IN THE CONSUMER DISPUTES REDRESSAL  COMMISSION, KOLLAM

Dated this the  30^th  Day of  April  2022

  Present: -  Sri. E.M.Muhammed Ibrahim, B.A, LL.M. President

        Smt.S.Sandhya Rani, Bsc, L.L.B,Member

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

                                                    CC.222/20

1. Mathews T M                                                :         Complainants

         S/o Mathen

        Thanungattil

       Anjili Road, Kollam-691001.

2. Mathews.M

          S/o Mathews

             -Do-

[By Adv.M I Alexander Panicker]

      V/s

1.         Thomas Daniel                                       :         Opposite parties

The Managing Partner

Popular Finance/Popular Traders/Popular Dealers

Indikattil House, Vakayar

Konni, Pathanamthitta-689698.

2.         Prabha Thomas

W/o Thomas Daniel

                  Partner

                  -Do-

          3.   Rinu Marium Thomas

                S/o Thomas Daniel

                Partner

                   -Do-

           4.   Reba Mary Thomas

                 D/o Thomas Daniel

                 Partner

                 -Do-

FINAL   ORDER

E.M.MUHAMMED IBRAHIM , B.A, LL.M, President

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

The averments in the complaint in short are as follows:-

The 1^st complainant is a retired Bank Officer and  a very senior citizen. The 2^nd complainant is the son of the 1^st complainant and is working in Insurance Company.  The 1^st opposite party is the husband of the 2^nd opposite party.  3^rd and 4^th opposite parties are two daughters of the above couples.  All of them are claim to be partners of the business concern in the name and style Popular Finance and its sisters concerns, especially Popular Traders and Popular Dealers.  Opposite parties had opened  a branch office of the Popular Finance/Popular Groups at the shopping complex  of St.Thomas Orthadox Cathedral, Kollam and cunningly posted a reputed person of  the said church as its Branch Manager.  Now the branch manager is no more.  The said manager under his influence on parishioners and also on taking advantage of the fact that the 2^nd opposite party belonged to that church.  Many local people and members of her parental church had trusted the opposite parties and had entrusted their savings in the said branch and also in the branch opened at Church premises.  The complainants were canvassed to deposit their savings on assurance that repayment will be prompt when and where required.  Both the complainants wished to deposit their money in some banks but got attracted to the wide publicity through news paper, electronic media, social media and on direct canvassing through agents and officials of the opposite parties, the complainants too 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.  The complainants had deposited their savings and were not drawing interests so the amounts got accumulated and from their accounts, the following receipts were issued in the name of Popular Traders so as to acknowledge the liability of the opposite parties to the complainant.    They have made as much as 10 deposits in their joint account and hence both of them are entitled to recover the amount deposited by the opposite parties.  The details of  the acknowledgement of the liability in the form of receipts are shown below:-

Branches of the opposite parties remained closed during  Covid 19 Pandemic lock down period.  After lifting of lockdown restrictions also the functioning of the branches were restricted and to those who want to withdraw their deposits were not paid immediately and started deferring payments on lame excused.  The complainants had also approached the concerned branch office of the opposite parties to get back their due amount but not paid.  Slowly the complainants realized that the financial institutions run by the opposite parties are being closed and customers started lodging complaints to the police and police registering casers 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.  Now the complainants are convinced that the opposite parties were engaged in unfair trade practices and were fraudulent to conduct financial business without proper license or permission from RBI.  The opposite parties were deliberate to mislead the public with false claims and they were deliberate to cheat customers who trusted them.  They were deliberate to receive 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 complainants an unlawful gain to the opposite parties. There is deficiency in service of the 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.  Total amount due as per the above 10 receipts from its w.e.f date is Rs.12,11,247/-.  The complainants are also entitled to get the promised rate of interest 12% p.a on the whole amount from its w.e.f date.  The complainants never cared to draw interest on each month.  Totally Rs.96,900/- is also due from the opposite parties by way of interest.  Thus totally an amount of Rs.13,08,147/- is due to the complainants from the opposite parties.  The said amount may be considered as the loss incurred to the complainants.  The complainant even before expiry of the respective periods shown in the receipts 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 all accounts prematurely, but the opposite parties were not ready to return the amount so that the loss and injury caused to the complainants can never be equated.  Hence the complaint.

