DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II

U.T. CHANDIGARH

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          Complaint Case No.:536  of 2009

 Date of Institution :20.04.2009

                          Date of Decision    :26.112010

1.              Sh. Devinder Pal Singh, aged about 43 years S/o Late Sh. Khem Singh;

2.              Ms. Jasleen Kaur @ Jasleeen Kaur Aneja, aged about 21 years D/o Sh. Devinder Pal Singh;

3.              Ms. Abnash Kaur @ Abinash Kaur, aged about 17 years (minor), through her natural guardian and father Devinder Pal Singh;

All above earlier residing at H.No.783/-A, Phase –9, Mohali, District SAS Nagar, Punjab, presently residing at H.No.482, Sector –40-A, U.T., Chandigarh.

                                   ..…Complainants

V e r s u s

1.              Unit Trust of India, Technology Services Limited, Central Processing Center, Plot No.3, Sector –11, Post Bag No.18, CBD Belapur, Navi Mumbai, thorugh its Branch Incharge, SCO No.70, (First Floor) Sector 20-C, U.T. Chandigarh.

2.              The Branch Incharge, Unit Trust of India, SCO No.70 (First Floor) Sector –20-C, U.T. Chandigarh.

..…Opposite Parties

QUORUM        

               SHRI LAKSHMAN SHARMA         PRESIDENT

               SHRI ASHOK RAJ BHANDARI       MEMBER

               SMT MADHU MUTNEJA             MEMBER

PRESENT:      Sh. Amanjot Singh, Adv for the complainants.

Sh. Amit Handa, Authorized agent for the OPs.

                              ---

PER ASHOK RAJ BHANDARI, MEMBER  

     In brief the case of the complainant is that the Complainant No.1 applied with the OP-1 for the issuance of Units under the Children Gift Growth Fund Unit Scheme, 1986 in the name of Complainants No.2 & 3, who at that time were minors. The complainant No.1 invested in the two certificates under the scheme floated by OP namely Children Gift Growth Fund Unit Scheme, 1986 (Clause 8) in the name of complainants No.2 and 3 on 3.10.1991. The amount invested was to mature on 03.10.2012. OP-1 assured the complainant and other investors that they shall be provided with the dividend/interest accrued on the deposits to its customers but since then nothing has been paid to him.  The complainant on the advice of Sh.Deepak Kumar, official of OP-1, submitted the birth certificates of the complainants No.2 and 3 along with the original certificates with the OPs for conversion of the certificates into bonds but the same was not converted after his repeated visits. It was only after the service of legal notice dated 19.03.2007 that OPs converted the original certificates into the ARS bonds and issued bonds bearing No.222685273 and 222685257 in the name of the complainants No.2 and 3. The complainant vide his letter dated 17.12.2007 informed the OPs that he had changed his residence from Mohali to Chandigarh.   The case of the complainant is that OPs have failed to pay interest/dividend for the entire period the sum/amount remained with them i.e. from 03.10.1991 till the date of having officially converted the units into bonds.  On repeated requests of the mother of the complainants No.2 and 3, they were advised to make application for issuance of duplicate cheques/warrant pertaining to the dividend in respect of the bonds.  It has been pleaded by the complainants that despite their requests they have not received their dividend cheques/warrants nor any other communication in respect of the same was sent to them which amounts to deficiency in service on the part of Ops. Hence, this complaint directing the Ops to  pay interest due under CGGF Scheme from the date of investment i.e. 03.10.1991 till conversion of the units into 6.60% ARS Bonds i.e. 01.04.2004 and interest cheques issued under ARS Bonds along with penal interest @ 24% p.a. till payment besides compensation of harassment and litigation expenses.

2.        In the reply filed by OPs, the factual matrix of the case is admitted.  It has been pleaded that original half yearly interest warrants were sent to the complainants by post in normal course which were not returned to the OPs as undelivered by the postal authorities. The eight duplicate interest cheques dated 29.07.08  due as on the said date were also sent to the complainants on completion of the procedural requirement by the Complainants, which were also not returned undelivered. It has been pleaded that the OP has not derived any benefit out of the interest proceeds of the complainants as the amount was provided in the current account being maintained with the bank immediately on the issue of cheques under the scheme.  According to OPs, there is no deficiency in service on their part and the complaint deserves dismissal qua them.

