Complaints filed on: 06-10-2023

                                                      Disposed on: 29-06-2024

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, TUMAKURU

          DATED THIS THE 29^th  DAY OF JUNE 2024

PRESENT

SMT.G.T.VIJAYALAKSHMI, B.Com., LLM., PRESIDENT

SRI.KUMARA.N, B.Sc. (Agri), LLB., MBA., MEMBER

SMT.NIVEDITA RAVISH, B.A., LLB. (Spl)., LADY MEMBER

CC.Nos. 133/2023 to 139 and 142/2023

C.C.No.133/2023

Sri.CHANDRASHEKAR S/o late Ramaiah,

Aged about 38 years, residing at,

THIGALARAHALLI Village,

Chikkamalur Post, Puruvara Hobli,

Madhugiri Taluk,

Tumakuru District.

CC.No.134/2023

Smt.VEEDHAVATHI W/o R.S. Yellappa,

Aged about 49 years, residing at, Nagavalli-

Lakkenahalli main road, Nagavalli Village,

@ Post, Hebbur Hobli,

Tumakuru Taluk.

CC.No.135/2023

Sri.C.N.GIRISH S/o N.Narayanappa,

Aged about 40 years, residing at,

A.M.Palya Layout, 6^th Cross, Siragate,

TUMAKURU CITY.

CC.No.136/2023

Sri.GOPAL S/o Nanjundappa,

Aged about 57  years, residing at,

Kappuranna Thota, Kothithopu,

TUMAKURU CITY.

CC.No.137/2023

Sri.NARENDRA S/o Venkataravanappa,

Aged about 39 years, residing at,

THIGALARAHALLI Village,

Chikkamalur Post, Madhugiri Taluk,

Tumakuru District.

CC.No.138/2023

Smt.R. KUSUMA D/o Renukaiah,

Aged about 32 years, residing at,

Annethota, Honumathapura,

TUMAKURU CITY.

CC.No.139/2023

Smt.KAMALAMMA W/o Narayanappa,

Aged about 58 years, residing at, Door No.585,

A.M. Palya Layout, Siragate,

TUMAKURU CITY.

CC.No.142/2023

Sri.N. NARAYANAPPA S/o late Nanjundappa,

Aged about 75 years, residing at, Hemavathi

6^th Block, A.M.Palya Layout, Siragate,

TUMAKURU CITY.

……….Complainant/s

 (By Sri. B.Doddaiah Advocate)

V/s

The Chief Executive Officer,

Kasaba Vyavasaya Seva Sahakari Sanga Ni.,.

KORATAGERE TOWN,

Koratagere Taluk, Tumakuru District.

…….Opposite Party

(OP : B.V.Vasanthkumar Advocate)

:ORDER:

SMT.G.T.VIJAYALAKSHMI -  PRESIDENT

Since the OPs in all cases are one and the same, but the complainants are different and the facts of these cases are identical, so in order to avoid confusion, repetition of discussion of facts and also to avoid conflict of the opinion, all the complaints are clubbed together and disposed off under a common order.   

2.       The complainants are filed with prayer to pay the amount in their S.B account with interest @ the rate of Rs.18% p.a from the date of demanding for payment of S.B account amount till its realization of entire amount along with Rs.5,00,000/- towards deficiency and negligent act.

3.       The brief facts of the complaints are as under:-

Complainants are the customers of Respondent Sangha and had SB accounts. The SB account Numbers and the balance maintained in the complainants SB accounts shown in the following table :-

          The complainants are doing transaction in the respondent Sahakari Sangha Since long back 2017, the complainants has been requesting the demanding the respondent Sahakari Sangha for payment of their savings amount as they required the said amount for their family necessity and legal benefit, instead of paying the said amount, the respondent Sahakari Sangha has been dodging the matter with one or other reasons stating that there was no account in the Sahakari Sangha and also the respondent undertakes with the complainants to pay the said savings amount in favour of the complainants as early as possible. But even inspite of lapse of more than 5 years the respondent failed to pay the amount which is balance maintained in the savings accounts of complainants. Hence the complainants are unable to withdraw even a single Rupee from their SB accounts. Due to this act of respondent, the complainants suffered mentally and financially. It is submitted that, even inspite of failure to pay, the amount covered maintained the above said savings bank accounts belongs to the complainants. When the complainants demanded to pay the amount maintained in their savings bank account, at that time the respondent completely changed in his act, and further the OP had given evasive reply and also acted in a rude manner with the complainants. Further the respondent failed to comply his duty and shows negligent act in rendering service to the customers, thereby the respondent committed breach of trust and also shows his deficiency in service. For payment of amount the complainants made several approaches on several occasions and also given representation through letter to the higher officer of respondent on 17.01.2022. Inspite of that also the entire efforts made by the complainants went in vain. Likewise the complainants are unable to withdraw the amount saved by them during the period of their difficult time and suffered mentally and financially.

