BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM ::
KADAPA YSR DISTRICT
PRESENT SMT. K. SIREESHA, B.L., PRESIDENT FAC
SRI M.V.R. SHARMA, MEMBER.
Wednesday, 30th July 2014
CONSUMER COMPLAINT No. 74/ 2013
M. Eswar Prasad, S/o M. Venkataramanachari,
Resident of D.No. 17/305, V.A.C. Complex,
B.K.M. Street, Kadapa city, YSR District. ….. Complainant.
Vs.
1. The Branch Manager, Margadarshi Pvt. Chit Ltd.,
D.No. 3-1295, 3rd floor, Opp. Market Yard,
T.B. Road, Proddatur Branch, Proddatur, YSR District.
2. Margadarshi Pvt. Chit Ltd Rep. b y its
Managing Director, Registered office at 5-10-195,
Fateh Maidan Road, Hyderabad – 500 004. ….. Respondents.
This complaint coming on this day for final hearing on 08-07-2014 in the presence of Sri G. Trivikram Singh, Advocate for complainant and Sri G. Sreenivasulu Naidu, Advocate for respondents and upon perusing the material papers on record, the Forum made the following:-
O R D E R
(Per Smt. K. Sireesha, President FAC),
1. Complaint filed under section 12 of C.P. Act 1986.
2. The brief facts of the complaint are as follows:- It is submitted that R1 is the branch office of R2. Both the respondents have been running chit business. It further submitted that the complainant is a chit member of respondents chit group FT 007T/PT/29. The chit amount is Rs. 4,00,000/- and from the date of 1st installment the complainant has been paying his installments regularly without fail. During the month of February 2013, the complainant stood has successful bidder to the said chit. After the bid he has submitted three sureties of one Satyanarayana, Umamahesh and Puspakumari. As the husband’s name of said Pushpakumari was not tallied in record, the R1 asked the complainant to submit other surety. Accordingly, he has furnished surety of one B.H. Prasad along with his salary certificate issued by his employer. The said surety was submitted by the complainant through a registered post on 30-8-2013. The R1 received the said letter on 31-8-2013 along with surety furnished by the complainant. But, there is no response from R1. The complainant submits that the R1 did not show any interest to pay chit amount to him. On one or other pretext R1 has been postponing the payment of chit amount of Rs. 2,40,000/- since February 2013. The complainant has been harassed in the hands of both respondents. Number of times, the complainant has approached to R1 from his native p[lace Kadapa to Proddatur. But his efforts proved in vain. Due to negligent attitude of respondents the complainant was put to financial loss. Though respondents have not paid chit amount, till date the complainant has paid nine installments of chit amount which amount to Rs. 90,000/- without dividends (Rs. 57,000/- with dividends). The complainant suspect bonafides of respondents in not paying his chit amount. The services of respondents are deficient in nature. Both of them are liable to pay compensation to the complainant for causing financial loss and physical strain to him. Having no other go the complainant got issued a legal notice dt. 11-9-2013 calling upon the respondents to pay Rs. 2,40,000/- chit amount together with 24% interest from February 2013 till the date of payment or to pay 9 installments amount which amounting to Rs. 90,000/- and to pay Rs. 1,00,000/- towards compensation for causing mental agony and physical strain. Having received the said legal notice the respondents send a reply notice dt. 21-9-2013 with all false allegations. On the other hand, after receiving complainant’s legal notice dt. 11-9-2013 the R1 hatched a plan and put blame on the complainant and prepared a fabricated letter with an old date i.e. 20-8-2013 indicating that his surety forms were returned by R2 on some reasons and demanded for liquidation surety only. This letter allegedly have been prepared on 20-8-2013, is posted on 13-9-2013 and the same was received by the complainant on 14-9-2013. Fabrication of this letter by R1 clearly goes to show that they are trying to put blame on the complainant, though there is no fault on his part. The fabricated letter dt. 20-8-2013 speaks in volume about the gross negligence on the part of the respondents. Hence, this complaint.
