Before the District consumer Forum :Kurnool

Present : Sri K.V.H.Prasad, B.A., LL.B., President

And

Smt C.Preethi, M.A., LL.B., Member

Sri R.Ramachandra Reddy, B.Com., LL.B., Member

Thursday the 6^th day of November, 2003

C.D.No.75/2003

V.Sreedhar,

C/o Lakshmi Betarim,

Railway Station Road,

R/o Nandyal

Kurnool District.                      . . . Complainant represented by his Counsel

       Sri.D.M.Ramachandra Reddy.

-Vs-

1. Kethepalli Venkateswarlu,

          S/o. Ramalakshmaiah,

          Annapurna Investments and Financiers,

Represented by its Managing partner,       

19/35-D, Medam Street,

          Nandyal.

1. Perumalla Venkateswarlu,

  S/o. Venkaiah, C/30,

          Balaji Complex,

Nandyal.

1. Sarana Satyanarayana,

          S/o. Gopal Krishna,

          25/511, Vijaya Complex,

          Nandyal.

1. Gangisetty Ramanjanamma,

          W/o. Annaiah, C-52,

          Balaji Complex,

          Nandyal.

1. Yelukuru Prameelamma,

          W/o. Phaniraj, 25/517-A2,

          Sreenivasa Nagar, Nandyal.

1. Venkadara Prem Kumar,

          S/o. Krishnamurthy,

          2/428 B18, Balaji Complex,

          Nandyal.

1. Sarana  Radha Krishan,

          S/o. Gopalaiah, 17-40 B,

          Park Road, Nandyal.

1. Thunuguntla Vijaya Lakshmi,

           W/o. Soma Sekhar Rao,

2/428, 30-B13, Balaji Complex,

          Nandyal.

1. Chatakonda Supraja,

          D/o. Subrahmanyam,

          25/282 B, Sanjieevanagar,

          Nandyal.

1. Venkadara Pullamma,

          W/o. Ratnamaiah,

          3/158, Byrmal Street,

          Nandyal.                                     . . . Opposite parties 1 to 10 (In persons)

O R D E R

1.       This consumer dispute case of the complainant is filed Under Section 12 of the C.P. Act seeking a direct ion on the opposite parties for the payment of Rs.9,315/- with interest at 18% per annum from the date of the maturity, Rs.1,200/-  towards costs with 18% future interest and such other reliefs which the exigencies of the case demand.

2.       The brief facts of the complainant’s case are that in pursuance of the advertisement of the opposite parties Registered Firm inviting Fixed Deposits from the public promising attractive return of double the sum deposited within 5½ Years, the complainant deposited with the opposite parties Registered Firm a sum of Rs.3,000/- on dated 10-09-1995 for a promised maturity value of Rs.6,000/- by dated 10-03-2002 and obtained fixed deposit bond No.697 with the Membership No.836.  but the opposite parties did not pay the matured amount on the maturity in-spite of several demands and notice dated 25-02-2003 and ultimately refusing to pay on personal approach also and the said conduct of the opposite parties as amounting to deficiency of service of supine degree on the part of the opposite parties, constrained the complainant to resort to the Forum for redressal.

3.       In-spite of the service of the notice of this Forum as to this case of the complainant, the opposite parties neither appeared before this Forum nor contested the case of the complainant filing any written version with any defences and thus remained exparte.

4.       While such is so with the opposite parties the complainant in substantiation of its case relied upon the documentary record in exhibits Ex.A1 to Ex.A3 besides to his sworn affidavit in reiteration of the complaint averments.

5.       Hence, the point for consideration is whether the complainant has made out the case of the deficiency on the part of the opposite parties towards him entitling him/her for the reliefs sought?

6.       The Ex.A1 FD Bond No.697 envisages the receipt of an amount of Rs.3,000/- from the complainant on date 10-09-1995 by the opposite parties assuring the payment of Rs.6,000/- as maturity amount payable on date 10-03-2001.  The Ex.A2 is the Office copy of the legal notice dated 25-02-2003 caused on the opposite parties demanding the payment of maturity amount to the complainant takes the mention of the issual of Ex.A1 bond and the obligation of the opposite parties there under for the payment of assured matured amount. The Ex.A3 is acknowledgement of the Ex.A2 notice by the opposite parties.  The facts envisaged in Ex.A1 to Ex.A3 and in the complaint and the complainant’s sworn affidavits are neither denied nor rebutted by the opposite parties side and hence there appears every bonafidies in the claim of the complainant basing on them.

7.       When a Company of Firm invites deposits on a promise of attractive rates of interest or attractive sums it is a service and the depositor is Consumer as per the decision of Honourable National Consumer Disputes Commission, New Delhi in Neels Vasantha Rajee -Vs- Amog Industries reported in 1993 (III) CPR Page 345.

8.       When amounts under the various deposits with accrued benefits not released to the depositors by the Financial Institutions, said conduct of  not honouring the said commitment amounts to deficiency and the financial institutions is liable to refund the accrued amount with 12% interest as per the decisions of Honourable Maharastra State Consumer Disputes Redressal Commission, Mumbai in sanchayani Savings and Investments (India) Limited          -Vs-Vatsala Baba Saheb Gyquard reported in I (2003) CPJ Page  260.

9.       In the present case also the opposite parties Firm inviting the public deposits on a promise of payment of double the amounts  deposited on a tenure of 5 ½ Years from the date of deposit and did not kept up the said commitment to the complainant depositor by avoiding the payment of the matured amount.  Thus the said lapsive conduct of the opposite parties Firm is amounting to deficiency of service at the complainant Consumer depositor and thereby the grievances of the complainant are covered under the supra stated decisions holding the liability of the opposite parties Firm for refund of the accrued the matured amount with interest at12% per annum from the date of the maturity.

10.     Therefore, in the result the complaint is allowed directing the opposite parties jointly and severally as constituents of the said firm to pay the complainant the matured amount of Rs.6,000/- with 12% interest per annum from the date of maturity with costs of Rs.1,000/- within a month of the receipt of the order.  In default the opposite parties as the constituents of the said Firm shall jointly and severally liable to pay the supra awarded amount with 15% interest per annum for the date of the said default till realization of the entire awarded amount.

          Dictated to the Stenographer, Typed to the dictation, corrected by us, pronounced in the Open Court this the 6^th day of November, 2003.

MEMBER                                    PRESIDENT                                 MEMBER

APPENDIX OF EVIDENCE

Witnesses Examined

For the complainant:- Nil                                    For the opposite parties:- Nil

List of exhibits marked for the complainant:-

Ex.A1          Fixed deposit bond No. 697 issued dated 10-09-1995 maturity

dated 10-03-2001 for Rs.6,000/-  under M.No.836 issued by opposite parties to the complainant.

Ex.A2          Legal notice dated 25-02-2003 issued by complainant’s counsel to opposite party No.1.

Ex.A3          Acknowledgement of opposite party No.1 office for receipt of the Ex.A2.

List of exhibits marked for the opposite parties:- Nil

MEMBER                                    PRESIDENT                                 MEMBER