Karnataka

Chitradurga

CC/79/2015

N.B.Nazima C/o. N.B.Firoz - Complainant(s)

Versus

The Managing Director, Karnataka State Financial Corporation(KSFC) - Opp.Party(s)

Shri.S.Syed Swaleha

31 May 2016

ORDER

COMPLAINT FILED ON : 09/09/2015

     DISPOSED ON: 31/05/2016

 

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHITRADURGA

CC. NO. 79/2015 DATED:  31st May 2016

PRESENT :-     SRI. T.N. SREENIVASAIAH      PRESIDENT                                      B.A., LL.B.,

                        SMT.G.E.SOWBHAGYALAKSHMI,       

                                         B.A., LL.B.,                   MEMBER

COMPLAINANTS	1. N.B. Nazeema, C/o N.B. Foroz, C-3-902, Snn raj Serinity, Begur Koppa Road, Yelenahally, Bangalore-68.   2. N.B.T. Zameer, S/o Late Babu Sab, R/o I Main, Merchant Bank Road, Vidyanagar, Chitradurga.   (Rep by Sri. S.Syed Swaleha, Advocate for complainant No.1 and complainant No.2 in person)
OPPOSITE PARTIES	1. The Managing Director, Karnataka State Financial Corporation (KSFC)   2. The Executive Director, KSFC,     3. The General Manager, KSFC,   All are r/o No.1, Thimmaiah Road, Bangalore-52.   4. The Branch Manager, Karnataka State Financial Corporation, Chitradurga.   (Rep by K.N. Vishwanathaiah, Advocate)

SRI. T.N. SREENIVASAIAH. PRESIDENT.

ORDER

The complainants have filed a complaint U/s 12 of C.P. Act 1986 against the OPs for a direction to pay Rs.50,000/- with interest at the rate of 19.5%, machinery cost of Rs.25,000/- and Rs.2,00,000/- towards mental agony and such other reliefs as this Forum deems fit to grant.

