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2023 Supreme(Online)(Del) 18327

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Unknown, Unknown
Chairman Belgaum Postal & Rms Dn. Co-op. Cr. Sct Ltd. v. Shivanand Shivabasappa Kadakol
Review Application No.13 of 2022 | RA / 14/2022 | RA / 15/2022 | RA / 16/2022 | RA / 17/2022 | FA / 1576/2017 | FA / 1577/2017 | FA / 1578/2017 | FA / 1579/2017 | FA / 1580/2017



Advocates:
For the Appellants/Petitioners: Mr. R.A. Gunjale

Consumer claims are maintainable notwithstanding alternative remedies under cooperative society laws.

Headnote:This judgment analyzes the dismissal of several review applications against the orders of the Karnataka State Consumer Disputes Redressal Commission related to claims for refund of fixed deposits and interest by a retired member of a co-operative credit society. The court confirms the maintainability of claims under the Consumer Protection Act, despite existing remedies under cooperative society laws, and emphasizes the consumer's status against service providers. Ultimately, the revisions are dismissed as the claims were upheld based on adequate documentation presented with respect to the deposits.

Judgement Key Points

Key Points: - Consumer protection claims are maintainable even where alternative remedies exist under cooperative society laws (!) (!) . - A retired member can claim refund of fixed deposits and interest from a cooperative credit society based on genuine deposit evidence (!) (!) (!) (!) . - A cooperative credit society is vicariously liable for the acts of its employees and office bearers (!) (!) .

What is the availability of consumer protection remedies alongside cooperative society laws?

What are the rights of a retired member against a cooperative credit society for refund of fixed deposits and interest?

What is the liability of cooperative credit society for acts of its office bearers?


Table of Content
1. consideration of financial disputes involving consumer deposits. (Para 2 , 4 , 5 , 6)
2. appeal arguments against complainant's membership and evidence. (Para 7)
3. determination of liability based on customer evidence and applicable law. (Para 8 , 9 , 10)
4. final ruling on the appropriateness of remanding the case. (Para 11)

1. Heard Mr. R.A. Gunjale, Advocate, for the petitioner.

2. Above revision petitions have been filed against the orders of Karnataka State Consumer Disputes Redressal Commission, Bengaluru, dated 29.9.2022, dismissing Review Application No.13 of 2022, RA / 14/2022, RA / 15/2022, RA / 16/2022 & RA / 17/2022 and dated 8.12.2021 dismissing FA / 1576/2017, FA / 1577/2017, FA / 1578/2017, FA / 1579/2017 & FA / 1580/2017 (arising from the order of District Consumer Disputes Redressal Forum, Belagavi, dated 26.4.2017 passed in Consumer Complaint Nos.222, 223 and 224/2016 and also orders dated 30.11.2016 and 3.4.2017 passed in CC / 316/2016 and 41/2017 respectively), whereby District Forum allowed the complaint and directed the opposite parties jointly and severally to pay the amount of FDRs with agreed interest up to the date of maturity and interest @9% per annum, after date of maturity till the date of payment and cost of Rs. 1,000 each. In CC / 316/2016, the District Forum directed the opposite parties to pay the amount of FDR with interest @ 10.20% and cost of Rs. 3,000 and in CC / 41/2017, the District Forum directed the opposite parties to pay the amount of FDR with interest @ 6% p.a. and cost of Rs. 3,000. The office has reported one day delay, in filing RP / 279/2023 & RP / 280/2023. The petitioners have filed IA / 8809/2023 and IA / 8810/2023 respectively, for condoning the delay. Delay is condoned.

3. As the facts and the dispute involved in all the revision petitions are same, they are disposed of by a common judgment treating RP / 279/2023 as leading case.

4. Shivanand Shivabasappa Kadakol (respondent - 1) filed CC / 222/2016 for directing the petitioners and respondents - 2 and 3 jointly and severally to (i) refund Rs. 4,00,000 with interest @10% per annum, from March, 2015 till the date of filing of the complainant and thereafter @18% per annum till the date of refund; (ii pay litigation costs; and (iii) any other relief, which is deemed fit and proper in the fact of the case. The complainant stated that The Belgaum Postal & RMS Division, Co - operative Credit Society Ltd., 1st Floor, Opp. Head Post Office, Station Road, Belagavi was a co - operative bank, registered under Karnataka Co - operative Societies Act, 1960 and Senior Superintendent of Post Office, Belagavi Division (opposite party - 4) is its Ex - officio President. Membership of the co - operative credit society was limited to the employees of Post Offices and Rail Mail Services. The complainant was member of co - operative credit society, being an employee of Rail Mail Services, from where he retired in the year 2005. After retirement, the complainant deposited Rs. 2,00,000 in FDR No.1114, Account No.243 on 9.1.2012 and Rs. 2,00,000 in FDR No.1115, Account No.244 on 9.1.2012, for a period of one year at interest @10% per annum. Interest was payable in every month to the complainant and FDRs used to be extended for further one year. Last time interest was paid in February, 2015 on above FDRs. In February, 2015, election of office bearers of co - operative credit society was held, in which, opposite parties - 1 to 3 were elected as President, Vice - President and Secretary, respectively. The opposite parties stopped payment of interest to the complainant on above FDRs from March, 2015. After retirement, the complainant and his family depend upon monthly interest of FDRs. The complainant used to approach the opposite parties for payment of interest and they used to assure that interest would be paid after 3 months, but they failed to abide. The complainant gave legal notice dated 16.4.2016 to the opposite parties for payment


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