SETTLEMENT OF JEETRAJ SETHI CASE

1. Case in a nut shell

(a) Smt. Kamlesh Sethi became a member of Din CGHS Ltd. on 02.07.95 and was allotted membership No. 429.

(b) Upto 4th Oct. 1998, she had paid only Rs.5,50,000/- towards cost of the flat.

(c ) Since she had not paid the qualified amount by the date of draw of lots, numerous reminders were sent to her for payment of her dues.

(d) Failing to get any positive response from her, the Society took up a case with the Registrar Cooperative Societies (RCS) for her expulsion.

(e) Following due process of law, the RCS approved her expulsion from the Society on 19.2.1999.

(f) She had nominated Shri Harsh Sethi, her son, as her nominee and the record was held in the Society office.

(g) Unfortunately, Smt. Sethi expired on 06.01.02.

(h) Shri Jeet Raj Sethi husband of Smt. Kamlesh Sethi staked a claim to the amount of Rs.5,50,000/- deposited by her.

(i) The then MC refused to acknowledge the fact that Smt. Kamlesh Sethi had named any nominee and denied holding any record to that effect. The then MC declined to make the requisite refund either to Shri Jeet Raj Sethi or to her nominee.

(j) Shri Jeet Raj Sethi approached the District Consumer Disputes Redressal Forum for recovery of the amount.

(k) On 25.02.08 the District Consumer Disputes Redressal Forum ordered that the legal representative of deceased Smt. Kamlesh Sethi is entitled to withdraw the amount of Rs.5,50,000/- together with an interest of 9 % p.a. from the date of deposit to the date of realization.

(l) The then MC concealed this fact from the members and appealed against the order in State Consumer Disputes Redressal Commission.

2. Current Status of the Case

(a) The present MC, guided purely by the Society’s moral obligation to a deceased member, particularly one who had declared her nominee and record to this effect was available in the Society office, saw no merit in continuing with the case.

(b) Accordingly, an Agreement for ‘out of court’ settlement with Shri Jeet Raj Sethi was arrived at on 30.05.2009. The terms of the Agreement are listed below: -

(i) That Shri Jeet Raj Sethi, father of the nominee, Shri Harsh Sethi will receive Rs.5,50,000/- without interest.

(ii) That neither Shri Jeet Raj Sethi nor any other legal heirs will put their claim on the basis of membership No.429 against the Society in any manner.

(iii) Indemnity Bond indemnifying the Society from consequences of this Agreement was obtained.

(iv) Shri Harsh Sethi, the legal nominee of the deceased Kamlesh Sethi had rendered a no objection certificate as well as executed a Special Power of Attorney in favour of his father Shri Jeet Raj Sethi.

(v) The amount of Rs.5,50,000/- due from the Society to late Smt. Kamlesh Sethi is being paid to Shri Jeet Raj Sethi in the following manner:-

(aa) First installment of Rs.2,00,000/- (Rupees two lakhs only) by 31st July 2009.

(ab)Second installment of Rs.1,00,000/- (Rupees one lakh only) by 26th October 2009.

(ac)Third installment of Rs.1,25,000/- (Rupees one lakh twenty five thousand only) by 30th November 2009.

(ad)Fourth and final installment of Rs.1,25,000/- (Rupees one lakh twenty five thousand only) by 31st December 2009.

Notes:

(1) Relevant papers have been filed in the District Consumers Disputes Redressal Forum and the State Consumers Disputes Redressal Commission for withdrawal of existing cases / closing the same.

(2) The case has been fought for years wasting members’ hard earned money without any valid reason.

(3) Undue harrasement to family of aa deceased member has been caused for no apparent reason.