BEFORE THE A.P.STATE CONSUMER DISPUTES REDRESSAL COMMISSION: AT HYDERABAD.
C.C.No.86 OF 2011
Between
TSR Anjaneyulu (Thota Seetha Ram
Anjaneyulu) S/o.late Polichetty, aged
About 73 years, Indian, Occ:Retd.Sub
Divisional Engineer, Telecom
R/o.H.No.27/B, P.S.Nagar, Vijaynagar Colony,
Hyderabad-500 057. Complainant
And
The Telegraph Traffic Employees Co-op.
Credit Society Ltd.,
Central Telegraph Office, Koti
Hyderabad-500 095.
Rep. by the Person in-charge cum Chairman
Committee, Koti, Hyderabad (Now official
Liquidator)
For the Complainant : Mr.T.S.R.Anjaneyulu
For the Opp.party : M/s.K.Veerabhadra Rao
QUORUM: THE HON’BLE SRI JUSTICE D.APPA RAO, PRESIDENT,
SMT.M.SHREESHA, HON’BLE MEMBER,
AND
SRI S.BHUJANGA RAO, HON’BLE MEMEBR.
TUESDAY, THE TENTH DAY OF JULY,
TWO THOUSAND TWELVE
Order (Per Smt.M.Shreesha, Hon’ble Member)
***
The brief facts as set out in the complaint are that the complainant and his wife T.Rukmini jointly invested Rs.20,00,000/- in opposite party no.1 society towards fixed deposits with a promised interest of 14% p.a. to be paid in monthly instalments. The society issued F.D.Rs. on their names jointly on either or survivor basis as follows:
i) On Deposit No.2398 dated 05-1-2004 for Rs.2,50,000/-
ii) On Deposit No.2887 dated 05-10-2006 for Rs.7,50,000/-
iii) On Deposit No.3127 dated 11-12-2006 for Rs.10,00,000/-
Total Rs.20,00,000/-
===========
The complainant submits that he received monthly interest, the details of which are as follows:
i) Deposit No.2398 dated 5-1-2004 for Rs.2,50,000/- received interest from 05-1-2004 to 30-11-2007
ii) Deposit No.2887 dated 05-10-2006 for Rs.7,50,000/- received interest from 05-10-2006 to 30-11-2007
iii) Deposit No.3127 dated 11-12-2006 for Rs.10,00,000/- received
interest from 11-12-2006 to 30-11-2007
Thereafter he did not receive any amounts towards interest and he approached the opposite party society on 05-8-2008 and met Mr.Krishna Murthy, Secretary as the interest was due from January, 2008 to July, 2008 and he was asked to come again in September, 2008 and thereafter once again on 06-10-2008 he approached the opposite party but there was no response. Subsequently he came to know that the opposite party society was closed and an Enquiry Officer was appointed to conduct an enquiry into the affairs of the opposite party society U/s.51 of A.P. Co-op. Societies Act. The enquiry officer submitted his report on 19-6-2009 and appointed the person in charge to look after the affairs of the society. The complainant submits that his wife is a senior citizen underwent lot of stress and stain because of the closure of the society and became a cancer patient. The complainant further submits that he approached the society and met Mr.S.N.Prasad, Person in charge on 5-8-2008, 6-9-2008, 6-10-2008, 7-1-2009, 6-7-2009, 5-12-2009, 7-6-2010, 04-11-2010, 8-2-2011 and 4-5-2011. The complainant submits that he is entitled for simple interest at 14% on Rs.20,00,000/- for the year 2008, i.e. Rs.2,80,000/-, for the year ending December, 2009, Rs.2,00,000/-, for the year ending December, 2010 Rs. 2,80,000/-, for the year 2011 upto September, 2,09,997 total aggregating Rs.30,49,997/-. Being retired persons, it is their hard earned money and they seek directions to the opposite party to pay back their fixed deposit amounts of Rs.20,00,000/- with interest at 14% p.a. from 01-12-2007 till 30-9-2001 amounting to Rs.30,50,000/- together with compensation of Rs.3,00,000/- and costs of Rs.25,000/-.
The liquidator of the opposite party society filed their written version stating that the complainant and his wife are non members of the opposite party society and as per bye-laws of the society, deposits from outsiders should not be accepted. The Ex.Managing Committee was seized by the Deputy Registrar/Divisional Co-operative Officer, Golconda and in their place a 7 Member person in-charge committee with a Deputy Registrar as PIC Chairman was appointed and the opposite party society was ordered for liquidation vide proceedings No.ARC No.1160/2011-Cr/ECCS. An enquiry was ordered on 29-9-2008 and the Enquiry Officer submitted his report initiating proceedings against the Ex.Secretary, Mr.A.Krishna Murthy. The complainants never made any written representation and their deposit details are not available with the society. The liquidator had taken charges on 15-7-2011 and has to first ascertain the liabilities and assets of the society and the liquidator is still under the process of making arrangements for giving notice U/R.51 (b) of the APCS rules, 1964 inviting all claims against the society. Only then the liquidator is in a position to make payments on any dues on a prorata basis subject to availability of funds. Opposite party further submits that some of the depositors have approached the Hon’ble High Court, who passed interim stays in W.P.Nos.16080/2011 and 17708/2011. It is necessary to issue notice to the liquidator with the permission of Registrar of Societies U/s.126 of A.P.C.S.Act which was not followed as per the mandatory provisions and therefore the complainant is not entitled for any relief.
The complainant filed affidavit by way of evidence and Exs.A1 to A14 are marked on his behalf. The opposite party also filed chief evidence affidavit of the liquidator and Exs.B1 and B2 are marked.
It is the complainant’s case that he made the following deposits:
i) On Deposit No.2398 dated 05-1-2004 for Rs.2,50,000/-
ii) On Deposit No.2887 dated 05-10-2006 for Rs.7,50,000/-
iii) On Deposit No.3127 dated 11-12-2006 for Rs.10,00,000/-
with the opposite party along with his wife jointly in either or survivor basis and also received the following interest as detailed below:
i) Deposit No.2398 dated 5-1-2004 for Rs.2,50,000/- received interest from 05-1-2004 to 30-11-2007
ii) Deposit No.2887 dated 05-10-2006 for Rs.7,50,000/- received interest from 05-10-2006 to 30-11-2007
iii) Deposit No.3127 dated 11-12-2006 for Rs.10,00,000/- received
interest from 11-12-2006 to 30-11-2007
Thereafter he did not receive any interest and inspite of repeated requests and several personal visits on 5-8-2008, 6-9-2008, 6-10-2008, 7-1-2009, 6-7-2009, 5-12-2009, 7-6-2010, 04-11-2010, 8-2-2011 and 4-5-2011. The opposite party did not choose to pay the fixed deposit amount and the interest therein. The complainant filed Exs.A1 to A3 evidencing the deposits made by him and his wife with the promised 14% interest with effect from 1-8-2007. Exs.A5 and A11 are the letters written by the complainant to the person incharge of the opposite party requesting for payments of amounts. Exs.A6 to A10 establish that the complainant wife was suffering from cancer and died on 12-10-2010 as per Ex.A14 death certificate. It is the opposite party’s case that a liquidator was appointed on 25-6-2011 vide proceedings No.ARC 1160/2011-Cr/ECCS (Ex.B1). The opposite party also filed Ex.B2, order of the National Commission in F.A.No.211/2010 and 241/2010 in which the National Commission directed the opposite party society to pay an amount of Rs.28,34,778/- to the complainants and gave a liberty to the complainants to move the Special Court for the purpose of such recovery of the amounts or for seek recovery from the liquidator as per due procedure. The complainants were entitled for recovery of amounts due from opposite party society but cannot proceed against the then Members of the Managing Committee or Directors U/s.25 and 27 of Consumer Protection Act, 1986. It is the main contention of the opposite party that as a liquidator has been appointed, firstly the liabilities and assets of the society has to be ascertained and only then dues can be paid on a prorata basis subject to availability of funds. It is not in dispute that the Ex.Secretary, Sri A.Krishna Murthy had committed fraud and a criminal case has been filed against him and his properties have been seized by the Central Crime Station, Nampally. When the deposits made are not in dispute evidenced under Exs.A1 to A3 and it is also an admitted fact that the Ex.Secretary had committed irregularities and is facing criminal proceedings, at this belated stage, the opposite party cannot raise the contention that the F.D.Rs. ought not to have been issued to non members. These deposits were issued way back in the year 2004-2006 and interests were also paid till 30-11-2007 and therefore now to raise the contention that they are non members after issuance of the F.D.Rs. and payment of interest is unsustainable. The opposite party themselves have filed the decision of the National Commission wherein the complainants were entitled to recover the principal amount as well as agreed rate of interest at 14% which in the instant case is Rs.20,00,000/- plus the agreed rate of interest at 14% p.a. from 01-12-2007 till 30-9-2011. Though the Special Officer cannot be personally held liable for non refund of the deposits, the Co-operative Society falls within the expression of the word ‘person’ as used under the Consumer Protection Act and as observed by the Apex court in Civil Appeal No.92/1998 decided on 11-12-2003 reported in Vol. I 2004 CPJ P-1 SC held that
‘Dispute between Members and Management of Co-op. Society can be adjudicated by the Consumer Fora’.
In Raju sitaram Landge V. Sadguru Park Co-op. Housing Society and others reported in Vol. II (2008) CPJ P-114 NC, the National Commission held that
‘Co-op. societies fall within the entity of being ‘person’ and the
consumer under the Consumer Protection Act, 1986 is competent to
file this complaint’.
and the remedy under the Consumer Protection Act, 1986 is available as such a remedy not in derogation to the provisions of A. P. Co-op. Societies Act, 1964. The National Commission has observed that the complainant is at liberty to move the Special court for recovery of their amounts or may seek recovery from the liquidator as per due procedure in F.A.No.211/2010 and in F.A.241/2010. In the instant case the liquidator has already been appointed. The decision of the National Commission in R.P.No.1768/2000, 1769/2000 and 2886/2005 dated 3-4-2007 reads as follows:
“In view of the matter, particularly when liquidation petition for winding
up is pending before the High Court of Bombay and the fact that a
Special Committee is appointed and functioning under the High Court and
that it has drawn a plan for repayment to the depositors/investors as
quoted, we hereby direct that neither the State Commissions nor the Dist.
Forums, would proceed further with the dispute which are pending against
Lloyds Finance Ltd., However, it would be open to the Dist. Forums or the
State Commissions to finalize the amount payable by the company (payment
of interest and compensation would be subject to final orders of the special committee or the liquidator) and/or to direct the investors to lodge a claim
before the Special Committee. These directions shall be abided by Consumer Fora all over the country”.
Keeping in view the aforementioned decision which allows the Commission to quantify the amounts, we herewith observe that the complainant is entitled to an amount of Rs.20,00,000/- plus interest at 14% p.a. from 30-12-2007 to 30-9-2011. The complainant is at liberty to approach the liquidator for payment of these amounts. The opposite party did not file any documentary evidence to establish that the complainant herein is a party to the proceedings in the Writ Petitions filed before the Hon’ble High Court.
In the result this complaint is allowed in part and the complainant is directed to approach the liquidator for payment of aforementioned amounts together with costs of Rs.5,000/- within four weeks from the date of receipt of this order.
Sd/-PRESIDENT.
Sd/-MEMBER.
Sd/-MEMBER.
JM Dt.10-7-2012
APPENDIX OF EVIDENCE
Witnesses examined
For the complainants: For Opp.party:
Affidavit evidence of first Affidavit evidence of
Complainant filed. Asst.Registrar of Co-
Op. society/Liquidator
Filed.
Exhibits marked for the complainants
Ex A-1 FDR No. 2398 dt : 5.1.2004 Rs.2,50,000/-
Ex A-2 FDR No. 2887 dt : 5.10.2006 Rs.7, 50,000/-
Ex A-3 FDR No. 3127 dt : 11.12..2006 Rs.10, 00,000/-
Ex A-4 Declaration form by the fixed depositors dt: 7.1.2009
Ex A-5 Representation to personal in charge for refund of FDR amounts by complainant dated 05-5-2011.
Ex A-6 Global Hospital Treatment –Proof of cancer treatment to wife
Ex A-7 Lucid Hospital treatment –proof of cancer treatment to wife.
Ex A-8 Yashoda Hospital Treatment –Proof of cancer treatment to wife.
Ex A-9 Asian Institute of Gastroenterology Treatment - Proof of cancer treatment to wife.
Ex A-10 Yashoda Cancer Instittue Treatment –Proof of cancer treatment
to wife
Ex A-11 Regd. Postal letter with acknowledgement to person in- charge
cum chairman dated 02-6-2011
Ex A-12 Postal acknowledgement dt : 4.6.2011
Ex A-13 Diabetic treatment to self and test report of high blood sugar.
Ex A-14 Death certificate of wife smt. T.Rukmini, Co-investor.
Exhibits marked for the opposite party
Ex B-1 Proceedings of Deputy registrar/Divisional Co-operative officer,Golconda Division, Hyd. Dated 25-6-2011
Ex B-2 Copy of Hon’ble National Commisison order of FA 211 of
2010 dt : 9.11.2011.
Sd/-PRESIDENT.
Sd/-MEMBER.
Sd/-MEMBER.
JM Dt.10-7-2012
