ASHA RASTOGI vs REGENCY INDUSTRIES LIMITED

THE complainant has filed this complaint for direction to the opposite party for payment of Rs. 2,80,000/- along with interest at the rate of 18% per annum and Rs. 25,000/- as damages as well as cost of Rs. 5,000/-.

THE facts of the case stated in brief are that the opposite party, Regency Industries Limited, sponsored a Scheme in the name of "Regency Farms" within the limits of Lucknow. In the brochure it was proposed to invest Rs. 35,000/- for growing "Eucalyptus" trees in one acre land by name and promised to pay Rs. 1,20,000/- or Rs. 70,000/- and land or Rs. 60,000/- and 600 trees after a period of seven years from the date of deposit. THE other features are given in the scheme, a copy of which is Annexure-1 to the complaint. THE complainant deposited a sum of Rs. 80,000/- as full and final payment with the opposite party on 4.5.1987 for booking of four acres of farm land at Village Mati, Pargana Bijnor, District Lucknow in the same scheme. THE opposite party promised to pay according to the terms of the brochure. THE receipt of payment is Annexure-2. A deed was executed between the parties on 8.7.1987 regarding the land in Village Mati and in pursuance of the said deed an agreement was also executed on 2.1.1988 in which certain terms and conditions between the parties were agreed upon. In view of para 12 of this agreement the payment of Rs. 2,10,000/- was guaranteed to the complainant by opposite party after seven years. Another sale deed was also executed by the opposite parties for one acre of land on 30.3.1988 situated at Village Mati and in pursuance of sale deed an agreement was executed on 19.9.1988 under which a payment of Rs. 70,000/- was guaranteed by the opposite party to the complainant after seven years. Both the sale deed and agreement are Exhibits-3 to 6.

It is alleged that the scheme matured on 5.5.1994 when the opposite party was to comply with the terms of the agreement. On 21.9.1993 the complainant sent a letter to the opposite party before the maturity of the scheme and demanded the payment of the amount. The opposite party did not pay the amount and made certain excuses. Thereafter by letter, copy of which is Annexure-7, the complainant was assured of getting interest at the rate of 18% per annum to be compounded half yearly as compensation for delay in payment. The complainant consented to accept the payment of Rs. 1,50,000/- and interest thereon for the delayed payment after maturity on the request of the opposite party. The complainant waited for a long time for payment of the amount but the opposite party adopted dilatory tactics and never paid a single paisa. The complainant again sent a letter dated 9.6.1996, copy of which is Annexure-8, to the opposite party, but to no effect. Thereafter, the complainant met the opposite party at his Delhi Office who promised to pay the amount in October, 1996, but the same was not done and the matter was delayed. The complainant thereafter filed the complaint.

NOTICES were issued to the opposite party. Opposite party had appeared before the Commission and requested for time to file written statement, but no written statement was filed. Hence the case was directed to proceed ex-parte. The complainant thereafter filed evidence in support of his contention.

WE have heard the learned Counsel for the complainant Mr. R.K. Gupta and perused the evidence. According to the complainant there were two agreements between the parties for land situated at Village Mati and in pursuance of the agreements, the complainant was to get certain amount which was Rs. 2,10,000/- for the first agreement and Rs. 70,000/- for the second agreement. In order to prove this transaction the complainant has filed copies of sale deed as well as copies of the agreements which are on record. A perusal of both the agreements will go to show that the opposite party had taken on itself to pay the amount of Rs. 2,10,000/- and Rs. 70,000/- to the complainant. When the complainant, after not having received the payment, approached the opposite party, they gave in writing that they will compensate the complainant by paying 18% per annum interest with compounded half yearly. Thus this letter dated 21.9.1993 will go to show that the opposite party had taken on itself to make the payment of Rs. 2,80,000/- alongwith 18% per annum with half yearly rest. The other documents on record which are brochure etc. clearly go to show that the scheme as alleged by the complainant had been floated by the opposite party. Thus we find that there is deficiency on behalf of the opposite party in not acting in accordance with the agreement between the parties and not paying the complainant a sum of Rs. 2,80,000/- as promised earlier. Therefore, the complainant is entitled to get a sum of Rs. 2,80,000/- along with 18% per annum interest to be compounded half yearly. A sum of Rs. 5,000/- shall be paid as compensation for the mental torture etc. A further sum of Rs. 3,000/- is allowed as cost of the complaint. The complaint is thus liable to be decreed in part. ORDER The complaint is allowed in part. The opposite party is directed to pay a sum of Rs. 2,80,000/-, the maturity amount, with interest at the rate of 18% per annum to be compounded half yearly, from the date of maturity till the date of actual payment. A sum of Rs. 5,000/- is also decreed as compensation towards harassment, mental torture etc. The complainant will also get a sum of Rs. 3,000/- as cost of the litigation. Let the compliance of the order be made within a period of two months from the date of this order. Let copy as per rules be made available to the parties. Complaint partly allowed.