BEFORE THE DISTRICT FORUM (UNDER CONSUMER PROTECTION ACT,1986) SANGAREDDY, MEDAK DISTRICT (A.P)-502 001 PRESENT: SMT.U.SUNITA, M.A., SENIOR MEMBER/LADY MEMBER SRI MEKALA NARSIMHA REDDY, MALE MEMBER P.G.D.C.P.L. THURSDAY, THE 10TH DAY OF JANUARY, 2008 C.C.NO.156/2006 Between: M.Vijaya Kumari W/o Shankar Goud, aged 50 years, Occ: Govt.Servant, R/o Sadasivpet, Medak District. …Complainant… And 1. Ch. Manaiah S/o not known, major, Occ:Govt.Servant (APHF) R/o Gadi-Peddapur(v), Alladurg (M), Medak District. 2. Ch.Sunil S/o Manaiah, major, Occ: Business R/o 23-89, Shivaji road, Jogipet, Medak District. …Opposite parties… This complaint is coming on before us for final hearing on 02.1.2008 in the presence of Sri S.N.Chary, Advocate for the complainant and of Sri N.Shiva Kumar, Advocate for the opposite party No.1 and of Sri G.Goverdhan Reddy, Advocate for the opposite party No.2 and the matter having stood over for consideration till this date this Forum made the following : O R D E R Per Smt. U.Sunita, Senior Member/Lady Member This is a complaint filed under section 12 of Consumer Protection Act, 1986 by the complainant with a prayer to direct the opposite parties to pay prize amount of Rs.1,00,000/-with interest at 24% p.a. from 10.11.2005, and Rs.20,000/- towards compensation and also costs. The brief facts of the case of the complainant are that himself and the opposite party No.1 are the colleagues and they are working under one Organisation at Gadi-Peddapur (v). While the complainant was working at Gadi-Peddapur the opposite party requested him to join as a subscriber in the chit run by him. Believing the version of the opposite party No.1 the complainant joined as a subscriber in the chit value of Rs.1,02,000/- by paying Rs.3,000/- per month towards --: 2 :-- subscription amount. Total members in the chit are 34. The said chit is commenced on 10.11.2003 The complainant has paid all the subscriptions regularly and evidencing the receipt of the said subscriptions amount the opposite party No.2 supplied a note book in which he acknowledged the receipt of instalment amounts. It is further submitted that the opposite party will conduct auction on 10th of every month. The complainant has participated in the auction in the month of November, 2005 by forgoing Rs.2,000/-. The opposite party has to pay Rs.1,00,000/- to the complainant towards prize amount. The opposite party promised that he will pay the prize amount within a week. The complainant approached and demanded the opposite party for payment of prize amount of Rs.1,00,000/-, but the opposite parties postponing the payment on one pretext or the other. At last the complainant got issued a legal notice to the opposite party on 31.3.2006 and the same was received by the opposite parties, but there was no response from them. It is further submitted that the opposite party receiving 2% commission for conducting of chit every month. The opposite party has to pay the prized amount immediately after conducting of auction, but they failed to pay the same till now. Thus the case of the complainant. The opposite party No.1 filed counter stating that it is incorrect to say that this opposite party requested the complainant to join in the chit as a subscriber. This opposite party is a Govt.Employee and he never organized any chit business as claimed by the complainant. It is further stated that this opposite party never collected Rs.3,000/- per month towards chit amount since this opposite party was not running any chit business. This opposite party not aware about the payment made by the complainant to the opposite party No.2. The opposite party No.2 is the son of this opposite party and he is engaged in business. It is further stated that the opposite party No.2 and his friends decided to contribute every month a fixed amount and to take the same by lot without there being any deductions. The opposite party No.2 joined the group hoping that the amount may be useful for him to meet his business expenses. It is further stated that since the opposite party --: 3 :-- No.2 only doing business his friends advised him to manage the affairs by collecting the amounts and drawing the lot every month for some time. This opposite party was not concerned with any such activity of the opposite party No.2. It is further stated that this opposite party not aware of any chit transaction. It is denied that this opposite party promised to pay the prize amount within a week. The complainant never demanded this opposite party to make payment of the prize amount. This opposite party has not received any legal notice. It is stated that as this opposite