Satish Kumar vs Unit Trust of India

BOTH these appeals are directed against the order passed by District Consumer Disputes Redressal Forum, Rajnandgaon (hereinafter called District Forum for short). Since both these appeals involved common question, they are being disposed of by this common order. Appeal No. 467/2003 arises from order in Complaint No. 71/1999 and Appeal No. 468/2003 arises from order in Complaint No. 72/1999. BOTH the said impugned orders were passed by the District Forum on 14.12.2000.

THE averments of the complainants of both the appeals were that they had applied for allotment of Units under the scheme or plan known as ''U.G.C. 2000''. THE demand draft of Rs. 2,000/- of United Western Bank, for allotment of Units by the respondent Unit Trust of India was sent to them. However, despite submission of application form with the D.D. as above, the Units were not allotted by the respondent to the complainant. Hence the complainants sent registered notice dated 16.7.1996 to the respondents. THE respondents demanded by their letter dated 19.9.1996 duplicate D.D. upon which the complainant/appellant moved the United Western Bank, Rajnandgaon regarding the issuance of duplicate of D.D. sent to the respondent. THE complainant/appellant was intimated by the United Western Bank Ltd., that the original D.D. has been encashed and credited to the account of the payee. Even thereafter, since the Units were not allotted to him, the complainant filed the complaint. THEy have prayed that the respondent be directed to allot Units under their scheme ''U.G.C. 2000'' and should also be directed to pay compensation. The complaints were resisted by the respondent.

The District Forum held that simply because the complainant/appellants sent the amount for allotment of share certificates, it cannot be said that they are consumer and accordingly dismissed the complaints.

THE learned Counsels for the parties were heard and record was perused. It is not in dispute that the complainant had submitted an application to the respondent for allotment of 200 units under the Unit Scheme ''U.G.C. 2000''. A draft for Rs. 1,990/- after adjusting Rs. 10/- towards draft charges, was undisputedly sent by the complainants to the respondent. A copy of the said draft has also been filed. It is also clear that the complainant was informed by the respondent by their letter dated 19.9.1996 to submit a duplicate D.D. if it is still outstanding, upon which he moved an application to the United Western Bank Ltd, who in turn by their letter dated 12.6.1997 intimated the complainant that the D.D. has already been encashed and credited to the account of the payee through State Bank of Indore, University Branch, Indore. The complainant thereafter sent registered notice to the respondent. The above facts are not disputed and are also supported by the documents filed in the District Forum.

IT is, therefore, clear that despite payment of the amount along with application to the respondent, they failed to issue Unit Certificates. IT is not in dispute that the Unit Certificates were to be given on firm allotment. IT was not a case of allotment of shares, which may or may not have been done by the company. In the instant case if the application was duly made, the same was bound to be accepted. Moreover, in the instant case non-allotment of the Units, was on the ground that the amount of application money was not received by the respondent. However, as noticed above the complainant has produced reliable and unimpeachable material to show that the amount regarding application sent by the complainants by D.D., has been received through their bankers, by the respondent. In view of the above, the prayer of the complainant for allotment of the Unit Certificates was justified and cannot be rejected. The District Forum erred in holding that the complainant was not the consumer of the respondent as he was merely an applicant for allotment of share. As noticed above, it is not a case of discretionary allotment of shares as appears to be the view of the District Forum. In fact, it is a case in which the respondent had extended an assurance of allotment of Units on receipt of application form, with requisite amount, which was duly submitted by the complainant/appellants. However, still thereafter the units were not allotted by the respondent. Therefore, the complainants/appellants in each of the above complaints are entitled to get the Unit Certificates with all consequential benefits accrued on the said Unit Certificates and in the alternative to the refund of the amount remitted by them with interest which in the circumstances of the case, in our opinion, should be awarded @ 12% per annum.

HENCE, the appeals are allowed. It is directed that the respondent shall allot 200 Units under the Scheme ''U.G.C. 2000'' to the complainants. The allotment as above would be on the same terms and conditions as were applicable on the date of the encashment of the draft in favour of the respondent through their Banker, i.e., on 17.1.1991. The benefits accruing thereafter from time-to-time on the said Units shall also be given to each of the complainants. In case the allotment as above is not possible for any reasons, the same shall be certified by the Competent Authority of the respondent and intimated to the complainant and in that case the complainant of each complaint shall be entitled to refund of the above amount of Rs. 2,000/- with interest @ 12% per annum. It is further directed that in case the units are still available and can be allotted as directed above, then the complainant of each case will have the first choice to get the units or to avail of the alternative relief of refund of above amount with interest as directed above. The complainant/appellant shall be liable to intimate his choice as above, within two months from the date of this order. The cost of this litigation of each of the complaints shall also be payable by the respondent, which is quantified at Rs. 1,000/- (Rupees one thousand only) for each of the complaints. Appeals allowed.