Case Note & Summary
The petitioners, including the Kala Hanuman Urban Credit Society and its directors, challenged an order dated 25 February 2009 passed by the District Consumer Disputes Redressal Forum, Jalgaon. The District Forum had held that respondent No. 1, Shrikant Bhalerao, is a consumer under Section 2(1) of the Consumer Protection Act, 1986, and that there was deficiency in service by the credit society. The Forum directed the society to return the amount kept by respondent No. 1 in fixed deposit, along with interest and compensation. The petitioners argued that the respondent was not a consumer and that the dispute was not maintainable before the Consumer Forum. The High Court, after hearing the parties, dismissed the writ petition, holding that the respondent No. 1 is a consumer as he had hired the services of the society by depositing money in fixed deposit, and the society's failure to repay the amount with interest amounts to deficiency in service. The court found no merit in the petition and upheld the order of the District Forum.
Headnote
A) Consumer Law - Definition of Consumer - Fixed Deposit Holder - Section 2(1)(d) Consumer Protection Act, 1986 - The court considered whether a person depositing money in fixed deposit with a credit society is a consumer. Held that such a depositor is a consumer as the service of accepting deposits is a service hired for consideration, and any deficiency in repayment amounts to deficiency in service. (Paras 1-3) B) Consumer Law - Deficiency in Service - Credit Society - Section 2(1)(g) Consumer Protection Act, 1986 - The court upheld the District Forum's finding that the credit society's failure to return the fixed deposit amount with interest constitutes deficiency in service. The society is liable to refund the amount with interest and compensation. (Paras 1-3)
Issue of Consideration
Whether a person who deposits money in fixed deposit with a credit society is a 'consumer' under Section 2(1)(d) of the Consumer Protection Act, 1986, and whether the society is liable for deficiency in service.
Final Decision
Writ petition dismissed. Order of District Consumer Forum dated 25 February 2009 upheld.
Law Points
- Consumer Protection Act
- 1986
- Section 2(1)(d) definition of consumer
- deficiency in service
- fixed deposit holder as consumer
- maintainability of consumer complaint against credit society
