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Bhavi Kuries and Hire Purchase Pvt Ltd. 
Submit Complaint..
The case of the complainant is as follows: The complainant subscribed to the 10th day pooval kuri conducted by the respondent Company vide statement No.143(A) for a sala of Rs.75,000/- and Rs.1500/- per instalment. The kuri was auctioned by the complainant on the persuasion given by the respondent that if an amount of Rs.27,000/- was deposited in the kuri company, respondent company would give 15% interest and also that would stand as sufficient kuri security for future subscriptions. The complainant bonafidely believing the said representation deposited an amount of Rs.27,000/- on 20.6.97 vide deposit receipt No.100 upon the condition that the respondent will pay interest at the rate of 15% for the deposit amount till the maturity of the kuri transaction. The deposit amount will be treated as a cover for the future liability of statement No.143A of the 10th day pooval kuri. The respondent is liable to return the security amount to the complainant on completion of the said kuri transaction. On 7.2.2006 when the complainant approached the company for getting interest at the rate of 15% per annum for the deposit amount for subscribing towards the 31st instalment, the respondent declined to pay interest at the agreed rate and offered interest at the rate of 10% only from 1.12.2005. This unilateral act of the respondent is against the terms of agreement. So the complainant was caused to send a lawyer notice and a reply was sent by them stating untenable matters. There is no remedy so far and the act of the respondent to reduce the interest rate is illegal. Hence this complaint.
2. The case of respondent is that the fact of deposit is true and there is no duration specified. So the respondent has every right to make the complainant to withdraw the deposit and to receive any other security. There is no right to the complainant to get interest at the rate of 15% till the termination of the deposit. The company has right to reduce the rate of interest since there is no specified duration for the deposit. The rate of interest was reduced as per the direction of Reserve Bank of India and if the rate of interest is not reduced it will affect the existence of the company itself. The complainant is at liberty to withdraw the deposit by giving any other sufficient security. The interest of 10% is sufficient and there is no deficiency in service.
3. The points for consideration are:
(1) Is there any deficiency in service?
(2) If so, reliefs and costs.
4. The evidence consists of Exts. P1 to P3 and Ext. R1.
5. Points-1 & 2: The dispute is regarding the reduction of interest rate. According to the complainant, the respondent company has reduced the interest rate from 15% to 10% for the amount specified in Ext. P1 deposit. Ext. P1 deposit is the money deposited by the complainant as security for future subscription in the kuri. According to the complainant, when the kuri was auctioned by him and when the auctioned amount was paid to the complainant, the respondent company made the complainant to believe that if an amount of Rs.27,000/- was deposited in the company they will give 15% interest and that would be sufficient kuri security for future subscription. So he made deposit. Later the company reduced the interest rate and this complaint has filed. In the counter the company stated that they had reduced the rate of interest as per the directions of Reserve Bank of India and if not the existence of the company will be in futile.
6. Ext. P1 is the receipt of deposit and shows that the rate of interest fixed was 15%. One of the contentions of the company is that since there is no duration specified in the receipt they can reduce the interest at any time. They also contend that as per the directions of Reserve Bank of India they had reduced the rate of interest. At the time of argument the counsel for respondent pointed out that as per Ext. R1 the company has every right to change the rate of interest. We have perused the Ext. R1 kuri security agreement and seen the right of the company to change the rate of interest. We feel that those writings are later added and change of ink also. There is also no averment in the counter about these wordings. So we suspect the genuineness of the writings about rate of interest and we are not in a position to accept that contention. The Reserve Bank of India’s direction not produced also. The reduction of interest is a unilateral act of respondent and is unfair and unjust and is not permissible. So the complainant is entitled for interest at the rate of 15% till the termination of the kuri.
7. In the result, complaint is allowed and the respondent is directed to give interest at the rate of 15% per annum from 7.2.06 till termination of the kuri. The respondent is further directed to pay Rs.1000/- (Rupees one thousand only) to the complainant as compensation and Rs.500/- (Rupees five hundred only) towards costs to the litigation within one month.
