IN THE CONSUMER DISPUTES REDRESSAL  COMMISSION, KOLLAM

Dated this the  23^rd  Day of  July   2022

  Present: -  Smt.S.Sandhya Rani, Bsc, L.L.B(President I/C)

                        Sri.Stanly Harold, B.A.LLB, Member

                                                              CC.424/2020

Thulaseedharan Pillai                                        :           Complainant

S/o Bhaskara Pillai

Kothamangalathu Valiya Veedu

Naduvilakkara, Thevalakkara

Kollam-690524.

[By Adv.M.K.Sankaranarayana Pillai]

V/s

1.        Popular Dealers/Finance/                             :          Opposite parties

Popular Towers

Vakayar, Konni, Pathanamthitta-689698.

2.          Thomas Daniel                                          

The Managing Partner

Popular Dealers/Finance

Indikattil House, Popular Towers,

Vakayar,Konni, Pathanamthitta-689698.

3.          Prabha Thomas

W/o Thomas Daniel

                  Partner

Popular Dealers/Finance

Indikattil House, Popular Towers,

           Vakayar,Konni, Pathanamthitta-689698

            4.   Rinu Marium Thomas

                  S/o Thomas Daniel

                  Partner

Popular Dealers/Finance

Indikattil House, Popular Towers,

         Vakayar,Konni, Pathanamthitta-689698.

           5.   Reba Mary Thomas

                   D/o Thomas Daniel

                   Partner

Popular Dealers/Finance

Indikattil House, Popular Towers,

            Vakayar,Konni, Pathanamthitta-689698.

            6.    Riya Mary Thomas

                   D/o Thomas Daniel

                   Partner

Popular Dealers/Finance

Indikattil House, Popular Towers,

        Vakayar,Konni, Pathanamthitta-689698.

            7.    The Branch Manager

                   Popular Finance/Dealers/

                   Thevalakkara Branch, Thevalakkara, Kollam.

FINAL   ORDER

Smt.S.Sandhya Rani (President I/C)

            The complainant is a pensioner residing at Kothamangalathu Valiya Veedu, Naduvilakkara, Thevalakkara.  The 2^nd opposite party is the Managing Partner of the 1^st opposite party.  The opposite parties 3 to 6 are the wife and children of the 2^nd opposite party and the 7^th opposite party is the Thevalakkara Branch Manager of the 1^st opposite party.  The opposite parties 2 to 6 themselves claim to be the partners of business firms in the name and style as Popular Finance and its sister concerns are Popular Traders, Popular Dealers My Popular marine Products, LLP, Popular exports etc.  The profile published in the website claimed that POPULAR FINANCE is a successfully functioning Gold Loan firm established in 1965, by founder chairman T.K. Daniel having the Registered Office at Vakayar, Pathanamthitta district.  POPULAR is at present a group of various business concerns and the entire sister concerns support the parent organization by returning profits regularly.  The sudden spread and development of the business firms of the opposite parties gained public attention and confidence in them and they have opened a branch office at Thevalakkara, Kollam and  cunningly posted a reputed person as its Branch Manager who is the 7^th opposite party.  People had trusted the opposite parties and had entrusted their hardly earned savings in the said branch.  The complainant getting attracted to the wide publicity through news paper, electronic media, social media and on direct canvassing through agents and officials of the opposite parties, they were made to believe that the opposite parties are reliable and trust worthy private financiers and they are authorized and competent to receive deposits and would return the deposited amount with interest as promised.  On perusal of the receipt issued in the name of Popular Dealers revealed that it is a deposit certificate issued by Popular Dealers.  The opposite parties received the cash as fixed deposit in Popular Finance.  But without the consent or knowledge of the complainant, opposite parties have converted the money of the complainant as Deposit Certificate of a paper firm ie, Popular Dealers.  It is purely unfair trade practice and cheating towards the complainant.  Details of the acknowledgement of liability in the form of receipt are shown below.

      On 26.06.2020 the complainant has approached the 7^th opposite party for withdrawing the above said amount, but 7^th opposite party was not ready to refund the amount and he replied that the amount will be refunded shortly.  Slowly the complainant realized that the financial institutions run by the opposite parties are being closed and customers started lodging complaints to the police and police registering cases against the opposite parties and the opposite parties absconded with an intention to flee away to foreign countries.  The police had arrested all the opposite parties and investigation is going on to search and find the huge amounts they received and diverted.  Thereafter the complainant is convinced that the opposite parties were engaged in unfair trade practices and were fraudulent to conduct financial business without proper license or permission from Reserve Bank of India.  The opposite parties were cheat customers who trusted them.  They were deliberately received deposits on false promises and forging documents in the name of  paper firms.  They have forged and fabricated documents and misappropriated the amount entrusted to them so as to cause unlawful loss to the complainant and unlawful gain to the opposite parties.  There is deficiency in service on the part of opposite parties as private financiers and the opposite parties failed on their service by undertaking and promise to repay the amount with agreed rate of interest.  The opposite parties are given interest as per the agreement @ 12% until May 2020.  Thereafter they had not paid interest.  Thus the total amount due inclusive of interest since May 2020 is Rs.2,96,800/-.  The complainant is also entitled to get the promised rate of interest on the whole amount at the rate of 12% per annum from its date of deposits.  The said amount may be considered as the loss incurred to the complainant.  The complainant even before expiry of the respective period shown in the receipt wished to get back the promised amount, but was deferred on lame excuses, the complainant had contacted the opposite parties in person and requested to refund the entire deposit amount by closing the account even prematurely, but the opposite parties were not ready to return the amount hence the loss and injury caused to the complainant can never be equated. Hence this complaint.

 Therefore the District Consumer Disputed Redressal Forum may be pleased to pass an order directing:-

1. The opposite parties to return an amount of Rs.2,96,800/- with interest 12% per annum from the date of petition till the date of payment to the complainant.
2. The opposite parties to pay Rs.50,000/- to the complainant towards the compensation for mental agony, discomfort and in convenience caused to the complainant.
3. To award the cost of proceedings and interest for the amount awarded from the date of complaint till realization.
4. To allow any other order or relief in the nature of the proceedings.

Notice issued from this Commission returned un served.  Hence notice was published in Indian Express Daily and produced a copy of paper publication on 30.12.2021 and on that day the opposite parties No. 1to 7 were called absent and set exparte.

Complainant filed proof affidavit by reiterating the averments in the complaint and got marked Ext.A1 document and adduced arguments.  Heard the counsel for the complainant.  Perused the records.

In view of the  unchallenged averments in the complaint coupled with Ext.A1 document  would establish prima facie that the complainant has deposited Rs.2,80,000/- with opposite parties on 02.07.2019 and he is entitled to get the amount along with agreed share of profit with date of  effect of that deposit.  The complainant has sworn in the complaint as well as in the proof affidavit that he has not drawn interest/share of profit, so the amount got accumulated.  In the circumstances we are of the view that the complainant is entitled to get the amount as per the receipt along with the agreed rate of share of profit with the date of effect of that deposit/contribution.

      It is clear from available materials that the complainant has sustained much mental agony apart from financial loss due to the nonpayment of the amount deposited or contributed along with agreed share of profit.  Hence there is deficiency in service and unfair trade practice on the part of opposite parties and therefore the complainant is entitled to get reasonable compensation for mental agony also.

            In the result complaint stands allowed.

1. Directing the opposite parties No.1 to 7 to return the amount covered by Ext.A1 document ie, Rs.2,80,000/- with the agreed share of profit @ 12% per annum from the date of deposit/contribution till the date of order and thereafter interest @ 9% p.a till the date of realization.
2. The opposite parties No. 1to 7 are directed to pay compensation to the tune of Rs.15,000/- and also
3. The opposite parties No. 1 to 7 are directed to pay cost Rs.5000/-.

If the opposite parties failed to comply with the above direction within 45 days from the date of passing this order  the complainant is entitled to recover the amount covered by relief No.1 to 3 from the opposite parties No.1 to 7 jointly and severally and from their assets.

Dictated to the Confidential Assistant  Smt. Deepa.S transcribed and typed by her corrected by me and pronounced in the  Open Commission this the 23^rd day of  July   2022.

S.Sandhya Rani:Sd/-

(President I/C)

Stanly Harold:Sd/-

Forwarded/by Order

Senior Superintendent

INDEX  

Witnesses Examined for the Complainant:-Nil

Documents marked for the  complainant

Ext.A1: Original receipt No.0149550  worth Rs.2,80,000/- of  Popular Dealers.

Witnesses Examined for the opposite party:-Nil

Documents marked for   opposite party:-Nil

S.Sandhya Rani:Sd/-

(President I/C)

Stanly Harold:Sd/-

Forwarded/by Order

Senior Superintendent