Complaints filed on: 28-08-2022

                                                      Disposed on:17-11-2022

BEFORE THE DISTRICT CONSUMER DISPUTES

REDRESSAL COMMISSION, TUMAKURU

DATED THIS THE 17^th DAY OF November, 2022

P R E S E N T

SMT.G.T.VIJAYALAKSHMI, B.Com, L.L.M, PRESIDENT

SRI.KUMARA.N, B.Sc., L.L.B, MEMBER

SMT.NIVEDITA RAVISH, B.A., L.L.B, LADY MEMBER

CONSUMER COMPLAINT No. 126 OF 2022

Ramesh H.R. S/o Late H.Ramachandraiah,

Aged about 74 years, R/of Tumkur Town

At No.35, Shree Nilayam, Opposite Park Road,

Near Govt. Fair Price Depot, 8^th Main, 1^st Block

Mahalaskhmi Nagar, Tumkur Town,

Tumkur District, Karnataka – 572 103.

……….Complainant

(In person)

V/s

Managing Director, Indian Institute of

Civil Services Training Academy (Run by

Indoday Eduskill Pvt. Ltd.), Adichunchanagiri Road,

Near Apollo Hospital, Kuvempu Nagar,

(Run by Indoday Eduskill Pvt. Ltd.), Adichunchanagiri Road,

Near Apollo Hospital, Kuvempu Nagar,

(Served – absent)

                                                :O R D  E R :

BY SMT.NIVEDITA RAVISH -  LADY MEMBER

          This complaint was filed by the complainant under section 35 of Consumer Protection Act 2019 against the Opposite Parties to direct them to pay a sum of Rs.2,14,700/- along with interest @ 18% P.A. from the date of admission and to direct the Opposite Parties to pay cost of Rs.5,000/-.

2.       In this case, 2^nd Opposite Party is Indian Institute of Civil Services Training Academy (Run by Inoday Eduskill Pvt., Ltd.) and 1^st Opposite Party is the one who Patel S. Ramesh Gowda, Chairman of the 2^nd Opposite Party (hereinafter both 1^st and 2^nd Opposite Parties are called as OP/academy).  

3.       It is the case of the complainant that the complainant had invested a sum of Rs.1,50,000/- on 19/02/2020 for two years and the agreement closing date was 20.02.2022 in the OP academy. The OP academy has agreed to pay a dividend of 15% Per Annum on the invested amount and executed a memorandum of undertaking.  As agreed, the OP academy has paid half yearly dividend of  Rs.11,250/- due on 20.08.2020 and 20.02.2021 with delay.  The OP academy has not paid half yearly dividend due on 20.08.2021 and 20.08.2022 and also not refunded the investment of Rs.1,50,000/-, in spite of several requests and reminders.  Up-to 25/08/2022 the complainant has suffered with a financial loss of Rs.2,14,700/- due to the not paying the dividend and invested amount by the OP academy.  Though the several requests and reminders by the complainant, the OP academy has not complied the same.  Hence, this complaint.

4.       After service of the notice by this Commission, the OP Nos. 1 & 2 were not appeared before this Commission and even giving several opportunities, the OP Nos. 1 & 2 have remained absent.

5.       The complainant has filed his affidavit evidence with 10 documents, which were marked as Ex.C1 to Ex.C10.

6.       We have heard the arguments of the complainant and the points that would arise for determination are as under:-

1. Whether the complainant proves deficiency in service on the part of OPs?

2. Is complainant is entitled to the relief sought for?

7.        Our findings on the aforesaid points are as under:

Point No.1: In the Affirmative

Point No.2: As per final order for the below

:R E A S O N S:

8.       The complainant has submitted that he has invested the sum of Rs.1,50,000/- in the OP academy on 19/02/2020 in response to their advertisement in the Hindu daily news paper of 31.01.2020 and produced the documents Ex.C1, C2, C3.  Ex.C1/copy of the paper cutting reveals that, OP academy has been given an advertisement calling the investors to invest the amount for their academy.  Ex.C2/copy of the memorandum of understanding (MOU) establishes that OP No.1 has agreed the investment of the complainant and also agreed to pay dividend at 15% Per Annum (dividend being payable half yearly through bank).  Further, Ex.C3/membership form with letterhead of OP academy proves that the complainant has invested a sum of Rs.1,50,000/- in the OP academy.  Ex.C5 establishes that the OP Nos. 1 & 2 were having knowledge about non-payment of dividend.  Though the complainant got issued Ex.C6/final recall notice to the OP No.1, the OP academy has not paid the invested amount and balance dividend to the complainant, which amounts to deficiency in service of the OP Nos. 1 & 2.

9.       The complainant has prayed to give direction to the OP academy to pay the total amount of Rs.2,14,700/- with calculation as,

Invested amount                                 :         Rs.1,50,000-00

Half yearly dividend

Due 20.08.2021                                  :            Rs.11,250-00

Due 20.02.2022                                   :            Rs.11,250-00

OD interest upto date                          :            Rs.42,200-00

Total                                                  :         Rs.2,14,700-00 

We have compared the calculation of the complainant and Ex.C2/copy of the memorandum of understanding.  Ex.C2 reveals that the OP academy has agreed to pay interest @ 15% per annum on Rs.1,50,000/- i.e. invested amount by the complainant.  Interest @ 15% on Rs.1,50,000/- is amounts to Rs.22,500/- per annum.  Ex.C2 reveals that the complainant had agreed to receive this interest amount as dividends for half yearly, which amounts to Rs.11,250/- per half year.  The complainant has calculated overdue interest at 15% Per Annum on invested amount i.e. Rs.1,50,000/- for two years as Rs.42,200/-.  But the complainant himself admitted that, the OP academy has paid interest @ 15% Per Annum as half yearly dividend on 20.08.2020 and 20.02.2021.  Hence, the complainant has not entitled for overdue interest up-to date as Rs.42,200/-.  But the OP academy has kept invested hard earned money of the complainant and not paid the two half yearly dividends to the complainant till the date.  For that, the OP academy has liable to pay interest @ 15% Per Annum on the invested amount i.e. Rs.1,50,000/- from 21.02.2021.  Because, the OP academy has paid interest @ 15% Per Annum up-to 20.02.2021 and OP academy has not paid interest @ 15% Per Annum as dividend from 21.02.2021 to the complainant. 

10.     Further, the complainant has prayed for future interest @ 18% Per Annum on total amount which he has calculated.  But the complainant has himself agreed to receive the interest @ 15% Per Annum on invested amount as per Ex.C2.  Hence, the complainant has entitled for the interest @ 15% Per Annum.  Hence, the OP Nos. 1 & 2 shall liable to pay total invested amount of Rs.1,50,000/- with interest @ 15% Per Annum from 21.02.2021 to till the date of realization.  The OP Nos. 1 & 2 are compelled the complainant to approach to this Commission, for that the OP Nos. 1 & 2 were liable to pay litigation of Rs.5,000/- and compensation of Rs.10,000/- to the complainant.  Accordingly, we pass the following:-        

:O R D E R:

The complaint filed by the complainant is allowed in part with cost.

The OP Nos. 1 & 2 are jointly and severally directed to pay Rs.1,50,000/- with interest @ 15% per annum from 21.02.2021 to till realization.

It is further ordered that the OP Nos. 1 & 2 are jointly and severally shall liable to pay litigation cost of Rs.5,000/- and compensation of  Rs.10,000/- to the complainant.

Further, the OP Nos. 1 & 2 are jointly and severally directed to comply the above order within 45 days from the date of receipt/knowledge of this order.   

Furnish copy of this order to both parties free of costs immediately.

(Dictated to the Stenographer, got it transcribed, corrected and then pronounced in the Open Commission on this the 17^th day of November, 2022).

LADY MEMBER                      MEMBER                       PRESIDENT

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