You can sue the UTI for delaying the despatch of your certificates, but make sure that you take your case to the right consumer forum, says our columnist
Readers often highlight problems associated with the Unit Trust of India (UTI) problems related to the despatch of Unit certificates, Unit distribution warrants and adjustments of initial money deposited by contributors in various UTI schemes. An important query arises from these common problems: Do these cases come under the jurisdiction of the Consumer Protection Act (CPA)?
At the outset, it should be clear that the provisions of the CPA are also applicable to the UTI. The instances mentioned above are clearly covered by the definitions of deficiency and service given in Section 2(1)(g) and 2(1)(o) of the CPA.
A number of cases have thus, been filed against UTI. In one such case decided by the National Commission (NC) on January 24, 1997 in revision petition numbers 809 to 811 of 1995, the UTI was directed to pay three people compensation, along with interest for the delay in delivery of the UTI Master Gain Unit Certificates.
In this case, the people concerned had applied for the allotment of 5,000 units each of the Master Gain, 1992, floated by the UTI. They submitted their application forms along with cheques of Rs 50,000 each at the UTI counter on May 18, 1992.
The same amount was credited to UTIs account on June 15, 1992. UTI was to issue these certificates to the three investors by September 30, 1992 and these were to be listed in the Stock Exchange in February, 1993.
As the Master Gain Unit Scheme is capital growth oriented, the owners of such units are allowed to enter into sale transactions irrespective of the lock-in period. Hence, after about 10 days of the listing, the three people contracted to sell their units anticipating early receipt at the rate of Rs 11.34 each through a stock broker.
The unit certificates were not received on time, so the owners could not deliver them to the broker. The owners contended that they had not only lost a profit of Rs 6,500 each, but they also had to pay Rs 2,000 as cancellation charges to the broker.
They further alleged that after some time, there was a fall in the price of the units. Each of them claimed a loss of Rs 22,250 by calculating the loss due to the fall in the price of the units, plus the loss of the profit worth Rs 6,500, and the Rs 2,000 paid by each as cancellation charges.
The matter was eventually heard by the NC, who held that because of late delivery of the unit certificates by the UTI, the three investors could not deliver them according to the contract of sale they had entered into. Thus, they could not earn Rs 6,500 each and also lost the payment of Rs 2,000 each by way of cancellation charges to the broker.
The NC further held that though the unit certificates were delivered late, the three investors nevertheless accrued all the benefits which accompanied these units from the date of their issue. The NC, therefore, held that a presumptive loss on account of the fall in the price of the units subsequently should not be considered an actual loss for the purpose of compensation claimed by the three persons.
The NC after taking into account all the facts and circumstances of this case were of the view that the three investors were entitled only to the loss that they suffered on account of the late delivery of the unit certificates, after they had entered into a sale transaction and not for any presumptive loss based on principles of lost opportunity or any other opportunity.
The NC thus held that each of them should be compensated with a sum of Rs 8,500 by the UTI for the loss they suffered. Each of them was also to be paid an annual interest of 15 per cent from March 15, 1993 till the date of actual payment.
How to file your complaint
There is no prescribed format for filing a complaint in a consumer court but it would definitely make matters simpler if a consumer kept the following points in mind while drafting the complaint:
The complaint should contain the name and address of not only the complainant but also of the opposite party.
Include facts regarding the complaint: how, when and where the complaint took place and the date when action was taken.
Attach xerox copies of documents in support of the allegations
Mention the relief action you are seeking.The 1993 amendment to the CPA now mentions the five further reliefs one can seek: remove the defects or deficiencies in the services in question; to discontinue the unfair trade practice of the restrictive trade practice or not to repeat them; not to offer hazardous goods for sale; to withdraw hazardous goods from being offered for sale; to provide for adequate costs to parties
Mention the total value of the relief claimed, including the cost of the item, the charges paid for services rendered to the complainant, the amount of compensation and the cost of litigation.
It is better to make the complaint in English if the address of the opposite party falls in another state or Union Territory.
The complaint should be signed by the complainant. If the complaint is being filed by a person authorised to do so, the letter of authorisation should also be attached.
Do not make the complaint on a postcard or on an inland letter.
Send at least four copies of the complaint and documents. The number of copies should be increased correspondingly if there is more than one opposite party.
File a separate complaint for each grievance.
