Tamil Nadu

North Chennai

CC/174/2022

Mr.Jayamani,S/o.Sundararajan - Complainant(s)

Versus

The Secretary Food Corporation of India - Opp.Party(s)

M/s.V.J.Arul Raj

09 Nov 2023

ORDER

Complaint presented on  :17.09.2020    Date of disposal            :09.11.2023

                                                                                  

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,

CHENNAI (NORTH)

@ 2^ND Floor, T.N.P.S.C. Road, V.O.C. Nagar, Park Town, Chennai – 600 003.

 

PRESENT: THIRU. G.VINOBHA, M.A., B.L.                            : PRESIDENT

                   

                               THIRU V. RAMAMURTHY, B.A.B.L., PGDLA       : MEMBER II

 

 

C.C. No.174/2022

 

DATED THIS THURSDAY THE 9th  DAY OF NOVEMBER 2023

 

Mr.Jayamani

Aged about 61 years

S/o N.Sundararajan

No.1086, Pudu Nagar,

Pananguppam, Koliyanur post,

Villupuram District and Taluk,

Pincode-605 103.                                                       .. Complainant.                                     

..Vs..

 

The Secretary, Food Corporation of India

Employee’s Co-operative and Credit Society

No.40/133, IInd Floor,

Vepery High Road,

Periampet, Chennai-600 003                                      ...  Opposite party.

 

 

 

Counsel for the complainant                      : M/s. V.J.Arul Raj and others

Counsel for   opposite party                     : Exparte (14.02.2023)

 

 

 

 

ORDER

THIRU. V. RAMAMURTHY, B.A., B.L., PGDLA, MEMBER

          This complaint has been filed by the complainant against the opposite party under section 35 of the Consumer Protection Act, 2019 prays to directing the Opposite party to pay the entire divided amount due with 18% interest per annum from the due date to date of payment and for Rs.2 lakhs towards compensation for deficiency in service and mental agony and to direct the opposite party to furnish entire statement of account for the loan account of the complainant and cost of the complaint.

 

1.THE COMPLAINT IN BRIEF:

         The complainant submits that he was directly recruited in the Food Corporation of India as a Watchman in 1986 and completed 32 years of service and retired as Assistant Grade III(D) on 30.04.2019.  The complainant submits that during the course of his employment, he became a member of FCI Employees Co-operative and Credit Society since 1988 with membership No.7671 and availed loans from the society and regularly repaid the same.  The complainant further states that he has not been paid any dividend for his membership for very long time, even though he was entitled to the same.  The complainant further submits that at the time of retirement during May 2019, a sum of Rs.2,32,946/- has been deducted from the final settlement on the ground that the said amount was due to society.  When the complainant requested for statement of accounts for the loan obtained, the same was not furnished inspite of several representation and letters sent to opposite party.  The complainant submits that on 29.01.2019 the opposite party had sent a letter to employer informing the outstanding as Rs.2,99,200/- but during the May 2019 a sum of Rs.2,32,946/- was deducted from retirement benefits and thus lot of discrepancies are noticed and unless the accounts statement is furnished, it is very difficult to reconcile the same.  The complainant submits that opposite party without informing the complainant had illegally deducted a sum of Rs.2,32,946/- which put the complainant in severe hardships.  The complainant submits that even though the complainant requested the opposite party to submit statement of accounts and also through advocate the opposite party failed to furnish the same and further the opposite party had deducted over and above the alleged outstanding loan caused severe economic problem to complainant and his family members.  The above acts of opposite party caused mental agony and physical hardships to complainant and hence pray this Hon’ble Commission to direct the opposite party to pay the entire dividend amount due with 18% interest, compensation of Rs.2,00,000/- and furnishing entire statement of accounts.  Hence this complaint.

2. WRITTEN VERSION OF OPPOSITE PARTY IN BRIEF:

Notice served to opposite party.  Inspite of receipt of notice the opposite party never responded and hence set ex-parte.

3. POINTS FOR CONSIDERATION:

1. Whether there is any deficiency in service and negligence on the part of the opposite party as alleged in the complaint?

2. Whether the complainant is entitled to the reliefs prayed in the complaint. If, so to what extent?

The complainant had filed proof affidavit, written arguments and documents Ex.A1 to Ex.A7 were marked on his side.The opposite party remained Exparte

 

4. Point No.1:-

The complainant submits that he was an employee of Food Corporation of India from 1986 and retired on 30.04.2019.  The complainant was also a member of opposite party society since 1988 and had availed loans many times from the opposite party and regularly repaying the same.   The complainant alleged that at the time retirement during May 2019, the opposite party had deducted a sum of Rs.2,32,946/- illegally without informing the complainant from the final settlement on the ground that the said amount was due from the complainant.  When the complainant requested for statement of accounts for the loan obtained by him, the same was not furnished by the opposite party and due to this, the complainant found very difficult to reconcile the loan accounts availed by him. The complainant further alleged that opposite party had deducted over and above the outstanding loan and also charged excessive interest and to conceal the fact, the opposite party deliberately avoided to give the loan statement.  The complainant also alleged that opposite party never paid dividend to complainant but at the same time, dividend was distributed other members of the opposite party society.  The complainant alleged that even after sending notice through counsel seeking accounts statement, the opposite party never responded which caused mental agony and physical hardships.

In the absence of appearance of opposite party who was set ex-parte, we have carefully gone through the averments and documents submitted by the complainant.  It is observed from Ex.A5, the complainant was a member of opposite party society and he had regularly availed loans many times from the opposite party and repaid it regularly.  It is an admitted fact that complainant had taken loan from opposite party as evidenced from Ex.A1.From the Ex.A3 it is observed that the complainant had availed his last loan from the opposite party for Rs. 4,10,000/- on 07.12.2016.  It is also evidenced from Ex.A7, that Rs.14,530/- in the month of Feb. 2016, Rs. 15,760/- in July 2016, Rs.15495/- in September 2016, Rs.19260/- in Oct. 2016, Rs.5,000/- in May 2017, Rs.5,000/- in Dec. 2017 and Rs.10,000/- in Jan. 2018 were deducted from the salary of the complainant on the advice of opposite party towards repayment of loan.  It is observed from Ex.A1, the complainant had requested his employer to stop deduction towards Society since he did not receive the dividend and share amount from the opposite party.  Whereas from Ex.A2, the employer of the complainant in their reply informed that as per the recovery statement from the opposite party the deductions towards society were made and advised the complainant to take up the matter with opposite party.  From the Ex.A3, the opposite party had issued a letter to the employer of the complainant to deduct a sum of Rs.2,99,200/- being the balance amount of loan availed by the complainant from the retirement benefits. 

                  In general, when an employee becomes a member of employees co-operative society and when applying for loan, he/she has to give an undertaking/authorization to the employer to deduct from monthly salary any amount due towards loan, share amount and other dues to society.  Accordingly, in this present case the complainant might have given an undertaking/authorization to his employer to deduct due to society based on the recovery statement and hence the employer refused to the request of the complainant to stop deduction towards society as seen in Ex.A2.  It is also a general practice when an employee is about to retire from service, the society would inform the employer to deduct the entire outstanding amount from the retirement and accordingly in this present complaint the opposite party had advised the employer of the complainant to deduct a sum of Rs.2,99,200/- from the retirement benefits of the complainant towards the balance amount of loan.  The complainant alleged that in Jan. 2019 the outstanding amount was Rs.2,99,200/- as per Ex.A3, but in May 2019 the outstanding amount was reduced to Rs.2,32,946/- hence alleged some discrepancies in the statement of loan. But it may be the reason for deduction of lesser amount in May 2019 might be due to the regular deduction from Jan.2019 to May 2019 from the complainant salary.  It is also observed from Ex.A7, that different amounts i.e. Rs.5,000/- in May 2017, Rs.5,000/- in Dec. 2017 and Rs.10,000/- in Jan. 2018 were deducted against the loan amount of Rs.4,10,000/- from salary of the complainant and it appears that the deducted amounts were not same in all the months but there is no explanation for the variations in the deducted loan amount in various months which forced the complainant to seek for furnishing of entire loan statement of account but it is found from the records that even after his attempt for the same under RTI Act he was not provided with the loan statement by the opposite party which amounts to deficiency in service on the part of opposite party. As a member of  the employees cooperative credit society and as a person who borrowed loan from it the complainant is entitled in law to seek for entire statement of account regarding his loan and refusing to furnish the same will amount to negligence and deficiency in service on the part of opposite party. The complainant alleged that he had not received any single dividend from the opposite party for 6 years which implies that complainant had received dividend before that. The complainant further contended that his colleagues had received dividends to the tune of Rs.1 Lakh and the complainant is entitled for Rs.1.5 Lakhs from the opposite party but there no material evidence  placed before us to support the contention of the complainant and further there is no documentary evidence filed by the complainant to prove what was the percentage of dividend he was entitled to and what is the actual dividend amount due to him which is payable by the opposite party in the absence of the same the complainant is not entitled to claim the dividend amount due with interest 18% p.a as alleged in the complaint. It is further observed from Ex.A6, that the complainant had sent a legal notice to opposite party seeking the statement of account and dividends due to him and no reply has been received from opposite party.  In general, every member of the co-operative has right to seek the accounts of the society after following due procedures and when seeking the accounts statements his/her loan it is mandatory on the part of society to provide the same. In the present complaint when the complainant asked for the statement of accounts of his loan,  it is obligatory on the part of opposite party to provide the same to complainant without fail but it is observed from the averments of the complainant that no response was given by the opposite party which is considered to be a negligent act and deficiency in service on the party of opposite party.

Based on the above observations and in the absence of the contra evidence by opposite party, we are of the considered opinion that the complainant being a member of the society and who availed loan from the opposite party and repaying the loan by monthly deduction from the salary, when sought for the details of account statement the opposite party failed to furnish the same and failed to furnish details about dividend due and hence the above acts of the opposite party is considered to be a clear negligence and deficiency in service on the part of opposite party.  Point No.1 is answered accordingly.

Point No.2:

          Based on the findings given to the PointNo.1,since there is negligence and deficiency in service on the party of opposite party, the complainant is entitled for entire statement of  his loan account and compensation for negligence and deficiency in service and cost of complaint.  Point No.2 is answered accordingly.

          

           In the result the complaint is partly allowed.  The opposite party is directed to provide entire statement of loan account of complainant, forth with and to pay Rs.30,000/- towards compensation for negligence and deficiency in service and Rs.5,000/- towards cost of this complaint to the complainant.  The above amount shall be paid to the Complainant within two months from the date of receipt of the copy of this order, failing which the above said amount shall carry 9% interest from the date of order to till the date of payment.

Dictated  by Member II to the Steno-Typist taken down, transcribed and computerized by him, corrected by the President and pronounced by us in the open Commission on this the 9^th November 2023

 

MEMBER I                                  MEMBER – II                           PRESIDENT

LIST OF DOCUMENTS FILED BY THE COMPLAINANT:

Ex.A1	05.10.2018	Letter to Area Manager
Ex.A2	09.10.2018	Letter to the Complainant
Ex.A3	29.01.2019	Letter to Area Manager Recovery of Society Dues
Ex.A4	27.05.2019	Letter to Area Manager
Ex.A5	19.08.2019	Letter to Secretary
Ex.A6	24.10.2019	Legal notice to secretaty
Ex.A7		Pay slip series (8 No’s)

 

LIST OF DOCUMENTS FILED BY THE  OPPOSITE PARTY:NIL

 

 

MEMBER – I                         MEMBER – II                       PRESIDENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CC.NO.174/2022, Dated:09.11.20203

Order Pronounced,

                   In the result the complaint is partly allowed.  The opposite party is directed to provide entire statement of loan account of complainant, forth with and to pay Rs.30,000/- towards compensation for negligence and deficiency in service and Rs.5,000/- towards cost of this complaint to the complainant.  The above amount shall be paid to the Complainant within two months from the date of receipt of the copy of this order, failing which the above said amount shall carry 9% interest from the date of order to till the date of payment.

 

 

 

Member-I    Member-II       President