BEFORE THE DISTRICT FORUM (UNDER CONSUMER PROTECTION ACT, 1986) MEDAK AT SANGAREDDY.
Present: Sri P.V.Subrahmanyam, B.A.B.L., President.
Smt.U.Sunita, M.A., Lady Member
Sri Mekala Narsimha Reddy, M.A.LL.B., P.G.D.C.P.L.,
Male Member.
Thursday, the 18th day of September, 2008
CC.No.23 /2008
Between:
N.Bala Krishna S/o Agamaiah, aged 42 years,
Occ: Typist in M.R.O Office, Kulcharam,
R/o H.No.1-3-29/2/44/1/A,
Sree Ram Nagar Colony,
Medak town, Mandal and Dist.
… Complainant
And
Branch Manager,
Shriram Chits(P) Ltd., Opp.S.B.H.
Main Road, Medak town – 502 110.
… Opposite party.
This complaint came up for final hearing before us on 17.09.2008 in the presence of Sri R.Prabhakar, Advocate for the complainant , Sri G.Venkat Ramulu, Advocate for opposite party, upon hearing the arguments and on perusing the record and having stood over for consideration till this day , this Forum delivered the following:
O R D E R
(Per Sri P.V.Subrahmanyam, President)
This is a complaint filed Under Section 12 of Consumer Protection Act, 1986 with the following averments:
1. The complainant joined as a member in the chit MKLJ 5/8 conducted by opposite party for Rs.50,000/- . The duration of the chit is 50 months with a monthly subscription of Rs.1,000/-. The chit commenced in April, 2002. The
-2-
complainant paid all installments regularly and the chit period was over by May 2006. There after inspite of repeated requests opposite party postponed payment of chit amount on one pretext or the other. The complainant was prompt in payment of installments. He wanted to perform the engagement of his daughter on receipt of the amount, but the opposite party failed to pay. Hence there is deficiency in service on the part of opposite party, due to which the complainant suffered mental agony. The complainant got a legal notice dt.15.2.2008 issued. Even after receipt of the notice the complainant failed to pay. Hence the complaint to direct the opposite party to pay the chit amount of Rs.50,000/- with interest at 18% p.a., to award compensation of Rs.50,000/- and to award damages of Rs.50,000/-.
2. The complaint is resisted by the opposite party by filing a counter to the following effect:
The complainant joining in the chit and the chit particulars mentioned in the complaint are true and correct. The complainant paid regular installments up to the lifting of the chit. He has not paid total chit installments till to day. The allegations that the complainant promptly paid chit subscriptions and requested for payment of chit amount and the opposite party postponing etc, are all false.
2(a) The complainant participated in the auction conducted by the opposite party on 10.8.2003 by agreeing to forego Rs.15,000/- out of Rs.50,000/- and furnished three guarantors on 31.1.2004 for repayment of future liability of Rs.33,000/- and executed guarantee bond and payment voucher and other relevant documents in favour of the opposite party, there upon the opposite party issued cheque No.093130, dt.31.1.2004 for Rs.33,938/- in favour of the complainant and the complainant has withdrawn the said cheque amount and credited in his account in the State Bank of Hyderabad, Medak Branch, but committed default in paying regular installments after receipt of prize money from September 2004. Therefore the opposite party got a legal notice dt.27.3.2005 issued, which was served on guarantors. Even there after the complainant has not turned up to clear the amount
-3-
due. In the circumstances there is no deficiency in service on the part of the opposite party and hence the complainant is not entitled to the amounts claimed for. The complaint may therefore be dismissed with costs.
3. Along with the complaint i) Xerox copy of chit pass book ii) postal registration receipt iii) office copy of the legal notice are filed. Along with the counter the following documents are filed : i) chit agreement ii)promissory note iii) cash voucher iv) Bid Payable Memo v) office copy of notice dt.27.3.2005vi) postal acknowledgements vii) returned registered cover addressed to complainant viii) Xerox copy of account copy ix) letter dt.17.6.08 of State Bank of Hyderabad, ADB Medak addressed to opposite party to the effect that the cheque issued by opposite party has been debited on 3.3.2004 and credited the amount to the account of complainant x) Statement of Account of the account of the complainant are filed.
4. No evidence affidavits are filed by both parties. But after the counter of the opposite party was filed, the complainant’s advocate filed a memo of the complaint dt.20.8.2008 to effect that the matter was settled out of the court and the complainant is not willing to proceed with the case and hence the complaint may be dismissed as not pressed. Opposite partys advocate filed a counter to that memo stating that the complainant has already received prize money on 31.1.2004 through a cheque and with drawn that amount and there after this false complaint is filed to harass the opposite party and hence prayed to dismiss the complaint with heavy costs.
Heard both sides. Perused the record.
5. The point for consideration is whether the opposite party is entitled for heavy costs on the ground that the matter is settled out side the forum before the complaint is filed in this forum ?
-4-
Point:
6. The case of the complainant is that he joined in the chit of Rs.50,000/- conducted by opposite party and paid all installments and requested for return of the chit amount, but the opposite party failed to pay inspite of repeated requests, hence the complaint. But the contention of the opposite party is that the opposite party conducted auction on 10.8.2003 in which the complainant became successful bidder by foregoing Rs.15,000/- and received the chit amount of Rs.33,938/- by way of cheque and encashed the same but failed to pay future installments; on the other hand filed this complaint with false allegations, and hence prayed to dismiss the complaint with heavy costs.
7. After the counter was filed on 10.7.2008 there was no representation for the complainant for two adjournments and in the third adjournment the complainant’s advocate filed a memo not pressing the complaint stating that the matter was settled out side the forum. The advocate of opposite party has specifically argued at that time itself that long prior to the filing of the complaint, the chit amount was paid to complainant ,inspite of it this complaint is filed to harass the opposite party and after seeing counter and documents filed along with the counter, a memo of the complainant is filed to dismiss the complaint as not pressed and it is nothing but harassment to the opposite party. For this contention of the counsel of the opposite party, the counsel for complainant has not given any reply but simply requested to close the complaint. A perusal of chit pass book copy filed by the complainant reveals that the complainant paid subscriptions upto September 2004 only, which is in support of the contention of the opposite party .This further proves that the averments in the complaint in this regard are not correct. The documents filed by the opposite party further prove that the complainant has encashed the cheque and the amount was credited to his account even before this complaint is filed.
-5-
8. In the circumstances we are of the opinion that this is a frivolous complaint to have wrongful gain. As rightly stated by the counsel for opposite party there is likely hood of damage to the reputation of opposite party, because of this complaint. It is therefore held that the complainant is liable to be dismissed with costs. The point is answered against the complaint.
9. In the result, the complaint is dismissed with costs of Rs.2,000/- payable by the complainant to the opposite party within one month.
Typed to dictation, corrected and pronounced by us in the open forum this the 18th day of September, 2008.
Sd/- Sd/- Sd/-
PRESIDENT LADY MEMBER MALE MEMBER
WITNESS EXAMINED
For the Complainant :- For the opposite party:-
-Nil- -Nil-
DOCUMENTS MAREKED
For the Complainant :- For the opposite party :-
-Nil- -Nil-
Sd/-
PRESIDENT
