BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL

FORUM, VELLORE DISTRICT AT VELLORE.

PRESENT:THIRU. A. SAMPATH, B.A., B.L.,             PRESIDENT  

                                                             TMT. G. MALARVIZHI, B.E.                         MEMBER – I

                                                             THIRU. K. DHAYALAMURTHI,B.SC.           MEMBER – II

CC. 24 / 2005

         MONDAY THE 12^th DAY OF JULY 2010.

T.D. Kubediran,

S/o. Dharmalingam,

No.236, LIG, TNHB, Phase – 2,

Tirupattur Town and Taluk,

Vellore District.                                                                          …  Complainant.

       - Vs –

1. The Branch Manager,

    Shriram Chit Private Ltd.,

    Tirupattur Branch,

2.  The General Manager,

     Administrative Office,

     Shriram Chit Private Ltd.,

     No.1, Club House Road, ,

     Chennai.                                                                               … Opposite parties.

              This petition coming on for final hearing before us on 30.6.2010, in the presence of Thiru. G. Kalaimani, Advocate for the complainant and Thiru. M. Kuppaiah. Advocate for the opposite parties,  and having stood over for consideration till this day, the Forum made the following:

O R D E R

            Pronounced by Thiru. A. Sampath, President of the District Consumer Disputes Redressal Forum, Vellore District.

1.         The brief facts of the case of the complainant is as follows:

            The complainant is the valuable subscriber to the opposite parties Chits (P) Ltd., and he is subscriber to the group No.68701.  The value of the chit is Rs.5 lakhs.  The auction of the said chit had been conducted by the 1^st opposite party on the 7^th day of English calendar month.  Originally one Sivakumar and joined in the said chit group has participated and subscriber 12^th chit with 1^st opposite party.  Apart from this the said Sivakumar is acting as an agent to the opposite parties.  The complainant had paid Rs.1,06,250/- to the said Sivakumar.  After that the said Sivakumar has made name transfer the above mentioned chit group infavour of the complainant on 24.6.04 and the same was acknowledge by the 1^st opposite party.  For the same, 1^st opposite party had received a sum of Rs.1,500/- for name transfer and issued receipt in that effect also.  The complainant had participated the 13^th Chit as his first chit and paid the bid amount and he took 14^th chit for a sum of Rs.3,17,000/- in the month of August 2004.   The 1^st opposite party has not handed over the successful chit amount on the same day, whereas they had made excuse to settle the amount.  Repeated oral demands are made by the complainant are ended in futile.  Mean while the complainant was requested by the 2^nd opposite party to keep patient.    The 1^st opposite party has made the first payment by way of issuance of cheque on 9.10.04.  for a sum of Rs.1,00,000/- was second payment had made by the 1^st opposite party on 13.10.04 for a sum of Rs.1,97,953/-.  In toto the 1^st opposite party had paid Rs.2,97,957/-.  The amount has settled by the 1^st opposite party to the complainant after lapse of sixty six days.  As on date the 1^st opposite party is intentionally failed to pay the balance of successful bid amount for a sum of Rs.19047/-.  On 7.6.04 the complainant had entered into an agreement for sale, in conveyance his favour of a vacant site with one Rajasekar for a sum of Rs.3 laksh.  The agreement is filed herewith and the same may kindly be read as part and parcel of this complaint.  For the same the complainant has paid Rs.1 lakh as advance to the vendor.  The complainant most expected the chit amount in order to fulfil the agreement, on failure of the payment  in time by the 1^st opposite party, the complainant  could not achieve in his attempt.  Hence he has lost the advance amount.  Hence the complainant have been constrained to issue a letter to both the opposite parties’ on 28.1.05, calling upon the opposite parties to pay compensation for a tune of 5 lakhs for his physical and mental distress as well as the loss occurred to the complainant.  The same have been received by the both opposite parties.  

2.         The complainant is doing Civil contract business at B.D.O. Office, PWD Panchayat works, due to the non payment of successful bid amount in time by the 1^st opposite party, the complainant could not do his business, as well as he could not fulfil the agreement dt. 7.6.04 with Rajasekar, the hindrance caused by the opposite parties is created mental and physical distress to the complainant and caused too much of loss and damage to the complainant.    He has prayed for directing the opposite parties to pay the balance of successful chit amount for a sum of Rs.19047/- and the loss occurred to the complainant for which he could not fulfil the agreement dt. 7.6.04 for a sum of Rs.1 lakhs and the physical and mental distress incurred to the complainant to the tune of Rs.1 lakhs and to pay compensation to the tune of Rs.10 lakhs in the dereliction in duty and pass necessary orders.

