D.MATHIALAGAN Vs. N.MATHIVANAN, MANAGING DIRECTOR
TAMIL NADU STATE CONSUMER DISPUTES REDRESSAL COMMISSION
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K.SAMPATH, J. -
(1.) The complainant in C.O.P. No. 88 of 2003 on the file of the District
Forum, Erode is the appellant herein.
(2.) His case was as follows: - The complainant and his wife applied for a
loan to the second opposite party for construction of a house by the
first opposite party. The loan papers were signed by the complainant and
his wife. They also gave a promissory note and mortgaged the undivided
share of land with OP2. The first opposite party, however, never started
any construction work even after the stipulated time as agreed to. The
second opposite party sanctioned full loan amount of Rs.5 lakhs directly
to Matrix Housing Private Limited, the Managing Director of which Company
was the first opposite party in one cheque without verifying the progress
in the building. After several letter correspondences OP1 assured the
complainant that he would complete the flat soon. This was not done. The
complainant wrote a letter to OP2 to recover the loan from OP1. There was
default committed in paying the monthly instalments and when demanded,
the complainant represented to OP2 that the amount had to be repaid only
by OP1. The second opposite party had acted highhandedly and had effected
publication of photos in dailies about the non-repayment of the loan
amount by the complainant. In these circumstances, the complaint came to
be filed for a direction to OP2 to recover the entire loan amount from
OP1 and release the complainant from the obligation to repay the amount
and also direct OP1 to pay Rs.1,25,000/- representing the advance paid to
OP1 and for a further direction to pay Rs.1 lakh towards compensation for
pain and suffering and Rs.2000/- towards expenses.
(3.) OP1 took a stand denying the case of the complainant and further
stating that the complainant and one Mr. Arivudai Nambi, Managing
Director of Matrix Housing had entered into an agreement and the
complaint was bad for non-joinder of the said Arivudai Nambi as a party.;
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