Firm asked to shell out 6L for sloppy service

MUMBAI: In two separate judgments, the Central Mumbai District Consumer Disputes Redressal Forum directed a city-based financial advisory firm to pay nearly Rs 6 lakh to Suman Motels Ltd and Renaissance Education Pvt Ltd, two companies who had sought their advice while going through a financial crisis. Ms Enarr Capital was held guilty of deficiency in service for not providing the consultations and advice it had promised and asked to pay a total of Rs 5.7 lakh to the two companies.
Both companies will each receive Rs 2.8 lakh with 9% interest from 2010 along with Rs 5,000 each towards costs of the complaints filed.
They paid Enarr Capital Rs 2.8 lakh each to seek financial advice that would provide them relief. According to the complaints filed by both companies in the forum in 2010, Enarr Capital was to also give them advice on how to draw funds. However, even several months after paying the money in September 2008, they received no such advice or assistance.
Both companies repeatedly contacted Enarr Capital and even met its officials on several occasions. But none of the promised assistance was provided.
The companies even sent several notices to Enarr Capital to return the money. But their requests went unheard. Aggrieved, both filed separate complaints in the forum alleging deficiency in service.
In its defence, Enarr Capital told the forum that both complaints could not be heard before it and the forum should dismiss them. It also stated that the companies had submitted false documents.
The financial advisory company submitted that it had taken the money from both firms and it was providing the advice as per the terms and conditions of the agreement. It also said that there was no deficiency of service on its part.
The forum, however, observed that even though both companies were commercial entities, the advice they received from Enarr Capital was not going to be resold by them, hence they were consumers and the complaints could be heard by the forum.
It also held that even though both companies had sent several notices to Enarr Capital seeking the services, the financial advisory company did not respond to the request.