BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION AT BANGALORE (URBAN)

DATED 30^th DAY OF NOVEMBER 2021

O R D E R

Smt.P.K.SHANTHA, MEMBER

The complaint has been filed by the complainant under Section 35 of Consumer Protection Act, 2019 against Opposite Parties (herein after referred as OPs) with a prayer to direct the OPs to refund the matured deposit Rs.1,00,000/-, quarterly interest due Rs.13,286/-, the penal rate of interest @ 18% till the date of actual payment, Rs.1,000/- incidentals, Rs.5,000/- towards mental agony and trauma under going.

2. The brief averments made in the complaint are as under:

The complainant is a retired army person, and on retirement, the benefits which he received at the time of his retirement and hard earned savings he had deposited into the fixed deposit schemes of the OP as per guidelines stipulated in “The Companies (Acceptance Deposits) Rules, 1975” under Companies Act, 1956 under deposit schemes and as per the terms and conditions laid in the application form.  This is to get some regular income to lead a normal retired life.

The complainant applied for the fixed deposits in the prescribed application form of OP through authorized local broker M/s RR Financial Consultants Ltd., of OP at Bengaluru and the receipt (FDR) was delivered at the residential address of complainant at Bangalore assuring to pay the interest amount every quarter on the first of following quarter and the repayment of matured amount would be made on the date of maturity and quarterly interest amounts would be made on the date of maturity and quarterly interest amounts would be paid regularly as per “terms and conditions” and as stipulated on the Acceptance of Deposit Rules 1975. The warrants for the repayment and for the interest shall be delivered at the complainant’s residential address well in time. 

The details of the deposits are as follows:-

The above deposit has matured on the date mentioned in the table.  The duly discharged FDR was submitted by the complainant well in time for repayment and the same had been received by the OPs.  The OPs have defaulted payment of quarterly interest amount for several quarters as mentioned since dates mentioned in the table.  The complainant has been reminding OPs through various E-mails and requesting to send repayment warrants without delay.  But till date, the complainant has not received the repayment warrants.  Thus OPs have failed/wilfully defaulted to repay the matured deposit amount and quarterly interest for the deposits for several quarters in violation of “Companies (Acceptance of Deposit) Rules 1975 and 2013” and the delay in repayment attracts penal rate of interest of 18% under clause 8A of said Rule 1975 and Rule 17 of Companies Deposit Rule 2013.

The OPs are constantly and regularly followed up and reminded about the non-repayment of matured deposits and interest thereon.  The OPs were sent a registered letter.  Inspite of requests and reminders, the OPs have not effected repayment of matured deposit failing in his commitments and thereby causing inconvenience and loss to the complainant.  Hence, the complainant felt deficiency in service on the part of OPs.  Under the circumstances, the complainant has filed this complaint against the Ops for appropriate reliefs.

3. After service of notices, OPs failed to appear before this Commission and were placed exparte.
4. So as to prove his case, Mr.Pravin Kumar Tiwari, the complainant has filed his affidavit evidence in support of his complaint reiterating the complaint averments and produced the copies of documents which are marked as Ex.A.1 and Ex.A.2.  Heard the complainant. 

5. The points that arise for our consideration are:

1.  Whether the Complainant proves the deficiency of service on the part of OPs, if so, entitled for the relief sought for?
2. What order?

  6.  Our answers to the above points are as under:

       Point No.1:  Partly in the affirmative.

      Point No.2:  As per the final order for the following

REASONS

7. Point No.1:  The sworn testimony of the complainant has remained unchallenged, OPs neither filed version nor denied the sworn testimony of the complainant.  So, under these circumstances, we have no reasons to disbelieve the sworn testimony of the complainant.
8. We have perused the documents produced by the complainant coupled with documents establishes that he has deposited his retirement benefits which he received at the time of retirement and hard earned savings into fixed deposit schemes of OPs as per guidelines stipulated in “The Companies (Acceptance deposits) Rules 1975”.  Under the Companies Act, 1956 under deposit schemes and as per the terms and conditions laid in the application form which is produced and marked as Ex.A.1.  The complainant applied for the fixed deposits in the prescribed application form of OPs through authorized local broker M/s RR Financial Consultants Ltd., of OP at Bengaluru and the receipt was delivered at his residential address at Bangalore (No.122) Dispensary Road, Bangalore, Karnataka-560001 assuring to pay the interest amount every quarter on the first of following quarter and the repayment of matured amount would be made on the date of maturity and quarterly interest amounts would be paid regularly as per the “terms and conditions” and as stipulated in the Acceptance of Deposit Rules, 1975.  The above said receipt is produced and marked as Ex.A.2.
9. On perusal of oral and documentary evidence of the complainant, it is clear that the complainant has deposited a sum of Rs.1,00,000/-  with OPs for a period of three years from 23.07.2013 to 23.07.2016., repayable along with interest at 12.5% p.a.  The OPs failed to pay the matured amount with interest.  The conduct of OPs in not refunding the matured amount with interest amounts to unfair trade practice and gross deficiency of service.  The OPs have no right to withheld the amount of complainant which he deposited.
10. The OPs did not appear to contest the claim putforth in the complaint.  The conduct of OPs in not refunding total deposit amount of Rs.1,00,000/- along with quarterly interest for several quarters on time amounts to deficiency of service.  The non-refunding of the fixed deposit amount must have put the complainant to hardship, inconvenience and mental agony, we are satisfied that the complainant has successfully proved the deficiency of service on the part of OPs.  Under the circumstances, we are of the considered view that, OPs are liable to refund total fixed deposit amount of Rs.1,00,000/- (Rupees one lakh only) to the complainant along with interest at 12.50% p.a. since 01.07.2015 till the date of realization along with litigation cost of Rs.5,000/. Accordingly, we answered the point no.1 partly in the affirmative.
11. Point No.2:- In view of our findings on the point No.1, we pass the following

ORDER

1. The complaint filed by the complainant u/s.35 of the Consumer Protection Act, 2019 is allowed in part.
2. OPs are jointly and severally directed to refund an amount of Rs.1,00,000/- (Rupees one lakh only)  with quarterly interest due since 01.07.2015 at 12.50% p.a. till realization together with litigation cost of Rs.5,000/- (Rupees five thousand only) to the complainant.
3. OPs shall comply this order within six weeks from the date of receipt of the order, failing which the complainant is at liberty to take steps as per Law.
4. Furnish free copy of this order to both the parties.

(Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Commission on this 30^th day of November, 2021).

List of documents produced by the complainants marked as Ex.A.1 and 2 are as follows:-