DISTRICT CONSUMER DISPUTES REDRESSAL FORUM  PALAKKAD

Dated this the  31^st  day of March  2016

Present   : Smt.Shiny.P.R. President

               : Smt.Suma.K.P.  Member                              

               : Shri.V.P.Anantha Narayanan, Member              Date of filing: 26/08/2015

                                                      (C.C.No.121/2015)       

C.Haridas,

S/o.Late U.Balan Nair,

Leela Nivas, Sasthapuram,

Kottayi Post,

Alathur Taluk,

Palakkad – 678 572                                        -        Complainant

(By Adv.V.R.Sivadasan) 

Vs

1.The Manager,

    PACL Limited,

    4^th Floor, Grand Mall,

    Sankar Iyer Road Jn.

    West Fort, Poothole, Trichur

2. PACL India Limited,

     Registered Office 22, 3^rd Floor,

     Amber Tower, Sansar Chand Road,

    Jaipur, Rajasthan – 302 004

(By Adv.I.A.Aravindakshan)

3.Jayasree.T

    D/o.Narayanan Nair,

    Agent of PACL India Ltd.,

    Padma Sadan, Varode

    Sasthapuram, Kottayi Post,

    Palakkad – 678 572

(By Adv.R.Manjula)                                       -          Opposite parties

O R D E R

By Smt.Shiny.P.R.  President.

Brief facts of complaint.

Complainant submitted that opposite parties are doing the business of receiving funds from general public on a condition that the double amount will be given back within the stipulated period.  Complainant is an Ex Service man. The 3^rd opposite party is the agent of the first opposite party. 3^rd opposite party approached the complainant and introduced 1^st opposite party’s attractive plans for depositing the money.  On the basis of representation, advertisement and offers made by the opposite parties and also on the basis of assurance given by the opposite parties that the deposited amount will be doubled within the stipulated period this complainant has deposited amount with 1^st opposite party. Thus the 3^rd opposite party collected an amount of Rs.11,375/- on  7/10/2008 as first yearly installment from the complainant. After receiving the amount receipt and registration certificate as  Registration No.U145479696 was issued on 7/10/2008 by the 1^st opposite party. Subsequently entire installment amount paid by the complainant as per the terms of the plan and matured on 7/4/2014 and realizable value at the end of the term is Rs.90,920/-

Another amount of Rs.1,00,000/- was collected by the 3^rd opposite party from the complainant as one time deposit and issued registration certificate as Registration No.U145512688 dated 27/2/2009 by the first opposite party infavour of Haridas. This deposit was matured on 27/2/2015 and as per terms agreement realizable value at the end of the term is Rs.2,02,730/-. Another amount of Rs.45,000/- was collected by the 3^rd opposite party from the complainant as first yearly installment for the plan of 5 year and six month. For which also first opposite party issued registration certificate No.U145520268  dated 13/4/2009 infavour of Haridas. Subsequently  entire installments paid by the complainant as per the terms of the plan. This deposit was matured on  13/10/2014 and realizable value at the end of the term was Rs.3,63,680/-. Another amount of Rs.6825/- was collected by the 3^rd opposite party from the complainant as first yearly installment for the plan of 5 year and six month. For which also first  opposite party issued registration certificate as  registration certificate No.UU145525392 dated 30/4/2009 in favour of Gangadevi, W/o.Haridas. Subsequently entire installments paid by the complainant  as per the terms of the plan. This deposit was matured on 30/10/2014 and realizable value at the end of the term was Rs.54,550/- 

Rs.1,00,000/- was deposited by the petitioner in the name of Gangadevi who is the wife of the complainant.  The complainant had deposited his hard earned money in the project believing the representations made by the opposite parties.

When the complainant informed the 3^rd opposite party regarding maturity of the deposit she collected original registration certificates and original receipts from the complainant to submit before the first opposite party for full and final settlement of the same. After received the original registration certificate and original receipts and other documents by the first opposite party issued a receipt for the same. But to the utter surprise and dismay of the complainant the opposite parties on one or  the other pretext avoided payment to the complainant.

Even after repeated requests, the opposite parties has not paid the amount as promised.  Complainant submitted that the acts of opposite parties amounts to unfair trade practices  and deficiency in service. The complainant had suffered lot of mental stress, strain and agony due to the deficiency in service of the opposite parties. 

Complainant  prayed for an order directing the opposite parties to pay a total amount of Rs.8,02,394/- to complainant with interest @12% per annum from the date of maturity to the complainant till realization, directing the opposite parties to pay the entire costs incidental to the proceedings.

Complaint was admitted and notices were  issued to opposite parties.  Opposite parties filed version contending the following.

1^st opposite party appeared before the forum and filed version contending that the complainant does not fall under the Consumer Protection Act  1986, since after perusal of complaint there is no deficiency  in service on the part of opposite party as defined under section 2(d) of unfair trade practice and under section 2(g) of said act. PACL Ltd. is Real Estate Company and engaged in the business of sale and development of agriculture land / plot across the country and allots the land to customer. The Company did not receive any deposit from the complainant; it only received advance consideration for purchase of land / plot as per the terms and conditions of the agreement executed between the parties. The complainant’s claim is based on the agreement executed between the parties and there is an arbitration clause in the agreement, according to which the parties should invoke arbitration proceedings for the redressal of their grievances in accordance with the Arbitration and Conciliation Act 1996. Hence this Hon’ble Forum has no jurisdiction to entertain the complaint. No cause of action has arisen in favour of the complainant and against the opposite parties to file the present complaint. Thus, the complaint is liable to be dismissed.

