BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE URBAN

25^TH DAY OF FEBRUARY 2016

O R D E R

SMT. M. YASHODHAMMA, MEMBER

This is a complaint filed by the complainant in person under section 12 of the Consumer Protection Act, 1986 praying for an order against Opposite Party (herein after referred as OP) to refund Rs.5,00,000/- along with interest at 12.25% per annum till the date of maturity and penal interest for delayed payment and compensation of Rs.1,00,000/- towards monetary loss and mental agony along with expenses on the allegations of deficiency in service.

2.  The brief averments made in the complaint are as follows:

The complainant invested a sum of Rs.5,00,000/- with OP towards fixed deposit on 01.08.2012 repayable after two years along with interest at 12.25% per annum on 31.07.2014, maturity amount being Rs.6,36,460/- vide fixed deposit receipt No.8619. Towards refund of the maturity amount of the fixed deposit, OP issued a cheque for a sum of Rs.5,00,000/- dated 31.07.2014 drawn on HDFC Bank in favour of the complainant.  On presentation for encashment the said cheque returned dishonoured for the reason “Account closed”. Thereafter, complainant approached OP many times through telephone and letters there was no response from OP.  Hence, complainant felt deficiency in service on the part of the OP.  Under the circumstances, she is advised to file this complaint against OP for appropriate relief.

3.  After registration of the complaint, notice was issued to OP.  Inspite of service of notice OP remained absent without any sufficient reason or cause.  Hence OP was placed exparte and posted the case for filing affidavit of the complainant.

4. So as to prove her case, Smt.Swarnalatha, who being the complainant filed her affidavit evidence in support of complaint reiterating the complaint averments. Complainant also filed written arguments.

5. The above said assertions of the complainant have remained unchallenged. OP neither filed version nor denied the sworn testimony of the complainant.  So under the circumstances, we have no reasons to disbelieve the sworn testimony of the complainant.

6.  Let us have a cursory glance at the documents produced by the complainant.  Document No.1 is copy of the fixed deposit Receipt bearing No.8619 issued by OP to the complainant for having deposited a sum of Rs.5,00,000/- on 01.08.2012 repayable after two years along with interest at 12.25% per annum on 31.07.2014 maturity amount being Rs.6,36,460/-.  Document No.2 is cheque issued by OP in the name of the complainant for a sum of Rs.5,00,000/- dated 31.07.2014 drawn on HDFC Bank.  Document No.3 is bank returned memo issued by Canara Bank dated 06.08.2014 for the reason “Account Closed”. Document No.4 is Postal receipts Document No.5 & 6 are copies of the letters of the complainant dated 18.09.2014 and 27.09.2014 stating she has not received the interest which is overdue and the cheque issued by OP has been bounced and further calling upon OP to refund Rs.6,36,460/- within 15 days failing which legal proceedings will be initiated against OP.  Document No.7 is a letter of the complainant addressed to the Company Law Board dated 08.04.2015.  Document No.8 is Copy of the account extract of the complainant at Canara Bank, Mahalakshmi Layout, Bangalore.

7. On perusal of oral and documentary evidence of the complainant, it is made crystal clear that the complainant has invested a sum of Rs.5,00,000/-with OP towards fixed deposit on 01.08.2012, repayable after two years along with interest at 12.25% per annum, on 31.07.2014 a sum of Rs.6,36,460/- as per Document No.1.  On the date of maturity OP issued a cheque for Rs.5,00,000/- dated 31.07.2014 towards refund as per Document No.2.  The said cheque on presentation for encashment by the complainant got dishonoured on 06.08.2014 for the reason “Account Closed” as per Document No.3 Bank return memo issued by Canara Bank.  Complainant wrote a letter dated 18.09.2014 and notice dated 27.09.2014 stating she has not received the interest which is overdue and the cheque issued by OP has bounced.  Hence, calling upon OP to refund fixed deposit amount along with accrued interest within 15 days failing which she will initiate legal proceedings against OP for recovery of the same.  There was no response from OP.  Hence, complainant wrote letter to Company Law Board on 08.04.2015 as per Document No.7 requesting to advice OP to refund maturity amount and interest immediately, as she is in urgent need of funds for her children education.  The said letter and notices are sent through Regd post.  There was no response from OP.  Hence, this complaint.

8.  From the available materials on record, it is crystal clear that complainant has deposited a sum of Rs.5,00,000/- with OP on 01.08.2012 repayable along with interest at 12.25% per annum after two years on 31.07.2014.  Inspite of repeated requests and notice OP has neither paid the interest nor refunded the maturity amount to the complainant.  The cheque issued by OP towards refund got dishonoured.  Retention of amount by OP for more than 1½ years without even paying the accrued interest amounts to deficiency in service on the part of OP.

9. The complainant is residing at Bangalore and she has made the payment to OP through her Canara Bank account situated at Mahalakshmi Layout Branch, Bangalore as per Document No.8.  Hence part of cause of action arose within the jurisdiction of this Forum.  Hence, this Forum has got jurisdiction to entertain this complaint. 

10. We are satisfied that complainant proved deficiency in service against OP.  Under the circumstances we are of the considered view that OP is liable to refund Rs.5,00,000/- along with interest at 12.25% per annum from date of deposit till the date of maturity and at the rate of 18% per annum from the date of maturity till realization along with compensation of Rs.5,000/- towards deficiency in service and mental agony and litigation cost of Rs.3,000/- to the complainant.   Accordingly, we proceed to pass the following:

                                  O R D E R

1. The complaint filed by complainant is allowed in part. 

2. OP is directed to refund Rs.5,00,000/-(Five Lakhs)  being the fixed deposit amount to the complainant along with interest at the rate of 12.25% per annum from 01.08.2012 to till the date of maturity i.e., 31.07.2014 and to pay interest at the rate of 18% per annum from the date of maturity till realization.

3. Further OP is also directed to pay compensation of Rs.5,000/- to the complainant towards deficiency in service and mental agony along with litigation cost of Rs.3,000/- to the complainant.

4. This order shall be complied within 30 days from the date of receipt of this order.

5. Supply free copy of this order to both the parties.

(Dictated to the Stenographer and typed in the computer and transcribed by her, verified and corrected, and then pronounced in the Open Forum by us on this the 25^th day of February 2016)

 MEMBER                            MEMBER                         PRESIDENT

NRS* 

CC.No.1666/2015

Witnesses examined on behalf of the complainant dated 17.12.2015 1) Smt.T.Swarnalatha

Witnesses examined on behalf of the OP – Absent

List of documents produced by the OP – Nil

MEMBER                           MEMBER                        PRESIDENT