IN THE CONSUMER DISPUTES REDRESSAL COMMISSION, KOLLAM

DATED THIS THE   18^th  DAY OF NOVEMBER 2021

Present: -    Sri. E.M.Muhammed Ibrahim, B.A, LLM. President

Smt.S.Sandhya   Rani. Bsc, LLB ,Member

Sri.Stanly Harold, B.A.LLB, Member

    CC.No.218/2020

1. George Mathews,

S/o Mathews, aged 66 years,

Manjalloor, NTV Nagar-74,

Kadappakkada, Kollam-691 008.

 (By Adv.M.I.Alexander Panicker)         

2. Maymol George,

W/o George Mathews, aged 62 years,

Manjalloor, NTV Nagar-74,

Kadappakkada, Kollam-691 008.

 (By Adv.M.I.Alexander Panicker)                                  :           Complainants

V/s                                                                                                     

1. Thomas Daniel,

The Managing Partner,

Popular Finance/Popular Traders,

Indikattil House, Vakayar,

Konni, Pathanamthitta 689 698.

2. Prabha Thomas,

W/o Thomas Daniel, Partner,

Popular Finance/Popular Traders,   

Indikattil House, Vakayar,

Konni, Pathanamthitta 689 698.                                            :          Opposite parties

3. Rinu Marium Thomas,

D/o Thomas Daniel, Partner,

Popular Finance/Popular Traders,

Indikattil House, Vakayar,

Konni, Pathanamthitta 689 698.

4. Ria AnnThomas,

D/o Thomas Daniel,Partner,

Popular Finance/Popular Traders,

Indikattil House, Vakayar,

Konni, Pathanamthitta 689 698.

5. Reba Mary Thomas,

D/o Thomas Daniel,Partner,

Popular Finance/Popular Traders,

Indikattil House, Vakayar,

Konni, Pathanamthitta 689 698.

    ORDER

Smt.Sandhya Rani, B.Sc, LLB, Member

          This is a case based on a complaint filed U/s 12 of the Consumer Protection Act 1986.

          The averments in the complaint in short are as follows:-

          The 1^st complainant is a retired Divisional Manager of New India Assurance Company and 2^nd complainant is his wife.  1^st and 2^nd opposite parties are husband and wife and opposite parties 3 to 5 are their daughters and all of them are the partners of business firm in the name and style Popular finance and its sister concerns, especially Popular Traders.  Through advertisements, profile publications in various media and in the websites, the opposite parties claimed that POPULAR FINANCE is a successfully functioning Gold Loan firm established in 1965 by its founder chairman T.K.Daniel having its head office at Vakayar, Pathanamthitta District.  During the last 10 years the opposite parties had opened their branches throughout Kerala and outside Kerala and mobilize funds through extensive media campaign and marketing by attracting customers.  They are also very cautious and prompt in repayment and payment of monthly interest to those who want to collect interest monthly.  Through the sudden spurt of development of the business firms of the opposite parties they gained public attention and confidence in them.       By attracting the wide publicity made through all medias and on direct canvassing through agents and officials of the opposite parties the complainants  have deposited their savings Rs.9,34,000/- with them on the belief that the opposite parties are reliable and trust worthy private financiers and they have authorization and competence to receive deposits and would return the deposited amount with interest as promised.  Thus complainants have deposited their savings and the opposite parties were issued receipts in the name of Popular Traders so as to acknowledge the liability of the opposite parties to the complainants.  All the 12 accounts shown below are in their joint accounts and hence both of them are entitled to recover amounts from the opposite parties.  Details of the acknowledgement of liability in the form of receipts are shown below:-

Branches of the opposite parties remained closed during Covid 19 Pandemic lock down period.  Even after the lifting of lockdown restrictions the functioning of the branches were restricted and to those who want to withdraw their deposits were not paid immediately and started deferring payments on lame excuses.  The complainants were also approached the concerned branch office of the opposite parties to get back their due amount but not paid.  Slowly the complainants realized that the financial institutions run by the opposite parties are being closed and customers started lodging complaints to the police and police registering cases against the opposite parties and the opposite parties absconded with an intention to flee away to foreign countries.  The police have arrested all the opposite parties and investigation is going on to search and find the huge amounts they received and diverted.  Now the complainants are convinced that the opposite parties were engaged in unfair trade practices and they were fraudulently

conducting financial business without proper license or permission from RBI.  The opposite parties were deliberate to mislead the public with false claims and they were deliberate to cheat customers receiving deposits on false promises  and forging documents in the name of paper firms and in that way they have misappropriated the amount entrusted to them so as to cause unlawful loss to the complainants and unlawful gain to the opposite parties.  There is deficiency in service on the opposite parties as private financiers and the opposite parties failed on their service by undertaking and promise to repay the amount with agreed rate of interest.  Total amount due as per the above receipts from its w.e.f date is 9,34,000/-.  The complainants are also entitled to get the promised rate of interest 12% p.a on the whole amount from 01.05.2020 but they never draw the same. 

The complainants had contacted the opposite parties in person and requested to refund the entire deposit amount by closing all accounts prematurely, but they were not ready to return the amount .  So the complainants pray to pass on order allowing to recover Rs.9,34,000/- along with interest reasonable compensation and costs from the opposite parties.  Hence the complaint.

Notice issued  from the Forum/Commission returned unserved stating that the whereabouts of the opposite parties are not known.  Hence notice were published in  Indian Express Daily and produced a copy of paper publication on 16.08.2021 and on that day the opposite parties No.1 to 5 were called but they were absent and hence set exparte.

Complainants filed proof affidavit by reiterating the averments in the complaint and got marked Exts.A1 to A12 documents.  Heard the counsel for the complainants and perused the records.  Et.A1 to A12 receipts indicating the deposits of various accounts at the Popular Traders of which Ext.A1 dated 03.04.2019 issued in the name of both the complainants indicating that the complainants have deposited Rs.19,000/- w.e.f.27.03.2019 for a period of 36 months and the profit share offered is 12% p.a.  Ext.A2 dated 27.06.2019 issued in the name of both complainants indicating that they have deposited Rs.40,000/- w.e.f.23.06.2019 for a period of 12 months with profit 12% p.a.  Ext.A3 dated 05.07.2019 issued in favour of the complainants indicating that they have deposited Rs.40,000/- w.e.f. 23.06.2019 for a period of 12 months with profit 12% p.a.  Ext.A4 dated 29.08.2019 issued in favour of 1^st complainant George Mathew and Neethu Ann indicating that they have deposited Rs.1,00,000/- w.e.f. 11.08.2019 for a period of 12 moths with profit 12% p.a.  Ext.A5 dated 29.08.2019 issued in favour of the complainants indicating that they have deposited Rs.65,000/- w.e.f.09.08.2019 for a period of 12 months with profit share 12% p.a.  Ext.A6 dated 29.08.2019 issued in favour of the complainants indicating that they have deposited Rs.30,000/- w.e.f. 23.08.2019 for a period of 12 months with profit share 12 % p.a. Ext.A7 dated 05.11.2019 issued in favour of the complainants indicating that they have deposited Rs.2,00,000/- w.e.f. 05.11.2019 for a period of 12 months with profit share 12% p.a.  Ext.A8 dated 05.11.2019 issued in favour of the complainants indicating that they have deposited Rs.1,50,000/- w.e.f. 05.11.2019 for a period of 12 months with profit share 12% p.a.  Ext.A9 dated 05.11.2019 issued in favour of the complainants indicating that they have deposited Rs.1,50,000/- w.e.f.05.11.2019 for a period of 12 months with profit share 12 % p.a.  Ext.A10 dated 20.05.2020 issued in favour of the complainants indicating that they have deposited Rs.50,000/- w.e.f. 12.05.2020 for a period of 12 months with profit share 12 % p.a.   Ext.A11 dated 20.05.2020 issued in favour of the complainants indicating that they have deposited Rs.40,000/- w.e.f. 09.05.2020 for a period of 12 months with profit share 12 % p.a.  Ext.A12 dated 27.05.2020 issued in favour of the complainants indicating that they have deposited Rs.50,000/- w.e.f. 20.04.2020 for a period of 12 months with profit share 12 % p.a.

          The unchallenged averments in the affidavit coupled with Ext.A1 to A12 documents would establish prima facie that the  1^st complainant George Mathew along with Neethy Ann have deposited Rs.1,00,000/- and the remaining 11 deposits were made by the complainants together and altogether the complainants have deposited Rs.9,34,000/-.

The complainants have sworn in the proof affidavit that they had not drawn interest so the amount of interest got accumulated.  During lock down period due to Covid 19 Pandemic all the branches of the opposite parties remained closed.  But even after lifting of lockdown, opposite parties  imposed restrictions for the functioning of the branches.  Though the complainants had approached branch office concerned to get back their amount due but not paid.  Later on the complainants could realized that the financial institution run by the opposite parties are being closed and customers started lodging complaints before police and accordingly cases were registered against the opposite parties and hence the opposite parties absconded with an intention to flee away to foreign countries.  But the Police has arrested the opposite parties and investigation is going on to search and find the huge amounts they have received from various customers and diverted.   On evaluating the entire materials available on record we are of the view that the above act of the opposite parties would constitute deficiency in service and unfair trade practice. The complainants are entitled to get the promised rate of profit for the each investment right from the date of investment.  Therefore the complainants are entitled to get an order directing the opposite parties to pay the amount invested/ deposited as per each receipt along with offered share of profit/interest shown in Ext.A1 to A12 receipts from the date of receipts of amount.

          In the result complaint stands allowed in the following terms.

Opposite parties No. 1 to 5 are directed to return the amount covered by Ext.A1 to A12 receipts with agreed share of profit/interest from the respective date of deposit/investment within 45 days from the date of receipt of a copy of this order failing which the complainants are at liberty to recover the amount covered by Ext.A1 to A12 receipts along with agreed share of profit from the date of investment till the date of complaint and thereafter interest @ 9 % p.a. from the

date of complaint till realization from the opposite parties No. 1 to 5 jointly and severally and from their assets.

Dictated to the Confidential Assistant  Smt. Minimol.S transcribed and typed by her corrected by me and pronounced in the  Open Commission this the 18^th  day of  November 2021.

        S.SANDHYA RANI:Sd/-

E.M .MUHAMMED IBRAHIM:Sd/-

STANLY HAROLD:Sd/-        

                                                                                                               Forwarded/by Order

                                                                                                                  Senior superintendent

INDEX

Witnesses Examined for the Complainant:-Nil

Documents marked for the  complainant

Ext.A1            : receipt No.0563058 Popular Traders for Rs.19,000/-

Ext.A2            : receipt No.0565624 for Rs.40,000/-

Ext.A3            : receipt No. 0565644 for Rs.40,000/-

Ext.A4            : Receipt No.0570593 for Rs.1,00,000/- 

Ext.A5            : receipt No. 0570594 for Rs.65,000/- 

Ext.A6            : receipt No. 0570597 for Rs.30,000/- 

Ext.A7            : receipt No.0574406 for Rs.2,00,000/- 

Ext.A8        : receipt No. 0574407 for Rs.1,50,000/- 

Ext.A9        : receipt No. 0574408 for Rs.1,50,000/- 

Ext.A10          : receipt No.0586305 for Rs.50,000/-

Ext.A11      : receipt No. 0586306 for Rs.40,000/-

Ext.A12          : receipt No. 0586331 for Rs.50,000/-

Witnesses Examined for the opposite party:-Nil

Documents marked for opposite party:-Nil