MUMBAI GRAHAK PANCHAYAT vs LOHIA MACHINES LTD.

AFTER elaborate discussions at the Bar, the complainant namely, Mumbai Grahak Panchayat, Bombay and the intervenor, Akhil Bhartiya Grahak Panchayat, Delhi and the Opposite Party, M/s. Lohia Machines Limited, Kanpurhave submitted an agreed joint Scheme for repayment by the company of all the outstanding amounts of scooter deposits to all the remaining customers who have cancelled their bookings of scooters. The Scheme is hereby approved and it will form a part of this Order.

UNDER the said Scheme the company is to pay to all the remaining customers to whom deposit amounts are outstanding, the principal amount of Rs. 500/- with interest therein at the rate of 7 percent annum from the date of deposit till the date of cancellation, thereafter interest at the rate of 11 percent per annum from the date of cancellation upto 1.1.1992 and subsequently this case should also be governed by this Scheme which we have approved above and the said petition will also stand disposed of by This Order approving and sanctioning the Scheme. M/s. Lohia Machines Ltd., shall pay a total sum of Rs. 10,000/-by way of costs of today''s hearing to the complainant and the intervenor, from out of which Rs. 6,000/- shall be paid to complainant - Mumbai Grahak Panchayat, and the balance of Rs. 4,000/- to Akhil Bhartiya Grahak Panchayat, Delhi represented by Shri S.K. Punchi. The amount of costs shall be paid within four weeks from today. PROPOSED SCHEME 1. The Company will pay to the remaining customers who have cancelled the scooter booking the amount of the scooter deposit of Rs. 500/- together with interest thereon at the rate of 7% p.a. for the term of booking i.e. from the date of deposit till the date of cancellation and thereafter at the rate of 11% p.a. from the date of cancellation upto 1.1.1992 and thereafter at the rate of 12.5% p.a. from 1.1.1992 till payment.

For the purpose of making the aforesaid payment, the Company will release every month a sum of Rs. 50 lakhs which amount will be exclusively utilised for refund of scooter deposit in terms of clause above to the customers who have cancelled the scooter booking on first come first serve basis.

The Company shall complete the process of repayment in pursuance of this scheme to all the customers whose deposit amounts remain unpaid not later that 30.9.1995 by increasing, if necessary, the release of funds for the purpose during the final year.

Petition disposed of.