2.         he averment in the counter filed the by the 1^st opposite party and adopted by the 2^nd opposite party are  as follows;

             The complaint filed by the complainant is not maintainable either in law or on facts of the case.  The opposite parties denies all the allegations mentioned in the complainant as false and baseless, except those specifically admitted herein.  The opposite parties admits the allegations that the complainant is a subscriber to the  Rs.5,00,000/- Chit group No.68701.  It is true originally one Sivakumar subscribed the chit and upto 12^th chit installment he was the subscriber.  It is false and imaginary to state that the said Sivakumar is acting as a  agent to the opposite party.  In order to get lump sum chit amount the complainant joined this chit after 12^th chit installment and paid the arrears, and got the chit transferred in his name from the said Sivakumar.  The opposite party admits the allegations that the complainant participated and bid the 14^th Chit in August 2004.   For payment of chit bid amount (Rs.5,00,000) the successful bidder has to produce immovable property as security as per the Tamil Nadu Chit Fund Act rules and terms and conditions of the Company.  Without security or guarantee, the chit amount cannot be paid to the bidder.     The complainant undertook to produce the immovable property security, but he was unable to produce any immovable property security for payment of the chit amount to him for more than one month.  After one month of bidding the chit, the complainant approached the opposite party and expressed his inability to give security of immovable property to get the chit amount, and further requested to help him as he had to meet his urgent needs.  In order to help the complainant the opposite party agreed to consider the guarantors of Government Servants, if 5 Government servant stand surety for him.  Accordingly the complainant was able to produce salary certificates of 5 Railway staff as guarantee to the Chit amount.  Even the salary certificates produced or not the current months certificates.  Finally on 9.10.04 the complainant produce the surety form with three surety signatures and requested for chit amount.    The opposite party released part of the chit amount of Rs.1,00,000/- on the same day ie. 9.10.04 as per the request of the complainant.  After receiving the cheque of Rs.1,00,000/- from this opposite party on 9.10.04, the complainant undertook to produce the other two surety signatures on surety form, on the very next day.  But on 13.10.04 only the complainant produced the surety form with the signatures of the remaining two sureties.  Even though the salary certificates of the surety, or not upto date, and less value the opposite party paid the balance chit amount (Rs.1,97,953/-) on 13.10.04, after  deducting the two chits installments of September and October 2004, Rs.19,047/-.  Thus the opposite party paid the entire chit amount immediately after getting the surety signatures from the complainant.  Absolutely there is no delay on the part of the opposite party in paying the chit amount.   It is false to state that the complainant entered into an agreement for sale on 7.6.04 with  one Rajasekar for a sum of Rs.3,00,000/- and paid Rs.1,00,000/- as advance and he lost advance amount on failure of payment of chit amount.   Pleased to dismissed the petition with the cost of the opposite party and render justice under the circumstances of the care. 

3.         Now the points for consideration are:

a)        Whether there is any deficiency in service

      on  the part of the opposite party ?

            b)  Whether the complainant is entitled to the

                reliefs asked for?.

4.         Ex.A1 to Ex.A5 were marked on the side of the complainant and no documents were marked on the side of the opposite parties.   Proof affidavit of the complainant and opposite parties  have been filed.  No oral evidence let in by either side. 

5.                  POINT NO. (a):

It is admitted facts of the parties that the originally one Sivakumar subscribed the chit group No.68701 for the chit amount of Rs.5,00,000/-  and upto 12^th chit installment he was the subscriber  and thereafter Mr. Sivakumar has made the name transfer in the above chit group in favour of the complainant on 24.6.04 and the same was acknowledge by the 1^st opposite party and for a sum of Rs.1500/- was also received by the 1^st opposite party for the said name transfer.    The complainant had participated the 13^th chit as his first chit and paid the bid amount and he took 14^th chit for a sum of Rs.3,17,000/- on 7.8.04. 

