w w w . L a w y e r S e r v i c e s . i n



Venugopal Darbha, Chartered Accountant v/s M/s. Cholamandalam Investment & Finance Company Ltd. & Another


Company & Directors' Information:- CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED [Active] CIN = L65993TN1978PLC007576

Company & Directors' Information:- O D FINANCE AND INVESTMENT PRIVATE LIMITED [Active] CIN = U65100DL1992PTC049848

Company & Directors' Information:- P V T INVESTMENT LIMITED [Amalgamated] CIN = U74899DL1988PLC121600

Company & Directors' Information:- O D FINANCE AND INVESTMENT PRIVATE LIMITED [Active] CIN = U74899DL1992PTC049848

Company & Directors' Information:- P V T INVESTMENT LTD [Not available for efiling] CIN = U67120PB1988PLC008068

Company & Directors' Information:- S T INVESTMENT PRIVATE LIMITED [Amalgamated] CIN = U65993WB1990PTC050032

Company & Directors' Information:- H. L. INVESTMENT COMPANY LIMITED [Amalgamated] CIN = U65990WB1975PLC128186

Company & Directors' Information:- B P N INVESTMENT AND FINANCE LIMITED [Active] CIN = U65910MP2007PLC020010

Company & Directors' Information:- M M INVESTMENT PRIVATE LIMITED [Converted to LLP] CIN = U65921CT2008PTC020533

Company & Directors' Information:- G. N. G. INVESTMENT LIMITED [Active] CIN = U65910GJ1981PLC004128

Company & Directors' Information:- A S G S INVESTMENT PRIVATE LIMITED [Active] CIN = U74120DL2008PTC173938

Company & Directors' Information:- M F I FINANCE AND INVESTMENT PRIVATE LIMITED [Active] CIN = U65910KA2005PTC036263

Company & Directors' Information:- A F I FINANCE & INVESTMENT LIMITED [Strike Off] CIN = U65923WB2003PLC097328

Company & Directors' Information:- G L INVESTMENT PVT LTD [Active] CIN = U65993WB1991PTC051072

Company & Directors' Information:- C & C INVESTMENT LTD [Active] CIN = U67120AS1976PLC001654

Company & Directors' Information:- S M S INVESTMENT CORPORATION PRIVATE LIMITED [Active] CIN = U74899DL1963PTC003988

Company & Directors' Information:- V R V INVESTMENT PRIVATE LIMITED [Active] CIN = U67120WB1985PTC039793

Company & Directors' Information:- S P INVESTMENT PVT LTD [Active] CIN = U70109WB1961PTC025099

Company & Directors' Information:- L D K FINANCE AND INVESTMENT PRIVATE LIMITED [Active] CIN = U65921DL1996PTC081013

Company & Directors' Information:- R H INVESTMENT PRIVATE LIMITED [Active] CIN = U99999MH1978PTC020633

Company & Directors' Information:- T N B INVESTMENT PRIVATE LIMITED [Active] CIN = U74899DL1986PTC025590

Company & Directors' Information:- A R S INVESTMENT PVT LTD [Active] CIN = U65993WB1990PTC048513

Company & Directors' Information:- CHOLAMANDALAM FINANCE LTD [Dissolved] CIN = U65191TN1985PLC011639

Company & Directors' Information:- V P INVESTMENT PRIVATE LIMITED [Active] CIN = U74899DL1983PTC015714

Company & Directors' Information:- S M D INVESTMENT LIMITED [Strike Off] CIN = U65993TN1995PLC033139

Company & Directors' Information:- G R D INVESTMENT PVT LTD [Amalgamated] CIN = U67120WB1980PTC032727

Company & Directors' Information:- C AND N INVESTMENT PRIVATE LIMITED [Active] CIN = U74899DL1983PTC015710

Company & Directors' Information:- R INVESTMENT PRIVATE LIMITED [Strike Off] CIN = U65993TZ1988PTC002181

Company & Directors' Information:- H N G L INVESTMENT PRIVATE LIMITED [Active] CIN = U74899DL1995PTC066774

Company & Directors' Information:- K M S INVESTMENT PRIVATE LIMITED [Active] CIN = U67120UP1993PTC015287