2.     The brief facts of the case of the complainants are that, Complainant No.1 is the Proprietor of M/s Nawaz Industries and complainant No.1 was doing the business of groundnut decorating in partners with one Mrs. Shoukath Jan.  It is further submitted that, the firm Nawaz Industries borrowed a loan for a sum of Rs.5,83,000/- by pledging/mortgage her property documents i.e., Special Plot No.11, Industrial Estate, Chitradurga from OP No.4 and the OPs charged interest at the rate of 22% p.a instead of 19.5% and the OPs have not released the entire loan amount.  It is further submitted that, complainant No.1 has to pay interest at the rate of 1% p.a for soft loan and the rest of interest paid by the SIDBI/Government of India to encourage small industries.  For non-payment of certain payments by the complainant No.1, OPs treated her as a defaulter.    It is further submitted that, on 27.02.1997, complainants have deposited a sum of Rs.50,000/- towards the loan amount vide banker's cheque/pay order bearing No.8975493 dated 27.02.1997, drawn on Union Bank of India, Chitradurga and the complainant No.2 written a letter to the OP No.4 on 24.10.2000 enclosing a certificate issued by the Union Bank of India regarding payment.  It is further submitted that, OPs have adopted an in-different attitude, resulting in takeover of the assets of the Nawaz Industries, u/Sec.29 of the State Financial Corporation's Act, 1951 on 14.02.2002 and thereafter locked up in litigation in O.S.No.377/2000 challenging the show cause notice to bring the property for auction sale.  Complainant No.1 filed a suit in O.S.No.111/2003 to restrain the KSFC from interfering with other properties of complainant No.1 and the complainant No.1 obtained judgment and decree against the OPs with cost and Misc. Petition No.32/2004 was disposed of with a direction to handover the possession of building an d machinery and documents.  It is further submitted that, OPs No. 1 to 4 offered for one time settlement to pay a sum of Rs.5,85,000/-.   On 06.12.2006, complainant No.1 requested the OP No.4 to accept the one time settlement and remitted/credited a sum of Rs.68,000/- on 31.01.2007 with the OP No.4, who stated that payment of initial amount of Rs.68,000/- was necessary to consider the OTS proposal.  It is further submitted that, on 26.03.2007, OP No.4 called upon the complainant and handed over a letter informing the complainant that, the request of the complainant has been considered and directed to pay a sum of Rs.6,98,000/- on or before 30.03.2007.  It is further submitted that, the State Government in order to mitigate the interest difficulties of small borrowers introduced one time settlement scheme as per Government Order dated 22.06.2007 and in pursuance of the said order, KSFC has issued a Circular dated 10.07.2007.  It is further submitted that, OP No.4 issued a letter to the complainant claiming a sum of Rs.6,62,740/- towards the dues and further a sum of Rs.2,36,342/- towards the soft loan.  It is further submitted that, vide letter dated 08.08.2007, drew the attention of OP No.4 stating that, when the OPs were ready to settle for an amount of Rs.6,98,000/- towards all the loans, how the demand could be for a sum of Rs.8,99,083/- and complainant No.1 requested to accept Rs.6,30,000/- after deducting Rs.68,000/- which was paid earlier for which, the OP No.4 refused to accept the request and threatened to proceed with the sale of properties, if the payment is not made within 7 days.  It is further submitted that, complainant No.2 submitted a letter dated 04.02.2008 and drawn the attention of the OP No.4 to the mistake in calculation of interest and informed that the due amount would be Rs.7,87,487/- and expressed his willingness to pay the said amount.  It is further submitted that, the OP No.4 through its letter dated 04.02.2008 re-calculated the amounts and directed the complainant to pay Rs.7,98,220/- under one time settlement scheme.  It is further submitted that, complainants have deposited a sum of Rs.2,00,000/- on 29.03.2008 under OTS account and also deposited a sum of Rs.6,02,190/- on 31.03.2008, in all a sum of Rs.8,02,190/- was paid as against OTS amount of Rs.7,98,220/-, the difference being the interest amount from the date of OTS till the date of payment.  It is further submitted that, complainant No.1 waiting for getting back the possession of the Factory premises but, OP No.4 was delaying in handing over the possession.  It is further submitted that, the OPs and subordinate have not whispered anything about the payment of Rs.50,000/- made by the complainant on 27.02.1997 but, the OP No.4 claims to have appropriated the said amount to some other person's pan account.  However, OP No.4 does not state anything about Rs.50,000/- deposited by the complainants and further, no explanation whatsoever is given by the OP to why inspite of repeated requests till this date approaching no action has been taken.  Being aggrieved with the inaction of the OP in the matter of processing the complainants' papers for one time settlement, not handing over of the possession of the plot to the complainant No.1 and silent in not crediting Rs.50,000/- vide pay order purchased by the complainant No.2 from the Union Bank of India and handed over to credit the same to the Assistant General Manager, KSFC, Chitradurga who remained silent in this regard without taking positive action which has not been credited to complainant's account and also not accounted properly and which is required to be refunded to complainants with interest, though the complainant No.1 has paid the entire loan amount as informed by the OP as per the direction of the Government of Karnataka.   It is further submitted that, complainant No.1 approached Hon'ble High Court of Karnataka and filed W.P.No.12451/2008 and Hon'ble High Court directed to account the same but, the OPs failed to honour the said order.   It is further submitted that, OP is liable to pay Rs.50,000/- along with interest at 19.5% in quarterly rest in accordance with the banking system and the OP has charged interest at the rate of 19.5% to the loan sanctioned.  It is further submitted that, the principal amount of Rs.50,000/- and the interest payable by the OP is Rs.16,42,695/-, totally it amounts to Rs.16,92,695/-.  It is further submitted that, after receipt of the directions of the Hon'ble High Court, OPs have delivered the position of the building and some of the machinery but, the OP No.4 has not delivered the 10 H.P Motor – Bharath Bijili (Simens Motor), Voltameter, Amp meter and Switch gear (Motor Starter) and the cost of the above 4 items as on the date of purchase was Rs.25,000/-.  It is further submitted that, complainant No.2 is the father of complainant No.1 and guarantor to the term loan sanctioned by the OP and also complainant No.2 purchased pay order bearing No.975493 dated 27.02.1997 from Union Bank of India, Chitradurga.  It is further submitted that, the complainants approached the OPs several times but, the OPs drag on the matter by one way or the other without return the amount and other machineries which have not been delivered to the complainants which caused deficiency in service and caused heavy loss and mental agony to the complainants and prayed for allow the complaint.

