Andhra Pradesh

Nellore

CC/115/2015

Shaik Nasreen, alias Shaik Nasreen Begum, W/o Shaik Allabakshu - Complainant(s)

Versus

1.The Manager, Kapil Chits (Kosta) Pvt. Ltd - Opp.Party(s)

MD.Rahim Khan

20 Oct 2017

ORDER

Date of filing       :  14-12-2015

Date of disposal  :  20-10-2017

 

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM

           :: NELLORE ::

                                                       

Friday, this the 20th day of  OCTOBER, 2017.

 

            Quorum: Sri Sk.Mohd.Ismail, M.A., LL.B.., President

                           Sri K.Umamaheswara Rao, M.A., B.L., Member 

                          

C.C.No.115/2015        

 

Shaik Nasreen, alias Shaik Nasreen Begum,

W/o.Shiak Allabakshu,

Muslim, aged about 39 years,

R/o.Malavya Nagar,

Gudur,

SPSR Nellore District.                                                    …  Complainant

 

                      Vs.

                                                                            

1) The Manager,

    Kapil Chits (Kosta) Pvt. Ltd.,

    3-11-82/B, 1^st Floor,

    C/o.Malakondaiah Naidu Buildings,

    Near RTC Bus-stand, SKHT Bypass Road,

    Naidupet – 524126,

    SPSR Nellore District.

 

2) The Managing Director,

    Kapil Chits (Kosta) Pvt.LTd.,

    Registered Office at 40-6-4a,

    1^st Flkoore, Mogalrajpuram,

    Vijayawada-520010,   Andhra Pradesh.                … Opposite parties

 

This matter coming before us for final hearing in the presence of                  Sri Md.Rahimkhan, Advocate for the complainant and                           Sri A.Nagendra Sai, Advocate for the opposite party No.1 and the opposite party No.2 remained absent and having stood over for consideration till this day, this Forum passed the following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

 

ORDER                                                                                                                                                                                                                                                                  (By Sri K.Umamaheswara Rao, M.A., B.L., Member)                        

 

 

1.     The complainant filed this complaint under section 12 of Consumer Protection Act, to direct the opposite parties to refund Rs.20,260/- with interest @ 24% p.a. from 05-07-2014 till the date of realization, to pay Rs.50,000/- towards compensation and Rs.5,000/- towards costs.

2.  The brief averments of the complaint are as follows:

        The complainant submits that she joined as a member of the chit with the opposite parties in the month of July, 2014 for the value of Rs.10,00,000/-.  The opposite party No.1 stated that the chit group will start within a month after joining all the 50 members.  The opposite parties also collected registration fee of Rs.260/- and subscription amount of Rs.20,000/- totaling Rs.20,260/-  from the complainant under receipt bearing No.PR69/2014 dated 05-07-2014.  Inspite of several approaches, the opposite parties did not commence the chit.  So, the complainant after waiting 6 months, again approached the opposite parties, for which they stated that they are going to return the chit subscription amount.  But, they did not do so.  Later surprisingly, the opposite party No.1 sent a removal letter dated 28-04-2015 stating that the name of the complainant is removed due to non-payment of arrears.  The complainant submits that without commencing the chit removal of his name is amounts to deficiency in service.  So, the complainant got issued legal notice dated 25-11-2015  requesting the opposite parties for refund of Rs.20,260/.- from 05-07-2014 interest @24% p.a. till realization and compensation of Rs.50,000/-  and costs of Rs.5,000/- but the opposite parties received the same but they did not respond.  So, the acts of the opposite parties come under the purview of deficiency in service. Hence, the complaint.

 

3.  The opposite party No.1 filed counter/written version in brief as follows:

 

          The opposite party No.1 submits that the complainant allegations are false and frivolous, for which the complaint is not maintainable.  The opposite party No.1 admitted the complainant membership in the chit              along with payment of Rs.20,260/- under receipt bearing No.PR69/2014 dated 05-07-2014.  The opposite party submit that they informed the complainant relating to balance instalments but she did not shown any interest and did not even approached the opposite party No.1.  In that connection, the 1^st opposite party sent removal letter dated 28-04-2015 to the complainant informing that her name was removed from the chit group.  This opposite party further submits that they did not caused any financial loss, mental agony are deficiency of service to the complainant.  So, this opposite party is not liable to pay any amount claimed by the complainant in the instant application.  This opposite party submits that there is no cause of action for this complaint and the complainant did not approach the Hon’ble Forum with clean hands.  Further, the complainant version is true why the complainant waited from 28-04-2015 to 25-11-2015 i.e., 7 months without taking any action against the opposite parties.  Hence, there is no deficiency of service and the complaint may be dismissed, in the interest of Justice.

 

4.   The 2^nd opposite party though received the notice he did not attend before this Hon’ble Forum  and on 29-01-2016 remained absent.

5.   On behalf of the complainant, chief affidavit of complainant is received as  

         the evidence of PW1 and Exs.A1  to A3  are marked.

 6.  On behalf of the opposite parties, the chief affidavit of opposite parties

      received as the evidence of RW1 and on behalf of the opposite parties

      no documents were marked.

  7.  On behalf of the complainant, no written arguments are filed.

 

  8.  On behalf of the opposite parties, no written arguments are filed.

 

  9.  Arguments on behalf of both parties heard.

 

 10.  Perused record and affidavits filed on behalf of the both parties.

 

  11.  Now, the points for consideration are:

        1) Whether the complaint filed by the complainant against

            the opposite parties 1 and 2 under section 12 of Consumer

            Protection Act, 1986 alleging deficiency of service against the opposite

            party is maintainable?

