KANTI GARG vs MAHA LAXMI FINANCE CORPN.

THIS complaint has been filed by Smt. Kanti Garg and Ghanshyam Das Garg. The allegations contained in the complaint are as follows :

THE opposite parties are partners of both the firms, opposite party No. 1 and the opposite party No. 2 is a partner as well as Manager of the said firms, opposite party No. 1. They had invited public deposits for furtherance of their business. Attractive rate of interest was offered on deposits and prompt repayment of the principal amount with interest was also assured by the opposite parties. The complainants are husband and wife and they purchased 6 F.D.Rs. from the said firm. The first F.D.R. wad purchased on 20.10.1990 for an amount of Rs. 12,000/- of Maha Laxmi Finance (Regd.) @ of interest of 18% p.a. for a period of 1 year. Thereafter the opposite party No. 1 promised to pay more attractive rate of interest @ 24% p.a. on further investments. Accordingly the complainants purchased 2 more F.D.Rs. from Maha Laxmi Finance (Regd.) for Rs. 20,000/- each. The stipulation was that the rate of interest would be 24% on maturity of one year. 3 more F.D.Rs. on the same date were purchased, i.e. F.D.R. of Rs. 20,000/- Receipt No. 565, F.D.R. of Rs. 20,000/- Receipt No. 566 and F.D.R. of Rs. 9,000/- Receipt No. 567 from M/s. Maha Laxmi Finance Corporation. All these amounts were paid to the opposite parties through cheque. The amount of the F.D.Rs. was refundable at a rate of 24% interest p.a. on the date of maturity of one year.

Thus the complainants purchased 6 F.D.Rs. for Rs. 1,01,000/- (Rs. one lac one thousand only) with the purpose to use the same at the time of the marriage of the daughter and son. Photo-copies of the F.D.Rs. have been enclosed with the complaint as Annexures 1 to 6. The complainants demanded the refund of the amount of F.D.Rs. after the maturity period. The opposite: e parties did not refund the said amount in spite of the fact that the complainants visited the opposite parties. The result was, the marriage of the daughter and son could not be taken place resulting into mental torture and agony to the complainants. The complainant No. 1 Smt. Kanti Garg because of the mental torture had to be treated by Dr. B.N. Agarwal, for heart ailment. In spite of the attempts made by the complainants 20 times to visit the opposite parties and requests made on telephone the amount was not refunded for which the complainants had to spend a sum of Rs. 5,000 /-, an amount of Rs. 2,000/- was also incurred on treatment of the complainant No. 1. A claim has, therefore, been lodged before this Commission by the complainants for refund of the principal amount along with the interest amounting to Rs. 2,10,460/-. Besides the compensation of Rs. 1,50,000/- for mental torture and agony to the complainants and Rs. 1,50,000/- for damage and loss for breaking of the marriage of complainants'' son and daughter has also been claimed. An amount of Rs. 5,000/- spent by the complainants to visit the opposite parties'' place along with Rs. 5,000/- as cost of the proceedings have also been claimed.

NOTICES of the claim were issued to the opposite parties on 18.10.1997 and. all the notices were not received back unserved. The service on the opposite parties was, therefore, deemed sufficient and on 16.7.1998 the case proceeded ex parte against the opposite parties. Ex-parte arguments of the learned Counsel for the complainants were heard.

WE have also gone through the entire record of the complaint case. A perusal of the evidence of the case goes to show that on 20.10.1990 an amount of Rs. 12,000/- was deposited by the complainants with the opposite party Maha Laxmi Finance (Regd.) through Cheque No. 415402 dated 20.10.1990 drawn on State Bank of India, Bareilly. An F.D.R. No. 563 was issued. The rate of Interest indicate I in the F.D.R. No. 563 is 18% p,a. On 15.3.1991 vide F.D.R. No, 565 an amount of Rs, 20,000/- was deposited with Maha Laxmi Finance Corporation, Bareilly This amount was sent through Cheque No. 415405, F.D.R. No. 566 of 15.3.1991 also indicates that the amount of Rs. 20,000/ was deposited vide Cheque No. 415405 dated 15.3.1991, F.D.R. No, 619 dated 15.3.1991 for an amount of Rs, 20,000/- indicates that the payment was made through Cheque No, 415406 FDR No, 620 for Rs, 20,000/= also indicates that the amount of Rs, 20,000/- was also given through Cheque No, 415406, A perusal of the F.D. Rs. goes to show that except for the F, D, R, No, 563 under which an amount of Rs, 12,000/= was deposited year has been mentioned at 18% p.a As far as other F.D.R, Nos. 56S, 566, 567, 619, 620 are concerned only principal amount as indicated above has been mentioned. The rate of interest has not been mentioned. The opposite party Maha Laxmi Finance (Regd.) issued F.D.R. for Rs. 12,000/- with 18% interest. All the remaining F.D.Rs. were issued by Maha Laxmi Finance Corporation and in all these F.D.Rs. the rate of interest has not been indicated although the address given in all the F.D.Rs. is the same, i.e. Friends Market near S.B.I. Shyamganj, Bareilly. A perusal of the affidavit filed by the complainants goes to show that Rs. 12,000/- was taken on 18% and subsequently the deposits were taken on 24% interest but there is no other evidence to substantiate that 24% interest was admissible on the amount of Rs. 89,000/- subsequently deposited through various F.D.Rs. All the F.D.Rs. issued by Maha Laxmi Corporation only indicate the principal amount deposited and that the rate of interest. These F.D.Rs. involve the principal amount of Rs. 89,000/-. WE have also gone through the terms and conditions given on the opposite page of the F.D.R. concerned wherein in Condition No. 5 it has been mentioned that the interest on deposit will seize at maturity of receipts. In the circumstances of the case it cannot be proved that the interest on Rs. 89,000/- deposited with Maha Laxmi Finance Corporation was @ 24%. The maximum interest that can be allowed is 18% in the circumstances of the case. In regard to the claim for mental agony and damages of Rs. 3 lacs we find that there is only prescription issued by Dr. B.N. Agarwal wherein some medicines have been prescribed. No other evidence has been tendered. Therefore, an amount of Rs. 10,000/- for treatment and visits including telephone calls of the complainants will be sufficient to meet the ends of the justice, to be given to the complainant as compensation. The result is, the complainants are entitled to receive 18% interest on the amount deposited from the date of deposit till the date of payment along with Is, 10,000/ as compensation for therefore, liable to be allowed in part. ORDER The complaint is partly decreed, It is hereby directed that the opposite parties jointly and severally shall pay to the complainants the principal amount of Rs. 1,01,000/- along with 18% interest from the date of deposits till the date of payment. Besides the complainants are also entitled to receive Rs. 10,000/- as compensation for mental harassment and agony suffered by them. An amount of Rs. 2,000/- as cost of proceedings shall also be payable to the complainant. The compliance of the order shall be made within six weeks of the date of this order by opposite parties. Let copies of this order be issued to all the parties as per rules. Complaint partly allowed.