COMPLAINT FILED ON:30.06.2011

DISPOSED ON:16.04.2012

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE (URBAN)

16^th DAY OF APRIL-2012

       PRESENT:- SRI. B.S.REDDY                PRESIDENT                        

                          SRI.A.MUNIYAPPA                  MEMBER

O R D E R

SRI. B.S.REDDY, PRESIDENT

The complainants filed this joint complaint u/s. 12 of the C.P. Act of 1986 seeking direction against the Opposite Parties (herein after called as OPs) to pay sum of Rs.1,24,318/- and to grant such other relief’s as this forum may deemed fit on the allegation of deficiency in service on the part of the OPs.

2. The case of the complainant to be stated in brief is that:-

The complainants are of one family living together, the complainant No.1 is the mother, 2^nd complainant is the son and 3^rd complainant is the daughter-in-law and 4^th and 5^th complainants are the grand children of complainant No.1. The OP to expand their business raised funds from general public and came out with a scheme of accepting fixed deposits from Public for period of 3 years in the year 1997. In response to the same, the complainants 1 and 2 each deposited sum of Rs.5,000/-, the complainant No.3 deposited a sum of Rs.4,000/-, the complainant Nos. 4 and 5 each deposited a sum of Rs.2,500/- on 17.12.1997. On maturity i.e., on 16.12.2000, the complainants should get interest in the sum of Rs.2,850/- each, the complainant Nos.1 & 2, a sum of Rs.2,280/-, the complainant No.3 and Rs.1,425/- each complainant 4 & 5. Therefore, in all the OP was due to the complainants a sum of Rs.29,830/-. OP issued Provisional receipts to this effect but without paying the above amount has renewed the principal only, for further period of 3 years from 17.12.2000 to 16.12.2003, promising to pay interest on renewal within 3 months under Membership Deposit Receipts. The amount due after renewal from 17.12.2000 to 16.12.2003 is Rs.43,254/-. AMOUNT RECEIVABLE AS ON 21.12.2000 is as under.

On maturity i.e.,16.12.2003, the OP was due in all Rs.43,254/-(Principal amount of Rs.29,800/- + interest of Rs.13,410/­) which the Op is legally liable to pay to the complainants. OP has not paid the above amount, the same has to be paid with 15% interest p.a. on Rs.43,254/- from 16.12.2003. On 11.12.2003, the complainants wrote a letter to the OP to repay fixed deposit amount with interest on maturity but the OP has not responded and thereafter the complainants made repeated personal visits to the Office of the Ops and made requests to return the principal and interest but OP did not respond for the same. On 16.12.2005, the complainants wrote a registered letter to the OP, for which till date, there is no response apart from promising to return the due. After having induced the complainant to deposit in fixed deposit, promising to give service to them, there is total deficiency in service on the part of the Ops. In all the Ops are liable to pay sum of Rs.1,24,318/- as detailed below:

The complainants got issued legal notice on 16.06.2011 calling upon Ops to settle the dues. Ops have not responded for the same. The cause of action arose on 16.06.2011 when the complainants caused legal notice calling upon to OP to pay Rs.1,24,318/- within six days from the date of receipt of the notice and after OP has received the notice on 17.06.2011 but did not respond in any manner whatsoever. Hence the complaint.

3. On appearance OPs filed version admitting that the complainants are the holders of gold card membership receipt Nos.09248m 09660, 09662, 09661 and 09663 dt.17.12.1997/- for Rs.5,000/- each by the complainant Nos.1 & 2 Rs.4,000/- by complainant No.3, Rs.2,500/- each by 4^th and 5^th complainants of M/s Medinova Diagnostic Services Ltd. It is denied that the complainants claimed refund of deposits and Ops refused to repay the amount. The complainants were given services for the interest in the Ops service centers but the depositors who had  knowledge of the Diagnostic Service is not banking institution and who had invested only on the intention to take service from the OP withdraw their interest in service of the OP. The complainants have not surrendered the original certificates within 15 working days from the date of maturity as per the terms and conditions of the agreement. The complainants have opted for the renewal of the principal for further period of 3 years hence the deposits are renewed. The renewed amount does not amount to Rs.43,254/- as the renewal is on the original deposits and not on the matured amount.  The Ops admit that the deposits are renewed as on 17.12.2000. After the maturity the complainant is supposed to surrender the original Membership Deposit Receipts hence the claim could not be processed. Time and again the complainants were requested to surrender their original certificates but they are not surrendering the same. After 2005 the complainants have not come forward with their claim. Only in 2011 through legal notice the complainants have expressed again for the repayment of the deposit amount. The complainants claim is barred by time. In their reply Ops have stated that they are willing to settle the claim of the complainants by providing the Diagnostic services of Medinova Diagnostic Lab. Even, as per the Scheme, the idea is only to provide services to the depositor member at a discount rate  and also pay certain percentage of interest in terms of service to them. The non refund of deposit in time is unintentional and bonafide. There is no deficiency in service. OP is ready and intends to explore the possibility of settlement, through process of Conciliation and accordingly intends to further negotiate. Hence it is prayed to dispose the complaint without any cost and interest.

