Date of Filing:14.03.2008<br /> Date of Order:05.06.2008<br /> <br /> <br /> <br /> BEFORE THE II ADDITIONAL DISTRICT CONSUMER DISPUTES REDRESSAL FORUM SESHADRIPURAM BANGALORE-20<br /> <br /> Dated: 5TH DAY OF JUNE 2008<br /> PRESENT<br /> <br /> <br /> <br /> Sri. S.S. NAGARALE, B.A, LL.B. (SPL.), President.<br /> Smt. D. LEELAVATHI, M.A.LL.B, Member.<br /> Sri. BALAKRISHNA. V. MASALI, B.A, LL.B. (SPL.), Member.<br /> <br /> <br /> <br /> COMPLAINT NO: 707 OF 2008<br /> <br /> K. Vijaya Vishwanath,<br /> No.431, I Floor, 18th Cross,<br /> 24th Main, BSK II Stage,<br /> Bamgalooru-560 070. Complainant<br /> <br /> V/S<br /> 1. Raghunath.<br /> President, <br /> Manonmayi Credit Co-operative Society,<br /> Hanumanthnagar, <br /> Bangalore-560 019.<br /> <br /> <br /> 2. Subramanya,<br /> Secretary,<br /> Manonmayi Credit Co-operative Society,<br /> Hanumanthnagar, <br /> Bangalore-560 019. <br /> <br /> Both are R/at No.272/2,<br /> 9th B Main Road, 80 feet Road,<br /> Hanumanthanagar,<br /> Bangalore-560 019. Opposite Parties<br /> <br /> ORDER<br /> By the President Sri. S.S. Nagarale<br /> <br /> This is a complaint filed by the complainant seeking payment of maturity value of the deposit amount. <br /> The facts of the case are that, the complainant deposited Rs.10,000/- with the opposite party society on 11/5/2002 under the deposit certificate. The date of maturity was 11/8/2007. The maturity value is Rs.20,000/-. The complainant produced copy of the deposit receipt. Hence, the complaint. <br /> 2. Notice was issued to opposite party. Opposite party appeared and filed defence version stating that, Registrar of Co-operative Societies has appointed a Special Officer to conduct an enquiry into the business and affairs of the society as there were misappropriation of funds. The present Board of Directors came to know about the misappropriation of the funds of the society only when the statutory audit has been done and report was submitted. Huge funds of society have been misappropriated by the previous management of the society. Cases have instituted before the Court of Law. It is not possible for the society to arrive at any figure about the funds of the society. It is submitted that complainant can take recourse to law as per the provisions of the Karnataka Co-operative Societies Act and can seek redressal. There is no any intention of the society/present management to deprive any members or depositors, their legal rights. Therefore, the opposite parties requested to dismiss the complaint.<br /> 3. Arguments are heard. <br /> REASONS<br /> <br /> 4. I have perused the complaint and documents. The complainant has produced deposit certificate of the opposite party society. As per this certificate the complainant had deposited Rs. 10,000/- on 11/5/2002. The date of maturity was 1/8/2007. The maturity value is Rs.20,000/-. As regards the deposit made by the complainant with the opposite party there is no dispute. It is also not disputed that, the society issued deposit certificate to the complainant. It is the duty and obligation of the opposite party society/present management to pay the maturity value of the deposit. The society being registered under the Karnataka Co-operative Societies Act is a registered body. Change of management will not affect the rights of the depositors. Societies and Banks are being run on public trust and faith. Admittedly, the society had taken deposit amount from the complainant with a promise to pay Rs.20,000/- after 63 months. There is a legal obligation on the part of the opposite party society to honour its commitment and contract. The opposite party society cannot take defence that previous management had misappropriated the funds of the society and there is no audit of the society. Therefore, the present management is not in position to pay the amount. This type of defence has no merit at all. It cannot be accepted in the eye of law. The defence taken by the opposite party society is fit to be rejected. The complainant is nothing to do with the misappropriation of the funds of the society by the previous management. The present management should see that the maturity value of the deposit amount shall be paid to the complainant from the funds of the society. The present management cannot absolve from its responsibility and obligation to pay the maturity value of the deposit certificate. The deposit amount was matured on 11/8/2007, from that date till payment of the maturity value the opposite party society has to pay the interest to the complainant for the delay in making payment. In the result, I proceed to pass the following:- <br /> ORDER<br /> <br /> 5. The complaint is allowed. The opposite party society is directed to pay maturity value of Rs.20,000/-to the complainant. The complainant is also entitled to interest at 10% p.a on the said maturity value from 12/8/2007 till realization from the opposite party society. The complainant is also entitled to Rs.2,000/- as costs of the present proceedings from the opposite party. <br /> 6. Send the copy of this Order to both the parties free of costs immediately. <br /> <br /> 7. Pronounced in the Open Forum on this 5TH DAY OF JUNE 2008. <br /> <br /> Order accordingly,<br /> <br /> PRESIDENT<br /> We concur the above findings. <br /> <br /> MEMBER MEMBER <br /> <br /> <br /> <br /> <br />