3. The cause of action arose on 29-9-2012 when the complainant entered into chit agreement with the respondents and during February 2013 when he stood as successful bidder and when on all the days when the respondents failed to pay prized amount to the complainant on one or other pretext within the jurisdiction of Hon’ble forum, Kadapa. A fee of Rs. 200/- is paid by way of challan.
4. It is therefore, prayed that the Hon’ble forum may be pleased to allow the complaint and pass orders in favor of the complainant, directing the respondents 1 & 2 (a) Rs. 2,40,000/- chit amount together with 24% interest from February 2013 till the date of payment or to pay 9 installments amount which amounting to Rs. 90,000/- (b) to pay Rs. 1,00,000/- towards compensation for causing mental agony and physical strain (c) to pay Rs. 2,000/- towards cost of complaint and other relieves as the Hon’ble forum deems fit and proper.
5. Counter filed by R1 and the same was adopted by R2. The complaint filed by the complainant is neither just nor maintainable in law and on facts and the complaint is false, frivolous imaginary and far from truth and hence the same is liable to be dismissed.
6. The complaint is put to strict proof of all the allegations made in the complaint except those which are specifically admitted herein by this respondent.
7. This respondent submits that the facts of the petition will not attract the ingredients under C.P. Act 1986 the facts of the case did not disclose that there is deficiency in services by the respondent to the complainant. The complainant did not mention the nature of services to be rendered by this respondent to the complainant.
8. This respondent submits that the averments made in para-1 of the complaint that the complainant is the chit member of chit group FT007T PT-29 for the value of Rs. 4,00,000/- is true. The allegation made in the complaint that the complainant has been paying the installments regularly is absolutely false and the same is invented by the complainant for the purpose of the case. It is true that during the month of February 2013 the complainant stood as successful bidder to the above chit. It is also true that after bid, the compliant has submitted three sureties i.e. Satyanarayana, Uma Mahesh and Pushpa Kumari. It is true to say that as the husband’s name of Pushpa Kumari was not tallied in record, the first respondent informed the complainant through letter dt. 20-8-2013 to submit any liquidation surety. It is also true that on 30-8-2013 the complainant has sent the surety of one B.H. Prasad to this respondent by registered post and the respondent received the same on 31-8-2013. It is true that the complainant got issued a legal notice dt. 11-9-2013 to the respondent and thereon, the respondent issued a reply notice on 21-9-2013 with true facts. The other allegations made in first para of the complaint are absolutely false and the same are invented by the complaint for the purpose of the case and the complainant is put to strict proof of the same.
9. This respondent submits that as per the provisions of the chit fund act and as per the terms and conditions of the chit agreement, every prized subscriber has to submit sufficient securities up to the satisfaction of the foreman towards future liability of the chit for withdrawal of the prize amount. After the auction which was held on 24-2-2013 the complainant was declared as successful bidder. The very next day i.e. on 25-2-2013 the respondent has sent a letter to the complainant and informed him to collect the necessary forms to submit the acceptable sureties to pay the prize amount. As the complainant failed to produce the sureties, this respondent again sent a specimen “A” letter dt. 12-3-2013 to the complainant to submit the acceptable sureties. As there was no response from the complainant, this respondent has sent specimen “B” letter on 23-3-2013 by registered post acknowledgement due to the complainant informing him that as the complainant failed to produce the sureties, the prize amount has been deposited in Bank under chit agreement and the complainant is eligible to draw the amount if he submits sufficient security for the due payments on future installments and it will not carry any interest. But the complainant has submitted the sureties only on 28-7-2013 after due verification as the husband’s name of surety No. 2 Mrs. Pushpa Kumari is differing from the old records, the respondent sent a letter dt. 20-8-2013 to the complainant to submit one liquidation surety. In response to the same the complainant has sent the salary certificate of one B. Harichandra Prasad by way of letter dt. 30-8-2013 without giving any details about the surety. So, this respondent contacted the complainant regularly about the sureties and even contacted the surety pushpa kumara about the name variation of her husband. Hence, this respondent has informed the complainant to submit one liquidation surety, but the complainant refused to submit liquidation surety and on the other hand, the sureties namely B. Harichandra Prasad and M. Pushpa Kumari have withdrawn their securities and to that effect submitted letter dt. 27-9-2013 and 28-9-2013 respectively and took the salary certificates submitted by them to this respondent. Then immediately on 01-10-2013 this respondent addressed a registered letter with acknowledgement due to the complainant to furnish sufficient security to withdraw the prize amount, silence the above two sureties are not willing to stand as sureties to the complainant. Sensing the said letter the complainant refused to receive the same and successfully managed the postal authorities to return the said letter. Thus the complainant failed to produce the sufficient security intentionally and failed to withdraw the prize amount intentionally and negligently. Hence, the allegation of the complainant that the services of the respondent are deficient in nature is absolutely false and the same are invented by the complainant for the purpose of the complaint. Due to the negligent act of the complainant, the complainant failed to withdraw the price amount intentionally but throwing the blame on this respondent for unlawful gain. Hence, the complainant is not maintainable and liable to be dismissed.
