CC Filed on 05.03.2007<br /> Disposed on 22.05.2008<br /> BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, KOLAR.<br /> <br /> Dated 22.05.2008<br /> <br /> PRESENT:<br /> Sri. G.V.HEGDE, President.<br /> Sri. T.NAGARAJA, Member <br /> Smt. K.G.SHANTALA, Member.<br /> ---<br /> <br /> Consumer Complaint No.77/2007<br /> <br /> Between: -<br /> <br /> Sri. K.C.Parama shivam,<br /> C/o M.Venkate Gowda,<br /> No.84, BEML Layout,<br /> Kolar. Complainant <br /> <br /> (By Advocate Sri. Pavan Chandra Shetty)<br /> <br /> V/S<br /> 1. The Chief Executive Officer,<br /> Earth Movers Employees Credit <br /> Co-operative Society Ltd.,<br /> Near Railway Station,<br /> Kolar – 563 101. <br /> <br /> 2. The Chief Executive Officer,<br /> Earth Movers Employees House Building <br /> Co-operative Society Ltd.,<br /> Near Railway Station,<br /> Kolar – 563 101. Opposite Parties <br /> <br /> (By Advocate Sri. Sama Rangappa)<br /> <br /> ORDERS<br /> <br /> This is a complaint under section 12 of the Consumer Protection Act, 1986 praying for a direction against the opposite parties to pay a sum of Rs.6,55,000/- with interest at 21% per annum and to pay Rs.1,00,000/- compensation with costs etc., <br /> CC No.77/2007<br /> 2. The material facts of the case as made out from the complaint and version of opposite parties and the documents produced by parties may be stated as fallows: The opposite parties - Earth Movers Employees Credit Co-Operative Society Ltd., Kolar and Earth Movers Employees House Building Co-operative Society Ltd., Kolar are societies registered under the Karnataka Co-operative Societies Act 1959. The societies were authorized to collect the deposits from members and non-members as per the approved by-law. Accordingly the complainant deposited with opposite party No.1 the amount/s as stated below.<br /> <br /> Sl. No. Receipt No. & Date FD Amount in Rs.<br /> 1 963 29.01.2000 66000.00<br /> 2 1464 05.08.2000 39000.00<br /> 3 - 10.01.2002 50000.00<br /> Total 155000.00<br /> <br /> Further the complainant deposited with opposite party No.2 the amounts as stated below: <br /> <br /> Sl. No. Receipt No. & Date FD Amount in Rs.<br /> 1 1540 04.05.2001 150000.00<br /> 2 1568 08.10.2001 50000.00<br /> 3 1580 19.11.2001 45000.00<br /> 4 1583 08.12.2001 5000.00<br /> 5 1598 10.01.2002 50000.00<br /> 6 1875 01.09.2004 100000.00<br /> 7 1855 01.07.2004 100000.00<br /> Total 500000.00<br /> <br /> (Originally the complainant had filed complaint only against opposite party No.1 alleging deposit of Rs.6,55,000/- with it. However it is found that only Rs.1,55,000/- was deposited with opposite party No.1 and the remaining Rs.5,00,000/- was deposited with opposite party No.2. The learned counsel for opposite parties submitted that the mistake may <br /> <br /> <br /> CC No.77/2007<br /> be ignored and the appropriate parties may be deemed to have been impleaded and proper order may be passed. He pointed out that both opposite parties are run by same executive members. Therefore opposite party No.2 is impleaded in the cause title while passing this order) <br /> <br /> The opposite parties have admitted the receipt of deposits but contended that the interest payable on the above said deposits were paid up to 31.03.2005. However in the pleadings of complainant he had not admitted the receipt of interest up to 31.03.2005, but on the other hand pleaded that no interest was received. The opposite parties produced the proper documents to evidence the payment of interest as contended by them. These documents and also the account books maintained by opposite parties were verified by the learned counsel for both parties. Thereafter at the stage of argument the complainant admitted the payment of interest alleged by opposite parties. <br /> <br /> 3. The opposite parties contended that the present complaint is not maintainable under CP Act and the remedy should be under Section 70 of the Karnataka Co-operative Societies Act 1959 and that the complaint is not maintainable without notice under section 125 of the said Act. These contentions were found to be untenable after scrutiny of the recent rulings on the said matters. Therefore the learned counsel for opposite parties did not press these grounds. <br /> <br /> The learned counsel for opposite parties submitted that major portion of deposits received by different members, were invested for formation of layout/house sites proposed for allotment to the members of the society and the formation of layout could not be completed within time because of some unforeseen litigation and that some of the <br /> <br /> <br /> CC No.77/2007<br /> borrowers of the society defaulted in repaying the loans borrowed by them, therefore the society could not repay the deposits within time. Therefore he submits there is no deficiency in service. He also submitted that on completion of layout work the society can repay the deposit amounts and that layout work would be completed within short time. He also submitted that for earlier period the interest has been paid at higher rate up to 31.03.2005, therefore the subsequent interest may be charged at 6% per annum. <br /> <br /> 4. The learned counsel for the opposite parties also submitted that the house building co-operative society has purchased lands measuring 9 acre 23½ guntas in survey No.82 to 86, 88,89,92 and 94 of Petechamanahalli, Kasaba Hobli, Kolar Taluk to form the layout and in the present market value the society is going to get huge amount by sale of the sites and the opposite parties will utilize the said amount for repayment to different deposit holders. Further he submitted that the amount to be realized by sale of house sites deducting the expenses to be incurred for formation of layout, may be subjected to charge for repayment of the amounts due to the deposit holders. <br /> <br /> 5. After hearing the learned counsel for both parties and on perusal of the records we hold that the non-return of deposit amounts for any reason amounts to deficiency in service. We think the interest from 01.04.2005 may be charged at 7% per annum on the amount of deposits till the date of realization. As interest is awarded separate compensation need not be ordered. A charge can also be created on the amount to be realized as agreed above by opposite parties. <br /> <br /> <br /> <br /> CC No.77/2007<br /> 6. Hence we pass the following:<br /> O R D E R <br /> <br /> The complaint is allowed with costs of Rs.1,000/-. The opposite party No.1 shall pay Rs.1,55,000/- (One Lakh Fifty Five Thousand only) and the opposite party No.2 shall pay Rs.5,00,000/- (Five Lkhs only) to complainant with interest at 7% per annum on the above stated amounts from 01.04.2005 till the date of payment within three months from the date of this order.<br /> <br /> There shall be a charge on the amount to be realized from opposite parties as agreed in Para 4 of the award, for realization of the amount due under this award.<br /> <br /> Dictated to the Stenographer, corrected and pronounced in open Forum this the 22nd day of May 2008.<br /> <br /> <br /> MEMBER MEMBER PRESIDENT<br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />