The court established the principle that a non-member of a Co-operative Society can file a complaint before the Consumer Forum, and the Society can be held vicariously liable for the employee's fraud committed in the course of employment.

Mr. T.P. Gupta, Member—The aforesaid five appeals have been filed by the appellants under Section 15 of the Consumer Protection Act, 1986 (hereinafter referred to as ‘1986 Act’) against the orders dated 10.12.2003 passed by the learned District Forum, Jalore whereby the complaints of the complainant-respondents were partly allowed. These are being disposed of by this common judgment, as the subject matter and issues involved therein are common.

Facts of Appeal No. 175/04—

Manager, Ahore Co-op. Mkg. Society Ltd. v. Paraveen Kumar

2. The brief facts giving rise to this appeal are that the appellant is a society registered under the Co-operative Societies Act, 1968 (hereinafter referred to as the ‘Society’). By its letter dated 30.9.1998, the Society invited investments to deposit money with it, with a promise to return the deposited amount with interest @ 18% p.a. Relying on this representation, the respondent deposited a sum of Rs. 50,000/- with the Society on 18.3.1999 and Rs. 15,000/- on 26.4.1999 and the appellant issued printed and numbered receipts of the amounts received to the respondent. After some time the appellant did not send any statement of account to the respondent and as such the respondent requested the appellant on 24.1.2000 to make repayment of the amount deposited by him, together with interest. The payment was, however, not made in spite of repeated reminders by the respondent to the appellant and its superior authorities. The respondent, therefore, filed complaint in the Forum below claiming refund of the amount deposited by him, together with interest and damages on account of mental agony and cost of litigation.

3. The appellant submitted a reply to the complaint stating that the complainant cannot be termed as ‘consumer’ as he had deposited the amount with the Society against the rules. According to the reply, the complainant-respondent had deposited the amount in the Society and that amount was received by its Cashier-cum-Accounts Clerk Shri Khim Singh against the rules and without the permission of the higher authorities for which the Society is not responsible. The Society had lodged an F.I.R. with the police against its employee Khim Singh for committing criminal misappropriation of large amount of money. The Society replied that it is not in a position to say whether or not repayment of the deposit had been made to the respondent because the relevant record has been seized by the police. Later, at the instance of Jan Abhav Abhiyog Nirakaran Society, Jalore, statement of account was sent to the respondent. The Society has submitted that the respondent might be entitled to receive the amount deposited by him but no interest is payable to him. The Society also alleged that the learned District Forum has no jurisdiction to decide the claim raised by the respondent.

4. After hearing both the parties and receiving their evidence, the learned District Forum partly allowed the complaint and directed the appellant to make repayments of the principal amount of Rs. 65,000/- to the respondent together with interest from the date of deposit to the date of presentation of complaint before the Forum below @ 12% p.a., and thereafter damages @ 9% p.a. and Rs. 500/- as cost of litigation. Aggrieved by the said order dated 10.12.2003 passed by the learned District Forum, this appeal has been filed by the appellant.

5. We have heard the arguments and submissions made by the learned Counsel for both the parties and have perused the impugned order passed by the learned District Forum and have considered the materials on record.

6. The impugned order has been assailed by the learned Counsel for the appellant on two grounds. Firstly, that a Forum under the Consumer Protection Act has no jurisdiction over the subject-matter of the complaint because under the provisions of the Societies Act, any dispute touching the constitution, management or the business of a Society arising among members is to be referred to the Registrar