BEFORE THE DISTRICT FORUM: KURNOOL
Present: Sri K.V.H.Prasad, B.A., LL.B., President
And
Smt C.Preethi, M.A., LL.B., Member
Tuesday the 24th day of April, 2007
C.C.No.139/2006
Smt. S. Maimunnisa Bee, W/o. Maqbool Basha, Aged about 37 years, Muslim,
R/o. H.No.30/92-B, Chittari Street, Kurnool.
…Complainant
-Vs-
1. The Managing Director, M/s. T.V. Ramana Chits (P) Ltd., Syed Hussain Pasha S/o. Fakruddin, Aged about 56 years, Muslim,
H.No.76/104-A-20-A, Varma Complex, Near IV Town P.S., Kurnool.
2. Byari Prasada Rao, S/o. John, aged about 55 years, Hindu,
R/o. H.No.45-142-25-E10-B, Ameena, Abbas Nagar,Near Venkata Ramana Colony, Kurnool.
3. Bhopalam Thulashi Ram, aged about 25 years, Hindu,
D/o. Bhagawanthappa, R/o. H.No.81/124-B, Venkateswara Nagar, Kallur, Kallur Mandal Kurnool.
4. Puducheri Saritha W/o. Rajasekhar, aged about 23 years, Hindu,
R/o. H.No.41/513-7, Kothapeta, Kurnool.
5. Baladhadra Ramesh, S/o. Tirupataiah,aged about 26 years, Hindu,
C/o. Sri Rama Raghavendra Chits, Ucon Plaza, Kids World Park Road, Kurnool, Kurnool Mandal and District.
6. Syed Hussain Pasha, S/o. Fakruddin, aged 56 years, Muslim,
R/o.H.No.51/15A49/1, Baba Brundavan Nagar, Kurnool.
7. Syed Fathima Tehseen D/o. Hussain Pasha, aged about 31 years, Muslim, R/o. H.No.51/15A49/1, Baba Brundavan Nagar, Kurnool.
8. S.A.N.Gani S/o. S.A.Sukur, aged about 46 years, Hindu,
R/o. H.No.41/307, Kothapeta, Kurnool. …Opposite parties
This complaint coming on this day for orders in the presence of Sri. K. Uma Hanumantha Rao, Advocate, Kurnool for complainant, and Sri. M. Sivaji Rao, Advocate, Kurnool for opposite parties No.1 and 6 and Sri. S.V. Krishna Reddy, Advocate, Kurnool for opposite party No.3 and Sri. K. Prabhakar, Advocate, Kurnool for opposite parties No. 4 and 5 and opposite parties No.2, 7, and 8 called absent set exparte and stood over for consideration till this day, the Forum made the following:-
ORDER
As per Sri. K.V.H. Prasad, President
1. This case of the complainant is filed U/S 12 of C.P. Act., seeking direction on the opposite parties to refund the subscription amount of Rs.13,320/- with interest at 24% P.A from the date of commencement of chit till the date of its refund, compensation of Rs.10,000/- for mental agony suffered by the complainant at the deficient conduct of the opposite party and costs of the case as was driven to the forum for redressal.
2. The brief facts of the complainant’s case are that the complainant joined chit reference No.40/1A-24 and 40/1A-28 commenced from September, 2005 for forty months by the opposite party No.1 company to whom the other opposite parties are Managing Directors, & Partners and each chit value was of Rs.1,00,000/- at monthly premium of Rs.2,500/- and an entrance fees of Rs.300/-. After joining said chits the complainant paid four monthly installments to the tune of Rs.6,460/- under each chit after setting of dividend earned in said monthly auction bids. Thereafter the opposite parties 2 to 5 transferred the opposite party No.1 companies business for being managed by opposite parties 6 to 8 which cancelled the said chit group opening new chit groups without refunding the amounts of subscriptions to the subscribers of the cancelled chit groups. Neither the opposite parties 2 to 5 nor the opposite parties 6 to 8 responding to the complainants demand for refund of the subscription amount made orally and by legal notice. As such the conduct of the opposite parties is amounting to deficiency of service and thereby making them liable to the complainants claim.
3. In pursuance of the receipt of the notice of this forum as to this case of the complainant’s the opposite parties 1, 3 to 6 while appeared through their counsel and contested the case, the opposite parties 2, 7, 8 remained absent to the case proceedings and the opposite parties 1, 3 to 6 filed their written version denying their liability to the complainants claim.
4. The brief stand of the contesting opposite parties 1, 4 to 6 in their written version is that of denial of complaint averments and the bonafidies of documents of complainant and any concern of the complainant to the alleged chit Numbers as they stand on others names and also its date of commencement also differs to the date of commencement of alleged chits of the complainants. But admits the transfer of management of opposite party No.1 company on 27th February, 2006 to the opposite parties 6 to 8. The written version of the opposite party No.3 admits the complainant as member of the chit alleged in complaint and the receipt of subscription amount but limits its liability to the sum of Rs.2,380/- which remains payable towards subscriptions after deducting companies commission of 5% from the total chit amount as applicable to a defaulting subscriber of three installment continuously, inspite of the transfer of all accounts and their hand over to the new management of opposite party No.1 company consisting of opposite parties 6 to 8.
