Order by:

Sh.Amrinder Singh Sidhu, President

1.       The complainant  has filed the instant complaint under section 12 of  the Consumer Protection Act, 1986 (as amended upto date) on the allegations that Opposite Party No.1 is a finance company and doing the business of finance and also deposit the money from the persons on interest basis and Opposite Party No.2 is its Managing Director/ proprietor. The Complainant alleges that he deposited Rs.3 lakhs on 26.09.2015 with the Opposite Parties and after debiting and crediting all the entries of deposits and interest, an amount of Rs.3 lakhs remains due against the Opposite Parties as on 10.08.2016 and thereafter, again on 10.08.2016, the Complainant further deposited Rs.4 lakhs with the Opposite Parties, copy of the pass book is enclosed herewith as Ex.C2. The Complainant further alleges that at the time of deposit of the above said amount, the Opposite Parties assured the Complainant to return back the amount alongwith interest @ 18% per annum as and when demanded by the Complainant; that after the maturity of the amount, the Complainant visited the office of Opposite Parties and requested to make the payment, but with no effect.  As such, there is deficiency in service on the part of the Opposite Parties. In this way, said conduct of the Opposite Parties clearly amounts to deficiency in service and unfair trade practice and as such, the Complainant is left with no other alternative but to file the present complaint.  Vide instant complaint, the complainant has sought the following reliefs.

a)       Opposite Parties may be directed to make the payment of Rs.7 lakhs alongwith interest @ 18 % per annum from 10.08.2016 till its actual realization. 

b)      The amount of Rs.50,000/- be allowed to be paid by the opposite parties on account of compensation due to mental tension and harassment caused by the complainant.

c)       And any other relief to which this Hon’ble Consumer Commission, Moga may deem fit be granted in the interest of justice and equity.       

Hence, this complaint.

2.       Upon notice, none put in appearance on behalf of the Opposite Parties  and  as such, the Opposite Parties were  proceeded against exparte vide order dated 21.02.2019 of this District Commission. 

3.       In order to  prove his case, the complainant tendered  his duly sworn affidavit Ex.C3 in support of the averments made in the complaint and also produced  copy of passbook Ex.C1, copy of aadhaar card Ex.C2 and closed the exparte evidence.

4.       We have heard the ld.counsel for the complainant  and have carefully gone through the evidence on record.

5.       During the course of arguments, ld.counsel for the Complainant has mainly reiterated the facts as narrated in the complaint and contended that  Opposite Party No.1 is a finance company and doing the business of finance and also deposit the money from the persons on interest basis and Opposite Party No.2 is its Managing Director/ proprietor. Ld.counsel for the Complainant further contended that the Complainant deposited Rs.3 lakhs on 26.09.2015 with the Opposite Parties and after debiting and crediting all the entries of deposit and interest, an amount of Rs.3 lakhs remains due against Opposite Parties as on 10.08.2016 and thereafter, again on 10.08.2016, the Complainant also  deposited Rs.4 lakhs with the Opposite Parties, copy of the pass book is enclosed herewith as Ex.C2. Ld.counsel for the Complainant further contended that at the time of deposit of the above said amount, the Opposite Parties assured the Complainant to return back the amount alongwith interest @ 18% per annum as and when demanded by the Complainant and after the maturity of the amount, the Complainant visited the office of Opposite Parties and requested to make the payment, but with no effect.  As such, there is deficiency in service on the part of the Opposite Parties and hence, the Complainant caused lot of mental tension, harassment and inconvenience besides financial loss to the complainant.

6.       Undisputedly, the Complainant has deposited the amount of Rs.3 lakhs on 26.09.2015 and further Rs.4 lakhs on 10.08.2016 as per the entries duly reflected in the pass book, copy whereof is placed on record as Ex.C1- with the Opposite Parties and to support her aforesaid contention, the Complainant has  produced on record his duly sworn affidavit Ex.C3. The evidence produced by the complainant has gone unrebutted on record as  the Opposite Parties,  despite due service, did not opt to appear and contest the proceedings. In this way, the Opposite Parties have  impliedly admitted the correctness of the allegations made in the complaint. It also shows that Opposite Parties have no defence to offer or defend the complaint. The complainant has sought for relief   for directing the Opposite Parties to make the deposited amount of Rs. 7 lakhs alongwith interest @ 18% per annum and also claimed the compensation to the tune of Rs.50,000/- on account of mental tension and harassment caused to him. But however, the claim for compensation to the tune of Rs.50,000/- and exorbitant rate of interest i.e. 18% per annum,  is concerned, the same appears to be exorbitant and excessive. The rationale behind grant of compensation has been to compensate a party of the loss occasioned by it. It is none of the intention of the legislature while legislating the Consumer Protection Act, to enrich a particular party at the cost of the other. The compensation has  to be awarded in commensuration with the loss occasioned to the complainant. In our considered view, the ends of justice would  be fully met if the complainant is awarded reasonable lump sum compensation.

7.       So, keeping in view the unrebutted evidence produced on record,  we are of the view that the Opposite Parties are certainly deficient in rendering services to the Complainant and hence the instant complaint is allowed and the Opposite Parties are directed to pay the amount of Rs. 7 lakhs  (Rupees seven lakhs only) alongwith interest @ 8% per annum from 10.08.2016 till its actual realization. The Opposite Parties are also directed to pay lump sum compensation  of  Rs.10,000/- Rupees ten thousands only)  on account of harassment, mental tension  and litigation expenses, to the Complainant. The compliance of this order be made by the Opposite Parties within 45 days from the date of receipt of copy of this order, failing which the Complainant shall be at liberty to get the order enforced through the indulgence of this District Commission. Copies of the order be furnished to the parties free of costs. File is ordered to be consigned to the record room.

8.     Reason for delay in deciding the complaint.

This complaint could not be decided within the prescribed period because the government has not appointed any of the two Whole Time Members in this Commission since 15.09.2018. Moreover, the President of this Commission is doing additional duties at District Consumer Commission, Bathinda as well as Faridkot. There is only one working day in a week when the quorum of this Commission remains complete.  

Announced in Open Commission.

Dated: 16.04.2021.