Investment blues
My wife and I had invested an amount of Rs 26,000 (10+8+8) in three separate FD certificates in fixed deposits with Lloyds Finance Ltd. In keeping with its scheme, the company was supposed to pay an interest of 19 per cent and 17.25 per cent, respectively. But in spite of depositing the certificates with the company as directed, on maturity of the FDs on 16.1.2000 (two FDs) and 29.11.2000, only a part payment amounting to Rs 3,200 was made on 10.4.2001. Inspite of repeated requests, the company has neither paid any interest nor the original balance amount to date. I am old and a heart patient. Such harassment at my age is unwarranted. Please advise.
Ambar Nath Banerjee,
AJ-129, Sector-II, Salt Lake, Calcutta-700091
Company response: No response.
The expert: In case of Lloyds Finance Ltd, it is to be noted that the special leave to appeal (Civil No. 8560/2003) before the Supreme Court of India between M/s Lloyds Finance Limited vs A.L. Katya and others was disposed of on December 17, 2004.
The apex court granted the leave to appeal but refused the stay as prayed for by the company. In such circumstances, a case can be initiated before the consumer forum to retrieve the maturity amount along with the interest and compensation amount, or else the Company Law Board can be approached for an appropriate direction.
Subscription scam
I made a cheque payment of Rs 10,015 on April 11, 2005, for a five-year subscription of the two publications, Dalal Street Investment Journal and Flash News (published by M/s Ramdeo Media Pvt Ltd). As part of the subscription scheme, the publishers also offered a free gift of a Videocon VCD player and a wristwatch to the first 750 subscribers. Unfortunately, the publication, Dalal Street Journal, sent by courier, never reached me on time. The other publication, Flash News, sent by ordinary post, reached me three to four weeks later. As to the free gifts, I received the Videocon VCD player in August 2006, without a guarantee card. The player turned out to be a defective one. I never received any wristwatch. I had won a Reliance mobile phone in the lottery, which I received a year later, on April 13, 2006, without a guarantee card. That too, after pursuing the matter consistently with the company. Is this a fit case for a consumer forum?
Bholanath Kanodia,
146, Bangur Avenue, Block A,
Calcutta-700055
Company response: No response.
The expert: From the complaint, it transpires that after a free gift — advertised by the manufacturer to increase the sales of its product — was not received, the complainant was extremely disappointed. Since the company is not charging anything for the free gifts, the failure of the company to live up to its promise cannot be questioned. But in cases of unfair trade practice, where misleading advertisements have allured the purchaser to purchase a product that is below standard, the consumer can certainly ventilate his or her grievances before the consumer forum. Since June 18,1993, unfair trade practice has been included in the Consumer Protection Act, 1986, in Section 2(r) of the Act.
Deposit debacle
Following my retirement in 1997, I deposited Rs 64,000 with Lloyds Finance Limited in the name of my wife, daughter, son and me (on April 16, 1997 and May 12, 1997). It was a three-year investment under the monthly income scheme, which matured on April 16, 2000, and May 12, 2000, respectively. Till January 31, 1999, the company did pay the monthly interest warrants against the deposits. But from February 28, 1999, to May 16, 2000, and May 12, 2000, the company neither paid the interest amount nor returned the deposited capital in instalments as per the Company Law Board order, despite assuring people that it would pay the first instalment in April and May 2001. When we did not receive the first instalment in April and May 2001, we wrote letters to the company’s Ahmedabad office on August 1, 2001, and February 22, 2002, requesting to make the payment. The company did not respond. On October 14, 2004, we came across the address of Justice V.R. Datar, vice-chairman of the Spl Committee in Mumbai in the Helpline column of The Telegraph. We wrote to Justice V.R. Datar, enclosing all our documents. Our letter was received by Justice V.R. Datar’s office but there was no response. We then wrote to Justice A.B. Palkar, enclosing the relevant documents. Our letter was received by Justice A.B. Palkar’s office but, once again, there was no response.
On November 9, 2006, we read in the Helpline column of The Telegraph about Nirupam Adak of Bokaro, who was in a similar situation. We also found out that the special leave to appeal (Civil no. 8560/2003) before the Supreme Court of India in the case of M/s Lloyds Finance Pvt Ltd vs A.L. Katya and others was disposed of on December 17, 2004, and that leave was granted. The stay was, however, refused. In view of the above circumstances, it was advised by the expert to raise the issue of non-payment before the Company Law Board (CLB) for relief and redress. Now, as the company did not adhere to the CLB order, can we expect a fair deal from CLB on raising the issue of non-payment? If the company doesn’t listen to the CLB order and we receive no reply from CLB or from the company, what do we do next? Can we approach the RBI? If yes, whom should we write to?
P.R. Raychaudhuri,
Rabindra Nagar, Court More,
Asansol-713304, District Burdwan, West Bengal
Company response: No response.
The expert: From the complaint, it appears that the complainant is frustrated with Lloyds Finance Limited and its unfair means of harassing investors, despite the framing of the scheme by the Company Law Board. At present, the point raised by Lloyds Pvt. Ltd has been accepted by the apex court for consideration, allowing SLP Civil no. 8560/2003 by granting leave, but its prayer for stay of the proceeding has been refused.
Thus, the said finance company cannot plead that since the apex court is in session, its pending matter before the tribunal and in other courts may be stayed till the disposal of the appeal. Thus, it would be wise to take up the matter before the CLB and before the other forums and courts for passing appropriate directions against the company.
False assurance
In spite of Auto Hitec Pvt. Ltd’s assurance (letter dated 5.8.2006) that they would refund Rs 11,904 that was wrongly encashed by the company, the company has not taken any steps to date. Meanwhile, eight months have elapsed. What should my future course of action be?
Dr Keya Halder Banerjee,
38/2, Mahim Halder Street,
Calcutta-700026
Company response: No response.
The expert: It is indeed unfortunate that a company like Auto Hitec Pvt. Ltd has failed to keep its promise to refund Rs 11,904 to the complainant, which they encashed without intimating the complainant.
Anyway, since the company has a good reputation in the market, the consumer should get in touch with the company one last time before approaching the consumer forum. Hopefully, the matter will be settled amicably amongst the parties.
