DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, BARNALA, PUNJAB.
Complaint Case No : 160/2015
Date of Institution : 06.07.2015
Date of Decision : 28.10.2015
Harpal Kaur aged about 60 years W/o Pritpal Singh resident of Opp. Lok Sewa Hospital, Raikot Road, Barnala.
…Complainant
Versus
1. PACL India Limited (Pearls), 22 Acre Scheme, Barnala Through its Branch Manager.
2. PACL India Limited (Pearls), Registered Office 22, 3rd Floor, Amber Tower, Sansar Chand Road, Jaipur-302004 through its Authorized Signatory/Managing Director.
…Opposite Parties
Complaint Under Section 12 of Consumer Protection Act, 1986.
Present: Sh. JK Kapil counsel for the complainant
Sh. Rajneesh Kumar Bansal counsel for opposite parties
Quorum.-
1. Shri S.K. Goel : President.
2. Sh. Karnail Singh : Member
3. Ms. Vandna Sidhu : Member
ORDER
(SHRI S.K. GOEL PRESIDENT):
The complainant Harpal Kaur (hereinafter referred as complainant) has filed the present complaint under Consumer Protection Act (hereinafter referred as Act) against PACL India Limited and another (hereinafter referred as opposite parties).
2. The facts emerging from the present complaint are that the complainant paid a sum of Rs. 8,000/- and Rs. 1,44,000/- totaling Rs. 1,52,000/- in cash through monthly installments of Rs. 2,000/- each from 26.3.2010 to 26.6.2010 and monthly installments of Rs. 3,000/- from 29.7.2010 to 29.7.2014 with the opposite parties and opposite parties issued policy No. U017143356 dated 26.3.2010 and U017162208 dated 29.7.2010. At the time of investment Manager of opposite party No. 1 assured the complainant that she should receive more than 24% interest return in this scheme.
3. It is further averred that now the complainant is in need of money and visited the office of opposite party No. 1 alongwith above mentioned both the policies for the release of amount of Rs. 1,52,000/- alongwith interest on 22.6.2015 but the opposite party No. 1 refused to make any payment and also did not accept the policies. It is further submitted that from 29.8.2014 the opposite party No. 1 neither accepted any installment nor releasing any payment. Thereafter, the complainant visited the office of the opposite party No. 2 many a times but the payment was not made. Thus, it was alleged that it is the case of unfair trade practice and deficiency in service on the part of the opposite parties. Hence the present complaint is filed seeking a direction to the opposite parties.-
1) To make payment as per agreement of Rs. 1,52,000/- alongwith interest @ 24%.
2) To pay Rs. 50,000/- as compensation and Rs. 5,000/- as litigation expenses.
4. Upon notice, the opposite parties filed a joint written statement in which they submitted that opposite party is a real estate company and engaged in the business of sale and purchase of land and development and construction of residential as well as commercial projects. In the present case the complainant had applied for a piece of land vide registration No. U017143356 dated 24.5.2008 and U017162208 dated 29.7.2010 and she was duly executed an agreement with the company for the same. Secondly, the complaint does not fall under the Consumer Protection Act as there is no deficiency in service as defined under Section 2 (g) of the Act. Thirdly, the complainant's claim is based upon the agreement executed between them and there is an arbitration clause in the agreement according to which parties should invoke arbitration proceedings and therefore this Forum has no jurisdiction to entertain the present complaint. Fourthly no cause of action has been arisen in favour of the complainant to file the present complaint.
5. It is further submitted that as per records of the opposite parties the complainant deposited Rs. 23,400/- and Rs. 1,47,000/- with the company against sale consideration for the aforesaid registration. The complainant has intended to discontinue the agreement and to get refund of her amount which the company has agreed to make as per terms and conditions of the agreement.
6. It is further submitted that Central Bureau of Investigation has registered a case against the opposite parties company M/s PACL Limited vide R.C. BD1/2014/E/0004 under Section 420 and 120-B of IPC on 19.2.2014 and freezed the bank accounts of the opposite parties and they already approached the Hon'ble Delhi High Court against the orders of the CBI through writ petition No. 705/2014 for de-freezing of bank accounts and Hon'ble High Court allowed de-freezing of bank accounts vide order dated 6.5.2014 but CBI again freezed the bank accounts of opposite parties and company again filed an application bearing Crl. M.A. No. 12444/2014 in the said writ petition No. 705/2014 which is still pending. It is further averred that due to this reason the opposite parties are helpless to make refund/payment to its customers including the complainant till the disposal of appeal by the SEBI and de-freezing of bank accounts by the Hon'ble High Court of Delhi. Hence this is no deficiency of service and cause of action. They have denied the other allegations of the complainant and finally prayed for the dismissal of the complaint.
7. In order to prove her case, the complainant has tendered into evidence her own affidavit Ex.C-1, copy of policy Ex.C-2 and Ex.C-3, copy of receipt Ex.C-4 and closed the evidence.
8. To rebut the case of the complainant the opposite party has tendered affidavit of Varinder Singh CSC Incharge Barnala Ex.OP-1 and closed the evidence.
9. We have heard the learned counsel for the parties and have gone through all the record on the file carefully.
10. Firstly, today counsel for complainant made a statement that this complaint No. 160/15 may be treated for the policy No. U017162208 dated 29.7.2010 for Rs. 1,44,000/- and in this complaint he does not seek relief against the policy No. U017143356 dated 26.3.2010 of Rs. 8,000/- and this complaint to the extent of deposit of Rs. 8,000/- may be dismissed as withdrawn. However, the complainant is at liberty to file a fresh complaint against policy No. U017143356 dated 26.3.2010. In view of his statement the complaint regarding policy No. U017143356 dated 26.3.2010 is dismissed as withdrawn with liberty to the complainant to file a fresh complaint with regard to this policy. Accordingly, the present order is only with regard to policy No. U017162208 dated 29.7.2010.
