FILED ON: 29.09.2009<br /> DISPOED ON: 11.03.2010<br /> <br /> BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE (URBAN)<br /> <br /> 11th MARCH 2010<br /> <br /> PRESENT :- SRI. B. S. REDDY PRESIDENT<br /> SMT. M. YASHODHAMMA MEMBER <br /> SRI. A. MUNIYAPPA MEMBER <br /> <br /> COMPLAINT No.2297/2009<br /> <br /> <br /> COMPLAINANT<br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> OPPOSITE PARTIES<br /> <br /> <br /> <br /> <br /> Smt. Nanda M Purohit,<br /> W/o Sri Mohan A Purohit,<br /> R/at No.40, 1st Floor,<br /> Someshwara Temple Road,<br /> Bilekahalli, <br /> Bannerghatta Road,<br /> Bangalore - 570 076.<br /> <br /> Advocate: Sri. S.Nagaraja<br /> <br /> <br /> V/s.<br /> <br /> <br /> The Chairman and <br /> Managing Director, <br /> M/s Mukunda Industrial Finance Ltd.,<br /> HBR Complex, No.328/12,<br /> 14th Cross, II Block,<br /> Jayanagar,<br /> Bangalore – 560 011. <br /> <br /> Advocate: Sri. Bopanna<br /> <br /> <br /> <br /> <br /> O R D E R<br /> <br /> SRI. B.S. REDDY, PRESIDENT<br /> <br /> The complainant filed this complaint under Section 12 of the CP Act 1986, seeking direction against opposite party (herein after called as O.P) for refund of Rs.58,365/- paid towards recurring deposit with interest at 15% p.a. and for refund of Rs.3,41,300/- paid towards fixed deposit with future interest at 15% p.a. and for compensation of Rs.25,000/- with cost of Rs.3,000/- on the allegations of deficiency in service on the part of the OP. <br /> <br /> 2. In the complaint it is stated that OP is running Financial Institution and collecting deposits from public through various kinds of deposits viz., Current Deposit, Fixed Deposit and also in the form of Recurring Deposit. The complainant deposited the amount in the form of recurring deposit bearing account No.355 dated 22.02.2007 on a equated monthly installments for 18 months of Rs.3,000/- with a maturity amount of Rs.58,365/-. The said monthly installment started on 22.02.2007 and ended on 22.08.2008. <br /> <br /> Further the complainant also deposited the fixed deposits on different dates by depositing different amount as follows:<br /> <br /> A/c No. Date of Deposit Amount Deposited Rate of Interest Maturity Date Maturity Value<br /> 1247 27.10.2007 50,000 9.50% 28.10.2008 54,650<br /> 1256 30.11.2007 50,000 9.50% 01.12.2008 54,950<br /> 1209 28.01.2007 1,00,000 9.75% 28.07.2008 1,15,700<br /> 1210 02.02.2007 1,00,000 9.75% 02.08.2008 1,15,700<br /> Total Amount Deposited 3,00,000 Total Maturity Amount 3,41,300<br /> <br /> The total four receipts issued by OP are produced. The complainant after maturity of the RD on 22.08.2008 approached the OP to refund the maturity amount, similarly after the maturity of the FD on different dates approached the OP for refund to the maturity amount, but the OP deliberately avoiding to repay the maturity amount. The complainant got issued letter dated 05.08.2009 requesting to repay the maturity amount in respect of RD account as well as FD account; the OP has failed to repay the same and neglected the request made by the complainant. OP failed and neglected to refund the matured amount of RD and FDs, established the deficiency in service on the part of the OP. Hence the complaint seeking above stated reliefs. <br /> <br /> 3. On appearance, OP filed the version admitting that the complainant has deposited total amount of Rs.58,365/- under RD account No.355 and also deposited four fixed deposits amounting to Rs.3,41,300/-. It is denied that OP is intentionally and deliberately avoiding to repay the maturity amount in respect of RD and FD. OP admits the receipt of letter dated 05.08.2009 from the complainant. It is contended that there is no deficiency of service on the part of the OP. The complainant is not entitled for the costs claimed at Rs.3,000/- and compensation of Rs.25,000/-.<br /> <br /> It is contended that the OP was looking for a strategic investor for the past one and half years to improve its financial position. That Dr. Dilip Rao More representing, ADM Group Mumbai has shown with OP by investing the substantial amount. That negotiations are in progress and is likely to be finalized shortly, as soon as the same is finalized the said RD and FDs will be repaid to the complainant with interest at the agreed rate from the date of maturity till the date of settlement. It is submitted from the date of initiation of the process and till its completion, no financial activity whatsoever such as receiving deposits and refund of deposits was done by the OP for want of required funds. The complainant was informed all these facts and requested to wait till the completion of the financial restructuring process. Inspite of appraising about all this, the complainant had filed this complaint. The non payment of RD and FDs amount is due to the bonafide reasons and not intentional; therefore there is no deficiency of service on the part of the OP. OP is liable to pay only maturity value of the RD to the extent of Rs.58,365/- and the maturity value of the four FDs amounting to Rs.3,41,300/- along with agreed rate of interest on the principle amount from the date of maturity. Hence it is prayed to dismiss the complaint. <br /> <br /> 4. The complainant filed affidavit evidence to substantiate the complaint averments. The Manager of OP filed affidavit evidence. <br /> <br /> 5. Arguments heard on both sides. The following points arise for consideration: <br /> <br /> Point No.1:- Whether the complainant proved the <br /> deficiency in service on the part of <br /> the OP?<br /> <br /> Point No.2:- Whether the complainant is entitled for<br /> the reliefs claimed?<br /> <br /> Point No.3:- What Order?<br /> <br /> 6. We have gone through the pleadings; the documents produced and affidavit evidence of both the parties, arguments advanced we record our findings: <br /> <br /> Point No.1:- Affirmative. <br /> Point No.2:- Affirmative in part. <br /> Point No.3:- As per final Order.<br /> <br /> R E A S O N S<br /> <br /> 7. At the out set it is not in dispute that the complainant deposited total amount of Rs.58,365/- on monthly installment of Rs.3,000/- in the form of recurring deposit bearing account No.355 with OP financial institution. So also four fixed deposits, out of which two fixed deposits each Rs.50,000/- and two fixed deposits each Rs.1,00,000/-, total amount of Rs.3,00,000/-. The total maturity amount of fixed deposits is Rs.3,41,300/-. OP is admitting liability to pay the RD and FDs maturity amount, but only pleading time for repayment on the ground that negotiations are in progress with ADM Group Mumbai which has come forward to invest a substantial amount. After financial restructuring process is completed OP will repay the amounts to the complainant; at present OP is not in a position to repay the amounts for want of required funds. <br /> <br /> 8. In our view when OP is admitting its liability to repay RD and FDs matured amounts, the complainant cannot be made to wait indefinitely on the ground that the financial position of the OP is not sound and financial restructuring is in progress with ADM Group Mumbai; which has shown interest in joining hands with OP by investing a substantial amount. Inspite of repeated demands and letter dated 05.08.2009 from the complainant to repay matured amounts of RD and FDs OP has not complied the demands; the same amounts to deficiency in service on the part of the OP. Therefore we are of the considered view that the complainant proved deficiency in service on the part of the OP. <br /> <br /> 9. OP is prepared to repay the amount with agreed rate of interest. The complainant is entitled for the reliefs for refund of the RD and FDs matured amount with agreed rate of interest. There is no material in support of the compensation claimed at Rs.25,000/-. The ends of the justice would be met by directing OP to refund the matured amounts with agreed rate of interest with litigation cost of Rs.2,000/-. Accordingly we proceed to pass the following: <br /> <br /> O R D E R<br /> <br /> The complaint filed by the complainant is allowed in part. OP is directed to pay to the complainant an amount of Rs.58,365/- towards recurring deposit amount with interest at 9% p.a. from 01.09.2008 till the date of repayment.<br /> <br /> Further OP is directed to pay to the complainant an amount of Rs.3,41,300/- maturity amount of four FDs with interest at 9% p.a. from the respective dates of maturity on the maturity value of each FDs till the date of payment with litigation cost of Rs.2,000/-. This order is to be complied within 4 weeks from the date of communication of this order. <br /> <br /> (Dictated to the Stenographer and typed in the computer and transcribed by him, verified and corrected, and then pronounced in the Open Court by us on this the 11th day of March 2010.) <br /> <br /> <br /> MEMBER MEMBER PRESIDENT<br /> <br /> Snm: <br />