Worldlink Finance penalised for default

NEW DELHI, JAN 25: A Delhi consumer court has ordered non-banking finance company (NBFC) Worldlink Finance to pay depositors penal intere...

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NEW DELHI, JAN 25: A Delhi consumer court has ordered non-banking finance company (NBFC) Worldlink Finance to pay depositors penal interest for not returning matured fixed deposits on time.

Delhi district consumer dispute redressal forum-VI, delivering a series of orders on separate petitions filed by depositors, asked Worldlink Finance to return the deposit money with 18 per cent interest and pay litigation cost of Rs 1000 to each of the depositors.

The consumer forum in its order said the company was guilty of deficiency in service and hence would have to pay 18 per cent interest and the litigation cost.

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More than 55 depositors, who had deposits ranging from Rs 8,000 to Rs 35,000, had approached the consumer court after post-dated cheques given by Worldlink allegedly bounced. The company had accepted fixed deposits at 15 per cent rate of interest per annum.

The consumer court rejected Worldlink’s contention that "there was no privity of contract between the depositors and the company" as thespecified amounts were accepted through dealer.

Worldlink had also claimed that the consumer court did not have jurisdiction to hear such cases as depositors were not consumers under Consumer Protection Act (CPA).

However, forum president S P Saberwal and member Dr Sushma Yadav in their order said utilisation of depositors’ funds by Worldlink was consideration for availing the services of the company and therefore depositors were consumers within the ambit of CPA.

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It said CPA provides a long rope to deal with such companies and contains strong provision for imprisonment up to three years in case of non-compliance of the order. "A large number of people deposit their hard earned money with various companies for their livelihood. Faith of the people in such companies is completely shaken and affected," the court observed.

CPA is a social piece of legislation and while interpreting it, one must not make a narrow approach but should be guided by the principle of benevolent interpretation which would helpto promote its purpose, the court said. The court gave 60 days to the NBFC to comply with the order.