Date of Filing: 17.09.2019

                                                                   Date of Order: 09.08.2021

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION – I, HYDERABAD

P r e s e n t­

   HON’BLE Smt. P. Kasthuri B.Com, L.L.M., PRESIDENT(FAC)

HON’BLE Sri  K.RAM MOHAN, B.Sc. M.A L.L.B.,   MEMBER

On this the Monday the 09^th  day of August, 2021

C.C.No. 445 of 2019

Between    

D. Pramila, W/o D. Narsing Rao,

Aged about 51 years, Occ: House wife,

R/o: 4-32-41/28, Kamala Prasanna Nagar,

Allwyn Colony, Kukaptally,

Hyderabad-500072 Cell No. 9291496221

      ….Complainant

And

1. Sri Rishab Chit Fund India Private Limited,

Rep. by its Managing Director,

Sri Gujjar Sailesh Kumar,

2. Gujjar Nandini W/o Sri Gujjar Sailesh Kumar,

Occ: Director of The Rishab Chit Fund India Pvt Ltd.

Both are R/o: 1-30-377, Flat No. 201 & 101,

Neelesh Apartments, Opp : Nallapochamma Temple,

Prudential Bank Colony-1, Kanajiguda,

Tirumalghisry, Secunderabad – 500 015.

3. Asst. Registrar of Chits,

Government of Telangana , Hyderabad District,

Beside Petrol Bunk, Kavadiguda, Musheerabad,

Hyderabad – 500 020.

             … Opposite Parties No.1 to 3

Counsel for the Complainant                           : PIP

Counsel for the Opposite parties No.1 & 2         : Absent

Counsel for the Opposite party No.3                 : M/s.K.Rajashekar

                                                O R D E R

(By Smt. P. Kasthuri B.Com, L.L.M., PRESIDENT(FAC)on behalf of the Bench)

1.          The present complaint is filed under Section 12  of Consumer Protection Act, 1986 for deficiency in service to direct to the opposite parties  to refund an chit amount of Rs. 32,000/- along with interest @24% p.a from the respective dates of payment till the date of realization and Rs. 2,00,000/- towards fixed deposit along with interest @24% p.a from May 2018 to till the date of realization  together with compensation of Rs. 50,000/- for causing mental agony for deficiency in service unfair trade practice and costs of Rs. 25,000/- and grant such other and further reliefs as the Hon’ble District Forum deems fit and proper in the interest of justice.

The case of the complainant in brief:-

          Complainant contended that the opposite parties are into the business of accepting deposits from the public and also running chit fund company under the name and style M/s Sri Rishab Chit Fund India Private Limited. Opposite party’s agents in the course of their business approached the complainant and informed him that they are conducting various chits and also accepting deposits with attractive rate of interests for last 20 years and if the complainant joins in the chit conducted by them, the complainant would be getting good dividends and the complainant on becoming the successful bidder, he will be paid the prized amount immediately.

Attracted by the said words of the opposite parties agents, complainant joined as a member in the chit group for Rs.2,00,000/- with an intention that the said amount would be useful for the education and marriage of his daughter. The said chit period was for 25 months with the chit subscription of Rs.8,000/- per month complainant started the chit in the month of December -2017 and paid the chit subscriptions for a period of 6 months. Apart from subscription of the chit, complainant also deposited his hard  earned  money  of  Rs.2,00,000/- with the opposite parties for earning interest on monthly basis. Accordingly complainant received interest till May 2018 and in the month of June, 2018, opposite parties stopped paying interest amount and also stopped collecting  chit instalments from the complainant, for which the complainant approached the office of opposite parties several times requesting them to pay back his deposited amount of Rs.2,00,000/- and also to return the chit instalments paid by him till that day, but the opposite parties postponed the issue on one pretext or the other and finally on several requests,  the opposite parties issued two cheques bearing Nos.400543, dt.03.07.2019 for Rs.1,00,000/- & No.406005, dt.03.07.2019 for Rs.1,00,000/- towards the principle amount without interest. Complainant accepted the same and deposited the said cheque with the bank but the same got dishonoured. Complainant tried to visit the office of opposite parties but the opposite parties office was closed. The complainant having invested his hard earned money for earning interest and subscribed for the chit of Rs.2,00,000/- with the opposite party with the sole intention to utilize the said amount for the education and marriage of his daughter, but the opposite parties deceived the complainant by closing his office and not paying his hard and money. Such an act of the opposite parties amounts to unfair trade practice and deficiency in service. Hence the complaint.

2.         Notices on opposite parties no. 1 and 2 were returned with an endorsement as left. Hence a paper publication was ordered and inspite of the publication of notices in Daily News Paper, the opposite parties No. 1 and 2 remained absent.

Opposite party No. 3 contested the case and filed written version on their behalf.

3.          Written version of opposite party No. 3 in brief:-

          Opposite party no. 3 submitted that the complaint is not maintainable against them as the dispute relates to arbitration and there is a special law called the Chit Fund Act, under which the dispute relating to the chits can be referred to and the case before this Commission cannot be maintainable.

          Opposite party no. 3 further submitted that according to their records no sanction was accorded to opposite parties no. 1 and 2 for running of the alleged chit group and further complainant also has not mentioned the details of the chit and ticket number in the complaint to verify in their records. On further verification of the records, complainant’s name was not registered with any chit group. Complainant is not registered the person in the chit business and further no letter from the complainant was received by them as to the non payment of the prize amount. Hence complainant has not made out any case against them and also failed to show any deficiency in service against them. Opposite party no.3 is not a necessary party to the present complaint and provisions of the Consumer Protection Act, cannot be made application to them and prayed to dismiss the complaint against them.

4.            In the course of enquiry, the complainant has filed Evidence Affidavit reiterating the material facts of the complaint and got marked Exhibits Ex.A1 to A5. The opposite parties also filed their evidence affidavit  on their behalf.  Written arguments are filed by both parties. Heard both parties.

5.            On the consideration of the material brought on record, the
 following points have emerged for consideration.

1. Whether there is any deficiency in service on the part of the opposite party?
2. Whether the complainant is entitled for the relief claimed for?
3. If so, to what relief.?

Point No. 1 and 2:

          We have perused the entire record on hand. It is the contention of the complainant that the opposite parties are engaged in the business of running a chit fund company and accepting deposits from the public. The representatives of the opposite party approached the complainant convincing him to subscribe for chit run by them and also to make deposits with  them  by  offering  to  pay  good  interest on the deposits. Accordingly, attracted with the words of the opposite parties, complainant deposited a sum of Rs.2,00,000/- and also subscribed to the chit value of Rs.2,00,000/- and paid instalments for a period of 6 months  but the opposite parties all of a sudden stopped receiving chit instalments and also stopped paying interest on the chits and that on repeated requests and visits made to the office of the opposite parties, they issued two cheques for a sum of Rs.1,00,000/- each total Rs.2,00,000/- towards their liability and the complainant having no other alternative accepted the same though the cheque amount received was not sufficient to meet his claim amount and however even the cheque got dishonoured due to insufficient funds.

          The opposite parties no.1 and 2 have not contested the case where as the opposite party no. 3 contested the case and submitted that it was not a necessary party and was wrongly impleaded as a party to the complaint.  The complainant has not made any allegation of deficiency in service against it and further contended that they have neither accorded any sanction to the running of the alleged chit group nor the name of complainant was registered with them and further contented that this Commission has no jurisdiction to entertain the complaint in view of Section 64 of Chit Fund Act.

          The above contention of the opposite party No.3 that this Commission has no jurisdiction to entertain the complaint as per Section 64 of Chit Fund Act is not tenable since the Consumer Protection Act is a benevolent legislation and it provides for an additional remedy under the Act, as such the complaint herein is very much maintainable.

On careful perusal of the record, it is observed that the opposite parties no.1 and 2 have failed to contest the case and did not choose to rebut the contention of the complainant that the complainant is neither a subscriber nor the depositor with them. Hence, in the absence of any specific pleading from the opposite parties no.1 and 2, it can be safely presumed that opposite parties no.1 and 2 having accepted deposits and received chit subscriptions from the complainant, they failed to pay the chit amount as well as the deposited amount, as such they are liable to pay the amounts as claimed by the complainant.

          However, the complainant in support of his case has filed Ex.A1 to establish that he subscribed for the chit value of Rs.2,00,000/- with the opposite party. The said exhibit also evidences that the chit period was for 25 months payable @ 8,000/- per month and that the complainant has paid 6 chit instalments out of the total 25 monthly instalments.

           Further, on seeing the two cheques vide bearing Nos.400543, dt. 03.07.2019 for Rs.1,00,000/- and another cheque vide bearing No.406005, dt. 03.07.2019 for a sum of Rs.1,00,000/- issued by the opposite party under Ex.A2 & A3, it establishes that the opposite party has issued the said cheque  in favour of the complainant in discharge of its liability to pay the chit amount and the amount deposited with them by the complainant. But the same was dishonoured for the reason of insufficient funds as seen under Ex.A4. Thereafter the complainant got issued a legal notice to the opposite parties no. 1 & 2 with the acknowledgement due under Ex.A5 but there was no response.

The opposite parties having accepted deposits from the public and having lured them to subscribe for the chits with them and finally having amassed with wealth, they issued a cheque to the complainant without maintaining sufficient balance and turned off their boards and closed their business. Such an act on part of the opposite parties amounts to unfair trade practice and also constitutes deficiency in service. Hence in the circumstances of the case, the complainant must have definitely subjected to mental agony and trauma, therefore the complainant must be reasonably compensated.

           Based the above discussion, we are of the strong view to allow the complaint and direct the opposite parties No. 1 and 2 jointly and severally to refund to the complainant an amount of Rs.48,000/- subscribed towards the chit along with interest @9%p.a. from the date of complaint till the date of realization and further also to refund an amount of Rs.2,00,000/- kept in deposits along with interest @9% p.a. from the date of complaint till the date of realization and to pay a sum of Rs.10,000/- towards compensation for mental agony and trauma suffered by the complainant.

Point No.3:

In the result: The complaint is partly allowed and direct the opposite parties No. 1 and 2 jointly and severally:-

1. to refund to the complainant an amount of Rs.48,000/- subscribed towards the chit along with interest @9%p.a. from the date of complaint till the date of realization and further also to refund an amount of Rs.2,00,000/- kept in deposits along with interest @9% p.a. from the date of complaint till the date of realization.
2. To pay a sum of Rs.10,000/- towards compensation for mental agony and trauma suffered by the complainant.
3. To pay a sum of Rs.5,000/- towards costs.
4. Complaint against the opposite party no. 3 is dismissed.

      Dictated to steno, transcribed and typed by him, pronounced by us on this 09^th the  day of  March, 2021.

     MEMBER                                                                        PRESIDENT

APPENDIX OF EVIDENCE

WITNESS EXAMINED

Exhibits filed on behalf of the Complainant:

1. Ex.A1–  Copy of  Chit passbook issued by the Ops 1 & 2 and entries  made in token of receipt of chit amount.
2. Ex.A2 –  Copy of  cheque bearing No. 400536 dt. 03.07.2019.
3. Ex.A3 -   Copy of  cheque bearing No. 406016 dt. 03.07.2019
4. Ex.A4- Copy of Inward Return –(CTC) memo dt. 05.07.2019 issued by Dena Bank. Kukatpally.
5. Ex.A4 – Copy of notice dt.25.07.2019 along with postal receipt and served postal consignment track.

Exhibits  filed on behalf of the Opposite parties:

Nil.

MEMBER                                                                   PRESIDENT