PRESIDENT FUNDS OF THANJAVUR LTD Vs. S BHASKARAN

JUDGEMENT

(1.) The appellant is the President, Funds of Thanjavur Ltd. , against whom an award has been passed by the District Forum in the opposite party.

(2.) The complainant had deposited with the appellant/opposite party Funds of Thanjavur Ltd. , 3 sums of money namely Rs.10,000/-, Rs.10,000/- and Rs.5,000/- respectively on 6.4.84, 13.12.84 and 21.2.85 on Fixed Deposit Accounts. According to the complainant on maturity of the deposits he asked the opposite party Fund to repay the amounts with interest thereon. They first promised to pay the amount but they did not keep up their promise. On these allegations, the complaint has been filed for an order directing the opposite party to pay the said 3 deposits with interest thereon @ 12% p. a. and also for compensation at Rs.30,000/-.

(3.) The opposite party contended that the complainant is a member of the Fund and at the time of the transaction in question he was also a Director. Because of the mis-management of the Fund by one Director by name Srinivasan, the, Fund incurred loss and further there was a Circular by the Reserve Bank of India to the effect that as a non-banking Company the Fund could collect fixed deposits for 15% of the authorised capital only under Sec.620 (a) of the Banking Companies Act. Because of these they could not get further deposits from customers and consequently they found it difficult to manage the affairs of the fund. Even at the time the complainant was as a Director a resolution was passed by the Fund to the effect that interest shall not be paid for a period of 2 years. In these circumstances, the Fund could not repay the deposits of the complainant. It is further contended that the dispute between the complainant and the Fund can be decided only in a Civil Court and not in a Consumer Forum.