KERALA STATE CONSUMER DISPUTES REDRESSAL COMMISSION

VAZHUTHACAUD, THIRUVANANTHAPURAM

APPEAL NO.210/2007

JUDGMENT DATED: 06.02.2010

PRESENT:-

JUSTICE SHRI.K.R.UDAYABHANU            :          PRESIDENT

SHRI.M.K.ABDULLA SONA                             :          MEMBER

1.         The Integrated Finance Co.Ltd.,       

          Registered Office, “Vairams”,

          112, Thayagaraya Road, T.Nagar,           :          APPELLANTS

          Chennai – 690 017.

2.          Integrated Finaice Co.Ltd.,

          Opp.Ammachiveedu, Temple,

 Kollam Collectorate, Kollam.

(By Adv.Sri.George T. Thechettu)

                      Vs

Tonny G. Paniker,

Thekka Attathu Sujo Bhavan,                          :          RESPONDENT

Punnamukku,

Kundara

Kollam.                                              

(By Adv.Sri.G.K.Nampoothiri)

JUDGMENT

JUSTICE SHRI.K.R.UDAYABHANU         :            PRESIDENT

                    The appellants are the opposite parties in C.C.No.260/06 in the file of CDRF, Kollam.  The appellants are under orders to pay to the complainant a sum of Rs.63,070/- towards the return by way  of F.Ds and Rs.94,000/- towards the value of bonds to the complainant with interest 9% per annum from the date of complaint and also to pay Rs.10,000/- towards  costs.

                     The case of the complainant is that he attracted by the advertisement of the opposite party/Finance Company deposited amounts in fixed deposits. Accordingly the complainant deposited an amount of Rs.35,000/- on 13.09.2002 under F.D.Account number 178746 for a period of 60 months.  On maturity the amount on 13.09.2007 will be Rs.63,070/-.

He also deposited amounts in redeemable bonds in the company as noted below.

Total bonds  Certificate No.    Date of allotment          Date of redemption

32                          02795                     02.02.2001            01.02.2006

30                          02798                     02.02.2001            01.02.2006

32                          02799                     02.02.2001            01.02.2006

The total value of the 94 bonds at the rate of Rs.1,000/- liable to be returned on the date of redemption ie,01.02.2006 is Rs.94,000/-.  Despite repeated demands the amounts were not paid.  He has sought for the return the above amounts ie Rs.1,57,070/- with interest and cost.

          The opposite party filed version admitting the deposits and purchase of bonds.  It is contended that unable to return the amount when all of the depositors applied for withdrawal at the same time they have filed an application before the Hon’ble High Court of Madras for approval of its scheme under Sec.319 of the Companies Act and that the same is pending.  Hence it is contended that the complaint is liable to be dismissed.

 The evidence adduced consisted of the testimony of PW1 the complainant and DW1 the Power of Attorney holder of the opposite party and Exts.P1 to P4 and D1 to D3.

The complainant has produced the copies of the FD receipts and redeemable bonds vide Exts.P1 to P9.

The opposite party have produced the orders passed the Madras High Court in Company petition No.654 of 2005.  It was admitted that the Division Bench of the High Court of Madras has dismissed the application for the sanction of the scheme.  The counsel for the appellant has contended that the matter is pending before the Supreme Court and that it will be taken up soon.  However, the appellant has not produced any order of the Supreme Court staying operation of proceedings initiated at the instance of the deposits and bond holders.  In the circumstances and in view of the fact that the receipt of deposits and issuance of bonds stands admitted we find that the appellant are liable to pay the amounts.  Hence the order of the Forum directing to pay the amounts with interest at 9% per annumfrom the date of file of the complainant is only to be upheld.  All the same, amount of cost ordered ie, Rs.10,000/- is reduced to Rs.5,000/-. With the above modification the order of the Forum is confirmed.  The appellants are directed to pay the amounts to the complainant within 4 months without failing which the complaint would be entitled to interest at 12% per annum from today.

In the result, the appeal is allowed in part as above.

JUSTICE K.R.UDAYABHANU             :          PRESIDENT

M.K.ABDULLA SONA                              :          MEMBER

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