Opposite party admitted that  complainant entered into an agreement bearing registration No.U145479696, U145512688, U145525392, U145520268 with opposite party for purchase for land / plot and deposited Rs.7,71,880/- only with opposite party according to terms and conditions of agreement which was executed between the parties. It is further submitted that opposite party does not receive any deposit from the customer and the amount received from is an advance consideration for purchase of land/plot. Company never promised to pay any money to the complainant instead they  promised plot of land and if he is not keen to take his plot opposite parties  will arrange for sale of his plot and complainant  will receive only estimated realizable value. Opposite party contended that Central Bureau of Investigation (CBI) has freeze the bank accounts and property/title deeds of the “PACL LTD” in crime No.R.C.BD1/2014/E/0004. Then the  opposite party has approached before Hon’ble Delhi High Court against the arbitrary orders of the CBI which is pending for adjudication. In these circumstances opposite party was not able to make payment to its customer and such delay in refund of the complainant was neither intentional nor deliberately but the same was for the reason beyond the control of opposite party. So deficiency of service and cause of action not arise against this  opposite party.

3^rd opposite party filed version contending the following:

It is true that on the part of business approached the complainant and introduced 1^st opposite party’s attractive plans for depositing the money. As per the direction of the 1^st opposite party, 3^rd opposite party had collected amount from the complainant’s house, deposited the same with 1^st opposite party and handed over the receipts for the same to the complainant. Whatever thing 3^rd opposite party had done none other than for and on behalf of the other opposite parties as per direction given by them as an agent of the opposite parties.

When all the payments attained maturity, the first opposite party had collected original registration certificate and original receipts from the complainant for full and final settlement of the same. After received the original registration certificate and original receipts and other documents by the first opposite party issued a receipts for the same. So it is the responsibility of the 1^st and 2^nd opposite parties to pay the amount as prayed in the petition and 3^rd opposite party is not liable for the cost and consequence of the deficiency on the part of the 1^st and 2^nd opposite parties.

Both parties filed their respective chief affidavits. Ext.A1 to A6 were marked from the side of the complainant.  No documentary evidence were adduced by the opposite parties.

The following issues are considered

1.Whether there is any deficiency in service on the part of opposite parties?

2.If so, what is the relief?

Issues 1& 2

Heard. We have perused the documents filed before the forum. Opposite parties admitted that complainant had entered into an agreement with opposite party  for purchase of land / plot and they have received an amount of Rs.7,71,880/- as advance for the consideration for the purchase of land/plot. Opposite parties have taken back all the original registration certificates from the complainant.  Ext A5 and A6 proved these facts. From the available information it is true that Central Bureau of Investigation (CBI) has freeze the bank accounts and property/title deeds of the “PACL LTD” in crime No.R.C.BD1/2014/E/0004. It is also true that in this circumstance they were not in a position to make the payment and such delay in refund of the amount was neither intentional nor deliberately. On verification of Ext A1 to A4 it is revealed that the complainant is only entitled to get an amount of Rs.7,71,880 from the opposite parties. Opposite parties admitted these facts also.  In the above circumstances we are of the opinion that complainant is only entitled to get an amount of Rs.7,71,880/- along with interest from the opposite parties. Non payment of the amount was beyond the control of opposite parties.  However, in the complaint,  complainant stated that no relief was sought against the 3^rd  opposite parties. Hence we exonerate 3^rd opposite party from the liability.

In the result complaint is partly allowed. 1^st and 2^nd Opposite parties are jointly and severally liable to refund the amount of Rs.7,71,880/- (Rupees Seven lakhs Seventy one thousand eight hundred and eighty only) along with interest at the rate of  12% per annum from 30-10-2014 till date of order and       Rs.1,000/- (Rupees One thousand only) as cost of proceedings to the complainant. 

Order shall be complied within a period of one month from the date of receipt of order, failing which complainant is eligible for 9% interest per annum for the whole amount from the date of order, till realization. 

Pronounced in the open court on this the 31^st  day of March  2016.

                                                                                             Sd/-

                      Shiny.P.R.

                      President   

                           Sd/-

                      Suma.K.P.

                      Member

                         Sd/-

V.P.Anantha Narayanan,

              Member

Appendix

Exhibits marked on the side of complainant

Ext.A1 –  Photocopy of Registration No.U145479696 dt.7/10/08

Ext.A2 -  Photocopy of Registration No.U145512688 dt.27/02/09

Ext.A3  - Photocopy of Registration No.U145520268 dt.13/4/09

Ext.A4 -  Photocopy of Registration No.U145525392 dt.30/04/09

Ext.A5 –  Photocopy of receipt dated 23/1/15

Ext.A6 –  Photocopy  of receipt dated 26/03/15  

Exhibits marked on the side of  Opposite parties

Nil

Cost

Rs.1,000/- allowed as cost of the proceedings