IN THE CONSUMER DISPUTES REDRESSAL COMMISSION, KOLLAM
DATED THIS THE 30th DAY OF APRIL 2022
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.248/2020
Raju Lukose,
S/o Lukose, aged 51 yrs,
Charuvila Veedu,
P.P.M (P.O),
Punalur, Kollam 691 332.
(By Adv.M.I.Alexander Panicker) : Complainant
V/s
- Thomas Daniel,
The Managing Partner,
Popular Finance/Popular Groups,
Indikattil House, Vakayar,
Konni, Pathanamthitta 689 698.
- Prabha Thomas,
W/o Thomas Daniel, Partner,
Popular Finance/Popular Groups,
Indikattil House, Vakayar,
Konni, Pathanamthitta 689 698. : Opposite parties
- Rinu Marium Thomas,
D/o Thomas Daniel, Partner,
Popular Finance/Popular Groups,
Indikattil House, Vakayar,
Konni, Pathanamthitta 689 698.
- Reba Mary Thomas,
D/o Thomas Daniel, Partner,
Popular Finance/Popular Groups,
Indikattil House, Vakayar,
Konni, Pathanamthitta 689 698.
ORDER
Sri.Stanly Harold, B.A.LLB, Member
This is a case based on a complaint filed U/s 35 of the Consumer Protection Act 2019.
The averments in the complaint in short are as follows:-
The complainant is a self-employed person and is doing Tyre retrading work and is permanently staying in the above address.
The 1st opposite party is the husband of the 2nd opposite parties 3 to 5 are daughters of the 1st and 2nd opposite parties. All of them claim to be the partners of business firms of Popular Finance and its sister concerns, especially Popular Traders, Popular Dealers, Vakayar Lab, My Popular Marine Products. The profile published and advertised in various media and in the website claimed that POPULAR FINANCE is a successfully functioning Gold Loan firm established in 1965. Hence it is claimed that POPULAR is at present a conglomeration of various business concerns support the parent organization by returning profits regularly. It is claimed that POPULAR has been accepted by its customers as a synonym for stability and reliability. Various business activities are carried out had opened their branches throughout Kerala and outside Kerala so as to mobilize funds and to do finance business. Extensive media campaign and marketing was done by the opposite parties to attract customers. The sudden spurt of development of the business firms of the opposite parties gained public attention and confidence in them. The opposite parties were very cautious and prompt in repayment and payment of monthly interest to those who want to collect interest monthly.
The complainant wished to deposit his saving in some banks but got attracted to the wide publicity through newspaper, electronic media, social media and on direct canvassing through agents and officials of the opposite parties, the complainant too was made to believe that the opposite parties are reliable and trust worthy private financiers and they are authorized and competent to receive deposits and would return the deposited amount with interest as promised. The complainant had deposited his savings accounts with the opposite parties. The opposite parties very cunningly issued the following receipts in the name of Popular Dealers, so as to acknowledge the liability of the opposite parties to the complainants. The complainant is entitled to recover the amount from the opposite parties. Details of the acknowledgement of liability in the form of receipts are shown below:-
- Receipt No.0527592 dated 05.01.2018 of Popular Traders issued to Complainant for Rs.1, 00,000/-.
- Receipt No.0527593 dated 05.01.2018 Popular Traders issued to complainant for Rs.1, 30,000/-.
- Receipt No.0527594 dated 05.01.2018 of Popular Traders issued to complainant for Rs.30,000/-
- Receipt No.0154165, dated 30.08.2019 of Popular Traders, issued to the complainant for Rs.1,50,000/-.
Totally of the complainants Rs.4,10,000/- is due as on w.e.f. dates mentioned therein.
Branches of the opposite parties remained closed during Covid 19 Pandemic lock down period. After lifting of lockdown restrictions also 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 complainant had also approached the concerned branch office of the opposite party to get back their due amount but not paid. Slowly the complainant 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 had arrested all the
opposite parties and investigation is going on to search and find the huge amounts they received and diverted. Now the complainant is convinced that the opposite parties were engaged in unfair trade practices and were fraudulent to conduct 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 who trusted them. They were deliberate to receive deposits on false promises and forging documents in the name of paper firms. They have forged and fabricated documents and 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 of the opposite parties as private financiers and the opposite parties failed on their service as per the undertaking and promise to repay the amount with agreed rate of interest. Total amount due as per the above 4 receipts from its w.e.f date is Rs.4,10,000/-(Rupees four lakhs ten thousand only). The complainant is also entitled to get the promised rate of profit/interest @ 12% per annum on the whole amount from its w.e.f.date. The complainant never cared to draw interest on each month. Totally Rs.99,300/- is due from the opposite parties by way of interest. Thus totally an amount of Rs.5,09,300/-(Five lakhs nine thousand three hundred only) is due to the complainants from the opposite parties. The said amount may considered as the loss incurred to the complainants.
