Complaints filed on: 06-10-2023

                                                      Disposed on: 01-07-2024

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, TUMAKURU

          DATED THIS THE 01^st  DAY OF JULY 2024

PRESENT

SMT.G.T.VIJAYALAKSHMI, B.Com., LLM., PRESIDENT

SRI.KUMARA.N, B.Sc. (Agri), LLB., MBA., MEMBER

SMT.NIVEDITA RAVISH, B.A., LLB. (Spl)., LADY MEMBER

CC.Nos. 140/2023 and 141/2023

C.C.No.140/2023

Smt.Kamalamma W/o Narayanappa,

Aged about 58 years, residing at Door

No.585, A.M.Palya Layout, Siragate,

TUMAKURU CITY.

CC.No.141/2023

Smt.Lakshmidevamma W/o Gopal,

Aged about 46 years, residing at

Kappanna Thota, Kothithopu,

TUMAKURU CITY.

……….Complainant/s

 (By Sri. B.Doddaiah Advocate)

V/s

The Chief Executive Officer,

Kasaba Vyavasaya Seva Sahakari Sanga Ni.,.

KORATAGERE TOWN,

Koratagere Taluk, Tumakuru District.

…….Opposite Party

(OP : B.V.Vasanthkumar Advocate)

:ORDER:

SMT.G.T.VIJAYALAKSHMI -  PRESIDENT

Since the OPs in all cases are one and the same, but the complainants are different and the facts of these cases are identical, so in order to avoid confusion, repetition of discussion of facts and also to avoid conflict of the opinion, all the complaints are clubbed together and disposed off under a common order.   

2.       The complainants are filed with prayer to pay the entire amount of Rs.81,250/- covered under above said matured F.D.R with interest @ the rate of Rs.18% p.a from the date of maturity till its realization of entire amount along with Rs.5,00,000/- towards deficiency and negligent act.

3.       The brief facts of the complaints are as under:-

Complainants are the customers of Respondent Sangha and the complainants had deposited the following amount in the respondent sangha, and now all the following deposit is matured, the details of the deposit amount, deposit date, renewal date, maturity date and maturity amount are mentioned below:

          It is submitted that, the above said F.D.R is already matured on 29.03.2017 and 31.03.2017, and since the date of maturity the complainants made their several personal requests and approaches with the respondent sangha by appearing personally before the respondent sangha, and since the date of maturity they are keep demanding to return the maturity amount, and the said maturity F.D.R amount is legally recoverable by the complainants from the respondent, and also the said amount is very much required the legal necessity of the complainants, as and when the complainant demanded for the same, the respondent instead of returning the said amount they have been showing their hostile attitudes with one or the other reasons, and also the respondent sangha has not made any arrangements to return the said maturity amount in favour of the complainants, and thereby the respondent sangha had shown his deficiency in service and also he shows his negligence in their act, since March 2017.

4.       Hence, the complainants got issued a legal notice to the respondent on 16.06.2023 through Regd. Post A/d calling upon the respondent sangha to return the said F.D.R along with interest at the rate of 18% p.a and a sum of Rs.5,00,000-00 towards caused mental agony and pain to the complainants, and the said notice was duly served on the respondent sangha on 17.06.2023, inspite of service of the said legal notice, the respondent sangha will fully not taken any action for making payments of the amount towards the above said deposit and he has committed deficiency in service as per the consumer protection Act.  Hence, the complaint.   

5.       After service of notice, the OP appeared and filed the version. In para No.1 to 11 of the version the op decide the all stereotype allegations made by the complainants has brought this complaint by suppressing the true facts and the respondent / opposite party begs to submit the true facts as follows:

          First of all, there is no relationship between the complainants and respondent as the customer and service provider respectively. The complainants are alleging that they are customers of the respondent sangha, but OP seriously disputed. On this ground itself, the complaints are liable to be rejected in lemine.

