Ernakulam District Commission Holds Visudha Sadhu Janasangham Liable For Failure To Disburse Promised Cremation Benefits

The District Consumer Disputes Redressal Commission, Ernakulam (Kerala) bench of Shri D.B. Binu (President), Sri V. Ramachandran (Member) and Smt. Sreevidhia T.N. (Member) held Visudha Sadhu Janasangham, Thoppumpady (Kochi) liable for failure to give promised cremation benefits to its shareholders as per its binding bye-laws. The society was established for the purpose of financing the cremation of its members or their heirs. Brief Facts: The Complainants were ordinary members of Visudha Sadhu Janasangham (“Sangham”) at Thoppumpady, Kochi for over 15 years. The Sangham was registered as a society whose sole objective was to finance the cremation of its members or their heirs. In 2018, the Complainants became shareholders of the Sangham, each holding shares worth Rs. 8000/-. This entitled them to a 15% annual dividend, and they were exempted from the weekly subscription fee of Rs. 20/- from 2019-2020 onwards, as resolved by the Sangham under the tenure of its ex-secretary. Despite their entitlement to dividends that should cover their subscription fees, resulting in a credit balance of Rs. 60/-, the Complainants faced an issue when one of the Complainant's unmarried brothers passed away. The Sangham refused to pay the Rs. 15,000/- death benefit as per their bylaws. After several failed attempts to resolve the issue with the Sangham, the Complainants sent a lawyer's notice and received a reply, which denied any service deficiency. Feeling aggrieved, the Complainants filed a consumer complaint in the District Consumer Disputes Redressal Commission, Ernakulam, Kerala (“District Commission”). The Sangham failed to appear before the District Commission for the proceedings. Therefore, it was proceeded against ex-parte. Observations of the Commission: The District Commission referred to the reply notice sent by the ex-secretary of the Sangham. It was confirmed that the Complainants were exempted from paying weekly subscriptions as long as their shares were not redeemed and were eligible for the death benefit as per the bylaws. It was also confirmed that the refusal to honour the exequial benefit following the untimely death of the Complainant's brother was unjustified and contrary to the Sangham's regulations. The fact that some members, including the Complainants, had yet to receive their shares back further highlighted the deficiency in service and unfair trade practices by the Sangham. The lack of response and subsequent failure to participate in the proceedings by the Sangham further corroborated their negligence and engagement in unfair trade practices. Reliance was placed on Indian Medical Association vs. V.P. Shantha [(1995) 6 SCC 651], where the Supreme Court held that any act of omission or commission causing a consumer to suffer due to lack of proper service constitutes a deficiency. Therefore, a clear deficiency in service and unfair trade practice was established on the part of the Sangham. Therefore, the District Commission directed the Sangham to pay Rs. 15,000/- to the Complainants for the exequial benefit with 12% interest per annum from the date of the death. Further, it was ordered to pay Rs. 16,000/- towards the Complainants' shares with 15% annual interest from the date of the death of her brother until realization. Additionally, the Sangham was directed to pay Rs. 30,000/- to the Complainants for mental agony and Rs. 10,000/- towards the cost of the proceedings. Case Title: Mary Bonifus and Anr. vs Visudha Yousepin Jana Sangham Case No.: C.C. No. 534/2023 Date of Pronouncement: 18th July 2024 Click Here To Read/Download Order

Ernakulam District Commission Holds Visudha Sadhu Janasangham Liable For Failure To Disburse Promised Cremation Benefits

Smita Singh

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Ernakulam District Commission Holds Visudha Sadhu Janasangham Liable For Failure To Disburse Promised Cremation Benefits

Smita Singh

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