 

        3.     On service of notice, OPs appeared through Advocate Sri. K.N. Vishwanathaiah and filed version and denied the allegations made in the complaint.  It is further submitted that, as per the complaint, complainants have paid Rs.50,000/- on 27.02.1997 and they came to know that the same has not been credited to their loan account and thus, they gave letters on 13.10.2000 and 24.10.2000 and put-forth their claim for the said amount and for interest at 19.5% p.a and the OP has not considered their claim.  Further it is submitted that, complainants approached OP for one time settlement but, they did not pursue the same for about 6 months and thus, loan account continued and dues were mounted.  Again the borrower given a letter dated 31.01.2007 to settle the dues for Rs.5,85,000/- by crediting a sum of Rs.68,000/- as per the one time settlement scheme of the Government vide G.O dated 22.06.2007 and Circular No.793 of the OP but the complainants did not raise about the alleged payment of Rs.50,000/-.  Subsequently, the complainants gave letter dated 04.02.2008 agreeing to pay the total amount of Rs.7,87,487/- and in the said letter also, complainant did not claim and pursue her objections about her claim of Rs.50,000/-.  As against the same, OP has issued letter dated 14.02.2008 to pay a sum of Rs.7,98,220/- for OTS.  Under the circumstances, complainant paid Rs.2,00,000/- on 29.03.2008 and Rs.6,02,190/- on 31.03.2008 in all a sum of Rs.8,02,190/- including the difference interest amount without whispering and reserving her alleged rights and the same is accepted by the OP.  It is further submitted that, if the complainants had specifically made it clear about their claim over Rs.50,000/- and alleged machineries, the settlement conditions would have been different.  Complainant No.1 herself has submitted letters on 08.09.2006, 12.10.2006 and 06.12.2006 for settlement of the dues for Rs.5,85,000/- without reserving any rights over the alleged payment of Rs.50,000/- and therefore, the complainants are estopped from claiming any reliefs. It is further submitted that, one G.C. Govindaraj, Proprietor of M/s Sreenivasa Industries had purchased the plant and machinery of M/s Kenchalingeshwara Oil Industries from the OP with deferred payment of the purchased balance amount by G.C. Govondaraj and submitted letter dated 27.02.1997 along with the pay order No.8975493 dated 27.02.1997 for Rs.50,000/- and sought to credit the same to his loan account and the receipt has been drawn in the name of G.C. Govindaraj of M/s Sreenivasa Industries and thus Rs.50,000/- was credited to his loan account under Receipt No.368585 dated 22.02.1997 and the same is entered in the cashbook of the OP, which has been maintained regularly during the course of its ordinary course of its business and the same was destroyed in usual course.  By knowing the same, complainants have filed this complaint.  In this regard, Mr. G.C. Govindaraj submitted his affidavit dated 06.01.2001 to the OP in view of the clarification letter dated 27.12.2000 from the OP.  As per the order dated 28.02.2000 in W.P. No.9126/1999, OP has repaid the entire purchase amount paid by G.C.Govindaraj to him only, which includes the said pay order amount of Rs.50,000/- and the same was not with the OP.        Therefore, there is no deficiency of service on the part of OPs and prayed for dismissal of the complaint.

4. Complainants themselves examined as PW-1 and  PW-2 by filing affidavit evidence and Ex.A-1 to Ex.A-21 documents are marked. 

