CC Filed on 05.03.2007<br /> Disposed on 17.03.2008<br /> BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, KOLAR.<br /> <br /> Dated 17.03.2008<br /> <br /> PRESENT:<br /> Sri. G.V.HEGDE, President.<br /> Sri. T.NAGARAJA, Member.<br /> ---<br /> <br /> Consumer Complaint No.69/2007<br /> <br /> Between: -<br /> <br /> Smt. N.D.Kalavathi,<br /> W/o Narayana Rao,<br /> C/o Chandrashekar Archak, <br /> No.322, II Type,<br /> Near Railway Gate,<br /> BEML Nagar,<br /> K.G.F. Complainant <br /> (By Advocate Sri. Pavan Chandra Shetty)<br /> <br /> V/S<br /> The Chief Executive Officer,<br /> Earth Movers Employees Credit<br /> Co-operative Society Ltd.,<br /> Near Railway Station,<br /> Kolar – 563 101. Opposite Party <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 party to pay a sum of Rs.2,00,000/- with interest at 21% per annum and to pay Rs.1,00,000/- compensation with costs etc., <br /> <br /> <br /> <br /> CC No.69/2007<br /> 2. The material facts of the case as made out from the complaint and version of opposite party and the documents produced by parties may be stated as fallows: The opposite party - Earth Movers Employees Credit Co-Operative Society Ltd., Kolar is a society registered under the Karnataka Co-operative Societies Act 1959. The society was authorized to collect the deposits from members and non-members as per the approved by-law. Accordingly the complainant deposited the amount/s as stated below.<br /> <br /> Sl. No. Receipt No. & Date FD Amount in Rs.<br /> 1 3430 10.05.2002 200000.00<br /> <br /> The opposite party has admitted the receipt of deposits but contended that the interest payable on the above said deposits was paid up to 31.03.2005. However in the pleadings of complainant she 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 party produced the proper documents to evidence the payment of interest as contended by it. These documents and also the account books maintained by opposite party 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 party. <br /> <br /> 3. The opposite party 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 issue of 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 party did not press these grounds. <br /> <br /> CC No.69/2007<br /> The learned counsel for opposite party submitted that major portion of deposits received by different members, were diverted to Earth Movers Employees House Building Co-Operative Society Ltd., Kolar and were invested for formation of layout/house sites proposed for allotment to the members of the said housing society and the formation of layout could not be completed within time because of some unforeseen litigation and that some of the 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 Housing society can repay the deposit amounts borrowed from Credit Co-Operative Society 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 party also submitted that the credit co-operative society as well as house building co-operative society are run by the same management committee and many employees of BEML are members of both societies and that the housing society has purchased lands measuring 9 acre 23½ guntas in survey No.82 to 86, 88,89,92 and 94 of Petechamanahalli village, Kasaba Hobli, Kolar Taluk to form the layout and in the present market value the housing society is going to get huge amount by sale of the sites and the housing society 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 /> CC No.69/2007<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 deposit 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 party. <br /> <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 shall pay Rs.2,00,000/- (Two Lakhs only) to complainant with interest at 7% per annum on the said amount 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 by Earth Movers Employees House Building Co-Operative Society Ltd., Kolar 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 17th day of March 2008.<br /> <br /> <br /> MEMBER PRESIDENT<br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />