Date of Filing :12.07.2021

Date of Disposal : 15.07.2021

 

BEFORE THE KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BENGALURU (PRINCIPAL BENCH)

 

DATED:15th JULY 2021

 

PRESENT

 

HON’BLE Mr JUSTICE HULUVADI G RAMESH : PRESIDENT

 

Mr KRISHNAMURTHY B. SANGANNANAVAR: JUDICIAL MEMBER

 

Mrs DIVYASHREE M:LADY MEMBER

 

APPEAL No.513/2021

 

M/s Muthootu Mini Nidhi Ltd.,

No.102, 1st Floor,

(Coper Arch), 83, Infantry Road,

Bengaluru - 560 001.

Rep. by its Manager Appellant

(By Mr K P M Varghese)

                                                -Versus-

Smt Pushpa,

W/o Sri Pandian,

Aged 64 years,

C/o Raghu House,

R/at No.407,Poornapuram,

Near Sundarnagar, Gokula,

Bengaluru - 560 064                                                  Respondent.

 

 

 

                                               - :ORDER:-

Mr JUSTICE HULUVADI G RAMESH : PRESIDENT

 

1. This is an Appeal filed under Section 41 of Consumer Protection Act 2019 by Appellant/OP, aggrieved by the Order dated 20.03.2021 passed in Consumer Complaint No.1093/2019by I Additional District Consumer Disputes Redressal Commission, Bengaluru.

2. The brief facts of the case as stated by the District Commission is that the Complainant and one Mr. T. Philip Thomas jointly deposited Rs.50,000/- with OP for a period of three years and OP agreed to pay interest @ 15% p.a, on maturity.  The said Philip Thomas died leaving behind his wife and children.  The Legal Representative of the said Philip Thomas filed P&SC case 27/01 excluding the Complainant as party.  Subsequently, filed an Application for restoration of the said case before the Hon’ble City Civil Court in Misc. 554/2002 and issued a Succession Certificate on 20.01.2016 and she is entitled to receive the said amount as a successor to the estate of the said Philip Thomas.  In view of this, she got issued a Legal notice on 08.04.2019 to the OP to pay the proceeds of the Deposit.  Inspite of receipt of Notice, OP neither replied nor complied with the demand made in the Notice.  Therefore, she lodged the present Complaint alleging deficiency in service and issue direction to the OP to pay the amount along with interest, also for Litigation & other expenses of Rs.25,000/-.

 

On service of Notice, OP entered appearance and filed his Version, wherein he pleaded that the Complaint is not maintainable either in law or on facts of the case and it is bad for non-joinder of necessary & proper parties.  LRs of Late T Philip Thomas has not been made as parties.  The amount was deposited in the name of the Complainant and late T.Philip Thomas. The LRs of T.Philip Thomas represented to OP orally and in writing, stating that they have filed an Appeal against the Order of granting for Succession Certificate in P&SC 27/2001 on 20.01.2016.  No Notice has been served in respect of the Appeal as on the date of filing of this Version.  Initially, Mr T.Philip Thomas and the complainant deposited Rs.25,000/- each(two deposits) for a period of three years from 12.01.1997 and 06.12.1997.  Immediately after the death of T.Philip Thomas, the Complainant approached him without furnishing the original Fixed Deposits, Death Certificate and Legal Heir ship certificate, since the FDs were in the joint name, informed her to provide the said original documents  and consent of both parties or their nominees for releasing the said amount.  In the meanwhile, Son of Late Philip Thomas filed P&SC case 27/2001 without making the OP as a ormal party and informed them not to release the amount till finalization of the said case.   Further OP pleaded that one FD No.219/1997 matured on 12.01.2000 and another FD No.220/1997 matured on 06.12.2000.  The said amount is lying with them as proceed were not claimed by the parties in the prescribed manner.   Since the FD was for a particular period, the interest would be calculated till that period and not beyond the date of maturity and claiming interest at 15% p.a beyond the period of maturity, on the said amounts is without any legal authority and is unjust and illegal.   OP is always ready and willing to pay the total amount of Rs.72,500/- as per the Order passed by the Hon’ble Civil Court.   by way of DD.  Hence, there is no deficiency, un-fair trade practice &illegal acts on its part.  Thus sought Dismissal of the Complaint.

 

3. The District Commission after hearing both parties by considering the pleadings & evidences led in, deemed it fit to allow the Complaint in part directing the OP to pay Rs.72,500/- along with simple interest of 10% p.a., on the said amount compounding annually from 12.01.2000 and 06.12.2000 with cost of Rs.5,000/- within 30 days from the date of receipt of this Order.

 

4. Aggrieved by the said Order, OP is in Appeal inter-alia contending amongst other grounds that, Commission below without application of mind wrongly came to the conclusion that Appellant has utilized the amount to earn interest by lending the same to the needy and earned 18 to 20% interest is absolutely not correct since Appellant is running the financial business, as per the guidelines of RBI and there is no provision to charge 18% to 20% of interest.  Further contended that, Respondent had delayed the process before the Court and approached this Appellant for claim on 08.04.2019 and hence, not entailed to claim interest from 2000 to 2019.  Thus seeks to set aside the Impugned Order by allowing the Appeal.

 

5. Heard the arguments of the Appellant.  Considering the nature of the Impugned Order, service of notice to the Respondent herein is dispensed with.

 

6. It is an admitted fact that a sum of Rs.25,000/- each was kept in Fixed Deposit by the Complainant and the deceased T.Philip Thomas for a period of three years, which carries interest at 15% p.a and said FD receipts matured during the year 2000.  It is also not in dispute that Succession Certificate as per Ex-P1 issued by the Competent Authority and the Complainant was declared as a Successor to the estate of the deceased which consists of debts and securities.    According to the Appellant, he is ready & willing to pay the sum of Rs.72,500/-in respect both matured FD receipts, but the dispute raised by the Appellant is only with respect to payment of interest, since they are not bound to pay the interest from 2000 onwards.

 

7. Thus, the Complainant after obtaining Succession Certificate, she approached the OP and thereafter she also got issued a Legal Notice on 08.04.2019.  It is pertinent to note that, on one hand the litigation took place for a long period of time and the Complainant has spent her money and time for getting Succession Certificate and she was helpless in so far as renewal of the FDs from time to time to declare as a successor to the estate and on the other hand, interest rate on FD receipts also drastically got reduced from time to time on account of various reasons and economic situations.  

          In the above facts & circumstances of the case, although money was lying with the OP for a period of more than 8 years and obviously he has used the same for their purpose, in  such situation, the Impugned Order passed by the said District Commission is just and proper and there is no scope for interference.   Accordingly, Appeal is dismissed. 

 

8. The parties to the appeal are directed to bear their own costs.

 

9.  Amount in Deposit is ordered to be transfer to the District Forum for disbursement to the Complainant.

 

 

10. Send a copy of this Order to the District Commission as well as to the parties concerned, immediately.

 

Lady Member Judicial Member                 President

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