State Consumer Disputes Redressal Commission
The Industrial Finance Corporation Of ... vs Smt.Pinki Kumari Agarwal Vizianagaram on 24 August, 2012
BEFORE THE A BEFORE THE A.P.STATE CONSUMER DISPUTES REDRESSAL COMMISSION: AT HYDERABAD. FA.No.1147/2010 against C.C.No.41/2010 District Forum, Vizianagaram Between The Industrial Finance Corporation of India Ltd., Registered office: The Chairman and Managing Director The Industrial Finance Corporation of India Ltd., Regd Office: IFCL Tower 61, Nehru Place, New Delhi Regional Office: Taramandal complex, 8th floor, 5-9-13, Saifabad, Hyderabad-500 004 Rep. by ..Appellant/Opp.party And Smt.Pinki Kumari Agarwal, 4-3-29, Kothagraharam, Vizianagaram, Andhra Pradesh. Respondent/ Complainant Counsel for the Appellant : M/s Deepak Bhattacharjee Counsel for the Respondent : Respondent served QUORUM: THE HONBLE SRI JUSTICE
D.APPA RAO, PRESIDENT, AND SMT.M.SHREESHA, HONBLE MEMBER, FRIDAY, THE TWENTY FOURTH DAY OF AUGUST, TWO THOUSAND TWELVE Order (Per Smt.M.Shreesha, Honble Member) *** Aggrieved by the order in C.C.No.41/2010 on the file of District Forum, Vizianagaram, opposite party preferred this appeal.
The brief facts as set out in the complaint are that the complainant attracted by the opposite party advertisements, deposited a sum of Rs.5,000/- in Family Bonds with a fond hope that the said amount will raise a good return in the year 2024. The complainant submitted that in the said scheme, the opposite party gave option to redeem the bonds on the following dates:
i) On 6th Sep.1999 for Rs.7,750/- ii) On 6th Sep.2002 for Rs.12,500/-
iii)On 6th Sep.2006 for Rs.23,000/- iv) On 6th Sep.2011-Rs.50,000/-
v) On 6th Sep.2015 for Rs.90,000/- vi)On 6h Sep.2019 - Rs.1,70,000/-
vii)On 6th Sep.2023 -
Rs.3,15,000/- viii)On 6th Sep.2024 Rs.3,65,000 The above option is only to the depositor but not to the company and the complainant applied for the said bonds and accordingly the opposite party have issued a certificate No.115985 under folio No.5160-474 and the face value of the bond is Rs.5,00,000/-. The complainant submitted that contrary to the said understanding, the complainant never demanded or opted for any redemption of the certificates and on 27-8-2008, opposite party issued a cheque bearing No.120881 for Rs.15,135/- to the complainant. The complainant submitted that she encashed the said cheque under protest reserving her right to claim the remaining amount and she submitted that the company acted illegally and redeemed the said bonds without the consent of the complainant.
Even if the bonds are redeemed on Sept. 2006, she was entitled to get Rs.23,000/- as per the terms and conditions but the bonds were redeemed against her consent and the company is liable to pay the 4th redeemed option i.e. Sept. 2011 and pay Rs.50,000/-. Hence the complainant got issued a registered notice on 03-1-2009 to the opposite party and the opposite party received the said notice and failed to issue reply. The complainant submitted that she is entitled to the 4th redeemed option and receive minimum interest @ 24% p.a. from 3rd redemption till the date of payment. The complainant submits that this is gross negligence and deficiency in service on the part of the opposite party and prayed for a direction to the opposite party to pay a sum of Rs.34,865/- along with interest @ 18% p.a. together with compensation of Rs.25,000/- and costs.
Opposite party having received notice, remained exparte.
Based on the evidence adduced i.e. Exs.A1 to A3 and the pleadings put forward, the District Forum allowed the complaint directing opposite prty to pay a sum of Rs.34,865/- after deducting Rs.15,135/- paid by opposite party through cheque No.120881 with interest at 12% p.a. from the date of order till realization together with compensation of Rs.5,000/- and costs of Rs.2,000/-.
