VISHWA RANJAN vs MANAGING DIRECTOR, ARIHANT INDUSTRIES LTD.

BRIEF facts of the case are that Mr. Vishwa Ranjan, complainant for short, was holder of 15 redeemable debentures of Rs.l50/-each of M/s. Arihant Industries Ltd., hereinafter referred to as the opposite party. The debentures carried interest @ 14% p.a. and was payable every six months. In his complaint dated 12.7.1995, the complainant sought direction to the opposite party to pay the redemption money as also the interest which had been agreed from 1.4.1994 onwards according to the terms and conditions of the debentures. The case was contested by the opposite party. Interalia, objection regarding lack of territorial jurisdiction was raised. District Forum-II upheld the objection on the ground that the opposite party Company had no office in Delhi and no part of cause of action had arisen within the jurisdiction of this Commission. Aggrieved by the order, the complainant has preferred this appeal. We have heard the appellant in person and Mr. Raman K. Soo Company Secretary of the respondent Company and have carefully gone through me records.

IN the reply filed in the course of the appeal it was admitted in para 5(b) that the respondent Company had a branch office at New Delhi. IN view of the said admission the FORA at Delhi had jurisdiction in view of the provisions of Section 11(2)(a) of the Consumer Protection Act. The next grievance of the appellant is that the payment as redemption money, on the one hand, and as interest, on the other hand had been made after considerable delay resulting in loss and harassment to the complainant.

The following table sets out the amount due on account of redemption money in respect of the debentures in question. Instalment Due on Actually Paid 1st instalment 30.9.1995 15.12.1995 2nd instalment 30.9.1996 3.2.1996 With regard to interest the admitted position is as under : Interest due on Paid on 30.9.1994 30.12.1995 31.3.1995 13.12.1995 30.9.1995 15.12.1995 31.3.1996 3.2.1997 30.9.1996 3.2.1997 31.3.1997 Under process.

A perusal of the above charts shows that there has been delay in payment of both the redemption instalment as well as interest. There is no reason why the complainant should not be paid interest @ 14% p.a. on the amount paid after causing delay. The appeal is, accordingly, allowed and respondent is directed to pay within six weeks from the date of receipt of a copy of this order interest calculated in terms of the above direction together with Rs. 2,500/- as compensation and costs. If the respondent failed to comply with the order, it will be open to me appellant to invoke jurisdiction of the Fora u/Sec. 27. A copy of the order be conveyed to both the parties as well as District Forum-II. The appeal stands disposed of in these terms. Appeal allowed.