GURKIRAT SINGH (MINOR) THR HIS FATHER/NATURAL GUARDIAN SH JASWINDER SINGH Vs. INDUSTRIAL DEVELOPMENT BANK OF INDIA LTD

JUDGEMENT

(1.) THIS is complainant's appeal against order dated 24.5.2010 passed by District Consumer Disputes Redressal Forum -II, U.T. Chandigarh (for short hereinafter to be referred as District Forum) allowing the complaint filed by the complainant -appellant against the OPs directing them to pay the maturity amount of Rs. 10,000 along with interest@3.5% on quarterly compounding basis w.e.f. 30.4.2001 till the date of payment and also to pay Rs. 5,000 as costs of litigation.

(2.) THE complainant -appellant is a minor and under the guardianship of his father, had purchased IDBI Deep Discount Bond at the issue price of Rs. 5,500. One of the conditions of the bond (copy of which is Annexure C -l) was that the bond holder could get the same redeemed at any of the four dates mentioned therein and the OPs could also exercise the call option and pay the redeemed face value on the aforesaid dates to the bond holder. The contention of OPs is that the said call option was exercised by them regarding which notices were published in major leading newspapers in English and regional languages across India on 14.3.2001, individual notices were also sent to all the bond holders including the complainant vide their letter dated 28.2.2001 through U.P.C to surrender the duly discharged bonds by 16.4.2001. It is alleged that even in spite of the notices issued in the newspapers and the individual notice issued to the complainant throughU.P.C., the complainant did not comply with the terms and conditions of the offer and did not submit the bond and therefore, he is not entitled to anything beyond Rs. 10,000. It was also contended that according to the R.B.I. Guidelines, they would pay interest @ 3.5% p.a. on quarterly compounding basis on the maturity amount of Rs. 10,000 from the date of exercise of call option till the date of payment. The complainant, therefore, filed the present complaint, which was opposed by the OPs on the grounds mentioned above.

(3.) AFTER obtaining the reply of the OPs and the evidence of the parties, the learned District Forum vide the impugned order dated 24.5.2010 directed the OPs to pay the amount of Rs. 10,000 along with interest and costs as referred to above. The complainant has challenged the same through this appeal.