IN THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, KOLLAM

                                               C.C.No. 71/2021

PRESENT

SMT. S.K.SREELA, B.A.L, LL.B, PRESIDENT

      SMT. S.SANDHYA   RANI. BSC, LL.B, MEMBER

  SRI.  STANLY HAROLD, B.A.LL.B, MEMBER

                                              ORDER DATED:   31-07-2023

BETWEEN

1. Moly Yohannan, 58 years,

Kalluvila Veedu, Kuzhimanthicadu P.O.,

Kureepra, Kollam 691 509.

2. George Mathews, 59 years,

Kalluvila Veedu, Kuzhimanthicadu P.O.,

Kureepra, Kollam 691 509.:         Complainants

AND

1. Thomas Daniel & Family,

Indikattil House, Vakayar P.O.,

Konni, Pathanamthitta 689 698.

2. S.Peter,

Shalom, Eravipuram P.O., Kollam 691011.

3. T.Radhamani,

C/o N.S.Gopalakrishnan,

Perumpuzha P.O., Kollam 691504.:Opposite Parties

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 1^st complainant is a widow and mother of two daughters.  The opposite parties 1 to 3 are the Managing Partners as well as designated partners of company registered under the Indian Companies Act 2013.  The opposite parties 1 to 3 advertised in the newspaper dailies and other publications that they are offering interest @ 12% per annum to those who have made deposits with them as fixed deposit for a particular period with the liberty to withdraw the accrued interest in each and every month quarterly or annually as desired by the depositors. 

By falling into the colourful advertisement in both printed and visual media by the opposite parties 1 to 3, complainant who required money for her daughter’s marriage expenses, deposited Rs.2,00,000/- each in the opposite party company on 16.08.2019 as per A/c No.1029991903074 via receipt No.0153954 and by receipt No.0162718 in A/c No.1029991907104 dated 16.03.2020 for Rs.2,00,000/-.  When the complainant made the above said deposits before the opposite parties 1 to 3 convinced the complainant that the amount deposited was as fixed deposit for a period of 12 months @ 12% interest per annum.  In the said fixed deposit receipts the opposite parties agreed to pay interest @ 12% per annum allowing the complainant to withdraw the fixed deposit amount along interest on the maturity dates shown in each and every fixed deposit receipts.  When the complainant made the fixed deposits before the opposite parties, the complainant became the consumers of the opposite parties. 

Complainant came to know that the opposite parties are not returning the fixed deposit amount as well as regular monthly interest to the subscribers promptly as done in the previous years.  Hence the complainant approached the opposite parties 1 to 3 to release the amount due to them along with interest from the date of deposit of the amount till payment, prior to the maturity dates shown in the above fixed certificates.  But thereafter the opposite parties failed to pay the said agreed amount to the complainant.  Thereupon the complainant made

several demands to the opposite parties to pay the arrears of interest and also to return the principal fixed deposit amount.   The complainant got reliable information that the opposite parties have committed contractual violation, deficiency in service and also unfair trade practice.  The subscribers approached the police for releasing the fixed deposit amount and thereafter the police sealed the office of the opposite parties.  It is crystal clear that there is contractual violation, deficiency in service and also unfair trade practice on the part of the opposite parties. Now it is learned that the opposite parties have been sent to the jail.  Hence the complaint.

Notice has been issued to the opposite parties and they failed to appear before the Commission hence they were set exparte.  The complainant filed chief affidavit in lieu of chief examination and reiterated the averments in the complaint and got marked Ext.P1 and P2 documents.  Ext.P1 is the copy of the fixed deposit receipt No.0153954 dated 16.08.2019 in A/c No.1029991903074/12 for Rs.2,00,000/- in the name of Moly Yohannan.  Ext.P2 is the fixed deposit receipt No.0162718 dated 16.03.2020 in A/c No.1029991907104 for Rs.2,00,000/- in the name of Moly Yohannan. 

Based on the uncontroverted testimony of the complainant and the supporting documents, Ext.P1 and P2, it can be concluded that the complainant has presented sufficient evidence to support their case and justify the relief they are seeking.

It is important to note that the opposite parties had acknowledged receiving the fixed deposit amount on multiple occasions, as evidenced by the documents provided. However, after specific dates ie; 16.08.2019 and 14.02.2020, the opposite parties failed to provide the complainant with the agreed interest or return the principal amount.

The available materials on record indicate that the complainant made repeated requests to the opposite parties for the withdrawal of their deposits, but

the opposite parties refused to comply by withholding both the interest and principal amount. This clear and deliberate withholding of funds by the opposite parties amounts to illegal enrichment and demonstrates a breach of their contractual obligations. This indicates a deficiency in service and an unfair trade practice.

This case revolves around the complainant engaging the services of the opposite parties in exchange for payment. However, the opposite parties deliberately, unlawfully, and arbitrarily failed to fulfill their obligations and provide the agreed-upon service to the complainant. The opposite parties explicitly agreed to promptly pay interest on the fixed deposit amount on a monthly basis, as well as repay the fixed deposit amount upon maturity or upon the complainants' request. Nevertheless, the opposite parties failed to honor their commitments, thereby demonstrating clear deficiencies in their service provision to the complainants. This behavior constitutes a violation of the terms of their agreement, as well as unfair trade practices. Furthermore, the opposite parties' refusal to return the complainants' funds represents an illegal act of withholding money for their own illicit enrichment. Such actions further support the complainants' claims of contractual violation, deficiency in service, and unfair trade practices. Therefore, it is evident that the opposite parties' conduct in this case demonstrates clear instances of deficiency in service, contractual violation, and unfair trade practices. The complainant is justified in seeking redress for the damages and losses incurred as a result of the opposite parties' actions.

Therefore, based on the evidence presented, it can be concluded that the complainants have established their case and are entitled to the relief they are seeking.

 In the result we are of the view the complaint is only to be allowed. Therefore, the complainant is entitled to realize Rs.4,00,000/- together with

interest @ 12% per annum and compensation of Rs.10,000/- and Rs.5,000/- as the costs of the proceedings from the date of the complaint till realization.

In the result complaint stands allowed in the following terms: -

1. The opposite parties 1 to 3 are directed to pay Rs.4,00,000/- with interest @ 12% per annum from the date of the order till realization.
2. The opposite parties 1 to 3 are further directed to pay Rs.10,000/- as compensation and Rs.5,000/- towards costs to the complainant.
3. The opposite parties 1 to 3 are directed to comply with the above directions within 45 days from the date of receipt of the order failing which the complainants can initiate execution proceedings.       

Dictated to the Confidential Assistant  Smt. Minimol S. transcribed and typed by her corrected by me and pronounced in the  Open Commission this the 31^st  day of  July 2023.

Sd/-

STANLY HAROLD

MEMBER

Sd/-

S.K.SREELA

PRESIDENT

Sd/-

S.SANDHYA RANI

MEMBER

Forwarded/by Order                                   

                Senior superintendent

INDEX

Witnesses Examined for the Complainant:-Nil

Documents marked for the  complainant

Ext.P1    : Copy of the fixed deposit receipt No.0153954 dated 16.08.2019 in

                A/cNo.1029991903074/12 for Rs.2,00,000/- in the name of Moly Yohannan. 

Ext.P2 : Fixed deposit receipt No.0162718 dated 16.03.2020 in A/c No.1029991907104

             for Rs.2,00,000/- in the name of Moly Yohannan. 

Witnesses Examined for the opposite party:-Nil

Documents marked for opposite party:-Nil