5. In substantiation of the contentions while the complainant’s side has relied upon documentary record in Ex.A1 to A7 besides its sworn affidavit in reiteration of its case, the opposite party side has taken reliance on Ex.B1 to B5 and sworn affidavit of the opposite party 1 and 6.
6. Hence the point for consideration is whether the complainant has made out the alleged deficiency of the service of the opposite parties and there by their liability to the complainant’s claim.
7. The Ex.A1 and A2 are the pass books bearing chit no.40/1A-24 and 40/1A-28 showing therein the complainant has subscriber of said chits. The perusal of Ex.A1 and A2 indicates that it was issued by T.V.Ramana chits (P) Ltd., (opposite party No.1) with chit reference no 40/1A-24 and 40/1A-28 for a chit value of Rs.1,00,000/- each at a monthly premium of subscription at Rs.2,500/- for month for a period of forty months having its commencement from September, 2005 with a periodical auction of the chit at the fourth Sunday of every month and receipt of four monthly installments, after the adjustment of dividends earned in said monthly auctions. From the so said ExA1 and A2 the net amount of subscription paid by the complainant to each of said chit reference numbers 40/1A-24 and 40/1A-28 was Rs.6,460/- (i.e., Rs.2,650/- + Rs.1,185 + Rs.1,000/- + Rs.1,625/-.). The Ex.A3 and A4 receipts numbers 215 and 216 issued for opposite party No.1 company lends support to said collections mentioned in Ex.A1 and A2 and they are bearing the signatures of its recipient and of the complainant also and no there appears any bonafidies in the denial contentions of the opposite parties in that regard of doubting their bonafidies.
8. The Ex.A5 is the office copy of the legal notice dt;25-8-2006 caused on the instructions of the complainant to the opposite parties and the postal receipts and the acknowledgement of its receipt by the opposite parties and the returned cover addressed to opposite party No.1 with an endorsement as where abouts not known and left without instructions. The said notice takes mentions of all the grievance of the complainant as set in the complaint.
9. While the Ex.A6 is the reply legal notice caused at the instructions of the opposite party No.6 to the complainant’s notice in Ex.A5. The Ex.A7 is the reply legal notice caused to the complainant and opposite parties 6 to 8 at the instructions of the opposite party No.4. While the Ex.A6 disowns any liability of the opposite party 2 to 5, 7 and 8 having resigned from the opposite party No.1 company even though deny any concern of the complainant to the alleged chit reference numbers as they are standing in the name of G.P.Ayesha and P.Abraham respectively and commenced from September, 2003 and not as stated in complaint and its assurance for enquiry if any payment is made by the complainant and its was credited to the company and other wise advises the complainant to proceed against the person to whom such payments were made.
10. The Ex.A7 even though admits the complainant’s paying the alleging subscriptions installments to opposite party No.1 company, under said chits but alleges transfer of said opposite party No.1 company to opposite parties 6 to 8 for management of its business and so consequent to said transfer the laters responsibility and liability to chits subscribers including complainant ceased as per terms and conditions of said agreement and so advises the complainant to approach opposite parties 6 to 8 for the needful.
11. While the Ex.A1 and A2 standing in the name of the complainant pertains to opposite party No.1 company i.e, T.V.Ramana Chits (P) Ltd.,- the Ex.B1 and B2 agreements of chits standing in the name of G.B.Ayesha, and P.Abraham pertains to Agradhana Chit Fund Pvt., Ltd. Hence, even though the chit number and chit amount mentioned in both the Ex.A1 and A2 and Ex.B1 and B2 appears to be the same, they do not remain of any relevancy to the present case and thereby leave any adverse inference on the merits of the complainant’s case and to doubt the bonafidies of the Ex.A1 and A2. In view of these inconsistent circumstances in between the Ex.A1 and A2 on one side and Ex.B1 and B2 on the other side there appears any bonafidies in the contentions of the opposite parties doubting the concern of the complainant to the chit number issued by opposite party No.1 company especially when there is any transfer of opposite parties No.1 companies business to the chit company in Ex.B1 and B2 and when the Ex.B3 also means a mere appointment of opposite parties 6 to 8 as three more directors for effective running of the opposite party No.1 business for the period of one year and of the mere powers of so appointed directors.