4.               The complainant in order to substantiate complaint averments, the complainant No.2 filed affidavit evidence and produced documents. Ops not filed affidavit evidence in support of defence version.

5.               Arguments heard from complainant’s side, OP side taken as heard.

6.               In view of the above said facts, the points now that arise for our consideration in this complaint are as under:

Point No.1:-Whether the complainants have proved the deficiency in service on the part of the OPs?

           Point No.2:-If so, whether the complainants are entitled for the relief’s now claimed?

           Point No.3:-To What order?

7.               We record our findings on the above points:

           Point No.1:-Affirmative

   Point No.2:-Affirmative in part

   Point No.3:-As per final order.

R E A S O N S

8. At the outset it is not at dispute that in response to the Scheme launched by Ops accepting fixed deposits from Public for a period of 3 years in the year 1997, the complainant No.1 and 2 each deposited sum of Rs.5,000/-, 3^rd complainant deposited Rs.4,000/-, 4^th and 5^th complainants each deposited Rs.2,500/- on 17.12.1997 for a period of 3 years with Ops. The maturity date for these fixed deposits was 16.12.2000. On maturity, the complainants should have got total sum of Rs.29,830/- as the maturity value of all the 5 deposits. Ops without paying interest accrued on the fixed deposit renewed the principal sum for further period of 3 years from 17.12.2000 to 16,12,2003 promising to pay interest on renewal within 3 months. The complainants claims that the amount due after renewal from 17.12.2000 to 16.12.2003 is Rs.43,254/- (principal amount Rs.29,800/- + interest of Rs.13,410/- ) thus the complainants claims that as on 16.12.2003. Ops were liable to pay Rs.43,254/- as they have not paid the amount due hence they are liable to pay the said amount with 15% interest p.a. on the amount of Rs.43,254/- from 16.12.2003. For the subsequent period the interest has been added to the principal amount and the total amount due is claimed at Rs.1,24,318/- as on the date of filing the complaint. Thus it becomes clear the complainants are claiming compound interest. The receipts issued with regard to the fixed deposits reveals that interest was agreed to be paid at 15% pa. but the renewal of the fixed deposits is only for principal amount.

9.   The main defence of OP is as per the terms of the fixed deposits receipts the original members deposits receipts with due discharge ought to have been surrendered at least 15 working days in advance of the maturity to the Company’s registered Office and the interest on the membership deposit will cease to accrue on the termination of membership period. The complainants have not surrendered the discharged membership deposit receipts as such they are not entitled to claim interest on the fixed deposit amount.

10.   The complainants have produced copy of the orders passed in complaint No.2339/2009 on the file of 3^rd Additional District Consumer Disputes Redressal Forum, Bangalore in respect of similar complaint filed by the depositor against the same Ops wherein the complaint has been allowed by awarding interest at 12% p.a. on the first maturity amount of the fixed deposit along with Rs.5,000/- towards cost and compensation. In our view, the first deposit maturity value of the 5 deposits in this case was Rs.29,830/- i.e., Rs.19,000/- towards principal and Rs.10,830/- towards interest. Thus the complainants are entitled to claim interest on this amount all Rs.29,830/- but not compound interest for the subsequent period as claimed in the complaint. Merely because the original membership deposit receipts were not surrendered Ops cannot avoid their liability to refund the deposit amount with interest.

11. There is no merit in the contention that the complaint is barred by limitation. When once OP has accepted the fixed deposits till repayment of the same with interest recurring cause of action arises to the complainants. The cause of action arose to these complainants on 16.06.2011. When the legal notice was issued to the Ops calling upon them to pay the amount due and Ops have not complied the demand. Non payment of deposit amount with interest amounts to deficiency in service. Under these circumstances, we are of the view that the complainants are entitled for refund an amount of Rs.29,830/- with interest at 12% p.a. from 22.12.2000 till the date of realization and for an amount of Rs.5,000/- towards compensation and cost of litigation. Accordingly we proceed to pass the following:

O R D E R

The complaint filed by the complainants allowed in part.  

Ops are directed to pay an amount of Rs.29,830/- with interest at 12% p.a. from 22.12.2000 till the date of realization and for an amount of Rs.5,000/- towards compensation and cost of litigation to the complainants.

This order is to be complied within four weeks from the date of this order.

        Send copy of this order to both the parties free of costs.

(Dictated to the Stenographer and typed in the computer and transcribed by her, verified and corrected, and then pronounced in the Open Court by us on this the  16^th day of APRIL-2012.)

MEMBER                                                         PRESIDENT

Cs.