11. Before adverting to the matter on merits, it is relevant to deal with preliminary objections raised by the opposite parties. Firstly, the learned counsel for the opposite parties has contended that the complainant's claim is based upon the agreement executed between them and there is an Arbitration Clause in the agreement, according to which the parties should invoke arbitration proceedings for the redressal of their grievances and therefore being an exclusion clause in the agreement this fora is not competent to deal with the present complaint. On the other hand learned counsel for the complainant contended that the jurisdiction of this Forum is not barred by Arbitration Clause. After hearing the learned counsel for the parties we are of the view that this fora has the jurisdiction to deal with this complaint notwithstanding any Arbitration Clause in the agreement.
12. In case titled Associated Road Carriers Ltd. Versus Kamlender Kashyap & Ors reported in I (2008) CPJ-404 (NC), it was observed that additional remedy is provided under Section 3 of the Act and jurisdiction of fora is not barred by Arbitration Clause. Further in case titled Pasumarthi S.N. Murthi (Dr.) Versus Nischint Constructions reported in I (2003) CPJ-399 (A.P.), it was observed that fora is at liberty to proceed with matters rather to relegate to arbitration since the Act intends to relieve consumers of cumbersome arbitration proceedings. Keeping in view the citations as referred to above this complaint is maintainable in this Forum.
13. The second preliminary objection taken by the learned counsel for the opposite parties is that the complainant has no cause of action as the opposite parties had not received any deposit from the complainant as it only received advance consideration for purchase of land/plot as per the conditions of the agreement. However this contention of the learned counsel for the opposite parties is untenable as no agreement or document has been placed on record to indicate that the deposit was received by them as advance for purchase and development of land/plot. The complainant has placed on record copy of policy No. U017162208 Ex.C-2 issued by the opposite party dated 29.7.2010 to be matured on 29.1.2016 and also placed on record copy of receipt dated 3.7.2014 Ex.C-4. On the other hand the opposite parties have not rebutted these documents and moreover these documents have been issued by the opposite parties. Therefore, by stretch of any imagination the opposite parties cannot take the plea that the amount was an advance for purchase and development of the plot only and the complainant was not having any right to ask for the refund of this amount alongwith interest.
14. In case titled Y. Kanaka Reddy Versus Smt. D. Lakshmamma & Ors. Reported in I (2003) CPJ-232 (NC), it was observed that when the amount deposited under scheme and lumpsum payable and promised amount not paid then it was observed that deficiency in service proved and opposite party was held liable to refund deposited amount with interest.
15. Now coming to the case on merits, firstly it is to be determined whether the complainant has paid the amount in question. Ex.C-1 is the affidavit of the complainant in which it is specifically mentioned that the complainant invested Rs. 1,44,000/- in cash with the opposite parties through monthly installments Rs. 3,000/- from 29.7.2010 to 29.7.2014 and it was agreed between the parties that the opposite parties will pay the amount alongwith interest at the rate of 24%. It is also admitted by the opposite parties in their written version and in affidavit of Varinder Singh CSC Incharge Barnala Ex.OP-1 that the complainant has paid Rs. 1,47,000/- to the opposite parties with regard to policy No. U017162208 dated 29.7.2010.
16. During arguments the learned counsel for the complainant has contended that the public has lost faith in the opposite party company and more they are not returning the money of the various depositors even after maturity date. It is further submitted that moreover no receipt is being issued by the office in case the installment is deposited. Therefore, it is no fun to continue to deposit the installments. Therefore, complainant also visited the opposite party to deposit the original policy with required documents but they refused to accept the original policy. Moreover it is submitted by the learned counsel for the complainant that an order has been passed by The Securities and Exchange Board of India passed in the month of August 2014 against the PACL, in which the PACL was directed as under.-
“PACL Limited, its promoters and directors, shall wind up all the existing Collective Investment Schemes of PACL Limited and refund the monies collected by the said company under its schemes with returns which are due to its investors... within a period of three months.”
17. Principles of natural justice and equity also provide that no innocent person should suffer or lose his/her hard earned money from any powerful businessman, builder, real estate company or financial institution. Moreover it is admitted by the opposite parties that the complainant deposited Rs. 1,47,000/- with them through installments from 29.7.2010. There is nothing on the record to indicate that the opposite party is entitled to retain the invested amount of Rs. 1,47,000/-till the date of maturity. No terms and conditions has been placed on record by the opposite party to indicate that they are entitled to retain the deposited amount of any customer till its maturity. In the absence of any such terms and conditions it cannot be held that the opposite party is competent to retain the invested amount of the complainant.
18. As a result of the above discussion we are of the considered opinion that the present complaint is partly allowed with regard to policy No. U017162208 dated 29.7.2010 and the opposite party is directed to refund the amount of Rs. 1,47,000/- to the complainant alongwith interest at the rate of 9% per annum from the date of deposit till realization. However no order as to costs or compensation. This order shall be complied with within 45 days from the date of the receipt of this order. Copy of this order be supplied to the parties free of costs. The file be consigned to the records.
ANNOUNCED IN THE OPEN FORUM:
28th Day of October 2015
(S.K. Goel)
President
(Karnail Singh)
Member
(Vandna Sidhu)
Member
