BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE URBAN

27^th DAY OF OCTOBER 2016

O R D E R

SMT. SHANTHA P.K, MEMBER

The complainant has filed this complaint U/s.12 of the Consumer Protection Act, 1986 against the Opposite Party (herein after referred as OP) with a prayer to direct the OP to refund the matured deposit amount of Rs.1,00,000/- along with interest due since 1^st April 2016 till the date of maturity @ 12.50% p.a i.e., Rs.411/-, to pay penal rate of interest @ 18% for delayed payment on Rs.1,00,400/- till the date of actual payment, to pay incidentals of Rs.1,000/-, to pay Rs.5,000/- towards mental agony and trauma suffered by the complainant.

2. The brief averments made in the complaint are as under:

The complainant is a retired senior citizen and on retirement the benefits which he received at the time of his retirement he had deposited into the fixed deposit scheme of the OP as per guidelines stipulated in “The Companies (Acceptance Deposits) Rules 1975” under companies Act, 1956 under deposit schemes and as per terms and conditions laid in the application form.

The complainant applied for the fixed deposits in the prescribed application form of OP by local cheque no.192174 for Rs.1,00,000/- through authorized local broker M/s SMC Global Securities of OP at Bangalore and the receipt was delivered to his residential address at Bangalore assuring to pay the interest amount every quarter on the first of following quarter directly to his Bank account and the repayment of matured amount would be made on the date of maturity as per the ‘Terms and Conditions’ and as stipulated in the Acceptance of Deposit Rules, 1975.  The warrants for the repayment and quarterly interests shall be delivered at the complainant residential address well in time.  The details are as follows:

The above deposit has matured on the date mentioned in the table.  The duly discharged FDR was sent by the complainant well in time for repayment and the same had been received by OP.  The complainant have been reminding OP through e-mails and asking to effect repayment without delay.  But till date the complainant has not received the repayment warrant.  Thus OP had failed to repay the matured deposit amount of Rs.1,00,000/- on demand along with interest amount due till the dates of maturity in violation of “Companies (Acceptance of Deposits) Rules 1975 and 2013” and the delay in repayment attracts penal rate of interest of 18% under clause 8A of said Rule 1975 and clause 28 of Rule 2013.

The OP is constantly and regularly followed up and reminded about the non payment of matured deposits and the interest thereon.  Inspite of requests and reminders the OP had not effected repayment of matured deposit failing in his commitments and thereby causing inconvenience and loss to the complainant.  Hence the complainant felt deficiency of service on the part of OP.  Under the circumstances, the complainant has filed this complaint against OP for appropriate relief.

3. After service of notice, OP failed to appear before the Forum and was placed ex-pare.

4. So as to prove his case, Mr.A.K Ganeshan, the complainant has filed his affidavit evidence in support of his complaint reiterating the complaint averments and produced documents along with written arguments.

5. The above said assertions of the complainant have remained unchallenged.  OP neither filed version nor denied the sworn testimony of the complainant.  Under the circumstances we have no reasons to disbelieve the sworn testimony of the complainant.

6. In support of his complaint averments, the complainant has produced copy of fixed deposit as per document No.2 and after filing the complaint the OP has paid principle amount of Rs.1,00,000/- through cheque bearing No,050795 dated 16.07.2016 drawn on Axis Bank.  OP is yet to clear the interest amount payable for the delayed period from 1^st April 2016 to 21^st July 2016.  Now the grievance of the complainant is only regarding interest of delayed period.  Hence, this complaint.  The OP failed to release the interest amount inspite of repeated reminders.

7. The complainant filed a memo stating that he has received principal amount and now prays for the interest amount.  The OP did not appear and contest the claim put forth in the complaint.  The OP failed to release the interest amount on time.  This act of OP in not refunding the interest on the fixed deposit amount of Rs.1,00,000/- with agreed interest @ 12.5% p.a amounts to deficiency of service on the part of OP.  We are satisfied that the complainant proved deficiency of service against OP.  Under the circumstances, we are of the considered view that OP is liable to pay a sum of Rs.411/- at the rate of 12.5% p.a from 01.04.2016 till the date of maturity.  Further he shall pay interest @ 18% p.a on Rs.1,00,000/- from the date of maturity till 21.07.2016.  OP is also directed to pay compensation of Rs.5,000/- along with litigation cost of Rs.3,000/-.

8. In the result, we proceed to pass the following:

       O R D E R

The complaint filed U/s.12 of the Consumer Protection Act, 1986 by the complainant is allowed in part.  OP is directed to pay a sum of Rs.411/- at the rate of 12.5% p.a from 01.04.2016 till the date of maturity.  Further he shall pay interest @ 18% p.a on Rs.1,00,000/- from the date of maturity till 21.07.2016.  Further OP is directed to pay compensation of Rs.5,000/- for mental agony and trauma suffered by complainant together with litigation cost of Rs.3,000/-.

OP shall comply the order passed by this Forum within 30 days from the date of receipt of this order.

Supply free copy of this order to both the parties.

(Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Forum on this 27^th day of October 2016)

MEMBER                            MEMBER                     PRESIDENT

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COMPLAINT No.761/2016

Complainant                 -        Sri.A.K Ganesan,

Bangalore-560090.

                                          -vs-

Opposite Party              -        The Managing Director,

Noida 201304 (UP).

Witnesses examined on behalf of the complainant dated 28.09.2016.

1. Sri. A.K Ganesan

          OP  -       Absent

MEMBER                           MEMBER                      PRESIDENT

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