Ashly Abraham V/S Soosy Kuriyan - Consumer Court Case

Kerala

Kottayam

CC/15/2022

Soosy Kuriyan - Complainant(s)

Versus

Ashly Abraham - Opp.Party(s)

27 Jul 2023

ORDER

Consumer Disputes Redressal Forum, Kottayam

Kottayam

Complaint Case No. CC/15/2022

( Date of Filing : 25 Jan 2022 )

1. Soosy Kuriyan

Athakattu House, Asterdale Villa Vadavathoor P O Kottayam. Pin. 686010

Kottayam

Kerala

...........Complainant(s)

Versus

1. Ashly Abraham

Branch Manager, Puthuppally Kottayam. Pin. 686011

Kottayam

Kerala

............Opp.Party(s)

BEFORE:
	HON'BLE MR. V.S. Manulal PRESIDENT
	HON'BLE MRS. Bindhu R MEMBER
	HON'BLE MR. K.M.Anto MEMBER

PRESENT:

Dated : 27 Jul 2023

Final Order / Judgement

IN THE CONSUMER DISPUTES REDRESSAL COMMISSION, KOTTAYAM

Dated this the 27th day of July, 2023

Present: Sri.Manulal.V.S, President

Smt.Bindhu.R, Member

Sri.K.M.Anto, Member

CC No. 15/2022 (Filed on 25/01/2022)

Complainant : Soosy Kurian,

Athakattu, Asterdale Villa,

Vadavathoor P.O,

Kottayam - 686 010.

(By Adv: Roy Jose)

Vs.

Opposite parties : 1. Ashly Abraham,

Branch Manager,

Muthoot Finance Limited,

Puthuppally, Kottayam - 686 011.

2. The Managing Director,

Muthoot Finance Limited,

Kochi - 682 001.

3. The Chief Executive Officer,

Muthoot Securities Limited,

Kochi - 682 020.

4. The Regional Manager,

Muthoot Finance Limited,

Kochi - 682 001.

(All by Adv: Jose.J.Cheruvil)

O R D E R

SRI.K.M. ANTO, MEMBER

The complaint is filed under section 35 of the Consumer Protection Act 2019.

The brief facts of the complainant’s case are as follows. The complainant had deposited Rs.5,49,400/- with the Pampady branch office of the second opposite party as fixed deposit for 34 months. The fixed deposit together with interest was to be credited to the complainant’s account on 16/03/2021. As the amount was not credited to the account, the complainant contacted the first opposite party who had received the fixed deposit from the complainant. The first opposite party issued a holding statement to the complainant and, it was revealed that instead of depositing the money in Muthoot Finance the amount was deposited in a company named Srei. A complaint was given to the opposite parties, but no action was taken by the opposite parties on the complaint. The opposite parties are bound to refund the deposit amount with interest. The opposite parties had misused the complainant’s money for their benefits. This act of the opposite parties is deficiency in service and unfair trade practice. This complaint is filed for getting Rs.7,41,569/-, and a compensation of Rs.25,000/- along with cost Rs.2,500/-.

On admission of the complaint, copy of the complaint was duly served to the opposite parties. The opposite parties appeared and filed joint version.

The opposite parties filed their version as follows.

The complainant had not deposited any amount with Muthoot Finance Limited and Muthoot Finance Limited has not received any amount from the complainant as deposit. Muthoot Finance cannot legally receive any deposit from the customers. Muthoot Finance Limited is engaged in the business of rendering Gold Loan facilities against the security of gold ornaments. It does not have the authority to accept fixed deposits. Muthoot Securities Limited is a SEBI registering stock broker and is authorized to act as a broker in the primary and secondary securities Market. Also authorized to distribute Non-Convertible Debentures (NCD), Mutual funds of various companies. The complainant had purchased the Non-Convertible Debenture (NCD) of SREI Infra Structure Finance Limited through Muthoot Securities Limited. The complainant had visited the office of Muthoot Finance Limited along with her husband and had given written order request to purchase the NCD of Srei Infrastructure Finance Limited as it had a rating of A++ and the market value was 1025. The complainant had purchased 536 NCDs of the said company and the value then calculated was given to Muthoot Securities by way of cheque. Muthoot Securities Limited had purchased the NCDs through the Demat account of the complainant. The contract note cum tax invoice was issued to the complainant on 22/05/2018. The complainant, her husband and daughter are holding Demat accounts. The complainant had given authorization for digital contract/DP statements and running account authorization as early on 05/06/2014 and had given the Email ID as

The complainant was examined as PW1. The documents filed by the complainant were marked as Exhibits A1 to A14. The second opposite party filed Proof affidavit and marked documents Exhibits B1 to B5.

