IN THE CONSUMER DISPUTES REDRESSAL COMMISSION, KOLLAM
Dated this the 23rd Day of July 2022
Present: - Smt.S.Sandhya Rani, Bsc, L.L.B(President I/C)
Sri.Stanly Harold, B.A.LLB, Member
CC.426/2020
Deepa.V.L : Complainant
S/o Thulaseedharan Pillai.B
Kothamangalathu Valiya Veedu
Naduvilakkara, Thevalakkara
Kollam-690524.
Represented by
Power Holder Thulaseedharan Pillai.B
S/o Bhasakara Pillai
Kothamangalathu Valiya Veedu
Naduvilakkara, Thevalakkara
Kollam-690524.
[By Adv.M.K.Sankaranarayana Pillai]
V/s
- Popular Dealers/Finance/Popular Exports : Opposite parties
XIII/831, Vikas Road, Karuvelipady
Cochin-582005.
Represented by its Managing Partner Thomas Daniel
Indikattil House
Popular Towers
Vakayar, Konni, Pathanamthitta-689698.
- Thomas Daniel
The Managing Partner
Popular Dealers/Finance
Indikattil House, Popular Towers,
Vakayar,Konni, Pathanamthitta-689698.
- Prabha Thomas
W/o Thomas Daniel
Partner
Popular Dealers/Finance
Indikattil House, Popular Towers,
Vakayar,Konni, Pathanamthitta-689698
4. Rinu Marium Thomas
S/o Thomas Daniel
Partner
Popular Dealers/Finance
Indikattil House, Popular Towers,
Vakayar,Konni, Pathanamthitta-689698.
5. Reba Mary Thomas
D/o Thomas Daniel
Partner
Popular Dealers/Finance
Indikattil House, Popular Towers,
Vakayar,Konni, Pathanamthitta-689698.
6. Riya Mary Thomas
D/o Thomas Daniel
Partner
Popular Dealers/Finance
Indikattil House, Popular Towers,
Vakayar,Konni, Pathanamthitta-689698.
7. The Branch Manager
Popular Finance/Dealers/My Popular Marine Products LLP,
Thevalakkara Branch, Thevalakkara, Kollam.
FINAL ORDER
Smt.S.Sandhya Rani (President I/C)
The complainant Smt.Deepa.V.L is now residing at Bangalore hence she and her husband Jayachandran have executed a Power of Attorney in favour of the complainant’s father B.Thulaseedharan Pillai to lodge this complaint but the original of the Power of Attorney is with the complainant because she has to institute other petitions against the opposite parties. The 2nd opposite party is the Managing Partner of the 1st opposite party. The opposite parties 3 to 6 are the wife and children of the 2nd opposite party and the 7th opposite party is the Branch Manager of the 1st opposite party. The 3rd opposite parties 2 to 6 themselves claim to be the partners of business firms in the name and style as Popular Finance and its sister concerns are Popular Traders, Popular Dealers My Popular Marine Products, LLP, Popular exports etc.
The profile published in the website claimed that POPULAR FINANCE is a successfully functioning Gold Loan firm established in 1965, by former Chairman T.K.Daniel having the Registered office at Vakayar, Pathanamthitta District. The POPULAR at present a group of various business concerns and the entire sister concerns support the parent organization by returning profits regularly. The sudden spread and development of the business firms of the opposite parties gained public attention and confidence in them. Moreover they were very cautious and prompt in payment of monthly interest to those who want to collect interest monthly. The opposite parties opened a branch office and cunningly posted a reputed person as its Branch Manager who is the 7th opposite party. People had trusted the opposite parties and had entrusted their hardly earned savings in the said branch.
As attracted by wide publicity made by the opposite parties through newspaper, electronic and social media and on direct canvassing through agents and officials of the opposite parties they have made to believe that they are reliable and trust worthy private financiers and they are authorized and competent to receive deposits and would return the deposited amount with interest as promised. Thus the complainant has deposited Rs.6,00,000/- in Popular Finance as per Receipt No.1800259. But on 23.09.2019 the opposite parties issued a new receipt in A/c No.102991900170 having receipt No.0005211. On perusal of the said receipt issued in the name of Popular Exports revealed that it was only a receipt. But the opposite parties received the cash as fixed depsot in Popular Finance. That without the consent or knowledge of the complainant converted the money of the complainant as a receipt of a paper firm ie Popular Exports which is purely unfair trade practice and deficiency towards the complainant. On 26.06.2020 the complainant has approached the 7th opposite party for withdraw of the above said amount, but 7th opposite party was not ready to refund the amount and he replied that the amount will be refunded at the date of maturity. Slowly the complainant realized that the financial institutions run by the opposite parties are being closed and customers started lodging complaints to the police and police registering cases against the opposite parties and the opposite parties absconded with an intention to flee away to foreign countries. The police had arrested all the opposite parties and investigation is going on to search and find the huge amounts they received and diverted. Thereafter the complainant is convinced that the opposite parties were engaged in unfair trade practices and were fraudulent to conduct financial business without proper license or permission from Reserve Bank of India. The opposite parties were cheated customers who trusted them. They were deliberately received deposits on false promises and forging documents in the name of paper firms. They have forged and fabricated documents and misappropriated the amount entrusted to them so as to cause unlawful loss to the complainant and unlawful gain to the opposite parties. There is deficiency in service on the part of opposite parties as private financiers and the opposite parties failed on their service by undertaking and promise to repay the amount with agreed rate of interest. The opposite parties are given interest as per the agreement @ 12% until May 2020. Thereafter they had not paid interest and the interest amount Rs.36000/- since Many 2020. Thus the total amount due as the above receipt is Rs.6,36,000/-. The complainant is also entitled to get the promised rate of interest on the whole amount at the rate of 12% per annum from its date of deposits. The said amount may be considered as the loss incurred to the complainant. The complainant even before expiry of the respective period shown in the receipt wished to get back the promised amount, but was deferred on lame excuses, the complainant had contacted the opposite parties in person and requested to refund the entire deposit amount by closing the account even prematurely, but the opposite parties were not ready to return the amount hence the loss and injury caused to the complainant can never be equated which is purely unfair trade practice and deficiency in service from the part of opposite parties. Hence this complaint.
Though notice was issued opposite parties No.1 to 7 remained absent. Paper publication was effected against opposite parties 1 to 7. Even then they remained absent. Hence set exparte and exparte evidence was recorded. Power of Attorney holder of the complainant filed proof affidavit and got marked Ext.A1 and A2 documents. Heard the counsel for the complainant. Perused the records. The Power of Attorney filed a detailed proof affidavit by reiterating the averments in the complaint. The unchallenged averments in the affidavit coupled with Ext.A2 document would indicate that the complainant has made deposit of Rs.6,00,000/- with opposite parties on 23.09.2019 for a period of 12 months and she is entitled to get the amount along with agreed share of profit with date of effect of that deposit. It is sworn in the complaint as well as in the proof affidavit that the complainant has not drawn interest/share of profit, so the amount got accumulated. In the circumstances we are of the view that that complainant is entitled to get the amount as per the receipt along with the agreed rate of share of profit with the date of effect of that deposit/contribution.
It is clear from available materials that the complainant has sustained much mental agony apart from financial loss due to the nonpayment of the amount deposited or contributed along with agreed share of profit. Hence there is deficiency in service and unfair trade practice on the part of opposite parties and therefore the complainant is entitled to get reasonable compensation for mental agony also.
In the result complaint stands allowed.
- Directing the opposite parties No.1 to 7 to return the amount covered by Ext.A2 document ie, Rs.6,00,000/- with agreed share of profit @ 12% per annum from the date of deposit/contribution till the date of order and thereafter interest @ 9% p.a till the date of realization to the complainant.
- The opposite parties No. 1to 7 are directed to pay compensation to the tune of Rs.15,000/- to the complainant.
- The opposite parties No. 1 to 7 to pay costs Rs.5000/- to the complainant.
If the opposite parties failed to comply with the above direction within 45 days from the date of passing this order the complainant is entitled to recover the amount covered by relief No.1 to 3 from the opposite parties No.1 to 7 jointly and severally and from their assets.
Dictated to the Confidential Assistant Smt. Deepa.S transcribed and typed by her corrected by me and pronounced in the Open Commission this the 23rd day of July 2022.
S.Sandhya Rani:Sd/-
(President I/C)
Stanly Harold:Sd/-
Forwarded/by Order
Senior Superintendent
INDEX
Witnesses Examined for the Complainant:-Nil
Documents marked for the complainant
Ext.A1: Original Power of attorney.
Ext.A2: Original receipt No.0005211 worth Rs.6,00,000/- of Popular exports.
Witnesses Examined for the opposite party:-Nil
Documents marked for opposite party:-Nil
S.Sandhya Rani:Sd/-
(President I/C)
Stanly Harold:Sd/-
Forwarded/by Order
Senior Superintedent