Company & Directors' Information:- U M INVESTMENT PVT LTD [Active] CIN = U70101WB1979PTC032160

Company & Directors' Information:- A S T INVESTMENT PRIVATE LIMITED [Strike Off] CIN = U67120DL1996PTC082812

Company & Directors' Information:- B N E INVESTMENT LTD [Not available for efiling] CIN = U67120WB1974PLC029360

Company & Directors' Information:- K S J INVESTMENT COMPANY PRIVATE LIMITED [Strike Off] CIN = U74899DL1994PTC061335

Company & Directors' Information:- M G FINANCE AND INVESTMENT LIMITED [Strike Off] CIN = U67120UP1992PLC014845

Company & Directors' Information:- S N B FINANCE & INVESTMENT PVT LTD [Active] CIN = U01100WB1995PTC075944

Company & Directors' Information:- P T INVESTMENT PVT LTD [Strike Off] CIN = U65999WB1995PTC067065

Company & Directors' Information:- K. S. R. INVESTMENT LIMITED [Strike Off] CIN = U65992UP1988PLC010253

Company & Directors' Information:- THE INVESTMENT & FINANCE CO LTD [Strike Off] CIN = U65991WB1896PLC001116

Company & Directors' Information:- J T INVESTMENT PVT LTD [Strike Off] CIN = U65923WB1979PTC032344

Company & Directors' Information:- R K INVESTMENT LTD [Strike Off] CIN = U65993WB1969PLC027398

Company & Directors' Information:- N M G C INVESTMENT PRIVATE LIMITED [Strike Off] CIN = U74899DL1982PTC014603

Company & Directors' Information:- S P INVESTMENT AND FINANCE COMPANY PRIVATE LIMITED [Strike Off] CIN = U65990MH1998PTC116516

Company & Directors' Information:- M AND M FINANCE AND INVESTMENT PVT. LTD. [Strike Off] CIN = U65910UP1994PTC017345

Company & Directors' Information:- M S H FINANCE & INVESTMENT LIMITED [Strike Off] CIN = U65921WB1997PLC085377

Company & Directors' Information:- K A S FINANCE & INVESTMENT LIMITED [Strike Off] CIN = U67120TZ2015PLC021226

Company & Directors' Information:- T M INVESTMENT CO PVT LTD [Active] CIN = U67120WB1971PTC028172

Company & Directors' Information:- S. A. F. INVESTMENT LIMITED [Active] CIN = U67120DL1997PLC088611

Company & Directors' Information:- H K (INVESTMENT) COMPANY PRIVATE LIMITED [Active] CIN = U65990GJ1950PTC000511

Company & Directors' Information:- P N INVESTMENT PRIVATE LIMITED [Under Liquidation] CIN = U65910GJ1988PTC010715

Company & Directors' Information:- K. C. FINANCE AND INVESTMENT PRIVATE LIMITED [Strike Off] CIN = U67120JK1983PTC000589

Company & Directors' Information:- INVESTMENT CORPORATION LIMITED [Under Liquidation] CIN = U65993KL1942PLC000449

Company & Directors' Information:- B R S FINANCE AND INVESTMENT COMPANY PRIVATE LIMITED [Active] CIN = U74899DL1981PTC012845

Company & Directors' Information:- S R M INVESTMENT PVT LTD [Strike Off] CIN = U67120WB1979PTC031888

Company & Directors' Information:- A TO Z INVESTMENT PVT LTD [Dissolved] CIN = U67120WB1988PTC044464

Company & Directors' Information:- R J INVESTMENT PRIVATE LIMITED [Active] CIN = U67120MH1976PTC018954

Company & Directors' Information:- B N K INVESTMENT CO PVT LTD [Active] CIN = U65993WB1971PTC028169

Company & Directors' Information:- A D INVESTMENT CO PVT LTD [Active] CIN = U67120WB1971PTC028170

Company & Directors' Information:- R K S K FINANCE AND INVESTMENT COMPANY LIMITED [Strike Off] CIN = U65910UP1994PLC016853

Company & Directors' Information:- S. K. M. FINANCE AND INVESTMENT COMPANY LIMITED [Strike Off] CIN = U65910UP1994PLC016971

Company & Directors' Information:- G S M FINANCE AND INVESTMENT PVT LIMITED [Strike Off] CIN = U65921PB1993PTC013037

