T ALAMELU Vs. INTEGRATED FINANCE CO

JUDGEMENT

(1.) This is a complaint under Sec.17 of the Consumer Protection Act.

(2.) The case of the complainant is that on 16.2.89, she deposited a sum of Rs.1,00,000/- with the opposite party under a fixed deposit A/c No.5288 Dr. No.10/p/5888, dated 16.2.89, for a period of three years bearing interest at 14% per annum. The opposite party has been paying the interest monthly till June'89 and defaulted thereafter. Inspite of repeated letters there was no response. Finally, the company has issued a notice through its Advocate on 12.2.91 stating that this fixed deposit was offered as security for the loan advanced to M/s. Gajendra Transport Company and the principal and interest have been adjusted against the balance due from M/s. Gajendra Transport Company. According to the Complainant, she never executed any such letter of security. After referring to the details of the transaction between the opposite party and M/s. Gajendra Transport Company, the complainant has alleged that the opposite party has cheated M/s. Gajendra Transport Company also. She has claimed for refund of the fixed deposit of Rs.1,00,000/-, interest of Rs.22,880/- and compensation in the sum of Rs.1,00,000/- to talling in all Rs.2,22,880/-.

(3.) The opposite party has filed a counter through its Assistant Manager. It is the contention of the opposite party that M/s. Gajendra Transport Company which is a firm of partnership approached through, its Managing Partner Mr. V. Ramasubramanian for a hire purchase loan of over Rs.15,00,000/- to purchase five Swaraj Mazda trucks. The opposite party agreed to advance the money on furnishing adequate security agreed to advance the money on furnishing adequate security and deposit Rs.5,00,000/- under lien for the proposed loan. Therefore Mr. V. Ramasubramanian, Managing Partner of M/s. Gajendra Transport Company produced a cheque for Rs.5,00,000/- drawn by M/s. Rajiv and Company in favour of the opposite party and filed five applications for issuing fixed deposits of Rs.1,00,000/- each in the names of 1. Mr. B. Vevekanandan, 2, Mr. B. Dhanasekaran, 3. Mrs. Kokila W/o Mr. V. Ramasubramaniam, 4. Mrs. T. Alamelu, W/o Mr. S. Vivekanandan and 5. Mrs. D. Indumati W/o Mr. B. Dhanasekaran. All these five fixed deposits were lodged with the opposite party along with the lien letters as security for the loan advanced to M/ s. Gajendra Transport Company and photostat copies of the lien letters and fixed deposit receipts were furnished by the opposite party. M/s. Gajendra Transport Company defaulted in the payment of instalments and a huge debt accrued. In terms of the lien letters the deposits were therefore prematurely closed and the amounts were adjusted against the debt due from M/s. Gajendra Transport Company. The fixed deposit for Rs.1,00,000/- which is the subject-matter of this complaint made by Mrs. T. Alamelu and interest thereon was one of the deposits similarly adjusted. All the allegations levelled against the opposite party of chanting the complainant or M/s. Gajendra Transport Company and denied. The opposite party therefore prayed for the dismissal of this complaint