Aggrieved by the said order, opposite party preferred this appeal.
Exs.B1 to B5 are marked on behalf of the appellant.
Written arguments of the appellant filed.
The facts not in dispute are that the complainant deposited a sum of Rs.5,000/- in family bonds on 06-9-1996 and as per the said scheme, the opposite party gave option to redeem the bonds on the following dates:
i) On 6th Sep.1999 for Rs.7,750/- ii) On 6th Sep.2002 for Rs.12,500/-
iii)On 6th Sep.2006 for Rs.23,000/- iv) On 6th Sep.2011-Rs.50,000/-
v) On 6th Sep.2015 for Rs.90,000/- vi)On 6h Sep.2019 - Rs.1,70,000/-
vii)On 6th Sep.2023 -
Rs.3,15,000/- viii)On 6th Sep.2024 Rs.3,65,000 The complainant applied for the said bond and the opposite party gave a certificate No.115985 with a face value of Rs.5,00,000/-. It is the complainants case that on 27-8-2008, opposite party issued a cheque for Rs.15,135/- evidenced under Ex.A2 which was enchased by the complainant under protest. Thereafter the complainant got issued a legal notice dated 3-1-2009 evidenced under Ex.A3 calling upon the opposite party to pay the 4th redeemed option i.e. September, 2011 and the complainant is liable to get Rs.50,000/-.
It is the appellant/opposite partys case that due to financial crises, PNB Capital market Limited, which is the trustee of the Bond Holders had a meeting on 25-6-2003 and the appellant exercised the option for early redemption of the bonds on 06-12.2003. Notices were issued in newspapers on 30-9-2003, (Ex.B3) 5-8-2005 and 31-3-2007 and letters of intimation were also issued on 30-9-2003, 16-11-2004, 01-10-2005, 01-6-2005 and 15-2-2008. It is also the appellant/opposite partys case that on page 12 of the prospectus under the heading Payment on redemption/Early Redemption, no interest or other benefit shall accrue from the due date of redemption or from the date of early redemption. On 14-8-2008, the complainants guardian, Durga Devi Agarwal, submitted an application and the redemption warrant dated 27-8-2008 for Rs.15,135/- was issued to the complainant and the same was also encashed.
The appellants passed a special resolution for early redemption on 06-12-2003 and therefore submitted that there is no deficiency in service on their behalf. Ex.B4 shows the date of redemption as on 16-12-2003 the amount payable per bond is Rs.15,135/-. Payment on redemption/Early Redemption, the condition reads as follows:
Payment on Redemption/Early Redemption Payment on redemption or early redemption of the Bonds will be made only on the surrender of Bond certificate(s), duly discharged by the Sole/all the joint holders (signed on the reverse of the Bond certificate) IFCIs liability to Bondholders towards all their rights including payment or otherwise shall cease and stand extinguished from the due date of redemption/early redemption in all events. Further, IFCI will not be liable to pay any interest, income or compensation/benefit of any kind from the date of such redemption/early redemption of the Bonds.
On the Bondholder receiving the amount as specified above in respect of the Bonds, the liability of the company shall stand extinguished.
Ex.B5 is the application made by the Durga Devi Agarwal who is the guardian of the complainant herein who was then a minor and the said Durga Devi has signed on 07-8-2008 on behalf of the complainant herein. It is mentioned in the bond certificate, application form, that the appellant and the complainant had the right for the early redemption of the bonds. The complainants guardian lodged a claim for redemption and on 27-8-2008, a warrant for Rs.15,135/- was drawn on Axis bank in favour of Pinki Kumari Agarwal. This was issued and as per the terms on page 12 of Ex.B4 no interest or other benefits will be accrued even on early redemption.
In the result this appeal is allowed and the order of the District Forum is set aside and consequently the complaint is dismissed. No costs.
Sd/-PRESIDENT.
Sd/-MEMBER.
JM Dt.24-8-2012