -7.
3. Gollapudi Meenakshi W/o Ramana Murthy, Hindu, 39 years, Director of M/s Sri Siva Mutually Aided Co-operative Thrift Society Ltd., R/o Brahmaiah Pantulu Street, Opp.S.N.Puram Police Station, Satyanarayanapuram, Vijayawada – 11.
4. Mudigonda Parvatavardhini, W/o Sekhar, Hindu, 35 years, Director of M/s Sri Siva Mutually Aided Co-operative Thrift Society Ltd., 23-12-21, Abburivari Street, Satyanarayanapuram, Vijayawada – 11.
5. Vurimi Madhu Kumar, S/o Babu, Hindu, 31 years, Director of M/s Sri Siva Mutually Aided Co-operative Thrift Society Ltd., 23-5-16, Vandanapu Vari Street, Satyanarayanapuram,Vijayawada – 11.
6. Nidumolu Rama Satyanarayana, S/o Ramalinga Murthy, Hindu, 63 years, Director of M/s Sri Siva Mutually Aided Co-operative Thrift Society Ltd., R/o 23-26-14/1-9, Shirdi Apartment, 2nd Floor, Flat No.9, Sumanama Vari Street, Satyanarayanapuram, Vijayawada – 11.
7. K.Hanumantha rao, S/o Venkateswara Rao, Hindu, 50 years, C.E.O. of M/s Sri Siva Mutually Aided Co-operative Thrift Society Ltd., R/o D.No.23-32-31/A, Baparaju Street, Satyanarayanapuram, Vijayawada – 11.
…....Opposite Parties.
This complaint is coming before us for final hearing on 1.10.2014 in the presence of Sri K.Jayaram, Advocate for complainant and Sri B.N.R.P.Bhargava, Advocate for opposite parties 1 to 7 and upon perusing the material available on record, this Forum delivers the following:
O R D E R
(Delivered by Hon’ble President (FAC) Smt N. Tripura Sundari)
This complaint is filed under Section 12 of the Consumer Protection Act, 1986.
The averments of the complaint are in brief:
1. The complainants 1 and 2 jointly deposited a sum of Rs.50,000/- on 10.12.2008 with the opposite parties for a period of 39 months. The opposite parties agreed to pay interest at the rate of 15% per annum. The said deposit was matured on 10.3.2012. After the date of maturity the complainants approached the opposite parties and requested to refund the maturity amount for which the opposite parties agreed to pay the amount and sought some time. Subsequently the opposite parties postpone the refund of maturity amount inspite of several approaches made by the complainants. Thus the complainants sustained monetary loss besides mental agony. Hence the complainants are constrained to file this complaint against the opposite parties praying the Forum to direct the opposite parties to pay an amount of Rs.1,16,557/- to the complainants due under the fixed deposit receipt to pay Rs.50,000/- towards damages for mental agony, to pay subsequent interest at the rate of 24% per annum from the date of complaint till the date of payment on the maturity amount of Rs.78,895/- and to pay costs.
2. The version of the opposite parties is in brief:
The opposite parties denied all the allegations of the complaint and submitted that this Forum has no jurisdiction to entertain this complaint as the proceedings are to be initiated through the Co-operative Tribunal only as the society is registered under the Co-operative societies Act. The complainant is not entitled to seek any relief as claimed in their complaint under the Consumer Protection Act from this Hon’ble Forum as the complainants are not under the purview of consumers. Therefore the opposite parties prayed to dismiss the complaint with costs.
3. On behalf of the complainants Sri Mukkamala Nageswara Rao the 1st complainant filed his affidavit and got marked Ex.A.1 to Ex.A.4. On behalf of the opposite parties Smt G.Meenakshi the 3rd opposite party gave her affidavit and no document is marked.
4. Heard and perused.
5. Now the points that arise for consideration in this complaint are:
1. Whether the complainants are consumers under the purview of the Consumer Protection Act, 1986?
2. If so this Forum has jurisdiction to entertain the complaint?
2. If so is the complainants are entitled for any relief?
3. To what relief the complainants are entitled?
POINTS 1 AND 2:-
6. As per the Consumer Protection Act Section 2 (d) (ii) ‘Consumer’ means any person who “hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who 'hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person”. Here the complainants avail services by getting interest for a consideration of depositing their money with the opposite parties. Therefore the complainants are comes under the purview of consumers. Hence this Court has jurisdiction to entertain the complaint. The opposite parties object to the maintainability of the complaint on the ground that the Co-operative Tribunal got jurisdiction to entertain the complaint as the opposite parties society is registered under the Co-operative Society Act. Therefore the provisions of Consumer Protection Act are not applicable. But there is no documentary evidence to show that the opposite parties’ society was registered under the Co-operative Societies Act and they got permission to get money deposits from the public. Without permission of R.B.I any individual and institutions have no right to collect money deposits from the public. Accordingly these points are answered.