        5. OPs have examined one Sri. H.B. Rajamudi, the Branch Manager of OP No.4 as DW-1 by filing affidavit evidence and Ex.B-1 to B-4 are marked. 

 

        6.     Written arguments filed and oral arguments heard.

 

7. Now the Points that arise for our consideration for the decision of the complaint are that:

Point No.1:- Whether the complainants prove that, complainant No.1 obtained loan from the OP Corporation for groundnut decorating and repaid all the dues and the OPs failed to deposit a sum of Rs.50,000/- to their loan account and to the return 10 HP Motor with accessories which were taken over at the time of seizing the building and thereby complainants have sustained financial loss and mental agony and OPs have committed deficiency of service and entitled for the relief as prayed in the complaint?

 

Point No.2:- What order?

 

        8. Our findings on the above points are as follows:

 

        Point No.1:- Affirmative.

        Point No.2:- As per the final order.

 

                                        ::REASONS::

9. Point No. 1:- It is not in dispute that, Complainant No.1 is the Proprietor of M/s Nawaz Industries and doing the business of groundnut decorating in partners with one Mrs. Shoukath Jan and borrowed a loan for a sum of Rs.5,83,000/- from OP No.4 and the OPs have not released the entire loan amount.  For non-payment of certain payments by the complainant No.1, OPs treated her as a defaulter.    On 27.02.1997, complainants have deposited a sum of Rs.50,000/- towards the loan amount vide banker's cheque/pay order bearing No.8975493 dated 27.02.1997, and the complainant No.2 written a letter to the OP No.4 on 24.10.2000 enclosing a certificate issued by the Union Bank of India regarding payment.  OPs have adopted an in-different attitude, resulting in takeover of the assets of the M/s Nawaz Industries, u/Sec.29 of the State Financial Corporation's Act, 1951 on 14.02.2002 and thereafter locked up in litigation in O.S.No.377/2000, challenging the show cause notice to bring the property for auction sale.  Complainant No.1 filed a suit in O.S.No.111/2003 to restrain the KSFC from interfering with other properties and obtained judgment and decree against the OPs with cost and Misc. Petition No.32/2004 was disposed of with a direction to handover the possession of building and machinery and documents.  OPs No. 1 to 4 offered for one time settlement to pay a sum of Rs.5,85,000/-.   On 06.12.2006, complainant No.1 requested the OP No.4 to accept the one time settlement and remitted a sum of Rs.68,000/- on 31.01.2007 with the OP No.4.  On 26.03.2007, OP No.4 called upon the complainant and handed over a letter informing that, the request of the complainant has been considered and directed to pay a sum of Rs.6,98,000/- on or before 30.03.2007.  The State Government introduced one time settlement scheme as per G.O dated 22.06.2007 and OP No.4 issued a letter to the complainant claiming a sum of Rs.6,62,740/- towards the dues and further a sum of Rs.2,36,342/- towards the soft loan.  Complainants vide letter dated 08.08.2007, stating that, when the OPs were ready to settle for an amount of Rs.6,98,000/- towards all the loans, how the demand could be for a sum of Rs.8,99,083/- and requested to accept Rs.6,30,000/- after deducting Rs.68,000/- which was paid earlier for which, the OP No.4 refused to accept the request and threatened to proceed with the sale of properties., if the payment is not made within 7 days.  Complainant No.2 written a letter dated 04.02.2008 to the OP No.4 and drawn the attention about the mistake crept-in in calculation of interest and informed that the due amount would be Rs.7,87,487/- and expressed his willingness to pay the said amount.  OP No.4 through its letter dated 04.02.2008 re-calculated the amounts and directed the complainants to pay Rs.7,98,220/- under one time settlement scheme.  Complainants have deposited a sum of Rs.2,00,000/- on 29.03.2008 under OTS account and also deposited a sum of Rs.6,02,190/- on 31.03.2008, in all a sum of Rs.8,02,190/- as against OTS amount of Rs.7,98,220/-, including the interest amount from the date of OTS till the date of payment.  The OPs and subordinates have not whispered anything about the payment of Rs.50,000/- made by the complainant on 27.02.1997 and the OP No.4 claims to have appropriated the said amount to some other person's pan account.  Inspite of repeated requests made by the complainants, no action has been taken.  Being aggrieved with the inaction of the OP in the matter of processing the complainants' papers for one time settlement, not handing over of the possession of the plot to the complainant No.1 and silent in not crediting Rs.50,000/- vide pay order purchased by the complainant No.2 which is required to be refunded to complainants with interest.  The complainant No.1 has paid the entire loan amount as informed by the OP as per the direction of the Government of Karnataka. Complainant No.1 approached Hon'ble High Court of Karnataka and filed W.P.No.12451/2008 and Hon'ble High Court directed to account the same but, the OPs failed to honour the said order and the OP is liable to pay Rs.50,000/- along with interest at 19.5% in accordance with the banking system.  The principal amount of Rs.50,000/- and the interest payable by the OP is Rs.16,42,695/-, totally it amounts to Rs.16,92,695/-. After receipt of the directions of the Hon'ble High Court, OPs have delivered the possession of the building and some of the machinery but, the OP No.4 has not delivered the 10 H.P Motor – Bharath Bijili (Simens Motor), Voltameter, Amp meter and Switch gear (Motor Starter) and the cost of the above 4 items as on the date of purchase was Rs.25,000/-.  Complainant No.2, who is guarantor to the term loan sanctioned by the OP and also purchased pay order bearing No.975493 dated 27.02.1997 from Union Bank of India, Chitradurga.  The complainants approached the OPs several times but, the OPs failed to return the amount and other machineries which have not been delivered to the complainants which caused deficiency in service and caused heavy loss and mental agony to the complainants.

