BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE URBAN

03^RD DAY OF FEBRUARY 2016

O R D E R

SMT. M. YASHODHAMMA, MEMBER

This is a complaint filed by the complainant in person under section 12 of the Consumer Protection Act, 1986 praying for an order against Opposite Party (herein after referred as OP) to refund Rs.50,000/- along with interest at 12.5% per annum from 01.04.2015 to 11.10.2015 and penal interest at the rate of 18% per annum for the delayed payment till the date of payment along with compensation of Rs.5,000/- and cost on the allegations of deficiency in service.

2.  The brief averments made in the complaint are as follows:

The complainant is a Senior Citizen aged about 65 years residing at Chickbanavar, Bangalore.  From his retirement benefits and out of the savings complainant has deposited a sum of Rs.50,000/- with OP Company on 12.10.2012 repayable after three (3) years along with interest at the rate of 12.5% per annum maturity date being 11.10.2015 and accrued interest payable on quarterly rests.  The Chairman and Managing Director of Sezal Glass is engaged in manufacture of architectural and special glasses and mobilizes fixed deposit for its operational needs from the public as per the guidelines laid down in The Companies (Acceptance Deposit) Rules 1975, under the Companies Act 1956 throughout India.   OP is registered and listed both in BSE and NSE.  The complainant applied for the fixed deposit in the prescribed application form of OP through authorized local broker M/s.SMC Global Securities at Bangalore and fixed deposit receipt was delivered at his residence at Bangalore assuring the complainant to deposit the interest amount every quarter on the last day of every quarter directly in ICICI Bank, Jayanagar Branch, Bangalore and the repayment of matured amount would be made on the date of maturity as per the terms and conditions stipulated in the Acceptance of Deposit Rules, 1975.  The complainant sent the discharged fixed deposit receipt on 31.08.2015 requesting OP for repayment which has been received by OP on 04.09.2015.  Complainant sent e-mails requesting OP to send the repayment warrant without delay.  But till date complainant has not received the repayment warrant.  The delay in repayment attracts penal rate of interest of 18% in addition OP had not paid quarterly interest for several quarters.  To this affect complaint has been filed before the Hon’ble Bangalore District Forum, Bangalore and order were passed directing OP to pay cost and compensation.  Inspite of repeated request and remainders OP had not affected the repayment of matured deposit thereby causing inconvenience to the complainant.  Hence, complainant felt deficiency in service on the part of the OP.  Under the circumstances, he is advised to file this complaint against OP for appropriate relief.

3.  After registration of the complaint, notice was issued to OP.  Inspite of service of notice OP remained absent without any sufficient reason or cause.  Hence OP was placed exparte and posted the case for filing affidavit of the complainant.

4. So as to prove his case, Mr.A.K.Ganesan, who being the complainant filed his affidavit evidence in support of complaint reiterating the complaint averments and produced documents.

5. The above said assertions of the complainant have remained unchallenged. OP neither filed version nor denied the sworn testimony of the complainant.  So under the circumstances, we have no reasons to disbelieve the sworn testimony of the complainant.

6.  Let us have a cursory glance at the documents produced by the complainant.  Document No.1 is copy of the brochure issued by OP with regard to fixed deposit scheme along with terms and condition. Document No.2 is copy of the fixed deposit receipt bearing No.7017 for having deposited a sum of Rs.50,000/- with OP by the complainant for a period of 36 months repayable along with interest at 12.50% per annum on 11.10.2015.  Document No.3 is copy of the e-mail sent by complainant to CMD, stating his fixed deposit matured on 11.10.2015 he has not received the repayment warrant inspite of several remainders requesting OP to confirm repayment within three days failing which complainant would be constrained to proceed legally.  Document No.4 is copy of the order of the Company Law Board, Mumbai.  Document No.5 is copy of the private complaint filed under section 138 of the Negotiable Instrument Act by the complainant against OP.  Document No.6 is copy of the Company profile.

7. On perusal of oral and documentary evidence of the complainant, it is made crystal clear that the complainant, who being Senior Citizen has deposited a sum of Rs.50,000/- with OP towards fixed deposit on 12.10.2012 repayable along with interest at 12.5% per annum for a period of 36 months as per Document No.2 fixed deposit receipt, the maturity date being 11.12.2015 and interest was repayable at quarterly basis.  After the date of maturity.  Complainant sent duly discharged fixed deposit receipt on 31.08.2015, requesting the OP to refund the fixed deposit amount, which has been received by OP on 04.09.2015 as per Document No.3.  Complainant has sent a mail for repayment warrant.  Inspite of repeated request and email correspondences OP failed to pay quarterly interest amount along with matured fixed deposit amount.  Hence, the complaint.

8.  From the available materials on record, it is crystal clear that complainant has deposited a sum of Rs.50,000/- with OP on 12.10.2012 and the maturity date being 11.10.2015, OP has failed to refund the matured fixed deposit amount after the date of maturity till date.  In the present complaint complainant has sworn to the fact that he has deposited the amount through the brokers M/s.S.M.C. Global Securities at Bangalore through his ICICI Bank, Jayanagar Branch, Bangalore and fixed deposit receipt was delivered at the address of the complainant at Bangalore.  Thus complainant is a resident of Bangalore and payment was made to the broker at Bangalore address.  Hence, part of cause of action arose at Bangalore within the territorial Jurisdiction of this Forum to file this complaint.  Hence this Forum has got jurisdiction to entertain this complaint. The act of OP in not repaying the maturity amount of fixed deposit amount of Rs.50,000/- along with accrued interest amounts to deficiency in service on the part of the OP.  We are satisfied that complainant proved deficiency in service against OP. Since the complainant has claimed interest from OP from 01.04.2015, OP is liable to refund fixed deposit amount of Rs.50,000/- along with interest at the rate of 12.5% from 01.04.2015 to 11.10.2015.  Further OP is liable to pay interest at the rate of 18% per annum from the date of maturity till realization along with litigation cost of Rs.3,000/-.    Accordingly, we proceed to pass the following:

                                  O R D E R

1. The complaint filed by complainant is allowed in part. 

2. OP is directed to refund Rs.50,000/- being the fixed deposit amount to the complainant along with interest at the rate of 12.5% per annum from 01.04.2015 to 11.10.2015 i.e., till the date of maturity.

3. Further OP is also directed to pay interest at the rate of 18% per annum from the date of maturity i.e., 11.10.2015 till the date of realization along with litigation cost of Rs.3,000/- to the complainant.

4. This order shall be complied within 30 days from the date of receipt of this order.

5. Supply free copy of this order to both the parties.

(Dictated to the Stenographer and typed in the computer and transcribed by her, verified and corrected, and then pronounced in the Open Forum by us on this the 03^rd day of February 2016)

 MEMBER                          MEMBER                        PRESIDENT

NRS* 

CC.No.1766/2015

Witnesses examined on behalf of the complainant dated 03.12.2015 1) Sri. A.K.Ganesan

Witnesses examined on behalf of the OP – Absent

List of documents produced by the OP – Nil

MEMBER                           MEMBER                        PRESIDENT