1996 (9) TMI 490 - Commission - Companies Law

Summary

Issues:
1. Delay in delivering units applied and paid for by the respondents.
2. Alleged deficiency in service by the Unit Trust of India (UTI).
3. Compensation awarded by the State Commission.
4. Interest rate awarded on the amount paid by the respondents.

Analysis:

1. The case involved a delay in delivering 3,000 units of Master Gain, 1992 applied and paid for by the respondents. The UTI encashed the cheque but failed to deliver the units until December 1993, leading to a complaint by the respondents for deficiency in service causing mental agony and harassment. The District Forum and the State Commission both ruled in favor of the respondents, directing the UTI to deliver the units with retrospective benefits.

2. Despite the UTI's claims of the application being untraceable, the respondents had made repeated requests for the units, indicating a clear delay and deficiency in service. The UTI's explanation was found insufficient, and the delay was established through the respondents' correspondence with the UTI's agents and authorities, leading to a clear finding of deficiency in service.

3. The State Commission awarded interest at a rate of 15% per annum on the amount paid by the respondents effective from June 1992 until the delivery of the units. Additionally, a compensation of Rs. 20,000 was awarded for the suffering and mental agony caused by the delay. However, the National Consumer Disputes Redressal Commission found the compensation excessive and set it aside while upholding the interest rate as just and reasonable.

4. The UTI was directed to urgently deliver the units to the respondents within 30 days of the order and pay the accrued interest on the amount paid. Furthermore, the UTI was ordered to pay Rs. 2,000 as costs to the respondents. The judgment aimed to rectify the delay, compensate for the loss of appreciation in the capital value of the units, and address the mental agony caused by the UTI's actions.