6.         The complainant contended that  after he took 14^th chit on 7.8.04 the 1^st opposite party has not handed over the successful chit amount on the same day, whereas they had made excuse to settle the amount.      Repeated oral demands are made by the complainant, the 1^st opposite party has made the 1^st payment by way of issuance of cheque on 9.10.04 for a sum of Rs.1,00,000/- and 2^nd payment had made by the 1^st opposite party on 13.10.04 for a sum of Rs.1,97,953/-.  The said amount has settled by the 1^st opposite party to the complainant after lapse of 66 days.  As on date the 1^st opposite party  has not paid the balance of successful bid amount for a sum of Rs.19047/-.   It is further contended that the complainant most expected the chit amount in order to fulfil the agreement, on failure of the payment in time by the 1^st opposite party  the complainant could not achieve the said sale transaction.  Hence  he has lost the advance amount of Rs.1,00,000/-, the hindrance caused by the opposite parties is created mental and physical distress to the complainant and caused the much of loss and damage to the complainant.   

7.         The opposite parties contended that for payment of chit bid amount the successful bidder has to produce immovable property as security as per the Tamil Nadu Chit Fund Act rules and terms and conditions of the company.    After the successful bid the complainant was unable to produce any immovable property security for payment of the chit amount to him for more than one month.    In order to help the complainant the opposite party agreed to consider the guarantors of Governments Servants, if 5 Government Servant stand surety for him.  Finally on 9.10.04 the complainant produce the surety form with three surety signatures and requested for chit amount.  The opposite party released part of the chit amount of Rs.1,00,000/- on the same day and on 13.10.04 the complainant produced the surety form with the signatures of the remaining two sureties, the 1^st opposite party paid the balance chit amount of Rs.1,97,953/- after deducting the two chits installments of September & October 2004, Rs.19,047/-.  Hence there is no delay or deficiency in service on the part of the opposite parties in paying the chit amount. 

8.         On perusal of the proof affidavits of both sides it is seen that the chit bid amount of Rs.2,97,957/-  has settled by the 1^st opposite party to the complainant after lapse of 66 days.    The complainant issued a letter Ex.A4, dt. 28.1.05 to the 1^st opposite party calling upon the opposite party to pay compensation for a tune of Rs.5,00,000/- for his physical and mental distress and as well as the loss occurred for the delay of 66 days to pay the chit bid amount to the complainant.    The said letter Ex.A4, dt. 28.1.05 received by the 2^nd opposite party on 1.2.05 and send a letter Ex.A2, dt. 1.2.05 to the complainant stating that the matter is receiving our attention, after ascertaining the details from our Tirupathur branch, they would reply to him in detail.     According to the complainant as on date the 1^st opposite party is intentionally failed to pay the balance of successful bid amount for a sum of Rs.19,047/-.  The opposite parties stated in their counter and proof affidavit that after deducting the two chits installments of Rs.19047/- for  September and October 2004.       The letter Ex.A4,dt. 28.1.05 issued by the complainant to the 1^st opposite party, the complainant mentioned the delay of 66 days to settle the chit bid amount and calling upon the opposite parties to compensate for Rs.5,00,000/-.  But the complainant has not stated anything regarding the alleged balance of successful bid amount  of Rs.19047/-.  The complainant demanded the said balance amount in the complaint Therefore the contention of the complainant that as on date the 1^st opposite party is intentionally failed to pay the balance of successful bid amount for a sum of Rs.19047/- is not acceptable.   

9.           It is admitted facts of the parties that after successful bid amount on 7.8.04 the 1^st opposite party has paid the chit bid amount of Rs.2,97,957/- only after 66 days.  According to the complainant he had entered into an agreement for sale of vacant site with one ‘Rajasekar for a sum of Rs.3 laksh on 7.6.04 and for the same the complainant has paid Rs.1,00,000/- as advance to the vendor.    On the failure of the payment in time by the 1^st opposite party, the complainant could not fulfil the agreement and he has loss the said advance amount.    The contention of the agreement for the sale of  vacant site  and loss of the said amount was also not mentioned in the letter Ex.A4.  Therefore the contention of the complainant that on the failure of the payment in time by the 1^st opposite party the complainant could not fulfil the agreement and loss the advance amount is not acceptable. 