10. This respondent further submits that he never harassed the subscribers more so, the complainant at any point of time and this respondent never postponed the payments and it is the complainant who failed to produce sufficient sureties to withdraw the prize amount.
11. This respondent further submits that it is false to say that the complainant has paid nine installments, but he paid seven instalments only and on 31-7-2013 he paid Rs. 6,500/- which is not sufficient to adjust the same towards eight instalment and hence the said amount was kept on account. This respondent humbly submit that it is absolutely false to say that this respondent fabricated a letter with old date as 20-8-2013 and that there is no necessity to this respondent to fabricate such letter as the prize amount was already deposited in the bank.
12. This respondent humbly submits that if the complainant has fulfilled the requirements in furnishing the sureties in time as per the provisions contemplated under Chit Fund act and as per the terms and conditions of the chit agreement, the complainant has received the prize amount. Without fulfilling the same, the complainant is throwing the blame on this respondent to gain the sympathy of this Hon’ble forum for unlawful gain. Since the complainant failed to furnish sureties, the prize amount was not paid to the complainant and hence the complaint is liable to be dismissed.
13. This respondent humbly submits that, as stated supra in writing i.e. specimen “B” the prize amount was deposited in a separate identifiable account. The complainant after becoming the successful bidder, is not paying the future instalments. As per the provisions contemplated under chit funds act and as per clause VII (9) of the Chit Agreement, that the Foreman is having a right and duty if the prized subscriber commits default in payment of monthly instalments before withdrawal of the prize amount, he can deduct the defaulted instalments amount from the prize amount and can adjust the same towards defaulted installments. Not only is this he also having a duty to see that the other co-chit members in the same chit group will not be caused inconvenience. The entire lapses where on the part of the complainant, but not on the respondent. This respondent further submits that he is not at all liable to pay any interest or compensation to the complainant for the lapses of the complainant.
14. This respondent further submits that the complainant filed this frivolous complaint with oblique motive to have unlawful gain. This respondent submits that there is no cause of action to file this complaint before this Hon’ble forum.
15. Hence, the respondent prays that the Hon’ble forum may be pleased to dismiss the complaint with exemplary costs in the interest of justice.
16. On the basis of the above pleadings the following points are settled for determination.
- Whether the complainant is eligible for compensation as prayed by the complainant?
- Whether there is negligence or deficiency of service on the part of the Respondents?
- To what relief?
