BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM BAGALKOT

Date of filing:16/01/2016

Date of Order:02-11-2016

Consumer Complaint No.07/2016

PRESENT

01) Smt.Sharada.K.                                                               President…

     B.A.LL.B. (Spl) 

02) Smt. Sumangala.C.Hadli.                                                  Lady   Member…

                            B.A (Music)

03) Shri.Shravanakumar.D.Kadi                                                 Member…

                        M.Com.LL.B.  (Spl)

COMPLAINANT/S

Basavant S/o Stayppa Milli,

Age: 64 Yrs., Occ: Retired,

R/o Banahatti, Tq: Jamakhandi,

Dist: Bagalkot.

                                      (By Sri.J.N.Kulkarni, Advocate)

V/S

OPPOSITE PARTY/S

By Smt.Sumangala.C.Hadli, Member.

The Complainant filed this complaint U/Sec. 12 of Consumer protection Act, 1986 (hereinafter referred to as the Act) seeking direction to Op to make payment of Rs.66,992/- along with interest at the rate of 18% p.a., Rs.10,000/- towards mental agony and Rs.5,000/- towards cost of the proceeding and any other relief as the forum deems fit under the circumstance of the case.

2. Brief facts of the case are as follows:

The complainant has filed this Complaint against the Ops for refund of the deposited amount of Rs.66,992/- with Ops. The complainant had deposited Rs.1,66,992/- in 2010. The OP-Bank was liquidated on 09.03.2010.

3.     The complainant regularly approached the OPs for the refund of the balance amount of Rs.66,992/- but the OP did not respond. The complainant issued a legal notice to the Ops on 16.07.2016. The OP has not replied the said notice nor refund the said deposit amount. Hence no other option except to file the present Complaint.

4.      The complainant has produced documents. The said documents are as follows:

1. Balance Certificate,

2. Registered Legal Notice,

3. Acknowledgement.

5.     The advocate for the OP No.1 and 2 appeared before the Forum and OP No.2 filed Objection to the main Complaint. The OP denied that all the averments made out in the Complaint except that are specifically admitted here below.

6.     The Ops also submits that the complainant is the customer of this Bank and he has deposited some amount. It is false to say that this OP No.2 deferred the payment of D.D. amount deliberately. Further it is false to say that this complainant approached the OP NO.2 on many occasions and requested to pay the F.D. amount after the expiry period. Further it is false that OP NO.2 has given mental agony to the complainant by non-payment of the F.D. amount due to which the complainant has incurred huge business loss.

7.     The Op No.2 further submits that the R.B.I. has cancelled the license of the OP NO.2 u/s 22 (4) of Banking Regulation Act 1949 vide its order NO.UBD.CO.BSD.NSB.1/ 8634/12.23.135/2009-2010, dated: 09.03.2010. In pursuance of the said order all the transactions of OP Bank have been ceased. The Government of Karnataka vide its order dated: 11.03.2010 Liquidated the OP u/s 72 (a) of the Karnataka Cooperative Societies Act 1959 and appointed the liquidator for disposal of the assets and liabilities of the Bank as per law.

8.     The complainant has already been paid Rs.1,00,000/- as per DICGC claim and the remaining balance of RS.66,992/- has to be paid to the complainant Accordingly the balance certificate for Rs.66,992/- has been issued to the complainant.

9.     Further, the OP submits that OP-Bank is unable to pay the balance amount of FDs to the complainant. At this stage, every effort will be made to safe guard the interest of the creditors, depositors and share holders of the Bank. Soon after the disposal of the properties of the Bank, all the debts and deposits will be cleared off on priority basis.

10.   Further, the OP submits that as per Sec. 74 (d) of the Karnataka Cooperative Societies Act, 1959 the Depositor can claim the interest only up to the date of winding up of the Bank. This Bank is liquidated on 09.03.2010 and as such the complainant is not entitled to claim interest from the date of liquidation and onwards. Now the OP bank assures that it will make all possible efforts to clear off dues of the Depositors in due course of time. Hence, the OP No.2 prays that this Complaint is dismissed.

11.   By way of evidence, complainant has filed affidavit and filed 03 documents in support of his case and filed documents. On the other hand, OP No.2 one Sri.Mallappa Padadappa Shellikeri has filed affidavit by way of evidence. Heard the arguments and perused the documents.

12.   After considering the material placed on record, the following points that would arise for our consideration.

1. Whether the complainant is entitled to get compensation?
2. What order?

13.    After considering the evidence tendered by both sides and on careful consideration of the arguments advanced by both sides our findings for the above points are as follows.

1. Partly Affirmative.

2) As per final order.

R E A S O N S

14. Point No.1: The Ops have agreed in their affidavit that the complainant is entitled to the claimed amount. As the said bank is liquidated and the liquidator is appointed the complainant is entitled to get the remaining balance amount of Rs.66,992/- along with interest. As per the documents produced by the complainant it is clearly shows that the Ops have failed to return the remaining balance amount of Rs.66,992/-. This is also agreed by the Ops in Written Version.

15.   In this case, the complainant is entitled to get the refund of Rs.66,992/-. The complainant is entitled to get Rs.5,000/- for mental agony and Rs.2,000/- towards the cost of this proceeding and also be recovered from the Ops. In the light of our findings and reasons, we answer Point No.1 in the partly affirmative.

16. Point No:2 In the result, the complaint of the complainant is fit to be allowed in part. Hence, we proceed to pass the following:

O R D E R

     Complainant’s complaint is allowed in part as follows;

1. The OPs shall have to pay Rs.66,992/- (Rupees sixty six thousand nine hundred and ninety two) to the complainant.
2.  The Ops shall have to pay an amount of Rs. Rs.5,000/- (Rupees five thousand) for mental agony and Rs.2,000/- (Rupees two thousand) towards litigation expenses to the complainant.
3.  The Ops are directed to comply this order within a period of 60 days from the date of receipt of this order, failing which the complainant is at liberty to proceed the case.
4.  Free copy of this order shall be sent to the parties immediately.

               (Dictated to the Stenographer directly on computer corrected by me and then pronounced in the open Forum on this   02^nd day of November, 2016).