By: Sri. Mohandasan K., President
1. The case of complainant in short is that the opposite party is a rural co-operative society, which has got good reputation among the local people. Attracted by the good reputation of the opposite party the complainant approached the opposite party on 04/01/2018 and deposited an amount of Rs.1,00,000/- as FD No.1/621 at the rate of 8.5% per annum. On attaining maturity, the complainant approached the opposite party to release of the F.D amount. But due to want of sufficient money with the opposite party they could not release the FD amount to the complainant. The opposite party demanded further time for the refund of amount. Thereafter also the complainant approached several occasions to refund the fixed deposit amount. At last, on 24/09/2019 the complainant approached the opposite party with fixed deposit receipt. But then also there was no sufficient money to honor the claim of complainant. Thereafter till filing this complaint the opposite party could not refund the amount. The complainant enquired about the issue through the board members of the society and then came to know that the deposited amount of the complainant has been withdrawn from the society and as per the record of the opposite party there is no amount is due to the complainant.
2. The complainant alleges deficiency in service and unfair practice against the opposite party and submitted that the complainant is entitled to refund the fixed deposit amount along with interest. Hence the complainant prays for the refund of 1,00,000/- rupees with interest from the opposite party.
3. The complainant claims an amount of Rs.50,000/- as compensation on account of mental agony and inconveniences sustained by the complainant. The complainant also prayed for cost of Rs.25,000/-.
4. On admission of the complaint notice was issued to the opposite party and on receipt of notice the opposite party entered appearance and filed version denying the allegations of the complainant.
5. The opposite party admitted that the complainant had deposited 1,00,000/- rupees as FD on 04/01/2018 with interest at the rate of 8.5% for one year. The opposite party is responsible to pay the amount of Rs.1,00,000/- with 8.5 % interest
6. The opposite party submitted that the co-operative assistant registrar of Tirurangadi inspected the society on 28/02/2019 and found gross irregularities in the society. The president of the society filed a complaint before Vengara police and the police registered the complaint as crime number 48/2019 and the articles including gold ornaments which are found out from other institutions were seized and produced before honorable judicial first-class magistrate Malappuram. Hence, there was no new deposits in the society and the loanees are not repaying the loan amount. The depositors started to withdraw the deposited amount from the society which resulted dullness in the society. The opposite party had duly explained the situation to the complainant. The opposite party explained to the complainant that the financial condition of the society is bad and the society is trying to settle the disputes and the liabilities through the proper steps. The opposite party further submitted that the attender Mr. Abdul Jabbar did certain malpractices and he steeled huge amount from the society and accordingly the opposite party issued public claim notice. Unfortunately, the complainant did not submit his claim. The opposite party denied the allegations that the opposite party said to the complainant that no amount is entitled by the complainant, which was not at all stated by any of the parties of the opposite party. The opposite party started legal actions on detecting anomalies with the opposite party. The opposite party already suspended the attender as well as the secretary of the society. The domestic enquiry already started. Section 65 actions already completed and enquiry under section 68 is continuing. There is no sufficient amount in deposit of the opposite party and on attaining sufficient amount in the account of the bank, the opposite party is prepared to disburse amounts to the parties on priority basis.
7. Hence, the prayer of the opposite party is that sufficient time to be allowed to release the F D amount in favor of the complainant.
8. The complainant and opposite party filed affidavit and documents. The documents on the side of complainant marked as Ext. A1 and documents on the side opposite party marked as Ext. B1. Ext. A1 is copy of fixed deposit receipt and the receipt No is 00315. Ext. B1 is FD receipt for Rs.1,00,000/-, for the period 04/01/2018 to 20/04/2021.
9. Heard complainant and opposite party. Perused affidavits and documents.
The following points arise for consideration: -
Whether there is deficiency in service on the part of the opposite party?
Relief and cost
10. Point No.1 &2
The opposite party admitted the claim of the complainant. The contention of the opposite party is that there was an incident of misappropriation of fund from the society and the president of the society had filed complaint before the Vengara police and the police has registered a crime also. The police seized the articles including gold as part of enquiry and the same stands produced before the JFCM Court Malappuram. The opposite party further contended that they have suspended the secretary of the society as well as the attender of the society. The opposite party is ready and willing to refund the FD amount of 1,00,000/- of the complainant along with interest at the rate of 8.5 % from the date of deposit to till the date of payment. Since there is no sufficient amount with the society to honor the claim of the complainant, a reasonable time is required for the payment of FD amount.
11. There is no contra evidence against the contention of the complainant. Ext. A1 and B1 established the claim of complainant. The complainant had filed an IA 94/21 seeking direction to the opposite party for restraining the society from distributing the amount to the borrowers in an arbitrary manner. The opposite party had filed counter in the matter stating that the joint registrar of co-operative societies is not a party in the proceedings and there was no response from the side of complainant to the claim notice issued by joint registrar of co-operative societies. The commission had directed in the IA 94/2021 to forward the claim of complainant to the joint registrar of co-operative societies for appropriate steps to avail the due amount to the complainant.
12. But the opposite party could not refund the deposited amount to the complainant at the time when the amount was attained majority and he was in need of money. Hence, the complainant might have suffered inconvenience, hardship and financial difficulties due the act of the opposite parties. The complainant deposited his hard-earned money before the opposite party society with great expectation. But he was put in trouble due to defective and unfair practice of the opposite party. Hence the complainant is entitled a reasonable amount as compensation also. We consider Rs.25,000/- will be a reasonable amount as compensation in the matter. The complainant is also entitled cost of Rs.5,000/-.
In the light of above facts and circumstances, we allow this complaint as follows: -
The opposite party is directed to pay Rs.1,00,000/- (Rupees one lakh only) with interest at the rate of 8.5% from 04/01/2018 to till the date of order.
The opposite party is directed to pay Rs.25,000/- (Rupees Twenty-five thousand only) as compensation on account of defective service and thereby caused inconvenience, hardship and financial difficulties to the complainant.
The opposite party is directed to pay Rs.5,000/- (Rupees five thousand only) as cost of the proceedings to the complainant.
The opposite party shall comply this order within one month from the date of receipt of copy this order, failing which the opposite party is liable to pay the entire amount including cost and compensation with interest at the rate of 12% per annum from the date of order to till date of payment.
Dated this 6th day of February, 2023.
Mohandasan K., President
Preethi Sivaraman C., Member
Mohamed Ismayil C.V., Member
APPENDIX
Witness examined on the side of the complainant: Nil
Documents marked on the side of the complainant: Ext.A1
Ext.A1: Copy of fixed deposit receipt and the receipt No. 00315.
Witness examined on the side of the opposite party: Nil
Documents marked on the side of the opposite party: Nil
Ext.B1: FD receipt for Rs.1,00,000/- and for the period 04/01/2018 to 20/04/2021.
Mohandasan K., President
Preethi Sivaraman C., Member
Mohamed Ismayil C.V., Member
VPH