4.       Hence, the complainants got issued a legal notice to the respondent on 16.06.2023 through Regd. Post A/d calling upon the respondent to pay the amount maintained in their savings bank account along with interest at the rate of 18% per annum from the date of nonpayment of said amount and the said notice was duly served on the respondent on 17.06.2023. Complainants also claim of Rs.5,00,000/- towards caused mental agony. The legal notice was duly served on the respondent, inspite of service of the said legal notice, the respondent willfully not taken any action for making payments of the amount maintained in the savings bank account of complainants and respondent has committed deficiency in service.  Hence, the complaint.    

5.       After service of notice, the OP appeared and filed the version. In para No.1 to 11 of the version the op decide the all stereotype allegations made by the complainants has brought this complaint by suppressing the true facts and the respondent / opposite party begs to submit the true facts as follows:

          First of all, there is no relationship between the complainants and respondent as the customer and service provider respectively. The complainants are alleging that they are customers of the respondent sangha, but OP seriously disputed. On this ground itself, the complaints are liable to be rejected in lemine.

          It is submitted that the complainants were colluded with the Ex-Chief Executive Officer of the respondent Society who is one Narayanappa created some documents in favour of complainants name and trying to grab the public money from the respondent society. It is submitted that during the tenure of his Ex-CEO Narayanappa (complainant No.CC.No.142/2023), the complainants colluded with each other who used to commit some fraudulent acts, such as, created the forged documents in their favour and it is contrary to the act and bye-law conditions of the Sangha. Complainants obtained the fake passbooks and other fake created vouchers without there being any financial transaction of such passbooks, vouchers and challans from the Ex-CEO and thereby caused countless irregularities. These complainants along with Ex-CEO has created the forged documents pertaining accounts, signatures in the documents as stated above.

          The Ex-CEO has served the Sangha for a period of 6 years 4 months i.e., from October 2009 to February 2016. During this tenure, the complainants have opened the accounts. The interesting thing is that there is no records such as account opening forms, valid identification signature, amount depositing challans whatsoever, with respect to said accounts. However the complainants colluded with Ex-CEO of the Sangha has created the records off the record of the society without knowledge of the other office bearers of the Sangha. Therefore it is submitted that there is no such account being opened and amount deposited / kept by the complainants in the Sangha. Therefore there is no relationship of customer service provider between the complainants and respondent. Hence, the complaints are liable to be rejected.

          It is further submitted that the alleged accounts allegedly opened by the complainants during the tenure of EX-CEO, are all contrary to the Bye-law conditions as there is an obligation that the accounts holder should be the resident of the jurisdiction of the Sangha, wherein the persons i.e., who are the residents beyond the jurisdiction of the Sangha who are not the persons to be eligible to hold the account with the Sangha. Therefore all the alleged account entries are illegal and without records. There is no entry in the books of accounts of the Sangha with regard to financial transactions of such account. Therefore the alleged averments are required to be proved by the complainant themselves.

          It is further submitted that though the EX-CEO on behalf complainants made complaints to the - 1) Deputy Director, Enquiry-2 Karnataka-Lokayuktha, Bangalore. 2) Addl,. Registrar of Co-operative Societies (Credit) Bangalore. 3) Deputy registrar of co-operative societies at Tumkur and 4) Assistant Registrar of Co-operative Societies, Madhugiri Sub-Division, Madhugiri, wherein after holding detailed enquiry, the Assistant Registrar of Co-operative Societies, Madhugiri Sub-Division, Madhugiri vide order, dated 18.10.2022 in SAN133/DURU/61/2021-22 rejected the complaints on the report submitted by the CEO of the Sangha as there is no truth in the complaints of the complainants. Therefore from the above facts, it is submitted that the complainants have filed this frivolous complaints only with an intention to harass the respondent and to cause hardship and to have wrongful gain by defrauding the respondent-Sangha being a public financial institution. Therefore the complaints are liable to be dismissed.

6.       The complainants counsel has filed their evidence by way of affidavit  and marked documents, Mr.Krishnamurthy B.O S/o Obalappa, CEO VSSN, has filed his evidence by way of affidavit on behalf of OP and marked documents.

7.       We have heard the arguments of both side counsels. 

8.       On hearing the arguments of learned counsel for both parties and on perusal of the documents, the points that would arise for determination are as under;

1)                    Whether there is any deficiency in service on the part of OP?

2)                     Whether the complainants are entitled for reliefs sought for?

9.       Our findings to the aforesaid points are as under:

Point No.1: In the Negative  

Point No.2: As per the final order

:R E A S O N S:

10.     On perusal of pleadings, evidence and documents submitted by parties, it is clear that, the complainants claim that they are customers of the OP sangha. Complainants had SB account in OP Sangha and the balance in SB accounts of complainants shown the following table:

          For personal reasons the complainant requested and demanded op Sangha for payment of the balance amount in their SB account shown in the above table.