The complainant after expiry of the respective periods shown in the receipts wished to get back the promised amount, but was deferred on lame excuses. The complainant had contacted the opposite parties in person and requested to refund the entire deposit amount by closing all accounts, but the opposite parties were not ready to return the amount so that the loss and injury caused to the complainant can never be equated.
The complainant find no other alternative than to approach judicial forums to redress their grievances. The complainant is entitled to get an award for realization of the amount claimed in this complaint as per the statement of accounts appended herewith. Hence the complaint.
Notice issued from the Forum/Commission returned unserved stating that the whereabouts opposite parties are not known. Hence notice was published in the newspaper. Opposite parties 1 to 5 were called absent and hence they were set exparte. Complainant filed proof affidavit by reiterating the averments in the complaint and got marked Ext.P1 to P4 documents.
Heard counsel for the complainant and perused the records. Ext.P1 is the original fixed deposit receipt for Rs.1,00,000/- bearing No.0527592. Ext.P2 is the original fixed deposit receipt for Rs.1,30,000/- bearing receipt No.05275593. Ext.P3 is the original fixed deposit receipt for Rs.30,000/- bearing receipt No.0527594. Ext.P4 is original of the fixed deposit receipt for Rs.1,50,000/- bearing receipt No.0154165.
The unchallenged averments in the proof affidavit coupled with Ext.P1 to P4 documents would establish that the complainant Raju Lukose had deposit for Rs.4,10,000/- on various dates in his name. It is clear from Ext.P1 to P4 documents that the opposite parties have promised 12% profit share w.e.f. 05.01.2018 till the maturity date which is 05.01.2020. Ext.P1 to P3 Fixed Deposit receipts would indicate that the opposite parties have offered share of profit 12% w.e.f.05.01.2018 for a period of 24 months and Ext.P4 Fixed Deposit receipts would indicate that the share of profit offered is 12% per annum.
It is also clear from the available materials that the opposite parties had misappropriated entire amount deposited by the customer including the complainant and thereafter closed the branch office and also absconded without repaying the amount deposited or without paying share of profit to the depositors
as agreed. Hence there is deficiency in service and unfair trade practice on the part of opposite parties. In the circumstances the complainant is entitled to get an order directing the opposite parties to return the amount covered by Ext.P1 to P4 Fixed deposit receipts along with agreed share of profit from the effective date of each deposit till the date of order and thereafter interest @ 9% p.a. till the date of payment.
Though the complainant would claim compensation there is no pleadings and evidence to show that the complainant has sustained any mental agony apart from financial loss. Hence we are not inclined to grant any compensation as claimed in (b) relief.
The complainant is entitled to get reasonable costs from the opposite parties.
In the result complaint stands allowed in part in the following terms.
- Opposite parties 1 to 5 are directed to return the amount covered by Ext.P1 to P4 Fixed deposit receipts to the complainant along with agreed share of profit/interest from the effective date of deposit/investment within 45 days from the date of receipt of a copy of this order failing which the complainant is at liberty to recover the amount covered by Ext.P1 to P4 Fixed deposit receipts along with agreed share of profit from the date of investment till the date of order thereafter interest @ 9 % p.a. from the date of order till realization from the opposite parties No.1 to 5 are jointly and severally and from the assets of Popular Finance/Popular Group and from its assets.
(b) relief regarding compensation stands dismissed. Opposite parties 1 to 5 are directed to pay costs Rs.5,000/- to the complainant.
Dictated to the Confidential Assistant Smt. Minimol S. transcribed and typed by her corrected by me and pronounced in the Open Commission this the 30th day of April 2022.
STANLY HAROLD:Sd/-
E.M .MUHAMMED IBRAHIM:Sd/-
S.SANDHYA RANI:Sd/-
Forwarded/by Order
Senior superintendent
INDEX
Witnesses Examined for the Complainant:-Nil
Documents marked for the complainant
Ext.P1 : Original Receipt No. 0527592 of Popular Traders for Rs.1,00,000/-
Ext.P2 : Original Receipt No. 0527593 of Popular Traders for Rs.1,30,000/-
Ext.P3 : Original Receipt No. 0527594 of Popular Traders for Rs.30,000/-
Ext.P4 : Original Receipt No. 0154165 of Popular Traders for Rs.1,50,000/-
Witnesses Examined for the opposite party:-Nil
Documents marked for opposite party:-Nil
