Decided on July 08,2020

Secretary Vishwabharathi House Building Appellant
B.K.KRISHNAIAH Respondents


Prem Narain, Presiding Member - (1.) This first appeal has been filed by Secretary, Vishwabharathi House Building Co-operative Society Ltd. challenging the order dated 22.08.2012 passed by the State Consumer Disputes Redressal Commission, Karnataka (in short 'the State Commission') in Consumer Complainant No.146 of 2009.
(2.) The brief facts of the case are that the respondent/complainant became a member of the appellant/opposite party society on 09.12.1991 and paid the necessary fee and got the receipt on the same day. The complainant also deposited a sum of Rs.40,000/- with opposite party society with an intention to get a site registered in his name for which opposite party issued receipt bearing no.15265 dated 09.12.1991. In the year 2008, complainant also paid Rs.9,00,000/- vide pay order no.868414 and further sum of Rs.7,10,000/- vide banker's cheque bearing no.5748 on 29.03.2008. Thus, the complainant deposited a total sum of Rs.16,50,000/- with opposite party. It has been alleged by the complainant that the complainant had paid amounts of Rs.9,00,000/- and Rs.7,10,000/- on the instructions of the President of the opposite party society and he was promised that a site will be allotted to him, but opposite party failed to allot any site to the complainant. The complainant has alleged that in the year 2008, he was informed that due to encroachment by land owners and due to pendency of various court cases, it was not possible to allot the site and the refund of deposited amount could be sought. Accordingly, the complainant applied for refund on 11.7.2008, however, he received letter dated 10.10.2008 that they were trying to arrange for the funds and the refund will be made when the funds are arranged. Aggrieved, the complainant preferred a consumer complaint bearing no. 146/2009 before the State Commission. The complaint was resisted by the opposite party by filing the written statement by the Secretary of the Society wherein allegations were denied and it was clearly stated that the funds of Rs.9,00,000/- and Rs.7,10,000/- have not been received by the society and they are not entered into the account book of the society. It was also mentioned that banker cheque and pay order have been made in the name of "Vishwabharathi Housing Project" and these are not in the name of the society. As these amounts have not been received by the society, therefore, the society may not be held responsible for refunding these amounts. It was further stated that earlier President of the society, B.Krishna Bhat has misappropriated certain funds and he was removed after an enquiry conducted by Joint Registrar of Co-operative Societies. This enquiry was confirmed by the Additional Registrar of Co-operative Societies. It was also alleged that the complainant in collusion with the earlier President Mr. B.Krishna Bhat has filed this complaint to cheat the society and to get further fund from the society. It was requested to dismiss the complaint on these grounds.
(3.) The State Commission, however, allowed the complaint vide its order dated 22.08.2012 and ordered refund of Rs.16,50,000/- together with interest @18% p.a. from the date of respective payments made by the complainant till its realization along with litigation cost of Rs.5,000/-.;

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