2. President,

    The Guntur Posts & Telegraphs Department

    Employees Cooperative Credit Society Ltd. No.I.2108,

    1^st floor, Kommineni Complex, Koretepadu,

    Ring Road, Guntur – 7.

                                                                       … Opposite Parties

                This complaint coming up before us for final hearing on                      10-02-11 in the presence of Consumer Care Center, representing on behalf of complainant and of Sri V.Lakshmi Narayana Rao, advocate for opposite parties 1&2, upon perusing the material on record, hearing both sides and having stood over till this day for consideration, this Forum made the following: 

O R D E R

Per Sri M.V.L.Radha Krishna Murthy, Member:

                This complaint is filed under section 12 of Consumer Protecting Act, 1986 praying to direct the opposite parties to pay a sum of Rs.1,07,213/- with subsequent interest at 12% p.a. from the date of filing complaint till the date of payment and for costs.

The averments of complaint in brief are as follows:

                The complainant worked as postman and retired from service in the year 2003. While he was in service, he joined in opposite parties Cooperative Society as member and paid share capital to the said society and it was accrued with interest to Rs.46,078/- as on       05-12-03.  As a member of said society he obtained loans and cleared off the dues as on 05-01-04, there are no dues payable by him to the society.  The complainant requested the opposite parties to return the share capital amount with thrift amount, which comes to Rs.46,078/- with interest at 12% p.a.  The opposite parties neither responded nor paid the amount, inspite of his representations made on 20-04-08 and 29-04-10. Hence, the complainant is entitled to interest from           06-12-03 till date at 12% p.a.  Thus there is deficiency of service on the part of opposite parties and caused loss and mental agony to complainant.  Hence, the complaint.    

                The opposite parties filed their version, which is in brief as follows:

                Most of the allegations made in the complaint are false and incorrect and the complaint is not maintainable in law.  There is no cause of action for filing complaint.  The complainant worked as postman and retired from service in 2003 and while he was in service, he joined as a member of opposite party society.  One Sesha Sai Babu a member of society availed loan of Rs.1,20,000/- on 13-01-01 from opposite parties.  The complainant along with other co-employees namely Pola Prasada Rao and J.Suri Babu stood as surety to the loan availed by the said Sesha Sai Babu and executed necessary documents in favour of opposite parties to that effect.  Subsequently, the said Sesha Sai Babu committed default in payment of amount due to the society.   All the efforts made by opposite parties for realization of said outstanding amount proved futile and the society was constrained to file claim petition before the Deputy Registrar of Cooperative Society.  On an order passed by the Registrar, the opposite parties filed Execution Petition.  Thereupon, the complainant filed an appeal against the order passed by the Deputy Registrar, Cooperative Societies in OA No.19/06.  The said case was remanded to the Deputy Registrar.  On remand, the matter was referred to arbitration vide claim No.07/2007-2008. The complainant engaged an Advocate and finally, the arbitrator passed an award on 01-11-04 directing the principal borrower and the complainant to pay an amount of Rs.1,73,766/- with interest  at 18% p.a. from 01-11-04.  Inspite of repeated demands, the complainant and others failed to pay the said amount.  Having no other alternative, these opposite parties with the order of Sales Officers forced to adjust the amounts to loan account.  Accordingly, the following amounts were adjusted to the loan account as per the order of Sales Officer:

                Share capital      :       6,482-00

                TFD                   :       66,190-00

                TFD interest       :       1,103-00      

                Dividend            :       6,029-00

                                      _______________

                                                79,805-00

                                                ___________

                The complainant who is aware of all these facts intentionally suppressed the same and filed this complaint, even though no amount is due to him from opposite parties.  Hence, the complaint may be dismissed with exemplary costs.

                In support of their contentions, the complainant and opposite parties filed affidavits reiterating the same.  On behalf of complainant Ex.A1 to A7 are marked. On behalf of opposite parties Ex.B1 to B3 are marked.

                Ex.A1 is the copy of statement of account for the period from 01-4-03 to 05-12-03 issued by opposite parties to complainant.  Ex.A2 is the copy of application submitted by complainant to opposite parties. Ex.A3 is copy of another application submitted by complainant to opposite parties.  Ex.A4 is the copy of another letter addressed by complainant to opposite party.  Ex.A5 is the receipt passed by opposite parties in favour of complainant for Rs.57,618/-. Ex.A6 and A7 are the postal acknowledgements.

