DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, PALAKKAD
DATED THIS THE 27th DAY OF NOVEMBER, 2024.
PRESENT : SRI VINAY MENON .V, PRESIDENT.
: SMT. VIDYA.A., MEMBER.
: SRI. KRISHNANKUTTY N .K, MEMBER.
Date Of Filing: 01.06.2024.
CC/201/2024
1. T.V.Venkitaraman, S/o.Late T.V.Venkiteswaran, - Complainant
7/400, “Lakshmi Kripa”, Chokkanathapuram,
Palakkad-678 005.
2. Rajalakshmi, W/o.T.V.Venkitaraman,
7/400, “Lakshmi Kirpa”, CN Puram,
Chokkanathapuram, Palakkad-678 005.
(By Adv.Ullas Sudhakaran)
Vs
1. Pooram Finserv Pvt. Ltd, -Opposite Parties
Represented by its Managing Director,
Anil Kumar, Chozhiyankunnath Krishnan,
Having its registered address at 25/395/27,
First Floor, Pathayapura, Round South,
Thrissur-678 001 & Branch Office at 41/1942, 1st Floor,
Sreelakshmi Vilas, Building near Josco Jewellery, GB Road,
Palakkad-678 001.
2. Anil Kumar, Chozhiyankunnath Krishnan,
Managing Director, Pooram Finserv Pvt. Ltd,
25/395/27, first Floor,
Pathayapura Round South, Thrissur-678 001.
3. Sunil Krishnan, Chozhiyankunnath Krishnan,
Director, Pooram Finserv Pvt. Ltd,
25/395/27, first Floor,
Pathayapura Round South, Thrissur-678 021.
(All OPs-Ex-parte)
ORDER
BY SRI. KRISHNANKUTTY N .K, MEMBER.
1. Pleadings of the complainant.
The complainants made the following investments with the 1st opposite party NBFC, of which the opposite parties 2 and 3 are Directors.
1. Rs.2,00,000/- in 200 debentures of face value of Rs.1,000/- each on 15.07.2021 with interest @ 11% and monthly interest payable was Rs.1,833/-.
2. Rs.3,00,000/- in 300 secured non-convertible debentures of Rs.1,000/- each on 15.01.2022 with interest at the rate of 11% pa and monthly interest payable Rs.2,750/- per month.
3. Rs.5,00,000/- in subordinate debt certificates (bonds) for Rs.3,00,000/- and Rs.2,00,000/- each on 25.05.2022 with maturity value of Rs.5,52,731/- and Rs.3,68,487/- respectively due for payment on 25.05.2027.
The opposite parties failed to redeem the above debentures on the due dates and also to make payment of interest from August, 2022 in the case of debentures. The complainants are not interested to continue the subordinate debt certificate till their maturity as the opposite parties already defaulted in the payment of debentures and hence, seeking premature payment. Hence, this complaint is filed seeking direction to opposite parties.
1. To pay Rs.5,00,000/- towards the maturity value of debentures and interest at 11% accrued on 500 debentures from August, 2022 onwards and to pay Rs.5,00,000/- being the value of subordinate bonds with interest @ 13% from 25.05.2022 onwards along with a compensation of Rs.1,00,000/- for deficiency in service and a cost of Rs.1,00,000/-.
2. The complaint was admitted and notices were issued to the opposite parties. The opposite party filed version but it was rejected as copy of the same was not served to the complainants. Hence, the opposite parties were set ex-parte.
3. The complainants filed proof affidavit and marked Exts.A1 to A4 as evidence. Ext.A1 is the subordinate debt certificate issued by the opposite party in the name of the 2nd complainant, Ext.A2 is the subordinate debt certificate issued jointly in the name of the complainants, Ext.A3 is the debenture certificate issued jointly in the name of both the complainants and Ext.A4 is the debenture certificate issued jointly in the name of both the complainants.
4. Ext.A3 is the debenture certificate issued on 15.07.2021 in favour of the complainants due for redemption as 15.07.2022 and interest payable for month Rs.1,833/-. According to the proof affidavit filed by the complainants though interest payments were made promptly the opposite party failed to make the payment of maturity value on the due date.
Ext.A4 is the debenture certificate issued on 15.01.2022 due for redemption on 15.01.2023. Interest payable Rs.2,750/- has not been paid from August, 2022. Redemption due on 15.01.2023 also has not been made by the opposite party.
Exts.A1 and A2 are the subordinate debt certificates issued in the name of the complainants due for payment on 25.05.2027. As per the proof affidavit filed by the complainants, the opposite party had issued these certificates against their application for non-convertible debentures without informing the risk involved in such debt instruments. As the opposite party has already failed in redeeming the debenture certificate on due dates and made default in interest payment, they are sure that the subordinate debt certificate will not be redeemed on their due date (25.05.2027). Hence, they are seeking payment without waiting for the maturity date.
5. From the documents marked above, it can be concluded that the opposite party has failed in redeeming the debentures and defaulted in the payment of interest. The opposite parties in spite of giving sufficient opportunities did not came forward with any pleadings/arguments in defence of the case. Hence, merits of the case are to be decided on the basis of the proof affidavit filed and documents marked by the complainants.
6. Resultantly, the following order is passed.
1) The opposite party is directed to pay Rs.5,00,000/- towards the maturity value of 500 debentures along with interest @ 11% from August, 2022, till the date of payment.
2) The opposite party is directed to pay Rs.5,00,000/- being the value of subordinate bonds along with interest @ 13% from 25.05.2022 till the date of payment.
3) The opposite party is also directed to pay Rs.1,00,000/- as compensation for deficiency in service.
4) The opposite party is further directed to pay Rs.10,000/- as cost of litigation.
The above amounts are to be paid within 45 days of receipt of this order, failing which the opposite party is liable to pay Rs.500/-as solatium per month or part thereof from the date of the order till the date of final payment
Pronounced in open court on this the 27th day of November, 2024.
Sd/-
VINAY MENON .V,
PRESIDENT.
Sd/-
KRISHNANKUTTY N .K,
MEMBER.
APPENDIX
Documents marked from the side of the complainant:
Ext.A1: The copy of subordinate debt certificate issued by the opposite party in the name of the 2nd complainant.
Ext.A2: The copy the subordinate debt certificate issued in the name of complainants.
Ext.A3: The copy of the debenture certificate issued jointly in the name of both the complainants.
Ext.A4: Copy of debenture certificate issued jointly in the name of both the complainants.
Documents marked from the side of opposite parties: NIL
Witness examined from the complainant’s side: NIL
Witness examined from the opposite parties side: NIL
Cost : 10,000/-.
NB: Parties are directed to take back all extra set of documents submitted in the proceedings in accordance with Regulation 20(5) of the Consumer Protection (Consumer Commission Procedure) Regulations, 2020 failing which they will be weeded out.