POINT No.3:-
7. The complainants are jointly deposited a sum of Rs.50,000/- on 10.12.2008 with the opposite parties for a period of 39 months under Ex.A.1 fixed deposit receipt issued by the opposite parties. The opposite parties agreed to pay interest at the rate of 15% per annum. The said deposit was matured on 10.3.2012, Ex.A.1 evidences the same. The complainants say that after the date of maturity they approached the opposite parties and requested to refund the maturity amount and the opposite parties agreed to pay the amount and sought some time. But the opposite parties postpone to refund the maturity amount inspite of several approaches made by the complainants. The complainants made another deposit of Rs.80,000/- on 16.8.2007 and Rs.18,000/- on 17.4.2008 and the opposite parties issued the deposit certificates for the same. When they did not refund that maturity amount to the complainants they got issued a legal notice Ex.A.2 dated 1.7.2010 demanding the opposite parties to refund the said amounts. But the opposite parties did not come forward to refund the said amounts. Hence the complainants filed a Criminal complaint Ex.A.3 against the opposite parties who are the same persons in that complaint in the court of 1st Special Magistrate Court at Vijayawada under C.C.No.35/2012 and the Hon’ble 1st Special Magistrate Court gave an order Ex.A.4 dated 21.12.2012 directing the opposite parties “that A.4 was held guilty and convicted for the offence under Section 138 of N.I. Act as per the judgement dated 14.12.2012 and the A.4 was absent on that day and she is present today and she is heard on the quantum of sentence. She is a director of A.1 society since the other directors i.e., A.3, A.5 and A.6 are sentenced each to suffer S.I. for two months and to pay fine of Rs.10,000/-, in default to suffer S.I. for one month, there are no special circumstances to take any different view. Hence A.4 is also sentenced to suffer S.I for two months and to pay a fine of Rs.10,000/- in default S.I. for one month. From out of the fine amount realized an amount of Rs.5,000/- shall be paid to complainant in addition to compensation of Rs.70,000/- from out of the fine amount realized from A.1 to A.3, A.5 to A.7 U/s 357(1)(b) Cr.P.C.”
8. On perusing the above facts and circumstances we came to conclusion that the opposite parties committed not only deficiency in service but also unfair trade practice in not refunding the deposit amount as agreed and illegally collected the deposits from the complainants. Hence the opposite parties are liable to pay the deposit amount of Rs.50,000/- along with 15% per annum upto filing the complaint i.e., 7.3.2014. The complainants are entitled for the said amount and also compensation. Accordingly this point is answered.
POINT No.4:-
9. In the result, the complaint is allowed in part and the opposite parties are directed to pay a sum of Rs.96,688/- i.e., deposit amount with accrued interest from depositing date to filing of the complaint, to pay interest at the rate of 9% per annum from the date of filing the complaint i.e., 7.3.2014 till realization, to pay Rs.15,000/- as compensation for mental agony and to pay Rs.5,000/- as costs. Rest of the claims of the complainants is dismissed. Time for compliance one month.
Dictated to the Stenographer K.Sivaram Prasad, transcribed by him, corrected by me and pronounced by us in the open Forum, this the 13th day of October, 2014.
PRESIDENT(FAC) MEMBER
APPENDIX OF EVIDENCE
WITNESSES EXAMINED
For the complainant: For the opposite parties:-
P.W.1 M.Nageswara Rao D.W.1 Smt G.Meenakshi
1st Complainant 3rd opposite party
(by affidavit) (by affidavit)
DOCUMENTS MARKED
On behalf of the Complainant:-
Ex.A.1 10.12.2008 Fixed deposit receipt for Rs.50,000/-.
Ex.A.2 01.07.2010 Office copy of legal notice.
Ex.A.3 . . Copy of complaint filed in the court of 1st Special
Magistrate at Vijayawada under Section 190 and 200.
Ex.A.4 . . Photocopy of calendar and judgment.
For the opposite parties:-
Nil.
PRESIDENT(FAC)