Company & Directors' Information:- T D INVESTMENT CO PVT LTD [Strike Off] CIN = U65921CH1987PTC007637

Company & Directors' Information:- S U FINANCE AND INVESTMENT PRIVATE LIMITED [Strike Off] CIN = U65910UP1994PTC016878

Company & Directors' Information:- C G K INVESTMENT P LTD [Strike Off] CIN = U65910AP1986PTC006088

Company & Directors' Information:- L D INVESTMENT COMPANY PVT LTD [Strike Off] CIN = U65921HP1988PTC008425

Company & Directors' Information:- G K INVESTMENT PRIVATE LIMITED [Active] CIN = U65993TZ1987PTC001919

Company & Directors' Information:- G V INVESTMENT PRIVATE LIMITED [Active] CIN = U65993TZ1987PTC001920

Company & Directors' Information:- B C K H INVESTMENT CO PVT LTD [Active] CIN = U67120MH1982PTC026819

Company & Directors' Information:- H V INVESTMENT PRIVATE LIMITED [Active] CIN = U67120MH1997PTC107686

Company & Directors' Information:- M L INVESTMENT PVT LTD [Strike Off] CIN = U67120WB1979PTC032180

Company & Directors' Information:- S & G INVESTMENT COMPANY PRIVATE LIMITED [Active] CIN = U65100DL2012PTC244271

Company & Directors' Information:- VENUGOPAL CO PVT LTD [Active] CIN = U51396KL1960PTC001896

Company & Directors' Information:- D M P FINANCE AND INVESTMENT PRIVATE LIMITED [Active] CIN = U67190GJ2020PTC117201

Company & Directors' Information:- K T FINANCE AND INVESTMENT INDIA LTD [Strike Off] CIN = U65921PB1988PLC008869

Company & Directors' Information:- S B INVESTMENT PVT LTD [Liquidated] CIN = U99999RJ1959PTC001090

Company & Directors' Information:- R AND P INVESTMENT PVT LTD [Strike Off] CIN = U67120PB1995PTC016124

Company & Directors' Information:- E R FINANCE AND INVESTMENT PVT LTD [Strike Off] CIN = U65921PB1988PTC008492

Company & Directors' Information:- G M S FINANCE AND INVESTMENT PRIVATE LIMITED [Strike Off] CIN = U65900DL1983PTC015133

Company & Directors' Information:- M H K FINANCE AND INVESTMENT COMPANY PRIVATE LIMITED [Strike Off] CIN = U65993UP1983PTC005968

Company & Directors' Information:- M M B INVESTMENT PRIVATE LIMITED [Active] CIN = U65993RJ1996PTC012698

Company & Directors' Information:- M G A INVESTMENT COMPANY PRIVATE LIMITED [Strike Off] CIN = U99999MH1980PTC022406

Company & Directors' Information:- D S N INVESTMENT PVT LTD [Strike Off] CIN = U65993TG1988PTC008554

Company & Directors' Information:- INVESTMENT & FINANCE CORPN. PRIVATE LIMITED [Amalgamated] CIN = U65991TN1943PTC000926

Company & Directors' Information:- V. I INVESTMENT PVT LTD [Strike Off] CIN = U67120HR1988PTC030206

Company & Directors' Information:- R J P INVESTMENT PRIVATE LIMITED [Strike Off] CIN = U65993GJ1981PTC004678

Company & Directors' Information:- D D P INVESTMENT PRIVATE LIMITED [Strike Off] CIN = U65910GJ1981PTC004695

Company & Directors' Information:- C J P INVESTMENT PVT LTD [Strike Off] CIN = U99999GJ1981PTC004662

Company & Directors' Information:- M P INVESTMENT CO PRIVATE LIMITED [Under Process of Striking Off] CIN = U65993KA1974PTC002646

Company & Directors' Information:- INVESTMENT COMPANY PRIVATE LIMITED [Dissolved] CIN = U65990KL1946PTC000461

Company & Directors' Information:- INVESTMENT CORPORATION LIMITED [Not available for efiling] CIN = U99999MH1943PLC007730

    F.A. No. 591 of 2014 Against CC No. 24 of 2012

    Decided On, 28 March 2018

    At, Telangana State Consumer Disputes Redressal Commission Hyderabad

    By, THE HONOURABLE MR. JUSTICE B.N. RAO NALLA
    By, PRESIDENT & THE HONOURABLE MR. PATIL VITHAL RAO
    By, JUDICIAL MEMBER

    For the Appellant: M/s. J.P. Rao, Advocate. For the Respondents: M/s. M. Srinivas Reddy, Advocate.