       2)  To what relief, the complainant is entitled?

 

12. POINT NO.1 :  As per the pleadings and evidence of the record, we can understand that the complainant joined as a member in the chit group of the opposite parties for value of Rs.10,00,000/- in the month of July, 2014.  The complainant paid Rs.20,000/- towards first instalment subscription  and Rs.260/- towards application fee to the 1st opposite party on 05-07-2014.  To prove the same, the complainant filed Ex.A1 document.  The said document was also admitted by the opposite parties.  In this case, the 1^st opposite party contended that the complainant failed to pay the arrears of chit installments inspite of intimation.  To prove the same, the 1^st opposite party did not file any documentary evidence. In the absence of the same, we cannot believe the version of the opposite parties.  Further, the 1^st opposite party sent removal letter dated 28-04-2015 to the complainant. But, the said document did not contain any complainant arrears of chit installments. In this case, the complainant contends that without any intimation, the opposite parties closed the chit for which she suffered financial loss and mental agony.    To prove the same, the opposite parties failed to file the alleged chit transaction members/subscribers list and documents if any before this Hon’ble Forum. In the absence of the same, we can believe the version of the complainant by drawing adverse inference.  Moreover, the opposite parties after receiving 1^st installment amount from the complainant on 05-07-2014 till the date of removal letter i.e., 28-04-2015, did not give any notice to the complainant pertaining to arrears of chit installments. In this case, the opposite parties failed to follow the Chit Fund Act rules and regulations pertaining to the above said chit transaction.  Failure to pay the complainant’s subscription amount by the opposite parties without any Lawful reason amounts to deficiency of service.

 

13.     In this case, the complainant claimed amount of Rs.20,260/- with @24% p.a., from  05-07-2014 i.e., date of the payment till realization and compensation of Rs.50,000/- towards mental agony and financial loss along with costs of Rs.5,000/- .  But in our view,   the complainant is entitled subscription amount of Rs.20,260/- with 18%p.a. from 05-07-2014 till the date of realization as per opposite parties Chit Agreement Rules from the opposite parties. The complainant is also entitled Rs.2,000/- towards compensation along with costs of Rs.1,000/- from the opposite parties.

 

14.     In view of the above said facts and circumstances, we are of the view that the complainant proved deficiency of service against the opposite parties.  Accordingly, the complaint filed by the complainant against the opposite parties is maintainable.  So, we answer this point in favour of the complainant and against the opposite parties. 

 

15.  POINT No.2:      In the result, the complaint is partly allowed, directing the opposite parties 1 and 2 jointly and severally to refund an amount of Rs.20,260/- (Rupees twenty thousand two hundred and sixty) along with interest @18%p.a. from the date of payment i.e. 05-07-2014 till the date of realization to the complainant.

             The opposite parties 1 and 2 are directed to pay Rs.2,000/- (Rupees two thousand only)  towards compensation  and costs of Rs.1,000/- (Rupees one thousand only) to the complainant. 

           The opposite parties 1 and 2 are further directed to comply the above order within 30 days from the date of communication of the order.

Typed to dictation to the Stenographer Smt. A.Jayalakshmi, transcribed by her and corrected and pronounced by us in the Open Forum this the 20th day of OCTOBER, 2017.    

                     Sd/-                                                                     Sd/-

              MEMBER                                                                  PRESIDENT

  APPENDIX OF EVIDENCE

 WITNESSES EXAMINED FOR COMPLAINANT:

 

PW1

09-08-2017

:

Shaik Nasreen alias Shaik Nasreen Begum, W/o.Shiak Allabakshu, Muslim, aged about 40 years, r/o.Malavya Nagar, Gudur, SPSR Nellore District.

 

 

 

 

 

WITNESSES EXAMINED FOR OPPOSITE PARTY:

 

RW1

23-11-2016

:

Shaik Nasreen alias Shaik Nasreen Begum, W/o.Shiak Allabakshu, Muslim, aged about 40 years, r/o.Malavya Nagar, Gudur, SPSR Nellore District.

                                                                      

EXHIBITS MARKED FOR COMPLAINANT:

 

Ex.A1	05-07-2014	:	Chit receipt bearing No.PR69/14 for Rs.20,260/- issued by the 1st opposite party  to the complainant.
Ex.A2	28-04-2015	:	Copy of letter addressed by the opposite party No.1 regarding the removal of membership under Chit Fund Act, 1982  to the complainant.
Ex.A3	25-11-2015	:	Legal notice got issued by the counsel for the complainant to the opposite parties along with R.P. Receipts (two in nos.).

 

EXHIBITS MARKED FOR OPPOSITE PARTIES:                          

 

-NIL-

                                                                                                          Id/-

                                                                             PRESIDENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Copies to:

 

1. Sri  Md.Rahim Khan and Sri G.Srinivasulu, Advocates, D.No.23-1-906, 1^st cross road, (C.A.M. compound), Ramesh Reddy Nagar, SPSR Nellore – 524 003.
2. Sri A.Nagendra Sai, Advocate, Nellore.

     3) The Managing Director,  Kapil Chits (Kosta) Pvt.LTd.,

          Registered Office at 40-6-4a, ^st Flkoore, Mogalrajpuram, Vijayawada-   

          520010, Andhra Pradesh.

 

Date when order copies were issued: