Date of Filing:09.11.2021

Date of Disposal:25.04.2023

BEFORE THE IV ADDL DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION BENGALURU

1^ST FLOOR, BMTC, B-BLOCK, TTMC BUILDING, K.H ROAD, SHANTHINAGAR, BENGALURU – 560 027.

ORDER

SRI RAMACHANDRA.M.S,  PRESIDENT

1. The Complainants have filed this complaint under section 35 of the Consumer Protection Act 2019, against the Opposite party (herein after called as OP) alleging deficiency of service.

2.   The following are the complaint's key facts: 

The complainants are depositor of OP registered finance company under the name and style M/s Sri Bharadwaj Finance Company. It is dealing with the receipt of Fixed Deposit and Recurring Deposit from the general public. As such the complainants opened recurring deposit account for 12 months which carries 12% p.a.(Extra 2% for Sr.citizens) will be paid on monthly products basis compounded quarterly with OP on 27.07.2019 with monthly deposit of Rs.10,000/-  and deposited for a period of 7 months till 27.01.2020 totaling Rs.70,000/- in recurring deposit account with OP. The OP abruptly stopped transaction since February 2020 and the OP was unable to pay the other deposits when they    approached OP for  maturity proceeds of their respective FDs and recurring deposit accounts held with OP and the complainants were forced to stop the payment of their recurring deposit account held with OP.

3.  The complainants further submits that after repeated requests to OP to return the recurring deposit account amount of  Rs.70,000/- along with interest, the OP keep on postponing the payment of the deposit money along with interest to the complainants on one pretext or another. Complainant got issued legal notice on 02.09.2021 by calling upon OP to pay the said amount along with interest, but the notice returned with shara addressee left. Aggrieved by the act of the OP, the complainant preferred the complaint seeking relief as prayed in the complaint.

4.  Notice to the OP duly served, OP represented inperson and filed version and affidavit taken as not filed.

5. The complainant has filed chief examination affidavit by reiterating the complaint allegations and also filed documents in support of their plea.

6. Heard arguments and the matter is posted for orders.

7. The points that arise for our consideration are;

1. Whether the Complainant proves that there is deficiency of service on the part of the OP as alleged in the complaint and thereby prove that he is entitle for the relief sought?
2. What order?

8. The findings on the above points are as under:

Point No.1       :       Partly in Affirmative

Point No.2       :       As per final order

REASONS

9. POINT NO.1:- From the perusal of complaint assertions and chief examination affidavit of complainant, it is clear that the complainant is a depositor of OP registered finance company under the name and style M/s Sri Bharadwaj Finance Company. It is dealing with the receipt of Fixed deposits and  Recurring Deposits(R.D.) and as such the complainant opened recurring deposit account for 12 months which carries 12% p.a.(Extra 2% for Sr. citizens) will be paid on monthly basis compounded quarterly with OP on 27.07.2019 with monthly deposit of Rs.10,000/-  and deposited for a period of 7 months till 27.01.2020 totaling Rs.70,000/- in recurring deposit account with OP. The OP abruptly stopped transaction since February 2020 and the OP was unable to pay the other deposits when they    approached OP for  maturity proceeds of their respective FDs and recurring deposit accounts held with OP and the complainants were forced to stop the payment of their recurring deposit account held with.

10. The complainants further submits that after repeated requests to OP to return the recurring deposit account amount of  Rs.70,000/- along with interest, the OP keep on postponing the payment of deposit money along with interest to the complainants on one or other pretext. Complainant got issued legal notice on 02.09.2021 by calling upon OP to pay the said amount along with interest, but the notice returned with shara addressee left. Aggrieved by the act of the OP, the complainant preferred the complaint seeking relief as prayed in the complaint.  

11. Despite of service of notice, OP  represented by inperson and filed detailed version, but not filed chief examination affidavit. In the version OP has denied all the allegation made in the complaint. Further, the OP contended that the OP is running the business of money lending in the name and style of M/s Sri Bharadwaj Finanace (R) and has obtained money lending license for lending money and OP business is only lending money for interest. The OP further submits that he has denied complaint allegations and contended that he is only  the licensed money lender and denied any defect service and prays for dismissal of the complaint against OP with exemplary costs.

12. On perusal of the annexure documents produced by the complainant along with chief examination affidavit the documents which has been marked as Ex.C-1 it is a document issued by OP in the name and style of Recurring deposit Account pass book and the entry in the document shows that the OP has received a sum of Rs.70,000/- from the complainant with a promise to pay interest on the said amount @ 1.5% per month. The second document which has been marked as Ex.C-2 is a legal notice sent to OP by the complainant by demanding payment of recurring deposit amount and the subsequent document are marked as Ex.C-3  is the postal receipt and returned cover of legal notice. But the OP has not filed chief examination affidavit and also  not filed any documents to deny the complaint allegations.

13. From the perusal of complaint averments and also by considering the entire documents produced by complainant, the commission has no hesitation to hold that the act and omission of OP is very clear which is apparent from the face of record. Despite of receipt of deposit, from the complainant even the OP has failed to pay the deposit amount when demanded it  is crystal clear both from the complaint facts and the documents produced in the complaint. In such event by considering all the above facts it is held that the OP has committed a sheer negligence and carelessness service during the course of their service to the complainant.  The act and action of OP amounts to deficiency in service on their part for which there are held liable to pay the legitimate claim of complainant along with other reliefs. Accordingly, we answer Point No.1 Partly in Affirmative.

14. POINT NO.2:- In the result, we passed the following:

ORDER

1. The complaint filed by the Complainant U/s.35 of the Consumer Protection Act, 2019 is allowed in part.

2. OP is directed to refund a sum of Rs.70,000/- (Rupees Seventy Thousand  Only) along with interest at 14%p.a. from the 27.01.2020 till the payment is made.

3. OP is directed pay compensation of Rs.10,000/- towards deficiency of service to the complainant together with cost of litigation of  Rs.5,000/- within 45 days from this order, failing which OP is liable to pay interest on the said amount at the rate of 6%p.a from the date of order till payment is made.
4. OP is directed to comply with the order within 45 days from the date of this order failing which the Complainant is also at liberty to file criminal case against the OP for the offence punishable under section 72 of Consumer Protection Act, 2019.

5. Furnish free copy of this order to both the parties. 

 (Dictated to the Stenographer, got it transcribed, typed by him and corrected by me, then pronounced in the Open Commission on 25^th April 2023)

(RAMACHANDRA M.S.)

PRESIDENT

       (NANDINI H KUMBHAR)             (CHANDRASHEKAR S.NOOLA)       

                 MEMBER                                        MEMBER

Witness examined on behalf of the complainant by way of affidavit:

Smt.Kalpana.R.Rao-who being the complainant

Documents produced by the complainant:

Witness examined on behalf of the OP by way of affidavit: Nil

Documents produced by the OP: Nil

(RAMACHANDRA M.S.)

PRESIDENT

(NANDINI H KUMBHAR)          (CHANDRASHEKAR S.NOOLA)

         MEMBER                                     MEMBER

SKA*