CONSUMER DISPUTES REDRESSAL FORUM, KOTTAYAM.

Present

Sri. Santhosh Kesavanath P. President

                                                                                                                                     Sri. K.N. Radhakrishnan, Member

 

CC No 51/11

 

Monday the 30^th day of January, 2012

 

Petitioner                                               : P.Ramakrishnan Nair,

                                                                Sreyas House,

                                                                Kanakkary PO,

                                                                Kottayam.   

                                                                (Petitioner in Person)

                                                            Vs.

 

Opposite party                                      : The Secretary,

                                                                 Rept.the Kanakkary Service

                                                                 Co-operative Bank Ltd.No.3831

                                                                 Vempally PO, Kottayam.

                                                                (Adv. Shebin.K.Cyriac)

 

 

 

 

            Case of the petitioner filed, on 26/2/11 is as follows:

           

            Petitioner is a member of opposite party society with vide member No.6787. Petitioner applied for a loan for Rs.2,00,000/- in connection with his daughter’s marriage. At the time of granting loan opposite party bank collected Rs.1750/- as value of 175 shares from petitioner. According to the petitioner already 25 shares worth Rs.250/- was their in the bank. Petitioner paid entire loan installment on 1/7/10 and he is now not a defaulter of the society. On 2/7/10 petitioner requested opposite party to release his shares retaining one share required for maintaining his membership in the society. Opposite party has not released petitioner’s share even after petitioner’s request. On enquiry it is learnt that since the petitioner is a surety of a chitty subscriber to the bank as per norms his entire share cannot be released. According to the petitioner act of the opposite party in retaining the share amounts to deficiency in service so, he prays for a direction to the opposite party to release199 shares amounting to Rs.1990 with 12% interest per annum from 2/7/10 till payment. Petitioner claims Rs.1000/- as compensation and Rs.1000/- as cost of the proceedings.

            Opposite party filed version contenting that petition is not maintainable. Opposite party admitted that petitioner closed the entire loan amount as alleged in the petition. On 2/7/10 petitioner had given an application for release of shares. According to the opposite party as per Section 12 of the amended Bye law of the society if there is any default either as the loanee or as a surety to a loan. Said member of society is not entitled to release his shares. Petitioner stood as surety of deposit and credit scheme with vide No.232, 233 so, being the surety, the shares of the petitioner cannot be withdrawn.

Points for determinations are:

i)                    Whether there is any deficiency in service on the part of opposite party?

ii)                   Reliefs and costs?

Evidence in this case consists of deposition of the petitioner as PW1 and the affidavit filed by the opposite party. Ext.A1 to A3 documents on the side of the petitioner and Ext.B1 to B3 documents on the side of the opposite party.

            Crux of the case of the petitioner is that opposite party retained 199 shares of the petitioner amounting to Rs. 1990, after closure of the entire liability of the petitioner with the bank. According to the opposite party as per the amended bye law petitioner is not entitled for refund of the share value. Opposite party produced an amended bye law said document is marked as Ext.B3.   In Section 12 of Ext.B3 it is stated that if a member is a defaulter to the society he is not entitled for refund of the share value. Opposite party produced the surety bond of the group deposit and credit scheme, with vide No.232 and 233, the surety agreement produced is marked as Ext.B1 and B2 respectively. From Ext.B1 and B2 it can be seen that petitioner is a surety to the opposite party bank. Opposite party has not produced any document to prove that either the petitioner is a defaulter as a loanee or as a defaulter as surety. Being a surety whenever principles become a defaulter then only surety will crept into the shoe of the creditor. In this case since the petitioner is not a defaulter. Act of the opposite party in retaining 199 shares of the petitioner amounts to clear deficiency in service. So point no.1 is found accordingly.

            In view of the findings in point no.1 petition is allowed.

            In the result opposite party is ordered to refund value of 199 shares amount to Rs.1990 with 12% interest from 2/7/10 till realisation. Since interest is allowed no separate compensation is ordered. Opposite party is order to pay an amount of Rs.1000/- as litigation cost to the petitioner.

            Order shall be complied with within one month of the receipt of a copy of order.

 If the order is not complied petitioner is entitled to 9%interest for the award amount from date of filing of the petition till relaisation.

Dictated by me transcribed by the Confidential Assistant corrected by me and pronounced in the Open Forum on this the 30^th day of January, 2012.

 

Sri. Santhosh Kesavanath P. President Sd/-

 

Sri. K.N. Radhakrishnan, Member                    Sd/-

 

Appendix

Ext.A1-Cash receipt

Ext.A2-Copy of application dtd 2/7/10

Ext.A3-Form for release deed gehan

Ext.B1(series)Surety agreement and related documents of GDCS No.232

Ext.B2(series)-surety agreement and related documents of GDCS No.233

Ext.B3-Bye law of the society.

 

 

By Order,

 

 

Senior Superintendent.