ANIL KUMAR AGGARWAL vs SHANTI PRAKASH GUPTA

THE facts of the case briefly stated are that Anil Kumar Aggarwal, Managing Director of M/s. P.M. Electronics Ltd., Noida, entered into an agreement with Mr. Shanti Prakash Gupta, opposite party on 24.1.94. A writing title ''Memorandum of Undertaking'' was prepared and executed by both the parties. According to the said agreement, the opposite party agreed to arrange funds amounting to Rs. 120 crores as loan repayable in 10 years alongwith interest @ 8% p.a. within a period of 90 working days from the date of the agreement. THE complainant gave a cheque of Rs. 4 lacs to the opposite party in consideration for the said services. In case the loan was arranged, the opposite party was entitled to commission @ 16% of the amount of loan. Rs. 4 lacs for which the complainant had given the cheque was to be adjusted in the amount payable to the opposite party as commission. In case of default the opposite party was liable to refund Rs. 4 lacs received by cheque as well as a penalty of an equal amount. Further case of the complainant is that the opposite party failed to arrange the loan and, accordingly, the complainant asked the opposite party to refund the money in terms of the agreement. THE opposite party issued a cheque for Rs. 4 lacs dated 20.6.94. THE cheque was dishonoured for want of funds on 23.6.94. THE complainant informed by writing the opposite party about the dishonour of the cheque. Notice was also served on the opposite party through Counsel. THE opposite party gave two post dated cheques for Rs. 2 lacs each which were also dishonoured. THE complainant has claimed Rs. 8 lacs in terms of the agreement, interest @ 20% and costs and Bank charges paid for dishonour cheques totaling Rs. 10,78,278.75.

NOTICE of the complaint was sent to the opposite party by registered post. The same having not been received back undelivered service was presumed. None appeared for the opposite party. The complainant has filed his own affidavit in support of the averments made in the complaint. We have gone through the same. The complainant''s case is fully supported by the aforesaid affidavit as well as the agreement. The complainant has also filed the communications received from the Bank regarding the dishonour of the cheques, photocopies of the cheques given by the opposite party have also been placed on record. There is no rebuttal placed on record on behalf of the opposite party. The opposite party had undertaken to provide service namely arrange for loan amounting to Rs. 120 crores within a agreed time-frame on terms and conditions mentioned in the agreement. The services were provided for consideration. Part of the consideration was given by the complainant by issuing a cheque for Rs. 4 lacs which was duly collected by the opposite party. The aforesaid facts constitute deficiency in service.

Coming to the amount, the complainant is clearly entitled to the refund of the aforesaid amount of Rs. 4 lacs. He is also entitled to interest which normally is allowed @ 18% p.a. by the National Commission in various cases. We, therefore, allow the complaint and direct the opposite party to refund Rs. 4 lacs alongwith interest thereon at the rate of 18% p.a. from 24.1.94 till date of actual re-payment together with costs which we quantify as Rs. 2,500/-. If the aforesaid payment is not made within 30 days of the communication of this order to the opposite party he would render himself liable for action u/Section 27 of the Consumer Protection Act. A copy of this order be communicated to both the parties. Complaint allowed with costs.