On the basis of the complaint, version of the opposite parties and evidence adduced we would like to consider the following points :

(1) Whether there is unfair trade practice or deficiency in service on the part of the opposite parties ?

(2) If so, what are the reliefs and costs?

POINTS 1 & 2

On going through the complaint, version of the opposite parties and evidence adduced, it is clear that the complainant had visited the Pampady Branch of the second opposite party on 16/05/2018 and had deposited Rs 5,49,400/-. Ext. A1 is the Receipt issued by the second opposite party which contains details such as Invested amount Rs 5,49,400/-, Invested date 16/05/2018, Period 34 months, Scheme Maturity, Maturity Amount Rs 6,89,832/- and Maturity date 16/03/2021. Ext. A3 is the copy of the petition filed by the complainant on 20/07/2021 before the second opposite party and copies to the 3rd, 4th and 1st opposite parties. Ext. A5 is the letter from the Customer Redressal Cell of the second opposite party to the complainant dated 03/09/2021. Ext.A13 is the Receipt of Invested Amount Rs.5,00,000/-, Invested date 16/05/2018, Period 12 months, Scheme Maturity, Maturity Amount Rs.5,40,000/- and Maturity date 16/05/2019 issued by Muthoot Finance. The opposite parties failed to offer any explanation for the issuance of Ext.A1. It is admitted by the opposite parties in the version and affidavit that Muthoot Finance is not legally authorized to receive any deposit from the customers. Muthoot Finance Limited is engaged in the business of rendering Gold Loan facilities against the security of gold ornaments. It does not have the authority to accept fixed deposits. Meanwhile Ext. A1 shows that the second opposite party had accepted deposit of Rs.5,49,400/- on 16/05/2018 with maturity amount Rs. 6,89,832/- and maturity date 16/03/2021. The proof affidavit filed by the opposite parties through the CFO of 3^rd opposite party for and on behalf of the other opposite parties also. From this itself we can understand that both Muthoot Finance and Muthoot Securities work jointly in a collusive manner.

Also Ext.A13 shows that the second opposite party had accepted Rs 5,00,000/- on 16/05/2018 for 12 months period, with Maturity Amount Rs 5,40,000/- and Maturity date 16/05/2019. This clearly proves that the second opposite party had accepted deposits from the complainant against the License conditions as claimed by the second opposite party. The act of the first and second opposite parties in accepting deposits from the complainant against their own license conditions is an unfair trade practice on their part. The first, second and 4^th opposite parties failed to give the maturity amount of the deposit on 16/03/2021 as promised in Ext.A1. In Ext.A1 receipt the 2^nd opposite party expressly agrees to return the investment amount of Rs.5,49,400/- as Rs.6,89,832/- on 16/03/2021, after the expiry of 34 months from the date of investment to the complainant. This is deficiency in service on the part of the first, second and 4^th opposite parties.

We allow the complaint and pass the following orders.

(1) The first, second and 4^th opposite parties are directed to give Rs.6,89,832/-to the complainant with 9% interest from 16/03/2021 p.a till realization.

(2) The first, second and 4^th opposite parties are directed to give Rs.15,000/-(Rupees Fifteen Thousand only) to the complainant as compensation for the mental agony and hardships with cost Rs.2,000/- (Rupees Two Thousand only).

The order shall be complied within 30 days from the date of receipt of the copy of this order. If not complied as ordered, the compensation amount will carry 9% interest from the date of order till realization. The first, second and 4^th opposite parties are jointly and severally liable to pay the award amount.

Pronounced in the Open Commission on this the 27^th day of July, 2023