party did not conduct any chit business the question of collection of 2% commission does not arise. It is further stated that taking undue advantage of the relationship of this opposite party with the opposite party No.2 the complainant is trying to roping this opposite party thinking that she can lay the claim against his salary. It is stated that the opposite party No.2 is responsible for the alleged transaction between them and this opposite party is not at all concerned. It is further stated that running chit fund business without obtaining permission and registration, the same is illegal. The very collection, the bid and the payment are opposed to public policy. This chit organizer and all the subscribers will be doing an illegal act, therefore the relationship of the consumer cannot be established in illegal transaction. Running of chit fund business is not in accordance with chit fund Act. The relationship of consumer cannot be created in any trade or business which is illegal, unauthorized and opposed to public policy. Hence to dismiss the complaint. The opposite party No.2 filed counter, stating that he was engaged in petty business. It is stated that the complainant and others who are the friends of the opposite party No.2 decided to contribute every month a fixed amount and to take the same by lot without there being any deductions. The opposite party No.2 joined the group hoping that the amount may be useful to him to meet his petty business. It is --: 4 :-- denied that this opposite party promised to pay the prized amount. It is also denied that the opposite party was receiving 2% commission for conducting of chit every month. It is further stated that since the opposite party No.2 was only doing business and all the other subscribers advised him to manage the affairs by collecting the amounts and drawing the lot every month and he was giving Rs.2,000/- as remuneration for doing the job of collection of the amount. It is further stated that there was no cause of action arouse on 10.11.2005 as alleged in the complaint. It is stated that if any subscriber fails to pay a monthly contribution it is the responsibility of all other members to make efforts to collect from the defaulting contributor. Further stated that some of the members in the group who got the amount in lots failed to pay the subsequent contributions for making payments to the subsequent members of the lot. This subscriber including the complainant advised the opposite party No.2 to put efforts for collection and to make payment to the winners of the lot and further promised if any amounts borrowed and paid the defaulting members will pay the interest. Believing the versions of the subscribers including the complainant words the opposite party No.2 borrowed amount from creditors and paid some amount to the members. The opposite party No.2 also borrowed some amount for his business because of the failure of his business he could not repay. The subscribers having promised to pay the amount borrowed by the opposite party No.2 for making payment to the creditors started pressurizing the opposite party No.2 for payment of the amount contributed by them targeting the opposite party No.2. It is further stated that this opposite party has already filed I.P. No.1/2006 on the file of Senior Civil Judge, Medak and the complainant herein is also one of the respondent in the above said I.P. The complainant has filed this complaint suppressing the above fact to harass this opposite party. Hence to dismiss the complaint . Heard both sides. --: 5 :-- Both parties have filed their affidavits. Exs.A-1 to A-5 are marked on behalf of the complainant and Ex.B-1 is marked for the opposite party No.2. Ex.A-1 is the office copy of legal notice, Ex.A-2 is the original postal receipt, Ex.A-3 & A-4 are the courier receipts, Ex.A-5 is the original note book. Ex.B-1 is the I.P. copy. The point that arises for consideration is, whether the complainant proved the deficiency of service on the part of the opposite parties ? We have gone through the contents of the complaint, counters filed by the opposite parties, affidavits filed herein, documents filed by both parties, and the relevant material available on record. The case of the complainant is that on the request of the opposite parties the complainant joined as a subscriber in the chit value of Rs.1,02,000/-which was run by the opposite parties by paying Rs.3,000/- per month. The chit was commenced on 10.11.2003 and total members in the chit are 34. He has paid all the subscriptions regularly and the opposite party No.2 supplied a note book acknowledging the payments made by the complainant. Ex.A-5 is the such note book. The further case of the complainant is that he participated in auction in the month of November, 2005 by forgoing Rs.2,000/-, therefore the opposite parties has to pay Rs.1,00,000/- towards prize amount. Thereafter, the complainant approached the opposite parties number of times and requested to pay the prize amount. But the opposite parties postponing the payment on one pretext or the other. After vexing with the attitude of the opposite parties the complainant got issued a legal notice on 31.3.2006, but there was no response from them. Ex.A-1 is the such copy of legal notice. In this case the subscribers used to participate in the auction and for which 2% was collected by the opposite parties. As such he has produced substantial evidence that there is deficiency of service by the opposite parties in not paying the chit amount. Therefore, he filed this complaint with compensation. --: 6 :-- It is clear from the documents filed by the complainant that it is an unregistered chit in which the complainant is a subscriber. But, the main document to the complainant case is Ex.A-5 note book. The Note book clearly shows that there are some entries with signatures and some entries are without signatures. A perusal of the entries show that they are in different writings and signatures and variations in the signatures. Ex.A-5 Note book the complainant has not filed any other proof to show that the opposite parties were running the chit business. The opposite party No.1 in his counter contended that he is not running a chit business. Since the opposite party is not running the chit business there is no question of collecting any money from the complainant. The opposite party No.2 is the son of the opposite party No.1 hence the opposite party No.1 was not concerned with any activity of the opposite party No.2. Now it is pertinent to go through the counter filed by the opposite party No.2 that the complainant herein and others who are friends of the opposite party No.2 decided to contribute every month a fixed amount and to take the same by lot without there being any deductions. He also joined in the group hoping that the said amount will be useful to his business. As he is doing only business all the others including the complainant advised the opposite party No.2 to manage the affairs by collecting the amounts and drawing the lot every month and he was giving Rs.2,000/- as remuneration for doing the job of collection of the amount. The opposite party No.2 borrowed some amount for his business and because of failure of his business he could not repay the said amount. Hence he filed the I.P. No.01/2006 on the file of the Senior civil Judge, Medak. A perusal of the --: 7 :-- documents filed herein and the relevant material available on record except Ex.A-5 there is no proof that the money transaction was involved between the complainant and the opposite parties stating that the opposite parties were conducted the chit business. A perusal of Ex.A-5 it shows that there is no mention of the name of the complainant on the Note book to show that the said Note book is belongs to the complainant. Further, no where it is stated that the chit fund business of the opposite parties is a registered one under the A.P.Chit Fund Act. A careful reading of the complaint, counter and close scrutiny of the documents and the relevant material available on record, it is clear to my mind that the complainant has not approached this Forum with clean hands and proved his case by all means and that the opposite parties will be directed to pay compensation. So on any point of view the complainant has miserably failed to prove his case with cogent and coherent evidence. As such there are no merits in the case of the complainant. hence it is liable to be dismissed. In the result, the complaint is dismissed. Dictated to steno, transcribed by him, corrected and pronounced by us in the open Forum on this the 10th day of January, 2008. Sd/- Sd/- MALE MEMBER SENIOR MEMBER/ LADY MEMBER WITNESS EXAMINED For Complainant: For Opposite parties: -Nil- -Nil- DOCUMENTS MARKED For Complainant: For Opposite parties: Ex.A-1/dt.31.03.2006 Office copy of legal notice. Ex.B-1/dt. --- Copy of Ex.A-2/dt. --- Original postal receipt. I.P. petition filed by Ex.A-3/dt.05.04.2006 Original courier receipt. Opposite party No.2. Ex.A-4/dt.05.04.2006 original Courier receipt. Ex.A-5/dt. --- Original Note book. Sd/- SENIOR MEMBER/ LADY MEMBER Copy to 1) The Complainant Copy delivered to the Complainant/ 2) The Opp.Parties Opp.Parties On _______ 3) Spare copy Dis.No. /2008, dt. | 
