D.o.F:13/1/09

D.o.O:02/6/09

IN THE CONSUMER DISPUTES REDRESSAL FORUM, KASARAGOD

                                          CC.NO. 8/09

                  Dated this, the 2^nd  day of June 2009

PRESENT:

SRI.K.T.SIDHIQ                               : PRESIDENT

SMT.P.RAMADEVI                          : MEMBER

SMT.P.P.SYAMALADEVI                        : MEMBER

V.Kunhambu, S/o Kelu,

R/at Kanathumoola,Bangalam,                                    : Complainant

Hosdurg,Kasaragod.

(Johney Scaria,Adv.Hosdurg)

1.  President,Pudukai Vainingat Sree Vairajathan

Easwaran Kshethra Committee                           

office at Vainingat, Po.Uppilikkai,

Pudukkai Village, Hosdurg Taluk, Kasaragod.Dt.

2.    Balachandran, Secretary, S/o Krishnan

Pudukai Vainingat Sree Vairajathan Easwaran

Kshethra Committee,   Vainingat, Po.Uppilikkai,

Hosdurg Taluk, Kasaragod.Dt. (Exparte)

3. C.V.Krishnan, S/o. Koman, Treasurer,                 

Pudukai Vainingat Sree Vairajathan Easwaran             : Opposite parties  

Kshethra Committee R/at Pudukkai, Po.Uppilikai,

Hosdurg Taluk. Kasaragod.Dt.

Adv.

                                                                          ORDER

SRI.K.T.SIDHIQ: PRESIDENT:

       The grievance of the complainant in brief is that the opposite parties 1 to 3 appropriated his chitty instalments paid in the chitties conducted by opposite  parties.  According to him he joined in 4  chitties started on 20/10/05 with a total  sala of  Rs.2,10,000/- each.  All the chitties were matured  and the complainant paid total 15 monthly instalments of Rs.10,000/- each in   all the above 4  chitties without any default as stipulated in the chitty conditions.  As per the direction of  the opposite parties complainant also remitted a sum of Rs.7500/- each in 4 chitties as a final instalment . After paying final instalments, opposite parties promised that complainant will be awarded Rs.2,10,000/- each in 4  chitties .  After few days Opposite parties  1 to 3 absconded  closing the chitty offices and appropriating crores of rupees paid by   hundreds of chittalans including the complainant.  Hence the complaint  praying for an order of refund of Rs.6,30,000/- and  a cost of Rs.10,000/- towards the mental agony suffered by the complainant .

2.     Notice to all opposite parties  were issued.  Notice to Opposite parties 1&2 returned as unserved for the reason ‘left’.  Hence publication of notice against opposite parties  1&2 was ordered and even after publication of notice opposite parties 1&2 remained absent.  Hence they were set exparte.    3^rd   opposite  party represented and filed version denying all the contentions of the complainant as well as the liability cast upon him.  According to opposite party No.3, opposite parties have not conducted any chitty business .  The passbook produced by the complainant is created for the case.  The opposite parties  Pudukai Vainingat Sree Vairajathan  Easwaran Kshethra Committee  is a registered society under the  Societies Registration Act and 3^rd  opposite party is the treasurer of the committee.  The said committee decided to construct a  Maha kshetram  of the deity  Shri Vairajathan  Easwaran  along with a  Kalyana  Mandapam, old age home and school building .  The cost estimated for the said construction was Rs. Ten crores/- .  It is decided by the opposite parties committee to raise the said amount by way of donations and collections from devotees and  public.  For the convenience of  the devotees and public the committee opened day deposit and SB account in various financial institutions.  Accordingly they made deposits.  In  the meanwhile the committee faced  some financial straits due to the payment of income tax.  Some donators demanded  return of donations given for constructions and adopted dubious methods to get back the said amount lying in various banks in the name of opposite parties committee.  The opposite parties committee being a donatory    is not liable to return the donations.  The relief sought is against opposite parties is opposed to the provisions of societies registration Act and the rules and regulations of the opposite parties committee.  As per the registered bye law opposite parties committee President alone is having power to represent  the committee.  The secretary has no right to represent the committee.  There is no privity of contract between the parties which could be  enforced in law as per the provisions of the prize  chits and money   circulation (Banning) Act 1978 on the  one hand and on the other hand it is opposed to public policy.  The 3^rd  opposite party being the  treasurer of the society is not  liable  to be sued for recovery of the amount  allegedly  due  by the  society.  The 3^rd  opposite party is an unnecessary party.  Hence the  complaint is a defective for misjoinder of parties and hence liable to be dismissed.

3.     Complainant filed affidavit in support of his claim reiterating what is stated in the complaint.  The passbooks issued bearing the seal of opposite parties committee is produced and marked as Exts.A1 to A4.  Both sides heard and the documents produced.

4.     As against the allegations made by the complainant the opposite party No.3 has not produced any documents to substantiate his contentions.

5.     Exts.A1to A4 produced by the complainant is apparently the  chitty passbooks.  If it is a concocted one for  the purpose  of filing the complaint and  extort money from the opposite parties as alleged by the 3^rd  opposite party, then of course opposite parties should have resorted appropriate legal proceedings against complainant for creating such false document.  But no such  proceedings are seen initiated by opposite parties.

6.    The registered bye law of the opposite parties society, the details of SB accounts opened in the Financial Institutions, the details of payment made as income tax etc are not produced to prove the veracity of the contention of the 3rd opposite party.  In the absence of such documents  it can safely conclude that Exts.A1 to A4 are the chitty passbooks  issued by opposite parties to the complainant as part of their chitty transactions.

7.     After the  completion of chitty, without paying the matured amount opposite parties  appropriated the  chitty  amounts is  deficiency in service on the part of opposite parties.  It become more grave when  the chitty run by the opposite parties do not have the required license from the authorities.  This is nothing but  an unscrupulous  exploitation  of consumers.

            Therefore the complaint is allowed and the opposite parties 1 to 3 are jointly and severally directed to pay Rs.6,30,000/- total chitty amount with interest @12% per annum from the  date of complaint till payment along with a cost of Rs.10,000/-.  Time for compliance is limited to 30 days from the date of receipt of copy of order.

 MEMBER                          MEMBER                                PRESIDENT 

Exts.A1 to A4- chitty passbooks

eva/