17. On behalf of the complainant Ex. A1 to A8 were marked and on behalf of the respondents Ex. B1 to B12.
18. Point Nos. 1 & 2. As seen from Ex. A1 the complainant as chit member of the group FT 007T/PT/29 for value of Rs. 4,00,000/- is true in the month of February 2013. The complainant stood as successful bidder for the above chit. After the bid the complainant had submitted three sureties i.e. 1) Satyanarayana, 2) Umamahesh and 3) Puspakumari and one of the sureties husband’s name was not tallied. It is very clear from Ex. A2. Under Ex. A4 it is very clear that the R1 had sent a letter to the complainant to produce liquidation surety. Exs. B1, B2 & B3 are sent by R1 to the complainant stating that to produce sufficient sureties for his prized money. Ex. B5 also very clear that R1 requested for liquidation surety from the complainant. Ex. B6 is the withdrawal letter by B. Harichandra Prasad as surety to the complainant. Ex. B7 is the letter to R1 by Puspakumari withdrawing surety to the complainant. Ex. B8 is very clear that the R1 requested the complainant to furnish fresh sureties to draw the prized money of the complainant. Ex. B10 is the subscribers account. Ex. B11 clearly shows that the complainant prized amount was kept in outstanding account. Ex. B12 is the Axis Bank statement of account pertaining to Margadarsi Chit Account. As seen from the above all documents it is very clear that the complainant should follow the rules and regulations and once he entered into chit Fund Company as subscriber. After he became successful bidder, as he submitted three sureties as per rules and regulations to the respondents company. Here the complainant utterly failed to do so. He had not produced the sufficient sureties to take the prized money. So the complainant is not eligible for any compensation from the respondents and at the same time there is no negligence or deficiency of service on the part of the respondents 1 & 2.
19. Point No. 3 In the result, the complaint is allowed, directing the respondents 1 & 2 jointly and severally liable to pay the 9 installments amount without dividend, Rs. 57,000/- (Rupees Fifty Seven Thousand Only) to the complainant and Rs. 2,000/- towards cost of the complaint (Rupees two thousand only) within 45 days of date of receipt of the orders.
Dictated to the Stenographer, transcribed by him, corrected and pronounced by us in the open Forum, this the 30th July 2014
MEMBER PRESIDENT FAC
APPENDIX OF EVIDENCE
Witnesses examined.
For Complainant NIL For Respondents : NIL
Exhibits marked for Complainant : -
Ex. A1 Original Chit Agreement.
Ex. A2 Letter dt. 30-8-2013 issued by the complainant by submitting
solvencies of sureties to R1 thourgh R.P.A.D.
Ex. A3 Postal receipts and acknowledgement card.
Ex. A4 Letter dt. 20-8-2013 said to here been posted by the R1 to the
complainant through post on 13-9-2013.
Ex. A5 Postal cover sent by the R1 indicating that letter dt. 20-8-2013 is send
on 13-9-2013.
Ex. A6 Legal notice dt. 11-9-2013 issued by the complainant to the
respondents
Ex. A7 Two postal receipts and acknowledgement cards.
Ex. A8 Reply notice issued by respondnet’s dt. 21-9-2013 and its postal cover
dt. 23-9-2013.
Exhibits marked for Respondents: - NIL
Ex. B1 Copy of letter dt. 25-2-2013 addressed to the complainant by the R1.
Ex. B 2 Copy of letter dt. 12-3-2013 addressed to the complainant by the R1.
Ex. B3 Copy of letter dt. 23-3-2013 addressed to the complainant by the R1.
Ex. B4 Postal acknowledgement served on the complainant.
Ex. B5 Copy of letter dt. 20-8-2013 addressed to the complainant by the R1.
Ex. B6 Letter dt. 27-9-2013 addressed to the R1 by the surety B. Harichandra
Prasad.
Ex. B7 Letter dt. 28-9-2013 addressed to R1 by the surety Mr. Pushpakumari.
Ex. B8 Copy of letter dt. 01-10-2013 addressed to the complainant by the R1.
Ex. B9 Refused postal cover addressed to the complainant.
Ex. B10 Subscriber’s account copy.
Ex. B11 Letter dt. 19-3-2013 to the respondent by the General Manager,
Securitization Department, Margadarsi Chit Fund Pvt. Ltd., Hyderabad.
Ex. B12 Statement of account from 23-3-2013 to 23-3-2013 received from Aix
Bank Proddatur branch by this respondent.
MEMBER PRESIDENT FAC
Copy to :-
- Sri G. Trivikram Singh, Advocate for complainant.
- Sri G. Sreenivasulu Naidu, Advocate for respondents.
B.V.P.