10.       Regarding the delay of 66 days to settle the chit bid amount, the opposite parties have stated that the complainant undertook to produce the immovable property security, but he was unable to produce any immovable property security for payment of the chit amount to him for more than one month.    In order to help the complainant the opposite party agreed to consider the guarantors of Governments Servants  stand surety for him.  Accordingly the complainant produce the surety form with three surety signatures on 9.10.04 and the released part of the chit amount of Rs.1,00,000/- and produce the surety form with two surety on 13.10.04 and released the balance amount of Rs.1,97,953/- to the complainant.   Therefore there is no delay on the part of the opposite parties in paying the chit amount.  Even after received the letter Ex.A4, dt. 28.1.05, the opposite parties have not replied that after successful bid,  the complainant was unable to produce any immovable property security for payment of the chit amount and after one month of bidding the chit, the complainant approached the opposite party and expressed his inability to give security of immovable property to get the chit amount, and in order to help the complainant the opposite party agreed to consider the guarantors of Government servants if 5 stand sureties for him and accordingly, the complainant  produced government servants surety only after two months.  Therefore the contention of the complainant that  inspite of repeated oral demands made by the complainant to settle the chit amount the 1^st opposite party has failed to settle the amount till 9.10.04 is acceptable.    Therefore from the contention in the complaint, as well as from the averments in the proof affidavit of the complainant herein, we have no hesitation to come to the conclusion that the complaint has clearly proved the delay of 66 days to settle the chit amount to the complainant and thereby the opposite parties have committed the delayed  and deficiency in service on their part.     Hence we answer this point (a) infavour of the complainant.   

11.       POINT NO. (b):

In view of our findings on point No.(a), since we have come to the conclusion that the complainant herein has proved the delay of 66 days to settle the chit amount of  Rs.2,97,957/- to the complainant and the complainant has proved the deficiency in service on the part of the opposite parties herein.  The complainant has not clearly proved with regard to the failed to pay the balance successful bid amount of Rs.19,047/- and the loss of advance amount of Rs,1,00,000/- which he had stated in his complaint and proof affidavit.    But any how, the opposite parties have settled the chit bit amount to the complainant only after lapse of 66 days.     Even after receiving the letter Ex.A4, dt. 28.1.05, from the complainant, the 1^st opposite parties have not made any reply about the delay of 66 days to settle the chit amount to the complainant.  Further the opposite parties have not produce any documents about the contention of the opposite parties that the complainant was unable to produce  immovable property security for payment of the chit amount to him for more than two months.  Any how, taking into account , with regard to the contention of the complaint, and proof affidavit of both sides and Ex.A1 to Ex.A5 the complainant herein would have certainly suffered mental agony and stress caused to him and in view of the delay of 66 days to settled the chit bid amount to the complainant.   Therefore, the opposite parties herein directed to pay a sum of Rs.25,000/- towards compensation for mental agony suffered by the complainant herein and in view of the deficiency in service on the part of the opposite parties. Hence this point (b) is also accordingly

12.       In the result, this complaint is allowed partly.  The opposite parties are jointly and severally directed to pay a sum of Rs.25,000/- towards the compensation for mental agony and stress suffered by the complainant herein and in view of the delay of 66 days to settle the chit bid amount and deficiency in service on the part of the opposite parties and Rs.2000/- as cost of this complaint.             

            The amount shall be payable within one month from the date of receipt of copy of this order, failing which, the amounts shall carry interest @ 9% p.a. from the date of default, to till the date of payment.

Dictated to the Steno-typist and transcribed by her, corrected and pronounced by the President, in Open Forum, this the 12^th  day of July  2010.

MEMBER-I                                    MEMBER-II                                 PRESIDENT.

 List of Documents:

Complainant’s Exhibits:

Ex.A1- 24.6.04          - Name Transfer receipt.  

Ex.A2- 1.2.05            - Letter sent by 2^nd opp party to the complainant.

Ex.A3- 5.3.04            - X-copy of the agreement for sale deeed.

Ex.A4- 28.1.05          - X-copy of letter sent by the complainant.  

Ex.A5-            --          - Ack. Card.

Opposite party’s Exhibits: ..Nill..

MEMBER-I                                    MEMBER-II                                 PRESIDENT