INDFUND MANAGEMENT LIMITED Vs. SHAKUNTALA BRIJ MOHAN

JUDGEMENT

(1.) The complainants resident of Chandigarh invested a sum of Rs.20,000/- towards 'ind Jyothi - 7 Year Incremental Growth Fund' on 1.12.1990 and were issued certificate of 200 units bearing No.00091138 and registered Folio No. IJB091138. On the maturity of the scheme after seven years, the complainants asked for redemption value of the certificate including the 'assured minimum return' which amounted to Rs.62,424/- but they were paid only Rs.42,580/-. On a complaint the District Forum-II, Chandigarh ordered the respondents to pay the redemption value of the units including the 'assured minimum return', less the amount already paid, together with interest @ 12% per annum. Besides this the complainant was awarded costs Rs.1,500/- Aggrieved against it, the present appeal has been attempted.

(2.) Briefly the respondents contributed a sum of Rs.20,000/- on 1.12.1990 to 'ind Jyothi' 7 Year Incremental Growth Fund (Plan B) and were issued certificates of 200 units bearing No.00091138 and Registered Folio No. IJB091138. On maturity of the scheme after 7 years, the respondents asked for the redemption value of certificate and 'assured minimum return'. The respondents received only Rs.42,580/- as redemption value whereas their claim was for Rs.62,424/-. Inspite of a number of letters and protest by the respondents to the appellant, the balance payment had not been paid to respondents. According to the Plan-B of the Scheme it was assured that the value of units will appreciate in tune with the minimum assured returns or at high returns that may be declared. The scheme was to come to an end after a period of seven years from the deemed date of allotment i. e.1.12.1990 and the relevant portion of the scheme reads as under : "units under the scheme Ind Jyothi, an incremental scheme were allotted on 1.12.1990 and shall be redeemed after the expiry of seven years from the date of allotment but not later than 31.3.1998. "

(3.) The respondents received certificate of investment dated 1.12.1990 (Annexure C-5) in the scheme. In the certificate it is clearly mentioned that it was '7 year incremental growth fund' scheme. Later on the appellant had decided to split the certificate into units of Rs.10/- each vide Annexure C-6. The appellants in their reply have brought out that Indfund Management Limited is a Company incorporated under the Companies Act, 1956 duly appointed as the Asset Management Company of Indian Bank Mutual Fund. The appellants have accepted the factum of the respondents contributing of Rs.20,000/- to 'ind Jyothi - 7 Year Incremental Growth Fund' and certificate of 2000 units of Rs.10/- each was issued to them. They applied for repurchase of the Units by submitting the prescribed repurchase application and the Units were repurchased at the repurchase rate applicable for February, 1998 at Rs.21.29 per unit. The proceeds were sent by cheque dated 19.2.1998 for Rs.42,580/-. According to the learned Counsel for the appellants, it has been brought out that the Rule 7 of the Scheme was been mis-interpreted which specifically states that the scheme may be terminated after 7 years but not later than 31.12.1997. The respondents concluded their contract after the expiry of 7 years. The action of the consumer is to be interpreted in the manner it is intended.