          It is submitted that the complainants were colluded with the Ex-Chief Executive Officer of the respondent Society who is one Narayanappa created some documents in favour of complainants name and trying to grab the public money from the respondent society. It is submitted that during the tenure of his Ex-CEO Narayanappa (complainant No.CC.No.142/2023), the complainants colluded with each other who used to commit some fraudulent acts, such as, created the forged documents in their favour and it is contrary to the act and bye-law conditions of the Sangha. Complainants obtained the fake passbooks and other fake created vouchers without there being any financial transaction of such passbooks, vouchers and challans from the Ex-CEO and thereby caused countless irregularities. These complainants along with Ex-CEO has created the forged documents pertaining accounts, signatures in the documents as stated above.

          The Ex-CEO has served the Sangha for a period of 6 years 4 months i.e., from October 2009 to February 2016. During this tenure, the complainants have deposited the amount through Fixed deposit. The interesting thing is that there is no records such as account opening forms, valid identification signature, amount depositing challans whatsoever, with respect to said accounts. However the complainants colluded with Ex-CEO of the Sangha has created the records off the society without knowledge of the other office bearers of the Sangha. Therefore it is submitted that there is no such fixed deposit kept by the complainants in the Sangha. Therefore there is no relationship of customer service provider between the complainants and respondent. Hence, the complaints are liable to be rejected.

          It is further submitted that the alleged accounts allegedly opened by the complainants during the tenure of EX-CEO, are all contrary to the Bye-law conditions as there is an obligation that the accounts holder should be the resident of the jurisdiction of the Sangha, wherein the persons i.e., who are the residents beyond the jurisdiction of the Sangha who are not the persons to be eligible to hold the account with the Sangha. Therefore all the alleged account entries are illegal and without records. There is no entry in the books of accounts of the Sangha with regard to financial transactions of such account. Therefore the alleged averments are required to be proved by the complainant themselves.

          It is further submitted that though the EX-CEO on behalf complainants made complaints to the - 1) Deputy Director, Enquiry-2 Karnataka-Lokayuktha, Bangalore. 2) Addl,. Registrar of Co-operative Societies (Credit) Bangalore. 3) Deputy registrar of co-operative societies at Tumkur and 4) Assistant Registrar of Co-operative Societies, Madhugiri Sub-Division, Madhugiri, wherein after holding detailed enquiry, the Assistant Registrar of Co-operative Societies, Madhugiri Sub-Division, Madhugiri vide order, dated 18.10.2022 in SAN133/DURU/61/2021-22 rejected the complaints on the report submitted by the CEO of the Sangha as there is no truth in the complaints of the complainants. Therefore from the above facts, it is submitted that the complainants have filed this frivolous complaints only with an intention to harass the respondent and to cause hardship and to have wrongful gain by defrauding the respondent-Sangha being a public financial institution. Therefore the complaints are liable to be dismissed.

6.       The complainants counsel has filed their evidence by way of affidavit  and marked documents, Mr.Krishnamurthy B.O S/o Obalappa, CEO VSSN, has filed his evidence by way of affidavit on behalf of OP and marked documents.

7.       We have heard the arguments of both side counsels. 

8.       On hearing the arguments of learned counsel for both parties and on perusal of the documents, the points that would arise for determination are as under;

1)                    Whether there is any deficiency in service on the part of OP?

2)                     Whether the complainants are entitled for reliefs sought for?

9.       Our findings to the aforesaid points are as under:

Point No.1: In the Negative  

Point No.2: As per the final order

:R E A S O N S:

10.     On perusal of pleadings, evidence and documents submitted by parties, it is clear that, the complainants claim that they are customers of the OP sangha. Complainants had Fixed deposits in OP Sangha and the details of the Fixed deposits made by the complainants shown in the following table:

          After maturity of the Fixed Deposits the complainant requested and demanded the OP Sangha for payment of the fixed deposit amount as it was matured the details shown in the above table.

          Now the complainants allegation are, inspite of repeated request and lapse of five years. The OP failed to pay the Fixed deposit amount of the complainants.

          Per contra, the OP contended that the complainants were colluded with the Ex-CEO of the respondent society (i.e, complainant in CC.No.142/2023 created some documents in favour of complainants name and trying to grab the public money from the respondent society. The complainants including Ex-CEO obtained the fake passbooks and created fake vouchers without their being any financial transaction of such passbook vouchers, challans from the Ex-CEO and thereby caused countless irregularities. These, complainants along with Ex-CEO has created forged documents pertaining to complainants Fixed deposits, signature in the documents.

