Tamil Nadu - Chennai   

Consumer panel upholds verdict against cooperative store

K.T. Sangameswaran

It was asked to repay fixed deposit with compensation

CHENNAI: The State Consumer Disputes Redress Commission has upheld a district forum decision holding a cooperative wholesale store guilty of deficiency in service, for not repaying the amount due to a depositor.

The Bench of Justice K. Sampath, president, and Pon. Gunasekaran, Member, dismissed an appeal filed by the outlet.

S. Sankaran, a resident of TVS Tollgate, Tiruchi, had lodged a complaint with the District Consumer Disputes Redress Forum stating that he had made a fixed deposit of Rs.25, 625 with the Tiruchirappalli Consumers Cooperative Wholesale Stores Ltd., Puthur, in January 2000, for six months.

Following media reports that the outlet was not in a position to repay deposits, he sought a refund with interest. The stores did not repay or give a responsible answer. Mr. Sankaran said non-payment of deposit was an unfair trade practice. He cited the store, represented by its Managing Director, as the opposite party.

The outlet submitted that it was a financial crisis. Non-payment of deposits was due to non-availability of funds. Sincere efforts were being made to discharge all dues.

The Forum held that it was illegal for the stores to have collected fixed deposits. Its non-payment amounted to deficiency in service. It awarded Rs.25, 625, the sum of the fixed deposit, Rs.4,000 towards mental agony and deficiency in service and Rs.500 towards cost. The amounts were payable with 12 per cent interest.

The stores challenged the order. The Bench said it had not been substantiated that the appellant's inability to repay would not amount to deficiency in service or negligence. There were no merits in the appeal, it added.

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