Though notice was issued from the Commission the same returned unserved.  Hence paper publication was effected as per the order in IA.165/21.  Notice was published in the newspaper even then  the opposite party remained exparty.   The 2^nd complainant filed affidavit in lieu of chief examination and got marked Ext.P1 to P10 documents.  Heard the counsel for the complainant and perused the records.

The 2^nd complainant filed proof affidavit on behalf of itself and also on behalf of the 1^st complainant who is none other than his father, by re-iterating the averments in the complaint and also produced and got marked Ext.P1 to P10 fixed deposit receipts evidencing that they have jointly deposited different amount on different dates ranging 32602/- to 2,47,526/- on different dates as shown in the schedule stated above.  All the above 10 deposits were made with the 1^st opposite party Popular Traders.  Ext.P1 to P10 receipts would further indicate that all the above deposits were made for a period of 12 months from the date of effect of the deposit and the agreed share of profit in all the above deposits are 12% p.a.  It is also clear from the available materials that the total amount due as per the above 10 receipts is Rs.12,11,427/-.  The complainants are also entitled to get the promised share of  profit/interest @ 12% p.a from the date of deposit till today.  The complainants never cared to draw share of profit/interest of each month.  Therefore they are entitled to get share of profit/interest along with the amount from its w.e.f date.  The complainants on expiry of the respective period shown in the receipts wished to get back the promised amount but the opposite party refused on lame excuses.  The complainant had contacted the opposite party in person and requested to refund the entire deposited amount, but the opposite parties were not ready to return the amount and there by committed deficiency in service and unfair trade practice.  In view of the above materials on record it is clear that the complainants have succeeded in establishing their case. 

      In the result the complaint stands allowed directing the opposite party to return the amount received as per Ext.P1 to P10 receipts to complainant No.1&2 along with agreed share of profit from the effective date of deposit till the date of order. 

    Opposite parties are directed to pay compensation to the tune of Rs.50000/-.    Opposite parties are also directed to pay Rs.5000/- as costs of the proceedings.

The opposite parties No.1 to 4 are directed to comply with the above directions within 45 days from the date of this order failing which the complainants are entitled to recover the amount covered by Ext.P1 to P10 fixed deposit receipts along with agreed share of profit @ 12% p.a  from the effective date of deposit and thereafter interest @ 9% p.a from the date of order till realization from opposite party No.1 to 4 jointly 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  30^th  day of  April   2022.

 E.M.Muhammed Ibrahim:Sd/-

             S.Sandhya Rani:Sd/-

             Stanly Harold:Sd/-

           Forwarded/by Order

            Senior Superintendent

INDEX  

Witnesses Examined for the Complainant:-Nil

Documents marked for the  complainant

Ext.P1:        Original receipt No.0570552 of  Popular Traders for Rs.129274/-.

Ext.P2:        Original receipt No.0574319 of  Popular Traders for Rs.184732/-.

Ext.P3:        Original receipt No.0574356 of  Popular Traders for Rs.130784/-

Ext.P4:        Original receipt No.0574357 of  Popular Traders for Rs.147131/-

Ext.P5:        Original receipt No.0574559 of  Popular Traders for Rs.80796/-.

Ext.P6:        Original receipt No.0574723 of  Popular Traders for Rs.247526/-.

Ext.P7:        Original receipt No. 0586280 of  Popular Traders for Rs.32602/-

Ext.P8:        Original receipt No.0586281 of  Popular Traders for Rs.32607/-.

Ext.P9:        Original receipt No.0586282 of  Popular Traders for Rs.81517/-.

Ext.P10:      Original receipt No.0586292 of  Popular Traders for Rs.144278/-

Witnesses Examined for the opposite party:-Nil

Documents marked for   opposite party:-Nil

E.M.Muhammed Ibrahim:Sd/-

           S.Sandhya Rani:Sd/-

           Stanly Harold:Sd/-

             Forwarded/by Order

           Senior Superintendent