J.M.CHAWLA vs S.L.KAPOOR

THE complainant Mr. S.L. Kapoor, deposited asum of Rs. 40,000/- with the respondent No. 1 Mr. J.M. Chawla, Managing Director, Rock-land Leasing Limited on the interest rate of 18% per annum for three months. THE principal amount was to be refunded on maturity alongwith the interest. However, the respondent failed to refund the amount within the prescribed period. District Forum No. I directed the respondent to refund Rs. 40,000/- to the complainant alongwith interest @ 18% p.a. from the date of deposit till the actual refund. Aggrieved with this judgment the respondent has attempted the present appeal.

BRIEFLY the complainant now respondent deposited Rs. 40,000/- with the appellants on the interest @ 18% p.a. and the principal amount was to be refunded on maturity. On maturity, the appellant issued cheque No. 421493 dated 9.12.1997 for a sum of Rs. 40,000/- with regard to principal amount and the interest was to be paid in cash. However, the said amount was neither paid nor the cheque of Rs. 40,000/- got cleared from the Union Bank of India as it stood bounced. The complainant/respondent made efforts to get the amount refunded but in vain. Notice was ordered to be issued to the appellants on 24.9.1998 by the Forum and on the same were issued on27.10.1998 but when they did not put in appearance on 1.12.1998 the proceedings were ordered ex parte against them. The learned Counsel for the appellants had informed that the Company Law Board had stayed the proceedings of all the Civil Courts against the appellant. However, he had not been able to produce any such order of this nature. It also appears that the appellants deliberately avoided the proceedings at the District Forum-I.

After hearing the learned Counsel for the appellants as well as the respondent Mr. S.L. Kapoor, this Commission comes to the conclusion that the deficiency on the part of appellants is writ large. The appellants should have ensured that the cheque of Rs. 40,000/- issued to the respondent is honoured by the Union Bank of India and the interest accrued @ 18% p.a. paid to him. Consequently the judgment of District Forum- I is affirmed and the present appeal stands dismissed. Appeal dismissed.