          Further, the op contented that the Ex-CEO as served the Sanga for a period of six years 4 months i.e., from October, 2009 to February 2016. During his tenure the complainants have deposited the amount through Fixed deposits. But there is no records such as account opening forms, valid identification signature, amount depositing challans whatsoever, with respect to said accounts. Therefore OP contended that there is no such accounts being opened and amount kept by the complainants in the sangha. Hence, there is no relationship of customer and service provider between the complainants respondent.

          Further, OP contended that the F.D.R allegedly deposited by the complainants during the tenure of Ex-CEO, are all contrary to the bye-law of the Sangha. As a pre condition there is an obligation that the account holder should be the resident of the jurisdiction of the Sangha and who are the resident beyond the jurisdiction of the Sangha or not the persons to be eligible to hold the Fixed deposits with the Sangha. All the alleged Fixed deposits entries are illegal and without records and there is no valid entries in the books of accounts of the Sangha with regard to financial transactions of such FDs. 

          It is further submitted that though the EX-CEO on behalf complainants made complaints to the - 1) Deputy Director, Enquiry-2 Karnataka-Lokayuktha, Bangalore. 2) Addl,. Registrar of Co-operative Societies (Credit) Bangalore. 3) Deputy registrar of co-operative societies at Tumkur and 4) Assistant Registrar of Co-operative Societies, Madhugiri Sub-Division, Madhugiri, wherein after holding detailed enquiry, the Assistant Registrar of Co-operative Societies, Madhugiri Sub-Division, Madhugiri vide order, dated 18.10.2022 in SAN133/DURU/61/2021-22 rejected the complaints on the report submitted by the CEO of the Sangha as there is no truth in the complaints of the complainants.

          From the above facts and contentions it is observed that, the complainants deposited the amount in Fixed deposit OP sangha. After maturity o the Fixed deposits the complainant requested and demanded the OP for payment of maturity amount for their personal use. On the other hand OP made some allegations regarding creation of forged documents pertaining to complainants Fixed deposits and signature in the documents. Hence, OP denied to payment of maturity amount pertaining to complainants Fixed deposits. The Assistant Registrar of Co-operative Societies, Madhugiri Sub-Division, Madhugiri, wherein after holding detailed enquiry, the Assistant Registrar of Co-operative Societies, Madhugiri Sub-Division, Madhugiri vide order, dated 18.10.2022 in SAN133/DURU/61/2021-22 rejected the complaints as there is no truth in the complaints of the complainants. The complaint submitted by the Ex-CEO on behalf of complainants before the Deputy Director, Enquiry-2 Karnataka-Lokayuktha, Bangalore still pending.

In view of the above facts it is cleared that, present complaints involved allegations of fraud and forgery by Ex-CEO of OP Sangha. When there is allegation of fraud and forgery, to prove such allegations of fraud and forgery, thoroughly analysis of voluminous documents and elaborate examination of the witnesses and their cross-examination witnesses is required. But the Consumer Commission proceedings are summary in nature. The such disputed facts and questions could not be adjudicated by the Consumer Commissions as per opinion of the apex court.

In this regard the Supreme Court has recently dealt with the issue in a matter captioned as THE CHAIRMAN AD MANAGING DIRECTOR, CITY UNION BAK LTD. & ANR. V/s R.CHANDRAMOHAN (CIVIL APPEAL No.7289 OF 2009, decided in 2023). It is held in para graph 12 by the Supreme Court “The proceedings before the Commission being summary in nature, the complaints involving highly disputed question of facts are the cases involving tortious acts / criminally like fraud / cheating, could not be decided by the Commission under the said act”.  In Oriental Insurance Co. Ltd. Vs. Munimahesh Patel the Supreme Court has held that the proceedings before the Commission are essentially summary in nature and the issues which involve disputed factual questions, should  not be adjudicated by the Commission. Hence, as per apex court decisions, it is just and proper to direct the complainants to approach the Civil Court for the relief. Accordingly, we pass the following:-

:ORDER:

The complaints filed by the complainants are disposed off with liberty to the complainants to approach the Civil Court for the relief.

The original order shall be kept in C.C.No.140/2023 and a copy thereof shall be kept in C.C.Nos. 141/2023.