3.   We have heard the learned counsel for the complainant and authorized agent for the OPs and have also perused the documents placed on record thoroughly.  As a result of the detailed analysis of the entire case, the following points / issues have clearly emerged and certain conclusions / arrived at, accordingly.

i)              The basic facts of the case in respect of the complainant No.1 having invested different amounts for issuance of units under the “Children Gift Growth Fund Unit Scheme, 1986” in the name of Complainants No.2 and 3, who at that time were minors and that OPs issued 02 certificates under the Scheme in the respective names of Complainants No. 2 and 3 on 03.10.1991, which were due to mature on 3.10.2012, have all been admitted. The only grievance of the Complainants, especially, complaint No. 1 against the OPs is that ever since inception i.e. 3.10.1991, till the date of filing the complaint i.e. 20.4.2009, they had not received any dividend/interest warrants accrued on the deposits from OPs. Complaint No. 1 had also submitted the birth certificates of complaints No. 2 and 3 to the OPs for the purpose of conversion of the CGGF Unit Certificates into Bonds in the year 2004, but the same were not converted even after his repeated visits and service of legal notice on 19.3.2007. The Complainant had also informed the OPs on 17.12.2007 that he had changed his residence from Mohali to Chandigarh, but even on the changed address, he did not get any dividend/ interest warrants. Based on these averments, the Complainants have prayed for the issuance of dividend/interest warrants, which have been pending during the last 20 years as also the converted ARS Bonds, which were allegedly issued by the OPs in April, 2004, along with interest @ 24% per annum, besides costs of litigation and compensation for harassment.

ii)         In the reply filed by the OPs, the basic facts of the case have been admitted. The only defence taken by the OPs has been that all original half yearly dividend/ interest warrants were sent to the Complainants by post in normal course, which were not returned to them as undelivered by the postal authorities and it was presumed that the same must have been received by the Complainants. The OPs have specifically stated that eight duplicate interest warrants, which were issued at the request of the Complainant on 29.7.2008, were also sent, but the same were also not returned undelivered to them. The OPs further say that the entire money available with them always remained in their current account and they have not taken any undue financial benefit from the same. On these grounds they have prayed for the dismissal of the complaint.

4.   On a detailed analysis and scrutiny of the entire case, we find that there is no doubt that the OPs might have sent all the relevant dividend/interest warrants to the Complainants during the course of 20 years and as per Complainant’s own admission, some of these dividend/interest warrants had actually been received by Complainants No. 2 and 3 in the absence of complaint No. 1 at their residence, but on verification, it was found that some of these warrants had already expired and, therefore, the same could not be credited into the bank accounts of the Complainants. It is also noted that during the proceedings of this case on 6.11.2009, Mr. Amit Handa, Authorized Representative of the OPs, had tendered in the Forum 20 documents marked as Annexure O/1 to O/20, which contained renewed dividend/ interest  warrants, which included two warrants, representing the maturity amounts. All these documents were duly received by the Complainants in the Forum. As such, the major portion of the prayer made by the Complainants has already been met with. The only question, which still remains, is the delay on the part of the OPs in making payments of the dividend/ interest warrants to the Complainants. The matter was also taken up in Lok Adalat on 16.4.2010 and 30.72010, but the same could not be settled and final arguments were heard on 18.10.2010 on the merits of the case.

5.     Keeping in view the totality of the case, as also the fact that the Complainants have been surely and certainly deprived of receiving the dividend/ interest warrants for a considerably long time and the amount in question was only received by them finally on 6.11.2009 i.e. after a lapse of about 18 years, the Complainants certainly suffered financial losses, as also physical harassment, mental agony and pain in the entire process. More so, the aforesaid amounts have remained with the OPs all through the said period. Even some of the duplicate dividend/interest warrants supplied by the OPs to the Complainants were found to have expired before these could be encashed by the Complainants. All this amounts to deficiency in service on the part of the OPs. Since 20 documents representing renewed dividend/interest warrants, including the maturity amounts in the shape of two different warrants, have already been received by the Complainants, though belatedly on 6.11.2009, the Complainants are only entitled to receive some compensation and litigation costs, as major part of the prayer has already been met with by the OPs. 

6.     Keeping in view the details of the case, in our considered view, the present complaint has a lot of merit, weight and substance and it must succeed in favour of the Complainant and against the OPs and we decide accordingly.

7.   OPs shall, jointly and severally, make the following payments to the complainant:-

i)              To pay interest @9% per annum on the amounts invested by the Complainants under CGGF Unit Scheme, 1986 from 3.10.91 till 31.3.2004, after deducting the amounts already paid by them to the Complainants on 6.11.2009.

ii)         To Pay the pending interest cheques issued under 6.60% ACR Bonds issued by the OPs in favour of the Complainants with effect from 1.4.2004, till the dates of their maturity, again after deducting amounts of interest cheques, if already paid, by the OPs on 6.11.2009.

iii)    To pay a sum of Rs.10,000/- as compensation for causing physical harassment, mental agony and pain to the Complainants.

iv)         To pay a sum of Rs.7,000/- as costs of litigation.

8.   The above said order be complied with by the OPs, jointly and severally, within a period of 45 days, from the date of receipt of certified copy of this order, failing which the OPs shall pay the above said amounts, along with interest @18% per annum from the date of filing of this complaint i.e. 20.4.2009, till realization, besides paying the costs of litigation. 

9.     Certified copies of the order be supplied to the parties free of any charge. The file be consigned to record room after compliance.

Announced

26.11.2010                                             

Sd/-

(LAKSHMAN SHAMRA)

PRESIDENT

Sd/-

(ASHOK RAJ BHANDARI)

MEMBER

Sd/-

(MADHU MUTNEJA)

MEMBER

“Dutt”