          Now the complainants allegation are, inspite of repeated request and lapse of five years. the OP failed to pay the balance amount in the saving accounts of the complainants.

          Per contra, the OP contended that the complainants were colluded with the Ex-CEO of the respondent society (i.e, complainant in CC.No.142/2023 created some documents in favour of complainants name and trying to grab the public money from the respondent society. The complainants including Ex-CEO obtained the fake passbooks and created fake vouchers without their being any financial transaction of such passbook vouchers, challans from the Ex-CEO and thereby caused countless irregularities. These, complainants along with Ex-CEO has created forged documents pertaining to complainants SB accounts, signature in the documents.

          Further, the op contented that the Ex-CEO as served the Sanga for a period of six years 4 months i.e., from October, 2009 to February 2016. During this tenure the complainants have opened the accounts, but there is no records such as account opening forms, valid identification signature, amount depositing challans whatsoever, with respect to said accounts. Therefore OP contended that there is no such accounts being opened and amount deposited by the complainants in the sangha. Hence, there is no relationship of customer and service provider between the complainants respondent.

          Further, OP contended that the SB accounts allegedly opened by the during the tenure of Ex-CEO, are all contrary to the bylaw of the Sangha. As a pre condition there is an obligation that the account holder should be the resident of the jurisdiction of the Sangha and who are the resident beyond the jurisdiction of the Sangha or not the persons to be eligible to hold the account with the Sangha. All the alleged account entries are illegal and without records and there is no entries in the books of accounts of the Sangha with regard to financial transactions of such accounts. 

          It is further submitted that though the EX-CEO on behalf complainants made complaints to the - 1) Deputy Director, Enquiry-2 Karnataka-Lokayuktha, Bangalore. 2) Addl,. Registrar of Co-operative Societies (Credit) Bangalore. 3) Deputy registrar of co-operative societies at Tumkur and 4) Assistant Registrar of Co-operative Societies, Madhugiri Sub-Division, Madhugiri, wherein after holding detailed enquiry, the Assistant Registrar of Co-operative Societies, Madhugiri Sub-Division, Madhugiri vide order, dated 18.10.2022 in SAN133/DURU/61/2021-22 rejected the complaints on the report submitted by the CEO of the Sangha as there is no truth in the complaints of the complainants.

          From the above facts and contentions it is observed that, the complainants are claimed as SB account holder of the op sangha and maintained some balance in their SB accounts. The complainant requested and demanded to withdraw the money from the SB accounts for their personal use. On the other hand OP made some allegations regarding creation of forged documents pertaining to complainants SB accounts and signature in the documents. Hence, OP denied to payment of account maintained in the SB accounts. The Assistant Registrar of Co-operative Societies, Madhugiri Sub-Division, Madhugiri, wherein after holding detailed enquiry, the Assistant Registrar of Co-operative Societies, Madhugiri Sub-Division, Madhugiri vide order, dated 18.10.2022 in SAN133/DURU/61/2021-22 rejected the complaints as there is no truth in the complaints of the complainants. The complaint submitted by the Ex-CEO on behalf of complainants before the Deputy Director, Enquiry-2 Karnataka-Lokayuktha, Bangalore still pending.

In view of the above facts it is cleared that, present complaints involved allegations of fraud and forgery by Ex-CEO of OP Sangha. When there is allegation of fraud and forgery, to prove such allegations of fraud and forgery, thoroughly analysis of voluminous documents ad elaborate examination of the witnesses and their cross-examination witnesses is required. But the Consumer Commission proceedings are summary in nature. The such disputed facts and questions could not be adjudicated by the Consumer Commissions as per opinion of the apex court.

In this regard the Supreme Court has recently dealt with the issue in a matter captioned as THE CHAIRMAN AD MANAGING DIRECTOR, CITY UNION BAK LTD. & ANR. V/s R.CHANDRAMOHAN (CIVIL APPEAL No.7289 OF 2009, decided in 2023). It is held in para graph 12 by the Supreme Court “The proceedings before the Commission being summary in nature, the complaints involving highly disputed question of facts are the cases involving tortious acts / criminally like fraud / cheating, could not be decided by the Commission under the said act”.  In Oriental Insurance Co. Ltd. Vs. Munimahesh Patel the Supreme Court has held that the proceedings before the Commission are essentially summary in nature and the issues which involve disputed factual questions, should  not be adjudicated by the Commission. Hence, as per apex court decisions, it is just and proper to direct the complainants to approach the Civil Court for the relief. Accordingly, we pass the following:- 

:ORDER:

The complaints filed by the complainants are disposed off with liberty to the complainants to approach the Civil Court for the relief.

The original order shall be kept in C.C.No.133/2023 and a copy thereof shall be kept in C.C.Nos. 134/2023 to 139 and 142/2023.