IN THE DISTRICT CONSUMERS’ DISPUTES REDRESSAL FORUM AT MYSORE<br /> <br /> PRESENT: 1. Shri.A.T.Munnoli<br /> B.A., L.L.B (Spl.) - President <br /> <br /> 2. Smt.Y.V.Uma Shenoi<br /> M.Sc., B.Ed., - Member<br /> 3. Shri. Shivakumar.J.<br /> B.A., L.L.B., - Member<br /> <br /> <br /> CC 287/09 DATED 25.09.2009<br /> ORDER<br /> <br /> Complainant N. Prabhakar, No.13, Model House, Behind S.J.H. Road, Vidyaranyapuram, Mysore-8.<br /> <br /> (In person)<br /> <br /> Vs. <br /> Opposite Party The Secretary, South Western Railway, H.B. Co-operative Society ®, Mysore South, Mysore-8.<br /> <br /> (Smt. K.B. Gayathri Devi, Advocate)<br /> Nature of complaint : Deficiency in service<br /> Date of filing of complaint : 14.08.2009<br /> Date of appearance of O.P. : 07.09.2009<br /> Date of order : 25.09.2009<br /> Duration of Proceeding : 18 days<br /> <br /> <br /> PRESIDENT <br /> <br /> <br /> <br /> MEMBER<br /> <br /> <br /> MEMBER<br /> <br /> <br /> Sri. A.T.Munnoli,<br /> President<br /> <br /> 1. Under Section 12 of the Consumer Protection Act the complainant has filed the complaint seeking a direction to the opposite party to pay a sum of Rs.66,000/- towards the interest on the amount paid towards allotment of site along with interest thereon at the rate of 10% p.a. and further Rs.5,000/- towards hardship and mental agony and Rs.500/- towards cost of the proceedings. <br /> <br /> 2. Amongst other facts in the complaint, it is alleged that, the complainant remitted a sum of Rs.3,60,000/- to the opposite party for allotment of site. Details are mentioned in third paragraph of the complaint. The opposite party failed to provide site to the complainant. The opposite party kept the complainant in dark and it amounts to un-fair trade practice and also deficiency in service. The complainant suspected the fidelity of the opposite party and submitted an application to refund the amount with interest at the rate of 10% p.a. On 10.06.2009 the opposite party has refunded the entire amount but interest thereon is not paid. The opposite party utilised the amount of the complainant for procurement of the land to form sites. Hence, it is prayed to allow the complaint.<br /> <br /> 3. In the version the opposite party has contended that, it is forming layout and distributing sites to the members under no profit and no loss basis. The opposite party has entered into an agreement to purchase the land and formation of layout is under progress. The opposite party has paid Rs.5 crores to the developers. On the request of the complainant the amount has been refunded. Hence, the complainant is not entitle to any interest.<br /> <br /> 4. To establish the claim made in the complaint, the complainant has filed his affidavit and certain documents are produced. On the other hand, secretary of the opposite party society has filed his affidavit. For the opposite party also certain documents are produced. We have heard the arguments of both sides and perused the material on record.<br /> <br /> 5. Now, the points for our consideration are as under.<br /> <br /> 1. Whether the complainant has proved that he is entitle to the interest amount as claimed?<br /> 2. What order?<br /> <br /> 6. Our findings are as under:-<br /> Point no.1 : Affirmative<br /> Point no.2 : As per the order.<br /> <br /> REASONS<br /> <br /> 7. Point no. 1:- Most of the facts are admitted. Only dispute is that whether the complainant is entitle to any interest on the amount that he had paid to the opposite party towards allotment of site.<br /> <br /> 8. The opposite party has disputed the claim of the complainant mainly on the ground that, the society is forming layout and distributing sites to the members under no profit and no loss basis. In this regard no comment needs to be made. However, it is important to note that, in the first paragraph of the version amongst other facts it is stated “ The opposite party is collecting the site amount from its members in installments and also distribution of house building loans to the members”. Hence, it goes to show that, the opposite party collects the amount from the members and also it distributes house building loan to the members. When as stated by the opposite party that it is also distributing loan to the members, the same may not be on charity but must be on interest. It is not stated by the opposite party that, interest free loan is being distributed to the members. For this reason alone we are of the opinion that, the opposite party is liable to pay interest to the complainant on the amount that he had paid towards cost of the site.<br /> <br /> 9. Further, contention of the opposite party is that, to form layout, it has entered into an agreement with developer for purchase of land and paid Rs.5 crores. That also further goes to show that, the amount that the complainant had paid has been utilized by the opposite party to acquire land for formation of the layout or sites. When the opposite party has utilized the amount of the complainant, it is bound to refund with interest.<br /> <br /> 10. Learned advocate for the opposite party pointed out the resolution passed by the opposite party as well as proceedings of the Annual General Body Meeting etc.,. But in law same will not deprive the right of the complainant to claim interest.<br /> <br /> 11. From the year 2006 for 3 years the complainant has paid Rs.1,20,000/- every year. But so for the opposite party has not formed layout and allotted site to the complainant. It is specifically alleged by the complainant that the complainant suspected the fidelity of the opposite party and hence sought for refund of amount with interest. Hence, the claim of the complainant is justified.<br /> <br /> 12. It is submitted by the complainant that, the interest has been calculated from the dates of payment of the amount till it was refunded. Correctness of the same has not been denied or disputed.<br /> <br /> 13. Accordingly we answer the point No.1 in affirmative. <br /> 14. Point No. 2:- From the discussions made above and conclusion arrived at, we pass the following order: <br /> <br /> ORDER <br /> <br /> 1. The Complaint is partly allowed.<br /> 2. The opposite party is hereby directed to pay a sum of Rs.66,000/- to the complainant within a month from the date of the order and on failure, it shall pay interest at the rate of 10% p.a. till realization of the entire amount.<br /> 3. The opposite party also pay a sum of Rs.2,000/- as compensation towards mental agony and a sum of Rs.500/- to the cost of the proceedings.<br /> 4. Give a copy of this order to each party according to Rules.<br /> (Dictated to the Stenographer, transcribed by her, transcript revised by us and then pronounced in the open Forum on this the day 25th Sept 2009)<br /> <br /> <br /> <br /> (A.T.Munnoli) <br /> President <br /> <br /> <br /> (Y.V.Uma Shenoi)<br /> Member<br /> <br /> <br /> (Shivakumar. J)<br /> Member<br /> <br />