BEFORE THE DISTRICT CONSUMER

       DISPUTES REDRESSAL FORUM, BAGALKOT.

COMPLAINT NO.09/2016
 

Date: 19^th day of October, 2016

   P r e  s e n t: 

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)

                V/s

JUDGEMENT DELIVERED BY SMT.SHARADA.K.PRESIDENT

The complainant has filed this Complaint u/s 12 of Consumer Protection Act, 1986 against the Opposite Parties (herein after referred in short as OPs) seeking direction to Ops to make payment of Rs.3,65,215/- along with interest at 18% p.a. from the date 18.06.2011 till the realization. Rs.10,000/- towards mental agony and financial losses and harassment caused to the complainant, Rs.5,000/- towards cost of the proceedings, any other reliefs as the Forum deems fit under the circumstances of the case.

2.    The brief fact of the case are as follows:

The OP is a Cooperative Bank complainant deposited following deposits shown below:

          3.      The complainant total deposited 6 F.D. and one S.B. Account. The complainant approached to Ops to refund the fixed deposit on dated: 18.06.2011. OP had made complainant to surrounding only two F.D. and paid out of Rs.1,30,458/- only Rs.1,00,000/- and issued balance certificate for sum of Rs.30,458/- in addition to that complainant also had a S.B. Account bearing No.2017 in OP-Bank in which he had a balance to the tune of Rs.29,500/- in the passbook the total sum comes to Rs.3,45,715/- + Rs.29,500/- total Rs.3,65,215/- on and oftenly the complainant approached to Ops but Ops did not respond properly ultimately on 16.07.2015 complainant issued request letter to the Ops, but they did not respond to it. Therefore, Ops shall have to pay an amount of Rs.3,65,215/- along with 18% interest from the date of issuance of balance certificate till to the realization Rs.10,000/- towards mental agony, harassment and loss caused to the complainant. Rs.5,000/- towards cost of this Complaint caused to complainant act of Ops is squarely falls in definition of deficiency in service. Therefore, complainant has filed this Complaint.

          4.      The complainant also filed an Application u/s 24 (A) of the C.P. Act, 1986 seeking condonation of delay, this application is supported an affidavit.

5.      After receipt of notice, Ops through their counsel and filed objection. Ops denied allegation to the Ops, according to the Ops it is admitted that complainant is a consumer of OP-Bank he has deposited some amount. OP admitted that OP Bank is Cooperative Bank registered under the provisions of the Karnataka Cooperative Societies Act, 1959 and Rules made there under. It is a bank basically dong the business of taking deposits and advancing the loans to its members.

6.      The Ops further submitted that the R.B.I. has cancelled the license of the OP No.2’s Bank 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.

7.      OP further submits that the Government of Karnataka vide its Order dated: 11.03.2010 Liquidated the OP-Bank u/s 72 (a) of Karnataka Cooperative Societies Act 1959 and appointed the Liquidator for disposal of the assets and liabilities of the Bank as per law.

7.      OP further submits that this complainant has already been paid Rs.1,00,000/- as per DICGC and he has been issued the balance certificate for Rs.30,458/-. The following amount is due to be payable to the complainant. The Deposit insurance and Credit Guaranty Corporation has allowed to pay Rs.1,00,000/- to each depositor irrespective of the number of deposits held by the complainant. Accordingly, this complainant was totally eligible to get Deposit Insurance of Rs.1,00,000/- for all the deposits, deposited with this Bank. As such the complainant is not eligible to get any amount in the present FD’s. Now looking to the financial stringency of the OP-Bank, this 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.

8.      The details of the deposits and interest payable to the complainant is as under:

9.      OP further submits that as per Section 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, OP prays that the Hon’ble Forum be pleased to dismiss the Complaint.

10.    The complainant tendered affidavit evidence and placed following documents are as follows:  

The Ops tendered affidavit evidence. After considering the material placed on record, the following points that would arise for our consideration are:

11.    After considering the evidence tendered by both parties and on careful consideration of the points urged during the course of arguments, our findings for the above points are as follows:

Point No.1 – Delay condoned,

Point No.2 – Partly in the affirmative,

Point No.3 - As per the final order.

R E A S O N S

 12. POINT NO.1:  The complainant has tendered affidavit evidence it which annexed by the affidavit this particular fact was not denied by the OP apart it is settled proposition of law that whenever the deposits are with the Ops as and when demand is made from that point of time cause of action arises. Having considered all these facts, we are of the considered view that delay requires to be condoned. Hence, we condone the delay and answer Point No.1 delay is condoned.

  13.  POINT NO.2: To substantiate this point, complainant tendered (1) F.D. Receipt bearing No.169/12 amount to Rs.37,500/- with interest at 11.25% p.a date of maturity is 06.03.2010,

(2) Receipt NO.170/12 in a sum of Rs.37,500/- interest at 11.25% p.a. date of maturity is 06.03.2010,

(3)  Receipt NO.179/12 in a sum of Rs.37,500/- interest at 11.25% p.a. date of maturity is 19.03.2010,

(4) Another Receipt NO.99 in a sum of Rs.45,640/- interest at 6% p.a. date of maturity is 09.10.2009 and S.B. Account No.2017 Rs.29,500/-.

    14.     Ops in Objection statement at Para 7 stated as follows:

“The Government of Karnataka vide its Order dated: 11.03.2010 Liquidated the OP-Bank u/s 72 (a) of Karnataka Cooperative Societies Act 1959 and appointed the Liquidator for disposal of the assets and liabilities of the Bank as per law”.
 

Now, the question arises regarding the interest as per the law complainant is entitled or interest to claim from the date of liquidation on 09.03.2010. The detail of the deposits and interest payable to the complainant is as under:

          In view of Sec. 74 (d) of Karnataka Cooperative Societies Act, 1959, future interest is not payable. But, the amount is to be paid within a period of two months from the date of receipt of this order. Rs.5,000/- is awarded towards mental agony caused to Complaint. Rs.1,000/- towards cost of the Complaint. Hence, we answer Point No.2 partly in the affirmative.

  15.  POINT NO.3:  In view of our findings recorded to Point No.1 and 2, we proceed to pass the following:

//ORDER//

1. This Complaint is partly allowed.

2. The Ops shall have to pay an amount of Rs.3,29,670/- (Rupees three lakh twenty nine thousand six hundred and seventy) to the complainant within a period of two months from the date of receipt of this Order.

3. The OPs shall have to pay an amount of Rs.5,000/- (Rupees five thousand) towards mental agony and RS.1,000/- (Rupees one thousand) towards the cost of proceeding.

4. Send a copy of this Order to both parties free of cost.  

(Dictated to the Stenographer, transcribed by him, corrected and then pronounced by me in the Open Court 19^th day of October, 2016)