OF 2007 AGAINST C.C.NO.279 OF 2007 DISTRICT CONSUMER FORUM-II HYDERABAD

Between

Balaswamy (died) S/o Krishnaiah
M/s Sumathi Finance Corporation
per is LRs
1.     Smt V.Chandrakala W/o late Sri Balaswamy
        Aged about 65 years, Occ: House Wife

2.     Sri V.Bupesh S/o late V.Balaswamy
        Aged about 40 years, occ: Pvt. Service

3.     Sri V.Suresh S/o late V.Balaswamy
        Aged about 37 years, occ: Business

        All are residents of R/o 16-11-16/1/1/1/B
        Saleem Nagar Colony, Malakpet, Hyderabad-36
        (LRs are impleaded as per the orders in FAIA
          dated 29.3.2010)

                                                                                                Appellants/opposite parties

        A N D

1.   E.Seetha Devi W/o late E.Balakrishna
aged about 54 years, occ: Retired Employee

2.   E.Kanaka Priyadarshini D/o late E.Balakrishna
aged about 28 years Occ: Student

3.   E.V.S. Sanjay S/o late E.Balakrishna
aged about 26 years, occ: Employee

4.   E.Lakshmi Priya D/o late E.Balakrishna
aged about 24 years, Occ: Advocate
All are R/o H.No.1-9-295/8/5/A/1/A
Street No.7, Vidyanagar, Hyderabad.

Respondents/complainants

Counsel for the Appellants                     Sri P.Srinath

Counsel for the Respondents                 M/s E.Lakshmi Priya

 QUORUM:                 SRI SYED ABDULLAH, HON’BLE MEMBER

&

                            SRI R.LAKSHMINARSIMHA RAO, HON’BLE MEMBER

                                FRIDAY THE NINETH DAY OF JULY

                                            TWO THOUSAND TEN

Oral Order ( As per R.Lakshminarsimha Rao, Member)
                                      ***

            The opposite parties in C.C.279 of 2007 on the file of District Forum-I Hyderabad are the appellants. 

        The facts of the case as narrated by the complainants is that on 7.2.1997 the complainants deposited an amount of Rs.11,21,000/- with the opposite party  for a period of 9 years . The date of maturity of the deposit  was 2006.  The opposite party has to pay interest @ 2% p.m.  The opposite party stopped paying interest from November 2005 onwards and also refused to pay the principal amount.  Apart from the deposited amount the complainants also paid the subscription amount of RS.1,91,000/- towards chits but the opposite party stopped the chit and did not pay the subscription amount nor dividends.  Hence the complaint seeking direction to the opposite party to pay Rs.13,12,000/- along with interest, compensation and costs.

        As the notice was returned with an endorsement ‘refused’, the District Forum had ordered for publication of notice to the opposite parties.  The opposite parties were proceeded exparte.

        The complainant no.1 has filed her affidavit.  Exs.A1 to A51 have been marked on behalf of the complainants. 

        The District Forum has awarded a sum of Rs.13,12,000/- along with interest @ 24% per annum.

        Feeling aggrieved by the order of the District Forum, the opposite party has preferred the appeal contending that the complainant with an intention to evade service of notice on him, has filed the complaint with an incorrect address.  As the notices were sent to a wrong address, they were returned without being served on the opposite party.

        The point for consideration whether there was proper service of notice on the opposite party.

        The opposite party died during the pendency of the appeal and his LRs have been brought on record as the opposite parties no.2 to 4.  The opposite party no.1 against whom the complaint was filed had contended that the complainants had furnished incorrect address in order to see that the notice was not served on him.  A perusal of the deposit receipts Exs.A1 to A48 shows the address of the opposite party no1. as at, H.NO.16-11-16/1/1/B Saleemnagar Colony, Malakpet Hyderabad whereas in the cause title the address of the opposite party no.1 is shown as 16/10/27/105/7E   II Floor, Reddy, Municipal Colony Hyderabad.  The learned counsel for the appellants has contended that notice to the opposite party no.1 without any cause title and particulars of the Forum was published in Prajasakthi Daily newspaper which could hardly be visible.  A perusal of the docket order dated 22.5.2007 shows that the opposite parytno.1 has refused to receive the notice and case was posted for filing of affidavit of the complainant.  Again on 2.7.2007 steps were ordered and the complainant was permitted to publish notice to the opposite party no1. in Prajasakthi Telugu Daily Newspaper.  The complainants had filed copy of the publication on 3.8.2007.  Conspectus of these proceedings would indicate the fact of improper service of notice or non service of notice on the opposite party no.1 which eventually led to filing of the instant appeal. 

        The principles of natural justice mandate the Forum to serve the notice   and hear the opposite parties before passing any adverse order against it or him.  In the foregoing paragraph of this order, we held that there was no proper service of notice on the opposite party no.1.  A fair opportunity should be given to the opposite party to contest the claim which would vitiate any arbitrariness in the impugned order.  In the circumstances of the case, we are inclined to set aside the impugned order and give opportunity to the opposite parties to contest the claim.

        In the result, the appeal is allowed by setting aside the order dated 17.8.2007.  The matter is remitted to the District Forum for denova enquiry.  The parties shall not insist on notice and appear on 16.07.2010 before the District Forum.  In view of the matter pertaining to the year 2007, the District Forum directed to dispose of the case within three months from the date of receipt of the record.  There shall be no order as to costs.

                                                                                                                    Sd/-

                                                                                                                MEMBER

                                                                                                                     Sd/-

                                                                                                                MEMBER

                                                                                                          Dt.09.07.2010

KMK*