 

 10.  In support of their contentions,  complainants have relied on his affidavit evidence in which they have reiterated the contents of complaint.  Complainants have also relied on documents like certified copy of the loan sanctioned letter dated 16.05.1996 marked as Ex.A-1, copy of letter dated 13.10.2000 by the complainants regarding non-crediting of pay order bearing No.8975493 for Rs.50,000/- marked as Ex.A-2, copy of certificate dated 11.10.2000 issued by the Union Bank of India, Chitradurga marked as Ex.A-3, copy of letter dated 31.01.2007 by the complainant No.1 requesting the OPs to consider under one time settlement marked as Ex.A-4, copy of pay-in-slip dated 31.01.2007 for Rs.68,000/- marked as Ex.A-5, copy of letter dated 26.03.2007 by the OPs considering the request of complainant under one time settlement marked as Ex.A-6, copy of letter dated 24.07.2007 by the OP Corporation to one Smt. Shoukath Jan regarding repayment of loan under one time settlement marked as Ex.A-7, copy of objection statement filed in Mis. Petition No. 32/2004 marked as Ex.A-8, copy of evidence by way of affidavit of one P.D. Yallappa filed in Mis. Petition No. 32/2004 marked as Ex.A-9, copy of memorandum of Writ in W.P.No.12451/2008 marked as Ex.A-10, copy of entire order sheet in W.P.No.12451/2008 marked as Ex.A-11, copy of order passed in W.P.No.12451/2008 marked as Ex.A-12, copy of delivery note/possession certificate marked as Ex.A-13, copy of receipt for Rs.25,000/- issued by Sree Vyshnavi Enterprises dated 15.07.1996 for having supplied the motor etc., marked as Ex.A-14, copy of letter dated 24.08.2015 by the complainants to OP requesting to handover the remaining machineries and for repayment of Rs.50,000/- with interest marked as Ex.A-15, copy of register of original suits showing the cause title of O.S.No.32/2000 marked as Ex.A-16, copy of petition filed by the OP No.4 before the Hon'ble District Judge at Chitradurga in Mis. Petition No.32/2004 marked as Ex.A-17, Copy of memo filed by the advocate for OPs in Mis. Petition No.32/2004 enclosing copy of receipt obtained by the OPs corporation marked as Ex.A-18, copy of mortgage deed executed between complainant No.1 and OPs marked as Ex.A-19, copy of reconveyance deed/release deed marked as Ex.A-20, copy of letter dated 02.11.2015 by the complainant requesting to issue certified copy of the challan/pay-in-slip being credited the pay order bearing No.8975493 marked as Ex.A-21.     

        

11.  On the other hand, it is argued by the OPs that,  as per the complaint, complainants have paid Rs.50,000/- on 27.02.1997 and they came to know that the same has not been credited to their loan account and thus, they gave letters on 13.10.2000 and 24.10.2000 and put-forth their claim for the said amount and for interest at 19.5% p.a and the OP has not considered their claim.  Complainants approached the OPs for one time settlement but, they did not pursue the same for about 6 months and thus, loan account continued and dues were mounted.  Again complainants gave a letter dated 31.01.2007 to settle the dues for Rs.5,85,000/- by crediting a sum of Rs.68,000/- as per one time settlement scheme of the Government vide G.O dated 22.06.2007 and Circular No.793 of the OP but, the complainants did not raise about the alleged payment of Rs.50,000/-.  Subsequently, the complainants gave a letter dated 04.02.2008 agreeing to pay the total amount of Rs.7,87,487/- and in the said letter also, complainants did not claim and pursue her objections about their claim of Rs.50,000/-.  As against the same, OP has issued letter dated 14.02.2008 to pay a sum of Rs.7,98,220/- for OTS.  Under the circumstances, complainant paid Rs.2,00,000/- on 29.03.2008 and Rs.6,02,190/- on 31.03.2008 in all a sum of Rs.8,02,190/- including the interest amount without whispering and reserving their alleged rights and the same is accepted by the OP.  It is further argued that, if the complainants had specifically made it clear about their claim over Rs.50,000/- and alleged machineries, the settlement conditions would have been different.  Complainant No.1 herself has submitted letters on 08.09.2006, 12.10.2006 and 06.12.2006 for settlement of the dues for Rs.5,85,000/- without reserving any rights over the alleged payment of Rs.50,000/-. One G.C. Govindaraj, Proprietor of M/s Sreenivasa Industries had purchased the plant and machinery of M/s Kenchalingeshwara Oil Industries from the OP with deferred payment of the purchased balance amount by G.C. Govondaraj and submitted letter dated 27.02.1997 along with the pay order No.8975493 dated 27.02.1997 for Rs.50,000/- and sought to credit the same to his loan account and the receipt has been drawn in the name of G.C. Govindaraj of M/s Sreenivasa Industries and thus Rs.50,000/- was credited to his loan account under Receipt No.368585 dated 22.02.1997 and the same is entered in the cashbook of the OP, which has been maintained regularly during the course of its ordinary course of its business and the same was destroyed in usual course.  By knowing the same, complainants have filed this complaint.  In this regard, Mr. G.C. Govindaraj submitted his affidavit dated 06.01.2001 to the OP in view of the clarification letter dated 27.12.2000 from the OP.  As per the order dated 28.02.2000 in W.P. No.9126/1999, OP has repaid the entire purchase amount paid by G.C.Govindaraj to him only, which includes the said pay order amount of Rs.50,000/- and the same was not with the OP.       

12.   In support of their contentions,  OPs have relied on affidavit of one Sri. H.B. Rajamudi, the Branch Manager of OP No.4 in which they have reiterated the contents of version.  OPs have also relied on documents like copy of letter dated 06.12.2006 written by the complainant No.1 to OP No.1 requesting to settle the loan account marked as Ex.B-1, copy of letter by one G.C. Govindaraj to OP No.1 to credit sum of Rs.50,000/- through pay order dated 27.02.1997 bearing No.8975493, which was purchased by the complainant No.2 as per the acknowledgement issued by the OP Corporation marked as Ex.B-2, copy of affidavit of Sri. G.C. Govindaraj filed on 06.01.2001 wherein it has been sworn that "I undertake to repay the pay order of Rs.50,000/- if it is proved by the complainants against him" marked as Ex.A-3, copy of certified copy of cash book maintained by the OP Corporation relating to the transactions dated 27.021997 wherein at receipt No.368585 an amount of Rs.50,000/- has been credited in the name of one Sri. G.C. Govindaraj, M/s Kenchalingeshwara Oil Mill but not to M/s Sreenivasa Industries as stated by the OPs marked as Ex.A-4.  

13.   On hearing the rival contentions of both the sides and on careful perusal of the entire records, it clearly goes to show that, complainant No.1 approached OP No.4 for sanctioning the loan for the groundnut decorating by pledging/mortgage her property documents i.e., Special Plot No.11 in industrial estate, Chitradurga and complainant No.2 stood as a  guarantor to the loan obtained by complainant No.1. Because of the unnecessary demands made by the OP Corporation, the Assistant General Manager, KSFC, for non-payment of certain payments, complainant No.1 was treated as a defaulter.  The complainants have cleared the loan obtained by them from the OPs' Corporation in one time settlement as per the Statement Government G.O dated 22.06.2007 and there is no due to the OPs from them.  With regard to the depositing of Rs.50,000/- is concerned, the complainant No.1 written a letter dated 13.10.2000 to the OP No.4 as per Ex.A-2 enclosing the Xerox copy of the certificate issued by the Branch Manager, Union Bank of India, Chitradurga as per Ex.A-3 for having purchased the DD/Pay order bearing No.8975493 dated 27.02.1997 which was handed over to the OPs.  Moreover, complainant requested the OPs through letter dated 02.11.2015 to give certified copy of the challan for crediting the said sum of Rs.50,000/- but, the OPs refused to produce the same.  Complainants filed a memo dated 20.05.2016 enclosing a letter dated 27.02.1997 in which the complainants requested the OP No.4 to credit the said pay order to Nawaz Industries, Plot No.11, Industrial Estate, Chitradurga and the same was acknowledged by the OP with a seal.  OPs have argued that, the said sum of Rs.50,000/- has been credited to M/s Sreenivasa Industries and the same was credited to one M/s Kenchalingeshwara Industries.  OPs have not produced any document/receipt to show that, the said amount of Rs.50,000/- was credited to M/s Sreenivasa Industries.   OPs have a right to recover the credited amount of Rs.50,000/- which was paid by the complainant through pay order dated 27.02.1997 and as per Ex.B-3 i.e, the affidavit of one G.C. Govindaraju wherein it has been stated that, " I undertake to repay the pay order of Rs.50,000/- if it is proved by the complainants which was credited to his loan account.  Complainants have proved that, they have purchased the pay order bearing No.8975493 dated 27.02.1997 for Rs.50,000/- and the same has been handed to the OPs.  Such being the case, OPs have no obligation to return said sum of Rs.50,000/- which was paid through pay order with interest and also the machinery to the complainants which were taken over possession at the time of seizure of the building.  As per Ex.A-13, the OPs have delivered one decorticator, one S Cap. Shunt capacitor and one Bentex L-32 A circuit breaker with panel board but not the 10 HP Motor with accessories, which were taken over at the time of seizing the building of Nawaz Industries, which is to be returned by the OPs.  Hence, we come to the conclusion that, the OPs have committed deficiency in service in not crediting a sum of Rs.50,000/- paid by the complainants through pay order bearing No.8975493 and to return 10 HP Motor with accessories.   Accordingly, this Point No.1 is held as affirmative to the complainants.

14.  Point No.2:- For the foregoing reasons, we pass the following:

 

ORDER

The complaint filed by the complainant u/Sec. 12 of the C.P. Act, 1986 is allowed.  The OPs are hereby directed to pay Rs.50,000/- with interest at the rate of 12% p.a from the date of deposit of pay order i.e., 27.02.1997 and to handover/return the 10 H.P. Motor with accessories or to pay Rs.25,000/-, the cost of the same.

