BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM :: KADAPA Y.S.R DISTRICT
PRESENT SMT. K. SIREESHA, B.L., PRESIDENT FAC
SRI M.V.R. SHARMA, MEMBER.
Saturday, 31st May 2014
CONSUMER COMPLAINT No. 11/ 2014
P. Srinivasulu, S/o Gangadharam (late),
presently working as Head – Clerk,
permanent Lok Adalat for Public Utility Services,
District Court Compound, Kadapa
aged 66 years, D.No. 12/274, Pottisreeramulu Street,
Kadapa City. Complainant.
Vs.
1) Branch Manager, Margadarsi Chit Fund Pvt. Ltd.,
2nd floor plot No. 288, Vertex plaza, Srinivasanagar – C,
A.S. Rao Nagar Branch, Hyderabad.
2) Managing Director, Margadarsi Chit Fund Pvt. Ltd.,
A.S. Rao nagar Branch, 2nd floor, Plot No. 288, Vertex plaza,
Srinivasanagar – C, A.S. Rao Nagar Branch, Hyderabad.
3) Manager, Margadarsi Chit Fund Pvt. Ltd.,
Opp. To District Court building, Kadapa. Respondents.
This complaint coming on this day for final hearing on 30-5-2014 in the presence of complainant as in persons and Sri G. Srinivasulu 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 the C.P. Act 1986.
2. The brief facts of the complaint are as follows:- The complainant is the retired Superintendent, Principal Junior Civil Judge’s court, Kadapa and presently working as Head Clerk, permanent Lok Adalat for public Utility services, Kadapa after retirement.
3. It is further submitted that the complainant had joined as a member in the Margadarsi Chit Fund Pvt. Ltd., Hyderabad under chit No. LT023 T AS /40. In this connection it is submitted that the auction for the chit was held on 19-5-2013 and it was gone in favour of the complainant for the prize amount of Rs. 3,19,000/-. As per the Rules and Regulations of the company the complainant produced three sureties as required and after that all the necessary documents signed by the complainant as requested by the company were forwarded to the Hyderabad chit fund branch where the complainant joined as a member, through the Kadapa Branch Manager i.e. the R3 whose chit fund company situated opposite to the Dist. Court, Kadapa for release of the prize amount. The chit was lifted by the complainant even for the lesser prize amount of Rs. 3,19,800/- since the wife of the complainant has been suffering from prolonged illness and as such the amount is required for the treatment of the complainant’s wife. But the Manager i.e R1 did not choose to send the prize amount to the complainant though the complainant is need of money for the reasons stated above and when the complainant questioned No. 1 through phone, the R1 used to give evasive reply for the reasons best known to him and as such the R1 caused much inconvenience to the complainant which amounts to mischief and cheating. At last the wife of the complainant died on 13-1-2014 due to lack of money for better treatment. The complainant is a senior citizen and in financial troubles and he could not safeguard life of his wife on account of the irregular act committed by the R1.
4. It is also further submitted that the R2 and R3 were asked to help the complainant for release of the prize amount since the R3 forwarded all the documents to the Hyderabad branch since the Kadapa branch and Hyderabad branch are one and the same with same responsibilities to safeguard interest of the members, but the R3 never tried to hop the complainant and so the Manager, Kadapa branch is added as R3. So also a notice was issued to R2, who is the Head of the R1 and R2, but he also paid deaf year to my voice.
5. The complainant is the resident of Kadapa town in Door No. 12/274, Pottisreeramulu Street, Kadapa and the R3 is working as Manager, Margadarsi Chit Fund Ltd., Opposite to Dist. Court, Kadapa and hence it comes under the jurisdiction of the Hon’ble Consumer forum. A fee of Rs. 200/- is paid by way of I.P.O.
6. It is therefore, prayed that the Hon’ble forum may be pleased to allow the complaint and pass orders in favour of the complainant directing the respondents (a) to release the prize amount of Rs. 3,19,000/- without any compulsory deposit with the Chit Fund company together with interest at 24% from the date of auction i.e. 19-5-2013 till the date of realization, (b) to pay Rs. 1,00,000/- for pains and sufferings and for mental agony caused by the respondents for keeping quiet for all these days without sending the prize amount to the complainant and (c) to pay Rs. 2,000/- towards the costs of the complainant and other reliefs as the Hon’ble Forum deems fit and proper in the circumstances of the case.
7. Counter filed by R1, and same adopted by R2 & R3. It is submitted that this complaint petition is misconceived and not maintainable under law and either on facts, because complainant has not exhausted the remedies available to him under the provisions of the Chit Funds Act 1982. The complainant must prove the facts which are not expressly traversed herein and the complainant is put to strict proof of the same.
8. It is submitted that the averments which are not expressly traversed herein shall not be deemed to be admitted by these respondents. It is submitted that all the allegations made by the complainant in his complaint petition are neither true nor correct and hence, the complaint petition deserves to be dismissed in limini with cots.
9. It is submitted that with regard to the para 1 of the complaint petition, they may be true but those are not concerned to these respondents. It is submit tined that in reply to para 2 of the complaint petition, it is fact that the Chit Number of the complainant was LT 023TAS-40. But the chit auction was held on 26-5-2013 and the prize amount is Rs. 3,00,000/- and the auction was not held on 19-5-2013 and the prize amount was not Rs. 3,19,800/- as alleged by the complainant. The averments in pra 2 of the complaint petition that the complainant’s wife has been suffering from prolonged ill ness and as such the complainant is required the amount for the treatment of his wife is not known to these respondents and also the averments that the wife of the complainant died on 13-1-2014 is also not aware to these respondents, it was not informed by the complainant. For the first time he revealed this fact through this complaint petition. All the other averments in para 2 of the complaint petition are not true and the complainant is put to strict proof of the same. The respondents never cheated the complainant and they never caused inconvenience. It is the complainant who has not fulfilled the provisions of the chit funds act and terms and conditions of the Chit agreement.
10. It is further submitted that all the averments made by the complainant in para 3 of his complaint petition are false and hereby denied by these respondents. The complainant has filed this complaint petition with all untruth allegations which do not stand in legal scrutiny.
11. It is submitted that as the complainant is the retired employee of judicial services, taking advantage of that, he threatened these respondents to release the prize amount even though he has not submitted sufficient sureties’ upto the satisfaction of the foreman.
12. Facts of the case that, it is submitted that the complainant has joined a chit LT023TAS – 40 with the A S Rao Nagar Branch i.e. R1. The chit value is Rs. 5,00,000/- monthly instalment is Rs. 10,000/- and the duration of the chit is 50 months. After payment of six installments, the complainant has participated in the auction held on 26-5-2013 and became successful bidder for the prize amount of Rs. 3,00,000/-. The complainant has submitted sureties for withdrawal of the prize amount but they were not upto the satisfaction of the foreman. As per sec. 21 (i) (e) and Sec. 31 of Chit funds Act, the foreman is having right to demand sufficient security from any prized subscriber for security for the due payment of future subscriptions payable by him. Sec. 21 (1) (e) of the chit Funds Act “to demand sufficient security from any prized subscriber for security the due payment of future subscriptions payable to him”. Sec. 31 of the chit Funds Act: “Every prized subscriber shall, if he has not offered to deduct the amount of all future subscriptions from the prize amount due to him, furnish, and a foreman shall take, sufficient security for the due payment of all future subscriptions”. Clause VII (1) of the Chit agreement, “the prized subscriber before drawing the chit amount must furnish necessary security / sureties to the satisfaction of the foreman for due payment of the future installments”. Clause VII (2) of the chit agreement, “in cases, where the future liability exceeds Rs. 3,00,000/- no personal security will normally be accepted. The security should be in the form of mortgage of immovable urban property, the value of which should exceed by one and half times of the amount due from the prized subscriber”.
13. As per the above clauses, the complainant should submit sufficient security / sureties upto the satisfaction of the foreman. In the chit of complainant, the future liability is Rs. 4,40,000/-, the complainant has submitted three sureties, but they were not upto the satisfaction of the foreman. Hence, the respondents requested the complainant to submit two more government sureties who are not having any liability. For which, the complainant himself came forward with one surety and agreed to deposit of Rs. 1,00,000/- as security towards future liability. But as it was not sufficient, the respondents requested him to submit two government sureties along with deposit of Rs. 1,00,000/-. But the complainant has not responded nor came forward to fulfill requirements. Besides that, he issued a letter dt. 28-1-2014 with regard to the release of his prize amount for which, the respondents are given a suitable reply stating that the respondents have acted as per the provisions contemplated under Chit Funds Act and as per the terms and conditions of the chit agreement.
14. It is submitted that these respondents as per the provisions contemplated under Chit Funds Act 1982, have deposited the prize amount of the complainant in an approved bank which will carry no interest and that the said amount will be released to him after fulfilling the requirements. In the meanwhile, if the complainant commits default in payment of monthly installments, these respondents are given a right under the provisions contemplated under chit Funds act to deduct the monthly installments from the prize amount and to get adjusted the same to the defaulted installments. It is further submitted that the complainant has joined the chit and entered the Chit agreement after careful study of the Terms and conditions of the Chit Agreement. The said chit agreement binds upon him. It is the bounded duty of the complainant to follow the provisions of the Chit Funds Act and Terms and conditions of the Chit Agreement. The respondents always acted as per the provisions and never deviated the procedure. It is the complainant who caused delay in not receiving the prize amount by not fulfilling the requirements and moreover blaming the respondents by using the defamatory words. The complainant is trying to gain unlawful means. From the above discussion it is very clear that the respondents have acted as per the provisions contemplated under chit Funds Act, 1982 and as per the terms and conditions of the Chit Agreement. The respondents will never deviate the law and procedure. It is the complainant who is searching ways to gain illegally and also wasting precious time of the Hon’ble form by filing this frivolous complaint petition.
15. It is submitted that the complainant is not at all entitled to pay the interest @ 24% from the date of auction to till the date of realization and also the respondents are not liable to pay any damages, costs, as there was no deficiency of service on the part of the respondents. The respondents will release the prize amount to the complainant as and when the complainant submits sufficient securities to the satisfaction of the foreman towards future liability of the chit.
16. It is submitted that these respondents are reserving their right to file additional written version if any new facts come into light. No cause of action arise for this complaint petition and this complaint petition is not maintainable either on law or on facts. There is no jurisdiction to entertain the complaint as there is a specific provision in the Chit Funds Act to refer the matter to arbitrator.
17. Therefore, these respondents prays the Hon’ble Forum may be pleased to dismiss the complaint petition in limini with exemplary costs in the interest of justice otherwise, these respondents will suffer irreparable loss and damage besides inconvenience and hardship.
18. On the basis of the above pleadings the following points are settled for determination.
- Whether the complainant is entitled to the relief as prayed by him or not?
- Whether there is negligence or deficiency of service on the part of the Respondents?
- To what relief?
19. On behalf of the complainant Ex. A1 to A4 were marked and on behalf of the respondents Ex. B1 to B10 were marked.
20. Point Nos. 1 & 2. It is true that the complaint is a subscriber of R1 branch and he entered into chit agreement vide Chit no. LTO23TAS-40 for Rs. 5,00,000/- and he became a Member of Margadarsi Chit Fund company under Ex. B1 & A2. At the same time the Chit auction was held on 19-5-2013 as per Ex. A1 the prized amount is Rs. 3,19,800/-, which is addressed to the complainant by R1. Ex. B2 issued by R1 is very clear that the R1 required fresh government sureties from the complainant for release of the prized amount. Ex. B5 is also very clear that the R1 directed the complainant to fulfill the requirements as per Chit Funds Rules and regulations release the prized amount. Ex. B8 is also very clear from R1 to the complainant to fulfill the requirements for withdrawal of the prized amount. When the complainant joined as subscriber of the Chit fund company he should know knowledge about the rules and regulations of the Chit Fund Company under Chit Funds Act 1982. After auction the subscriber must and should fulfill the requirements, as required by the Chit Fund company as per rules and regulations. Once the complainant entered into agreement he should be aware of the rules and regulations of the company. Here it is very clear that the complainant is the subscriber of the R1, which is situated at Hyderabad and he is not the member of R3 branch. As seen from all documentary evidence it is very clear that the complainant had no produced or fulfilled the requirements of the respondents 1 & 2 company. So the prized amount was held in the bank account. They may be some communication gap between the respondents and complainant in fulfilling the requirements of the respondents. So there is lot of delay in payment of prized amount. It caused much mental agony to the complainant. It is the bounded duty of the respondents to give clarity in furnishing the sureties to the subscriber, there will be delay, inconvenience to the subscribers. Here the complainant faced much inconvenience. So the complainant is eligible for compensation as prayed by him.
21. Point No. 3 In the result, the complaint is allowed, directing the respondents 1 & 2 jointly and severally liable to pay the chit bid amount Rs. 3,19,800/- (Rupees Three lakhs nineteen thousand eight hundred only) to the complainant, after producing sufficient sureties as per the procedure of the Margadarsi Chit Fund, with 9% interest p.a. from the date of auction i.e. 19-5-2013 till the realization, pay Rs. 2,000/- (Rupees Two thousand only) towards cost of the complaint, within 45 days of date of receipt of orders. Case against R3 is dismissed without costs.
Dictated to the Stenographer, transcribed by him, corrected and pronounced by us in the open Forum, this the 31st May 2014
MEMBER PRESIDENT FAC
APPENDIX OF EVIDENCE
Witnesses examined.
For Complainant NIL For Respondents : NIL
Exhibits marked for Complainant : -
Ex. A1 P/c of the inland letter sent to the complainant by R1.
Ex. A2 Pass book issued to the complainant by the Chit Fund company,
Kadapa.
Ex. A3 Copy of the notice dt. 16-12-2013 sent to the R1 and R2.
Ex. A4 Coy of courier in which notice dt. 28-1-2014 sent to R3.
Exhibits marked for Respondents: -
Ex. B1 Chit agreement vide No. LT023TAS-40.
Ex. B2 Letter to the opposite party vide letter No. 1293, dt. 25-10-2013.
Ex. B3 Acknowledgement of the complainant dt. 28-10-2013 for the above
said letter.
Ex. B4 Letter of the complainant dt. 16-1-2013.
Ex. B5 Reply given by the respondents vide letter No. 443, dt. 28-1-2014.
Ex. B6 Returned cover of the letter dt. 28-1-2014 with postal endorsement.
Ex. B7 Letter of the complainant dt. 28-1-2014.
Ex. B8 Reply of the respondents vide letter No. 172, dt. 20-2-2014.
Ex. B9 Returned cover of the letter No. 172.
Ex. B10 Ledger copy of the chit No. LT023TAS-40.
MEMBER PRESIDENT FAC
Copy to :-
1) P. Srinivasulu, S/o Gangadharam (late), presently
working as Head – Clerk, permanent Lok Adalat for Public
Utility Services, District Court Compound, Kadapa
D.No. 12/274, Pottisreeramulu Street, Kadapa City.
2) Sri G. Srinivasulu Naidu, Advocate for Respondents.
B.V.P.