                Ex.B1 is the copy of order in OA 19/2006 dt.20-12-06.  Ex.B2 is the certificate issued under section 71(1) of AP Cooperative Societies Act, 7 of 1964 by the Asst. Registrar of Cooperative Societies, Guntur.  Ex.B3 is the proceedings of Sales Officer of opposite parties in EP 39/04-05, dt.12-06-09. 

Now the points for consideration are that

1. Whether the complainant is entitled for refund of the amount claimed?
2. Whether there is any deficiency of service on the part of opposite parties?
3. To what relief the complainant is entitled to?

POINTS 1 & 2

                It is not in dispute that the complainant is a member of opposite party society and that he had taken loans and cleared off the dues and it is also not in dispute that the share capital together with thrift and interest accrued to a tune of Rs.46,078/- in the account of complainant by 05-12-03. The complainant is eligible for return of said amount from the opposite parties society.   

                According to opposite parties, the complainant stood as surety to one Sesha Sai Babu, a member of opposite party society along with two others namely Pola Prasada Rao and J.Suri Babu and the said Sesha Sai Babu, who has availed loan from the society has not discharged the same and hence, the opposite parties filed OA 19/06 and the Assistant Registrar of Cooperative Societies issued certificate under section 71 clause 1 of AP Cooperative Societies Act ordering for payment of dues to a tune of Rs.1,73,766/- by the Principal borrower Sesha Sai Babu and the sureties Pola Prasada Rao, J.Suri Babu and the complainant herein and the Sales Officer of opposite parties issued proceedings directing the opposite parties to raise adjustment receipts in favour of judgment debtors and that therefore, an amount of Rs.79,805/- was adjusted towards the loan amount as per the orders of Sales Officer and that therefore, the complainant is not entitled for refund of his share capital thrift and interest accrued to his account. 

                As seen from Ex.B2 certificate issued under section 71 (1)

of AP Cooperative Societies Act in claim No.7/07-08, the Assistant Registrar of Cooperative Societies, Guntur ordered for payment of dues and arrears to a tune of Rs.1,73,766/- (Rs.1,18,400/- under principal, Rs.55,356/- under interest) by the members 1) Sesha Sai Babu, (2) T. Sambaiah (complainant herein), (3) Pola Prasada Rao (4) J.Suri Babu has jointly and severally together with interest at 18% p.a. with effect from 01-11-04 onwards till the date of realization along with the cots of Rs.250/- to the opposite party society.  In turn, the sales officer/assistant registrar of opposite party society issued proceedings and ordered as follows:

                The following share capital, thrift deposit amount and dividends of the judgment debtors available with the society are ordered for adjustment to the loan account of Sri R.Sesha Sai Babu, Principal Judgment debtor under the powers delegated to me under Rule 52 (9) of the APCS Rules, 1964.

S.No.  NAME OF THE JDR                            AMOUNT AVAILABLE TOWARDS

                                                   S.C.        T.F.D.          TFD INT          DIVIDEND     TOTAL Rs.

1. Sri R.Sesha Sai Babu       10000    10622           177           10625       31,424-00

2. Sri P.Sabaiah                 6483     66190        1103            6029       79,805-00

3. Sri J.Suri Babu                9204     39659           661           8727       58,251-00

                                                                                                         Total    1,69,480-00   

(Rupees one lakh sixty nine thousand four hundred and eighty only)                                                                    

                As the original borrower Sesha Sai Babu has not discharged his loan amount, the said loan amount is ordered to be recovered from the principal borrower as well as the sureties.  The liability of surety is coextensive with that of principle borrower and surety is a favored debtor. The complainant herein as already stated above stood as one of the sureties for the said Sesha Sai Babu. Therefore, the amount due to be payable to the complainant by the opposite party society was adjusted as per Ex.B2 and B3.  Therefore, in view of the facts and circumstances of case, the complainant herein is not entitled for any amount accrued to his account towards share capital, thrift and interest.  Therefore, we find that there is no deficiency of service on the part of opposite parties.  Accordingly these issues are answered in favour of opposite parties and against the complainant.

POINT No.3

                   In the result, the complaint is dismissed and in the circumstances of case, each party shall bear their own costs.     

Typed to my dictation by the Junior Steno, corrected by us and pronounced in the open Forum, this the 15^th day of February, 2011.

          Sd/XXXXX                    Sd/XXXXX                            Sd/XXXXX 

          MEMBER                               MEMBER                            PRESIDENT          

   APPENDIX OF EVIDENCE

No oral evidence is adduced on either side

                                        DOCUMENTS MARKED

For Complainant:

For opposite parties :

                                                                                          Sd/XXXXX 

                                                                                             PRESIDENT