KERALA STATE CONSUMER DISPUTES REDRESSAL COMMISSIONVAZHUTHACAD, THIRUVANANTHAPURAM COMMON ORDER IN APPEALS NOs. 235/06 and 236/06 JUDGMENT DATED: 8.6.2010 PRESENT JUSTICE SRI.K.R.UDAYABHANU : PRESIDENT APPEAL.235/2006 Mary Mathai, : APPELLANT Anikuzhiyil House, Nagapuzha.P.O., Kalloorkadu, Muvattupuzha. (By Adv.T.C.Krishna) VS. The Kalloorkadu : RESPONDENT Farmers Co-operative Bank Limited, Rep.by its Managing Director, Kalloorkadu, Muvattupuzha. (By Adv.Sojan Micheal) APPEAL.236/2006 Joseph George alias Georgekutty, S/o Joseph, Kallidickal House, Thozhuvamkunnu.P.O., : APPELLANT Kalloorkadu (via), Muvattupuzha. (By Adv.T.C.Krishna) VS.
The Kalloorkadu : RESPONDENT Farmers Co-operative Bank Limited, Rep.by its Managing Director, Kalloorkadu, Muvattupuzha. (By Adv.Sojan Micheal) JUDGMENT JUSTICE SRI.K.R.UDAYABHANU : PRESIDENT The appellant in A.235/06 is the complainant in OP.126/05 and the appellant in Appeal 236/05 is the complainant in OP129/05 in the file of CDRF, Ernakulam. The complaints along with a number of other complaints stands dismissed vide the common order. 2. The matter involved in the 2 appeals is with respect to the Mangalia Deposit Scheme and Karshaka Pension Scheme floated by the opposite parties/Farmer’s co-operative Bank. The opposite party bank started the above welfare schemes during the period 1992. As per the Mangalia Deposit Scheme if a member deposits Rs.1000/- for 18 years on maturity he will be paid an amount of Rs.16000/-. The deposits can be made for the multiples of Rs.1000/-. As per the Karshaka Pension Scheme if a member deposit a sum of Rs.10100/- at the end of 10 years and 30 days he will be paid a monthly pension of Rs.750/-. The deposits under the above schemes also can be made in multiples of Rs.10,100/-. There was also provision to make deposits in instalments; and for such members the pension was fixed at Rs.600/-. In February 2005, the depositors were informed that the schemes are stopped from 15.3.05 and thereafter only interest approved from time to time will be paid. 3. The complainant in OP.126/05/A.235/06 had deposited Rs.1,01,000 on 20.6.94 and 2,02,000/- on 21.3.95 under the Karshaka Pension Scheme. As per the terms he will be eligible for Rs. 7500/- from 21.7.04 with respect to the 1st deposit and Rs.15,000/- per month from 22.4.05 with respect to the 2nd deposit. She was being paid a pension of Rs.7500/- from 2004 onwards. Subsequently as per the intimation dated 15.2.2005 it was reduced to Rs.3333/- and with respect to the 2nd deposit she was paid only 6666/- instead of Rs.15,000/- 4. In OP.129/05/A.236/06 the complainant had remitted Rs.12,000/-on 19.6.1992, Rs.5000/- on 14.6.94 and Rs.19,000/- on 1.10.97 in the Mangalia Scheme. He had also deposited a sum of Rs. 30400/-under the Karshaka Pension Scheme. He will be entitled for a sum of Rs.1200/- as monthly pension from 24.5.2002 onwards. 5. The opposite parties had contended that the opposite parties are bound by the Kerala Co-operative Societies Act and the relevant rules and directions of the Registrar of Co-operative Societies. It is contended that the complainants have executed an undertaking that they are bound by the provisions applicable to the deposit scheme and will abide by the conditions and stipulations made from time to time in future. Hence they are bound by the modifications effected to the deposit schemes. It is submitted that the deposit schemes involved were formulated during the year 1987, when the deposits were earning interest at the rate of 15 to 17% compounded quarterly. Subsequently due to market fluctuations there has been substantial reduction in the rate of interest which has come down to 8%. In the audit report for the year 2002-03, 2003-04 the Joint Registrar of Co-operative Societies had called upon the bank to close the deposit schemes which are causing heavy loss to the bank. As per the circular No.9/03 dated 22.2.03 of the Registrar of Co-operative Societies, the maximum rate of interest payable on deposits exceeding 3 years by primary Co-operative bank is 8% per annum. The maximum interest chargeable on loan is 13% if the loan amount is above Rs.2lakhs and 11% for loan upto the amount of Rs,50000/- The Managing Committee of the Bank is competent to modify the schemes. 