Judgment Text

Oral Order: (B.N. Rao Nalla, President)

1). This is an appeal filed under Section 15 of the Consumer Protection Act by the Complainant praying this Commission to set aside the impugned order dated 27.01.2014 made in CC 24 of 2012 on the file of the DISTRICT FORUM – III, Hyderabad.

2). For the sake of convenience, the parties are described as arrayed in the complaint before the District Forum.

3). The case of the complainant, in brief, is that he availed a loan amount of Rs.10,00,000/- by pledging 300 shares of M/s Jindal Steel and Power Co. Ltd on 03.05.2008 with interest @ 14% pa from the opposite parties vide Account bearing No. 171001 repayable within a period of 24 months through ECS cheque payments. But, the opposite parties unilaterally raised the rate of interest to 20% on 11.11.2009. Despite discharge of the entire loan vide cheque bearing No. 670058 as per the Statement of Account dated 21.4.2009, the opposite parties failed to return the shares pledged with them, while demanding payment of Rs.1200/- towards cheque bounce charges after a lapse of two years. The opposite parties had sold his shares realizing a sum of Rs.1,534/- to adjust towards the alleged due loan. Non-return of pledged shares even after clearing the loan and depriving him of an opportunity to trade in the shares caused not only financial loss and it amounts to deficiency in service. Hence the complaint to direct the opposite parties to pay a sum of Rs.2 lakhs towards loss sustained due to non-trading of shares, to pay a sum of Rs.50,000/- compensation for mental agony and costs.

4). The opposite parties opposed the above complaint by way of written version, while admitting availing of loan amount of Rs.10 lakhs by the complainant from them by pledging the shares in question with interest @ 14% pa and it was raised to 20% due to liquidity crunch and it was informed to the complainant vide letter dated 01.11.2008. Two EC cheques were dishonored and due to which the complainant paid onlyRs.7,253/-and did not pay the penal charges of Rs.1,251.69 ps despite several requests and legal notice dated 23.06.2001 and hence they sold three pledged shares and transferred the remaining pledged shares to his account number on 30.09.2011. There is no deficiency in service on their part. Hence prayed to dismiss the complainat.

5) During the course of enquiry before the District Forum, in order to prove his case, the complainant filed his evidence affidavit and got marked Ex.A1 to A-5 and the Opposite Parties have filed an Evidence Affidavit and no documents were marked. The complainant filed his written arguments. The opposite parties have filed a Memo adopting the Evidence Affidavit as written arguments.

6) The District Forum, after considering the material available on record, dismissed the complaint.

7) Aggrieved by the said order, the complainant preferred this appeal before this Commission.

8). Both sides have advanced their arguments reiterating the contents in the appeal grounds, rebuttal thereof along with written arguments of the respondents.

9) The points that arise for consideration are,

(i) Whether the impugned order as passed by the District Forum suffers from any error or irregularity or whether it is liable to be set aside, modified or interfered with, in any manner?

(ii) To what relief ?

10). Point No.1 :

There is no dispute that the appellant/complainant has availed a loan amount of Rs.10,00,000/- by pledging 300 shares of M/s Jindal Steel and Power Co. Ltd on 03.05.2008 with interest @ 14% pa from the opposite parties vide Account bearing No. 171001 repayable within a period of 24 months through ECS cheque payments. There is also no dispute that the rate of interest was raised from 14% pa to 20% PA due to liquidity crunch and it was informed to the appellant/ complainant.

11). The District Forum observed that as per the RBI Guidelines, the NBFCs are permitted to revise their interest rates and it was also intimated to the appellant/complainant enhancing the rate of interest from 14% pa to 20% vide Ex.A1 letter from November, 2008 and further as per Ex.A2, Statement of Account, for the period from 01.04.2008 to 31.03.2009, the appellant is due a sum of Rs.1,236/- and Ex. B3 letter dated 23.09.2011 demanding payment of Rs.1,252/- towards cheque bouncing charges, as per the terms and conditions of the agreement, in the months of February and March, 2009 and there is no evidence on record to show that he paid the same and hence the respondents/opposite parties sold three pledged shares realizing a sum of Rs.1,540.80 ps as evidenced in Ex.A4 and came to the conclusion that there is no deficiency in service on their part.

12). Counsel for the appellant/complainant argued that the District Forum failed to appreciate that Ex. A2, i.e., Statement for the period from 1.4.2008 to 31.03.2009, in which, the respondents have demanded the total loan amount due and there was no mention as to the due of ECS charges though the said charges belong to the month of March, 2009 and further Ex.A3 is the letter demanding ECS charges, i.e, dt. 23.09.2009, i.e., after clearance of the total amount due.

13). On the other hand, counsel for the respondents/opposite parties argued that Ex.A-2, Financial Transaction Statement for the period from 01.04.2008 to 31.03.2009 discloses that the appellant/complainant is payable an amount of Rs.1,236/-. Further, he argued that the appellant/complainant had got bounced the February, 2009 ECS cheque payment of interest for an amount of Rs.6487.68 and further due interest for the month of March, 2009 for Rs.764.46. The appellant/complainant issued cheque for Rs.7252.46 ps as disclosed in the financial transaction statement and the said ECS cheque dated 03.04.2009 was presented but the same was bounced on 08.04.2009. Since the appellant had got bounced two cheques he was not only liable to pay the cheque bounce charges of Rs.1,000/- (Rs.500/-each) but also penal charges of Rs.251.69 ps. But the appellant paid only Rs.7252.24 ps but refused to pay cheque bounce and penal charges of Rs.1251.69 ps and hence they demanded said charges vide Ex.A3.

14). Ex.A3 is the demand letter for an amount of Rs.1,252/- is dated 23.09.2011, but, not 23.09.2009 as argued by the counsel for the appellant and thereafter written letter dated 30.09.2011 for closing the account. It is true that there was no mention as to the cheque bounce charges and penal interest charges in Ex.A2 Statement for the period from 01.04.2008 to 31.03.2009. Whereas, the respondents/opposite parties vehemently argued that one cheque in the month of February, 2009 and another cheque in the month of March, 2009 were dishonoured. However, the dishonoring of cheques was not reflected in the said statement. Further, the cheque bearing No. 670058 said to have been issued to the respondents was not reflected in the Statement. Ex.A5 letter dated 05.10.2009 said to have been written by the appellant/complainant discloses that he issued blank cheque prior to this date. Ex.A3, demand letter, dated 23.09.2011 reveals that ECS cheques were dishonored in the month of February and March,but, they did not reveal the cheque numbers, the date of presentation of cheque, the date of dishonour, the amount of the cheques and the proof thereof. From the above facts, it is to be deduced that the respondents used the empty cheque after a gap of two years and sold the three shares for an amount of Rs.1534.47 ps on 26.09.2011 in lieu of dishonour of cheques while keeping the shares with them for about two years, which amounts to deficiency in service.

15). After considering the foregoing facts and circumstances and also having regard to the contentions raised on both sides, this Commission is of the view that there is deficiency in service on the part of the respondents for not returning the shares for about two years and for using the cheque after two years for which the respondents are liabl

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e to pay the said amount of Rs.1534.47 ps with interest @ 9% pa from 26.09.2011 and further to pay Rs.20,000/- for non-trading of shares due to holding the same with the respondents though paid the entire loan amount , Rs.10,000/- towards compensation for mental agony and costs of Rs.5,000/-. 16). Point No. 2 : In the result, the appeal is allowed in part setting aside the impugned order dated 27.01.2014 in CC 24 of 2012 passed by the District Forum III, Hyderabad and consequently, the complaint is allowed in part directing the respondents/ opposite parties to pay the said amount of Rs.1534.47 ps with interest @ 9% pa from 26.09.2011 and further to pay Rs.20,000/- for non-trading of shares due to holding the same with the respondents, Rs.10,000/- towards compensation for mental agony and costs of Rs.5,000/- to the appellant/complainant. Time for compliance four weeks.
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