Further the OPs are hereby directed to pay a sum of Rs.10,000/- towards mental agony and Rs.5,000/- towards costs of the proceedings. 

Further, the OPs are hereby directed to pay the above amount to the complainant within 60 days from the date of this order. 

 

        (This order is made with the consent of Members after the correction of the draft on 31/05/2016 and it is pronounced in the open Court after our signatures.)         

 

MEMBER                                                         PRESIDENT

 

-:ANNEXURES:-

Complainants by filing affidavit evidence taken as PW-1 and Pw-2.

Witness examined on behalf of complainant:

                                                -Nil-

On behalf of OPs H.B. Rajamudi, the Branch Manager of OP No.4 by filing affidavit evidence taken as DW-1:

 

Witnesses examined on behalf of OP:

-Nil-

Documents marked on behalf of complainant:

01	Ex-A-1:-	Certified copy of the loan sanctioned letter dated 16.05.1996
02	Ex-A-2:-	Copy of letter dated 13.10.2000 by the complainants regarding non-crediting of pay order bearing No.8975493 for Rs.50,000/-
03	Ex-A-3:	Copy of certificate dated 11.10.2000 issued by the Union Bank of India, Chitradurga
04	Ex-A-4:	Copy of letter dated 31.01.2007 by the complainant No.1 requesting the OPs to consider under one time settlement
05	Ex.A-5:	Copy of pay-in-slip dated 31.01.2007 for Rs.68,000/-
06	Ex.A-6:	Copy of letter dated 26.03.2007 by the OPs considering the request of complainant under one time settlement
07	Ex.A-7:	Copy of letter dated 24.07.2007 by the OP Corporation to one Smt. Shoukath Jan regarding repayment of loan under one time settlement
08	Ex.A-8:	Copy of objection statement filed in Mis. Petition No. 32/2004
9	Ex.A-9:	Copy of evidence by way of affidavit of one P.D. Yallappa filed in Mis. Petition No. 32/2004
10	Ex.A-10:	Copy of memorandum of Writ in W.P.No.12451/2008
11	Ex.A-11:	Copy of entire order sheet in W.P.No.12451/2008
12	Ex.A-12:	Copy of order passed in W.P.No.12451/2008
13	Ex.A-13:	Copy of delivery note/possession certificate
14	Ex.A-14:	Copy of receipt for Rs.25,000/- issued by Sree Vyshnavi Enterprises dated 15.07.1996 for having supplied the motor etc.,
15	Ex.A-15:	Copy of letter dated 24.08.2015 by the complainants to OP requesting to handover the remaining machineries and for repayment of Rs.50,000/- with interest
16	Ex.A-16:	Copy of register of original suits showing the cause title of O.S.No.32/2000
17	Ex.A-17:	Copy of petition filed by the OP No.4 before the Hon'ble District Judge at Chitradurga in Mis. Petition No.32/2004
18	Ex.A-18:	Copy of memo filed by the advocate for OPs in Mis. Petition No.32/2004 enclosing copy of receipt obtained by the OPs corporation
19	Ex.A-19:	Copy of mortgage deed executed between complainant No.1 and OPs
20	Ex.A-20:	Copy of reconveyance deed/release deed
21	Ex.A-21:	Copy of letter dated 02.11.2015 by the complainant requesting to issue certified copy of the challan/pay-in-slip being credited the pay order bearing No.8975493

 

Documents marked on behalf of OPs:

01	Ex-B-1:-	Copy of letter dated 06.12.2006 written by the complainant No.1 to OP No.1 requesting to settle the loan account
02	Ex-B-2:-	Copy of letter by one G.C. Govindaraj to OP No.1 to credit sum of Rs.50,000/- through pay order dated 27.02.1997 bearing No.8975493.
03	Ex-B-3:	Copy of affidavit of Sri. G.C. Govindaraj filed on 06.01.2001
04	Ex-B-4:	Copy of certified copy of cash book maintained by the OP Corporation relating to the transactions dated 27.021997

 

 

MEMBER                                                         PRESIDENT

Rhr.