6. The Forum dismissed the complaints holding that the opposite parties have acted only as per the circulars issued by the Registrar of Co-operative Societies and the complainants are bound by the same. 7. It was contended by the counsel for the appellants that the opposite parties have suppressed the relevant documents in the matter. The appellants have produced attested photo copies of the proceedings of the Managing committee of the bank dated 30.10.04 wherein audit report suggesting to close the above schemes were considered. It is mentioned therein that the applications filed by the bank to close the schemes were rejected by Joint Registrar of Co-operative Societies as per the order dated 17.7.04 and hence it is decided to call for a meeting of the Members of the Karshaka Pension Scheme who have joined in the above schemes and with their consent to close the above schemes. The above meeting was not called and hence the opposite parties are not empowered to close the schemes especially as the Joint Registrar of Co-operative Societies for rejected the application. 8. It was also pointed out by the counsel for the appellants that the schemes floated had disadvantage as well, as it is specified that no loan etc. will be provided on the deposited amount. It is also pointed that no appeal has been filed by the bank over the order of Joint Registrar of Co-operative Societies. The counsel for the appellant has also produced the copy of the order of the Joint Registrar of Co-operative Societies dated 5.7.04. It is mentioned therein that the bank will have to comply with the terms of the deposits and that the Managing Committee only can decline to receive fresh deposits under the above schemes. On the other hand the counsel for the respondent has produced the photo copies of a specimen application forms to receive to the above schemes wherein there is a declaration by the depositor that he/she has agreed to comply with all existing or future terms with respect to the above schemes. 9. Evidently the appellants have deposited the amounts taking into confidence that the terms of the above schemes will be complied with by the respondent/bank, the same being a organization fully supported and controlled by the Government. It is after more than a decade that the opposite parties have unilaterally closed the schemes and intimated that they will provide only the prevalent rate of interest. Retreating from the promises made evidently amounts to deficiency in service. We find that there is considerable loss to the complainants on account of the withdrawal of the above schemes. They would have opted for some other social security measures if the opposite parties had not launched the impugned welfare schemes. It is almost in the last phase of the period and in certain cases even after receiving Karshaka pension the schemes have been stopped. It is also pertinent to note to the stoppage of schemes is against the order of the Joint Registrar, Co-operative Societies. The case of the respondents that complainants had agreed to abide by the future terms brought in by the bank cannot be taken as a defense as such as future terms cannot be brought that would terminate the entire scheme itself. There is no clause in the declaration that the opposite parties are empowered or entitled to withdraw the schemes at any time. 10. It was also pointed out by the counsel for the respondents that in the complaint filed the reliefs sought is for the direction to pay interest as agreed in the deposit certificate. In the circumstances and in view of the fact the entire schemes were stopped the direction to comply with the terms of the original schemes would not be exactly appropriate. Hence we find that would be just to provide sum of Rs.75,000/- each as compensation to the appellants in the two cases. 11. In the result the order of the Forum with respect to OPs 126/05 and 129/05 is set aside. The opposite parties are directed to give a sum of Rs.75,000/- each to the complainants in the Ops 126/05 and 129/05 towards deficiency in service. The amounts are to be paid within three months from the date of receipt of this order failing which the complainant would be entitled for interest at 12% per annum from today. The office is directed to forward LCRs to the Forum along with the copy of this order. JUSTICE SRI.K.R.UDAYABHANU : PRESIDENT ps | 
