BRANCH MANAGER, SAHARA INDIA vs PENNUMALLU RAMU And OTHERS

-THE complainants, that is the respondents herein have deposited in all a sum of Rs. 7000/- with the appellant that is, the opposite Party in C.D. No. 825 of 1991.

ACCORDING to the scheme, they have to make deposit every year and on maturity they will be entitled for refund of the same with bonus. But the complainants have paid only one instalment each and failed to pay the balance of the instalments. Therefore, they filed the complaint after expiry of five years period stating that they are entitled for refund of the actual deposit by them with interest. This claim was opposed by the opposite party mainly on the ground that, according to the terms and conditions of the scheme, the complainants are not entitled to any interest as they have paid only one instalment each and thereafter committed default in payment of the instalments. Since the claim was made after the period of five years, after starting of the scheme, accordingly they are not entitled for the refund of the actual amount deposited without deduction of any commission, and not entitled to any bonus or interest.

The District Forum referred to Ex. A 9. According to District Forum in terms of Ex.A9 the account holders can withdraw the actual deposit amount after expiry of every five years, on the interest earned will be payable after completion of full term of account, that is, 15 years. Having noticed the said condition, the District Forum not only directed the payment of the actual deposit made and payment of interest at 9% p.a. from the date of deposit till the date of payment. But the complainants are asking for payment of the actual amount desposited before the expiry of 15 years, that is, the life of the scheme. According to terms of Ex. A9, as noticed by the Dirstrict Forum, they are not entitled for payment of any interest. Notice was ordered to the respondents in this appeal. They sent a letter requesting for dismissal of the appeal and for confirmation of the order of the District Forum.

IN the circumstances, in the absence of any agreement to pay any interest, we are satisfied that there is no deficiency of service rendered by the opposite party, so far as relating to payment of interest is concerned. Accordingly we confirm the order of the District Forum, directing the refund of Rs. 7000/- and also costs of Rs. 200/- and set aside the order of the District Forum, whereby the District Forum directed the opposite party to pay interest on the sum of Rs. 7000/- at 9% p.a. The appeal is accordingly allowed in part. There shall be no order as to costs. Appeal partly allowed.