District Consumer Disputes Redressal Forum
Civil Station, Palakkad – 678 001, Kerala
Dated this the 31st day of January, 2011
Present: Smt.Seena.H, President
Smt.Preetha.G.Nair, Member
Smt.Bhanumathi.A.K, Member Date of filing: 19/03/2010
CC No.39/2010
Ramanujan
S/o.T.G.Panicker
Mechery House
Chittur Post
Palakkad. - Complainant
(By Adv.A.V.Ravi & Prajeesh.K.R)
Vs
1. The General Manager (Marketing)
LIC Mutual Fund
Life Insurance Corporation of India
Corporate Office
4th Floor, Industrial Assurance Building
Opp. Churchgate Station
Mumbai 400 020.
(By Adv.T.P.George)
2. The Manager
Life Insurance Corporation of India
LIC Building, 102 Anna Salai
PB No.2450
Chennai 600 002.
(Party in person)
3. The Branch Manager
Life Insurance Corporation of India Branch 2
Shobha T.S.M.Complex
Palakkad – 1. - Opposite parties
(Party in person)
O R D E R
By Smt.SEENA.H, PRESIDENT
Complaint in brief:
Complainant is a holder of LIC Mutual Fund certificate dt.15/01/1992 for Rs.10,000/- under Plan ‘C’ scheme. He has purchased 1000 capital units from LIC Mutual Fund having value of Rs.10/- each. The duration of the scheme is 10 years. Complainant made repeated demands to opposite party for refund of the aforestated amount along with upto date dividend/interest. But opposite party has not returned the same. Complainant issued a registered lawyer notice dt.28/12/09 which was received by opposite party but has not replied. Hence the complaint. Complainant prays to direct the opposite parties to pay the amount of Rs.10,000/- along with upto date interest/bonus on the basis of LIC Mutual Fund certificate together with compensation of Rs.25,000/-.
2nd and 3rd opposite parties filed version contending that 1st opposite party, LIC Mutual Fund and opposite party 2 and 3, LIC of India are distinct and separate legal entities and any dispute as to the certificate issued by 1st opposite party has to be between 1st opposite party and complainant.
1st opposite party filed version contending the following.
Opposite party admits that the complainant had invested Rs.10,000/- in Dhan 80CC B(2) scheme. The allegation that complainant has sent several letters requesting refund of the amount due to him are denied by 1st opposite party. 1st opposite party only received a lawyer notice dt.28/12/09 for which 1st opposite party has replied on 27/01/10 asking the complainant to submit the original unit certificate duly signed along with a copy of the PAN card and bank particulars for redemption of the unit. It was also informed that if those documents are submitted the redemption proceeds will be sent to him within 10 days. But complainant has not submitted the documents. 1st opposite party after complying all legal formalities redeemed the said scheme on 31/03/2002. Notice of redemption was published in one financial newspaper and one local newspaper as per SEBI requirements and individual intimation was also given. The prevailing NAV (Net Asset Value) under option C now is Rs.7.91 per unit. The complainant is having 1000 units under C scheme. So the redemption amount will be Rs.7,910 less income tax 22.44% ie Rs.1,755 is Rs.6,135/-. Opposite party is ready to pay the said amount to the complainant on receipt of the original unit certificate, copy of the PAN card and bank particulars. Hence there is no deficiency in service on the part of opposite parties.
The evidence adduced by the parties consists of affidavits and their respective documents. Exts.A1 to A3 marked on the side of complainant. Exts.B1 to B3 marked on the side of 1st opposite party.
Now the issues for consideration are;
1. Whether there is any deficiency in service on the part of opposite parties?
2. If so, what is the relief and cost?
Issues 1 & 2:
The definite case of the complainant is that he is the holder of LIC Mutual Fund certificate for Rs.10,000/- under plan C scheme and after the maturity period of 10 years he is entitled to Rs.10,000/- along with upto date dividend/interest. Amount was not paid even after repeated requests.
Opposite party on the other hand contented that complainant has invested Rs.10,000/- in Dhan 80CC B2 scheme which is an equity linked saving scheme. It was due for redemption on 31/03/2002. All the investors were asked to submit their original unit certificate for redemption through notice. It was also published in a financial daily newspaper. The prevailing NAV under option C at the relevant period was Rs.7.91 per unit. Hence amount payable will be Rs.7,910/- less income tax 22.44% i.e Rs.1,755 is Rs.6,135/-.
We have gone through the entire evidence on record.
The scheme wherein the complainant has invested the amount is an equity linked saving scheme. As per the scheme opposite party is only bound to pay complainant the net asset value prevailing at the time of redemption which according to opposite parties is Rs.7.91 per unit. Complainant has not produced before the forum the terms and conditions of the said scheme. After going through the said terms and conditions only the complainant would have joined the scheme. Ext.B1 though marked subject to proof will go on to show that opposite party is only liable to pay the net asset value (NAV) at the time of redemption. But, It is bounden duty of the opposite parties to provide proper intimation to the investors about the redemption. No concrete evidence is forthcoming on the opposite parties to prove this aspect. Ext.B3 which is the photocopy of the notice published in the daily was strongly objected by the complainant. We also feel that it is not a reliable evidence as the original daily was not produced. It is noted that even though the scheme expires in the year 2002, complainant has made a written demand for the amount only in the year 2008 for which opposite party has requested to produce the necessary documents (Ext.A3 series). Complainant has no case that he has complied the request of opposite parties. We are of the view that complainant is only entitled for the NAV relevant at the time specified.
In the result complaint partly allowed. Opposite parties directed to pay an amount of Rs.6,135/- (Rupees Six thousand one hundred and thirty five only) with 9% interest from the date of redemption till the date of order along with Rs.1,000/- (Rupees One thousand only) as cost of the proceedings. Order to be complied within one month from the date of receipt of order failing which the whole amount shall carry interest @9% p.a from the date of order till realization.
Pronounced in the open court on this the 31st day of January, 2011
Sd/-
Smt.Seena.H,
President
Sd/-
Smt.Preetha.G.Nair,
Member
Sd/- Smt.Bhanumathi.A.K
Member
Appendix
Witnesses examined on the side of complainant
Nil
Witnesses examined on the side of opposite parties
DW1 – Shri.Raj.A.G
Exhibits marked on the side of complainant
Ext.A1 (Series) – Letter dt.03/05/92 and Share certificate issued by 1st opposite party to
complainant
Ext.A2 –Photocopy of lawyer notice dt.28/12/09 sent by complainant to opposite parties 1 & 2
Ext.A3 (Series) – Reply letters sent by opposite parties
Exhibits marked on the side of opposite parties
Ext.B1 – Photocopy of letter dt.27/02/02
Ext.B2 – Photocopy of paper publication
Ext.B3 - Photocopy of letter dt.27/01/10 sent by 1st opposite party to complainant
Cost Allowed
Rs.1000 allowed as cost of proceedings.