12. In the absence of the opposite party 6 to 8 placing any cogent material as to the details of the chits of that were to the said opposite party No.1 company at the time of their handing over to opposite parties 6 to 8 as other wise than covering the chit group of the complainant, there appears any circumstances to believe that the chit reference numbers of the complainant were neither in existence at the time of Ex.B3 nor were entrusted to opposite parties 6 to 8 for their further dealt up. Hence in the normal course of business, in the absence of any other adverse material from the opposite party 6 to 8 the liability of the opposite parties for the complainant’s chit references is to be believed especially when the Ex.B4 and B5 the statement dt:27-2-2006 as to appointment of and changes among directors of opposite party No.1 company and paper notification given on 26th November 2006 in Andhra Jyothi News paper by opposite party No.2 by complimenting the take over of opposite parties 6 to 8 as directors of opposite party No.1 company, is remaining of any help for assessing what assets and liabilities of opposite parties No.1 company were left for being dealt by opposite party 6 to 8 as new directors of opposite parties No.1 company and any terms & conditions which exchange the liability of opposite parties 6 to 8 or opposite parties 2 to 5.
13. Any cogent record in placed by the opposite parties side to feel that the complainant has defaulted the payment of periodical installments to Ex.A1 and A2 chit reference consequent to take over of opposite parties No.1 business by opposite party 6 to 8 and the later actually running of said chits thereafter without fail, there appears any material to hold the complainant has a defaultive subscriber to the periodical installment of the said chit business proceedings of which were taken by the opposite parties 6 to 8. Hence, there appears any merit and force in the contentions of the opposite parties that the complainant if at all is entitled for refund of any subscription amount that shall be Rs.2,380/- only under each chit after working out deduction of 5% company commission on chit value amount.
14. Mere resignation of certain directors and appointment of new directors for effective running of the opposite party No.1 company business doesn’t effect the rights of subscribers as the said change overs being internal matters of opposite party No .1 company among its constituents and such a change over cannot permit them to act in determent to the interest of the chit subscribing members, to shurk any of their liability throwing the burden by each on others. The net amount of subscription received from the complainant being witnessed in Ex.A1 and A2 and its consequent material in Ex.A3 and A4 is jutifying Rs.12,920/- only as the amount received from the complainant, in the absence of any further proof as to receipt of amount of Rs.300/- alleged to have been paid to the opposite parties by the complainant as entrance fees, the Joint and several liability of the opposite parties is remaining for payment of said justified amount of Rs.12,920/- collected from the complainant towards net subscriptions of said chit reference numbers.
15. Further the opposite parties by their evasive conduct of throwing the liability of each at the other opposite parties and not refunding the justifiable amount even to the complainant inspite of several approaches and caused mental agony the opposite parties are remaining jointly and severally liable for payment of compensation to the complainant for the suffered mental agony at the lapsive conduct of the opposite parties in not refunding the net subscriptions even. The opposite parties by their non responsive conduct driven the complainant to the forum for redressal of grievances the opposite parties jointly and severally liable for payment of the costs of this case to the complainant.
16. Consequently, and in the result of the above discussion,
Dictated to the Stenographer, transcribed by him, corrected and pronounced by us Open bench on this the 24th day of April 2007.
Sd/- Sd/-
MEMBER PRESIDENT
APPENDIX OF EVIDENCE
Witnesses Examined
For the Complainant:Nil For the Opposite Parties: Nil
List of Exhibits marked for the complainant:
Ex.A1 pass book No.40/1A-24 in the name of complainant.
Ex.A2 pass book No.40/1A-28 in the name of complainant.
Ex.A3 Receipt of T.V.Ramana Chits (P) Ltd., Kurnool, Dt:21-12-2005 pertaining
to payment of Rs.6,460/- towards chit in Ex.A2.
Ex.A4 Receipt of T.V.Ramana Chits (P) Ltd., Kurnool, Dt:21-12-2005 pertaining
to payment of Rs.6,460/- towards chit in Ex.A1.
Ex.A5 Office copy of legal notice, Dt:25-8-2006 along with postal receipts,
acknowledgements returned covers.
Ex.A6 Reply notice, Dt:11-9-2006.
Ex.A7 Reply note of opposite parties No.4 & 5 Dt:16-11-2006 to complainant &
others.
List of Exhibits marked for the opposite parties:
Ex.B1 Original Agreement of Chit Dt:30-10-2003 standing on the name of
subscriber G.B.Ayesha.
Ex.B2 Original Agreement of Chit Dt:15-2-2005 of Subscriber P.Abraham.
Ex.B3 Attested Xerox copy of Minutes book of T.V. Ramana Chit Funds (P) Ltd.,
Kurnool.
Ex.B4 Appointment of and changes among Directors submitted by opposite
party No.6.
Ex.B5 Andhra Jyothi paper notification Dt:26-3-2006.
Sd/- Sd/-
MEMBER PRESIDENT
Copy to:
1. Sri. K. Uma Hanumantha Rao, Advocate, Kurnool.
2. Sri. M. Sivaji Rao, Advocate, Kurnool.
3. Sri. S.V.Krishna Reddy, Advocate, Kurnool.
4. Sri. K. Prabhakar, Advocate, Kurnool.
Copy was made ready on:
Copy was dispatched on:
Copy was delivered to parties:
