Date of filing: 23-1-2017 Date of order : 31-10-2017
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM ::
KADAPA Y.S.R DISTRICT
PRESENT SRI V.C. GUNNAIAH, B.Com., M.L., PRESIDENT
SMT. K. SIREESHA, B.L., LADY MEMBER
TUESDAY THE 31ST DAY OF OCTOBER, 2017
CONSUMER COMPLAINT No. 07 / 2017
Sri. Gajjala Damodar Reddy,
S/o late G. Venkata Subba Reddy,
Aged about 40 years, Hindu, Kapu, cultivation,
R/a D.No.4/37-B, Chintakommadinne Village, Post and Mandal,
Y.S.R. District. … Complainant.
Vs.
- The Branch Manager,
The Kadapa District Co-operative Central Bank Limited,
R.K. Nagar, Kadapa City, Y.S. R. District.
- The President/CEO,
The Primary Agricultural Cooperative Society,
Chintakommadinne village, Post and Mandal,
Y.S.R. District.
3) The General Manager, The District Cooperative Central Bank Ltd.,
R.S. Road, Kadapa City, Y.S.R. District. ….. Opposite parties.
This complaint coming for final hearing on 23-10-2017 in the presence of Sri G.B. Lakshmi Reddy, Advocate for Complainant and Sri S. Chandra Sekhar Rao, Advocate for Opposite parties no.1 to 3 and upon perusing the material papers on record, the Forum made the following:-
O R D E R
(Per Sri V.C. Gunnaiah, President),
1. The complainant filed this complaint under section 12 and 14 R/w Sec. 2 (1) (iii) and (g) of Consumer Protection Act, 1986 (for short herein after called as C.P. Act) praying this forum to direct the Opposite parties jointly and severally to pay Rs.33,763/- towards Insurance amount with interest at 12% p.a. from 13-12-2015 to till the date of realisation, to pay Rs.5,000/- towards damages for mental agony and pay the costs and such other reliefs.
2. The averments of the complaint in brevity are as follows; The Complainant is member of C.K. Dinne Agricultural Society having lands in C.K. Dinne Village. The complainant obtained crop loan of Rs.41,000/- from opposite parties 1 and 2 under loan no.441, G. No.3016 and S.B. A/c No. 111322040000835. The complainant paid Insurance Premium amount through O.P.no.2. The complainant paid loan amount regularly. On 05-12-2015 O.P.no.3 addressed an urgent memo to O.P.no.1 and 2 stating that agriculture crop insurance company of India Limited, Hyderabad released crop insurance claim of Rs.8,40,82,531/- for Bengalgram and Sunflower crops in respect of 3436 members for Rabi 2012-2013 season in respect of Pulivendula, Sidhout and R.K. Nagar Branches and instructed to credit the released amounts to the respective beneficiary farmers saving bank accounts and submit the receipts. Hence all the opposite parties are responsible to disburse the amount to the beneficiary farmers.
3. The complainant is one of the beneficiary in the said crop insurance and he is entitled for an amount of Rs.33,763/- towards 82.35% of the loan amount as the O.P.no.2 received the said amount from the agricultural insurance company on 13-11-2015. The complainant requested O.Ps 1 and 2 several times for the credit of the above amount to his account but O.P.s 1 and 2 failed to credit the same inspite of the received notice issued by complainant. Therefore the complainant suffered mental agony and also incurred heavy expenditure for approach several times to opposite parties. The O.Ps even failed to reply. Hence this complaint for the above reliefs.
4. Written version/Counter filed by O.P.no.2 and the same has been adopted by O.P.no.1 & 3 by filing memo. The opposite parties denied the allegations in the complaint. It is stated the complaint borrowed an amount of Rs.45,000/- from second O.P. society to raise crop. The complainant did not make any payment towards insurance premium but it was collected from him by debiting to his crop loan amount. Due to crop damage has claimed by the complainant insurance compensation was released to the complainant and other eligible farmers and insurance amount was credited to the account of complainant, but he is not entitled to receive insurance amount on the ground the same was credited to the loan amount of his father.
5. It is further averred the complainant father had borrowed an amount of Rs.47000/- on 9-3-2006 for purchase of submersible motor and another amount of Rs.33000/- for lying pipe line by executing the necessary documents by way of mortgage in favour of O.P.no.2 society. But his father died without discharging the loan amount. The complainant stood as surety for his father loan. As on 1-5-2013 an amount of Rs.93481/- was outstanding to the second O.P.s society. O.P.no.2 took steps for receiving the amount legally and also filed E.P. and notices were sent to complainant father and himself. The complainant appeared before Arbitrator on 5-12-2005 and requested time for payment. The complainant admitted to pay the debt of his father along with his mother and brother but failed to pay the same. Their liability to discharge the debt of their father. Hence the respondent society is entitled to adjust the crop insurance amount to the loan account of his father as complainant as surety and he is jointly and severally liable to discharge the loan amount. The second O.P. society did not violate any procedure in adjusting the premium granted to the complainant his mother and brothers to the account of his father. Hence no deficiency in service on the part of the O.Ps. Therefore the complaint is liable to be dismissed with exemplary costs.
6. On the above pleadings the following points are settled for determination.
- Whether is there any deficiency on the part of O.Ps with regard to crop insurance amount of claim of complainants
- Whether the complainant is entitled for reliefs as prayed against O.Ps
- To what relief ?
No oral evidence has been let in by the both parties. But on behalf of the complainant Ex.A1 to Ex.A4 are marked and on behalf of O.Ps Ex.B1 to Ex.B5 documents are marked and closed their evidence. Both parties filed written arguments. Heard arguments on both sides and considered material placed on record.
7. Points 1 and 2 :- Learned counsel for complaint contended without consent of complainant O.P.no.2 credited his crop insurance amount to the alleged debt of his father which is no way concerned to the complainant and therefore there is deficiency in service on the part of the Opposite parties for not crediting his crop insurance amount of Rs.33,763/- to the account of complainant as such he proved his case and he is entitled for reliefs claimed against Opposite parties.
Per contra learned counsel for Opposite parties contended the complainant stood as surety to the mortgaged debt of his father and there is outstanding amount nearly of Rs. 94,000/- so, the crop insurance amount of complainant his mother and brothers have been adjusted to the loan amount of father of complainant and opposite parties are entitled to adjust the same. Hence no deficiency in service and the same is proved by Exhibits B1 to B4. Therefore the complaint is liable to be dismissed.
8. There is no dispute in this case that complainant is the member of O.P.no.2 society and obtained crop loan of Rs.41,000/- and he has S.B. A/c and he paid crop insurance premium and complainant and other farmers who raised Bengalgram and Sunflower crops were granted crop insurance and agricultural Corporation of India Ltd., sent crop insurance amount of Rs.33,763/- to credit the same to the account of complainant. The only contention of O.P.no.2 is that he adjusted the crop insurance amount of complainant to his father’s account as the debt is outstanding. But a perusal of Ex.B1 to Ex.B4 filed by the Opposite parties does not disclose the amount was adjusted to the account of G. Venkata Subba Reddy the father of complainant. On perusal of Ex.B5 which has been mainly relied on by O.Ps to adjust the insurance amount of complainant to his father’s debt account with his consent, does not reveal that he gave consent to adjust his crop insurance to the debt account of his father. Further Ex. B1 to Ex.B4 also do not tally with the claim of Opposite parties regarding outstanding amount by G. Venkata Subba Reddy the father of the complainant at Rs.93,481/- as contended by O.Ps. Even if the father of the complainant has obtained mortgage loan and the same is outstanding and the complainant and his brothers and mother stood as sureties, still the Opposite parties without proceeding legally against them cannot adjust their crop insurance amounts to the mortgaged debt of their father. Since the Opposite Party no.2 has received the crop insurance amount of complainant and others from the Agriculture Crop Insurance Corporation of India of Limited, Hyderabad to adjust the same to the accounts of beneficiary i.e., complainant, the Opposite parties cannot adjust the crop insurance amount to the alleged outstanding debt of his father. Viewed in this angle we hold the complainant has clearly established the deficiency in service on the part of the opposite parties for not adjusting his crop insurance amount of Rs.33,673/- to his S.B.A/c with O.P.no.2 society. Therefore the complainant is entitled for credit of crop insurance amount of Rs.33,673/- to his account by Opposite party no.2. The opposite parties are also liable to pay Rs.3,000/- towards mental agony and Rs.2,000/- towards costs of this complaint to the complainant. Accordingly points 1 and 2 are answered in favour of complainant.
9. Point No.3 :- In the result, the complaint is allowed, directing the Opposite Parties no.1 to 3 jointly and severally to pay Rs.33,763/- (Rupees Thirty Three Thousand Seven Hundred and Sixty Three Only) the crop insurance amount to the complainant by crediting the same to his S.B.A/c with O.P.no.2, and shall also pay Rs.3000/- towards damages for mental agony, and Rs.2000/- towards costs of the complaint within 45 days from the date of receipt of this order, failing which the amount of Rs.33,763/- (Rupees Thirty Three Thousand Seven Hundred and Sixty Three Only) shall carry interest at 9% p.a. till realization.
Dictated to the Typist, transcribed by me, corrected and pronounced by us in the open forum, this the 31st day of October, 2017
MEMBER PRESIDENT
APPENDIX OF EVIDENCE
Witnesses examined
For complainant : NIL For opposite party : Nil
Exhibits marked on behalf of the Complainant :-
Ex: A1:- P/c of loan pass book of G. Damodar Reddy.
Ex: A2:- Photo copy of Letter dt. 5-12-2015.
Ex: A3:- Office copy of legal notice Dt. 28-12-2016.
Ex: A4:- Three postal acknowledgements.
Exhibits marked on behalf of the Opposite parties: -
Ex:B1:- Mortgage Register of G. Venkata Subba Reddy (co executants).
Ex:B2:- Loan Ledger extract or disbursement of loan ledger of G. Venkata Subba Reddy.
Ex:B3:- Demand Notices dated 26-12-2011, 22-1-2013, 26-12-2013 and another notice.
Ex:B4:- Crop Insurance amount adjusted to account of G.V. Subba Reddy.
Ex:B5:- Statement of G. Obul Reddy.
MEMBER PRESIDENT
Copy to
- Sri G.B. Lakshmi Reddy, Advocate, Kadapa.
- Sri S. Chandra Sekhar Rao, Advocate, Kadapa.
& & &
P. R.
