B.SHYAM Vs. SRINIDHI ENTERPRISES, SINDHIRI MADAN MOHAN RAO

JUDGEMENT

(1.) The unsuccessful complainant is the appellant. His prayer seeking direction to the respondents for payment of amount under maturity bond Rs.11,000/- along with interest @ 36% per annum, Rs.5 lakhs towards compensation, Rs.10,000/- towards damages and Rs.1,500/- towards costs of the complaint was denied by the District Forum.

(2.) The brief averments of the complaint are that the opposite parties no.1 to 4 established finance business under name and style of M/s. Srinidhi Enterprises (Regd). They have introduced a finance scheme wherein the appellant has joined as subscriber and invested an amount of RS.8000/- @ Rs.500/- per month. The opposite parties issued cash certificate with maturity amount of Rs.11,000/- and the date of maturity as 24.9.2002. After the date of maturity the complainant requested the opposite parties to pay the maturity amount, the opposite parties failed to repay the same. The complainant got issued legal notice through his counsel demanding for refund of the maturity amount of Rs.11,000/- with interest. The complainant submits that the acts of the opposite parties amount to negligence and deficiency in service. Hence, the complainant prays to allow the complaint. The opposite party no.1 remained exparte

(3.) The opposite party no.3 filed counter which was adopted by the opposite party no.2 denying the averments of the complaint and stated that the mutual benefit fund scheme was introduced by them. The complainant contributed Rs.8000/- and he was issued cash certificate for maturity value of Rs.11,000/- with maturity date 24.9.2002. The opposite party no.1 has advanced the amount to other members of the scheme as loan. The borrowers failed to repay the loan. Consequently the maturity amount could not be paid to the members of the scheme. An agreement was entered into between the opposite parties distributing all the liabilities. A notarized agreement deed was executed on 3.8.2002. The amount covered under sixty four certificates the liability thereto, of Rs.4,96,262/- was agreed to be refunded by the opposite parties to the certificate holders in accordance with the respective lots of the opposite parties no.1 to 4. The opposite parties no.2 and 3 have cleared some payment to the certificate holders who fell under the lots allotted to them. The complainants claim was allotted to the opposite party no.1. The complainant agreed to recover the amount from the opposite party no.1. The complainant has not approached the opposite parties no.2 and 3 at any time claiming for the amount.