1994 (9) TMI 271 - Commission - Companies Law

Summary

Issues:
1. Delay in payment of maturity amount by UTI.
2. Alleged loss of Rs. 48,000 by the complainant due to delay.
3. Deficiency in service by UTI.
4. Claim of damages by the complainant.
5. Appeal by UTI against the award of damages.

Analysis:

The case involved a dispute regarding the delay in payment of maturity amount by the Unit Trust of India (UTI) to the complainant and his sister. The complainant had purchased units under a scheme with the expectation of receiving a certain amount upon maturity. The complainant alleged that despite surrendering the unit certificates, the UTI delayed the payment, causing them financial loss.

The complainant argued that the delay in receiving the maturity amount resulted in a loss of Rs. 48,000, as they were unable to invest in another scheme before the deadline. However, the Consumer Disputes Redressal Commission rejected this claim, stating that the maturity amount became due on a specific date, and the complainant could not hold UTI responsible for the delay.

The District Forum found UTI to be deficient in service and awarded Rs. 2,000 as damages to the complainant. UTI appealed against this decision, claiming that the amount awarded was excessive. The Commission, however, upheld the award of damages, considering the inconvenience caused to the complainant due to the delay in payment.

Ultimately, the Commission dismissed both appeals, stating that the complainant's claim for additional damages was unfounded, as the delay was not substantial. The decision emphasized that UTI was not liable for the alleged loss of Rs. 48,000, as it was based on remote damages and the scheme in question had already concluded. The award of Rs. 2,000 as damages for deficiency in service was deemed appropriate, given the circumstances of the case.