Tamil Nadu

StateCommission

FA/476/2012

Sri Gokulam Chits & Finance Company Ltd. - Complainant(s)

Versus

G.R.Muthukumarasamy - Opp.Party(s)

L.Rajasekar

26 May 2015

ORDER

 

                             BEFORE THE STATE CONSUMER DISPUTES REDRESSAL COMMISSION,CHENNAI

BEFORE :  HON’BLE THIRU JUSTICE R.REGUPATHI,                   PRESIDENT 

                                                           THIRU.A.K.ANNAMALAI                                                    JUDICIAL MEMBER

                                                           TMT.P.BAKIYAVATHI                                                    MEMBER

                                                                                         F.A.NO.476/2012

(Against the order in CC.No.422/2010, dated 26.9.2011 on the file of DCDRF, Coimbatore)

DATED THIS THE 26^th DAY OF MAY 2015

M/s.Sree Gokulam Chits and Finance

Company (P) Ltd,

Rep. by its Executive Director :

G.Baiju,                                                               M/s.L.Rajasekar                                                            

No.307, 7^th Street, 100 Feet Road,                 Counsel for Appellant / Opposite party

Gandhipuram, Coimbatore-12

                                          -vs-

G.R.Muthukumarasamy,

Proprietor : M/s.Sree Vari Travels,

No.23/A, Sowmiya Complex,                                 M/s.M.A.P.Thangavel

Sathy Road, Ganapathy,                                 Counsel for Respondent/Complainant

Coimbatore – 6.

          The Respondent is the complainant filed a complaint before the District Forum against the opposite party praying certain relief.  The District Forum allowed the complaint.  Against the said order, the appellant / opposite party filed this appeal praying for to setaside the order of the District Forum in CC.No.422/2010, dated 26.09.2011.    

          This appeal coming before us for hearing finally on 08.04.2015, upon hearing the arguments on both sides, perusing the documents, lower court records, and the order passed by the District Forum, this commission made the following order.

A.K.ANNAMALAI,  JUDICIAL MEMBER

          The opposite party is the appellant.

2.       The complainant was a subscriber to the chit conducted by the opposite party in  G.No.G2G / 0807/9 for  the chit value  of Rs. 3,00,000/- with a duration of 20 months having monthly subscription of Rs.15,000/-.  As a successful bidder on 18.9.2007 the complainant was paid Rs.2,43,000/-.  The complainant was regularly paying the chit amount and it was closed after the expiry of 20 months.  However after the same the opposite party’s employee threatened the complainant and his guarantor as if they defaulted for payment of subsequent chit amount to the extent of Rs.73,855/- with penal interest for Rs/47,267/- and thereby the complainant issued a legal notice on 18.8.2008 demanding for statement of accounts and instead of furnishing the same, the opposite party sent a notice demanding the amount on 13.8.2010 alleging that the cheque was issued by the guarantor Saravanakumar was dishonoured for which initiated Criminal case when no such cheque was issued by the complainant or by its guarantor and thereby a consumer complaint came to be filed directing the opposite party to furnish statement of account and to pay a sum of Rs.1,00,000/- as compensation for mental agony and for costs.

3.       The opposite party denying the allegations contended that the transactions of chit conducted after receiving the price amount, the complainant became chronic defaulter in payment of subsequent chit amount and thereby action was taken regarding the cheque issued for the payment and to escape from the criminal liabilities came with a complaint and they were ready to issue the statement of account the complainant has collect the same from their office.

4.       Based on the both sides arguments and after an enquiry the District Forum accepting  the contentions  of the complainant  allowed the complaint directing the opposite party to issue statement of account and to pay a sum of Rs.10,000/- as compensation for mental agony and to pay Rs.3000/- as costs.

 5.      Aggrieved by the impugned order, the opposite party filed this appeal contended that the District Forum without considering the provisions of Chit Funds Act having provision for arbitration and further contended that the complainant was admitting not aware of the outstanding if any, but default in payment from the date of subscription and also in payments made under Ex.A7 issued not considered by the District Forum.  There is a criminal prosecution against him before the Judicial Magistrate Court, Coimbatore due to the dishonour of the cheque which was issued for the payment of dues and thereby this appeal is to be allowed.

6.       When the appeal is taken for hearing the Respondent failed to appear and was continuously absent. After closing respondent’s argument, the appellant side arguments heard and after hearing the arguments of appellant the order being passed on merits.

7.       It is the admitted case of both sides that the complainant having subscribed to the chit for Rs.3,00,000/- with the opposite party as a successful bidder receiving from Rs.2,43,000/- on 18.9.2007 and the chit was terminated during May 2008.  The complainant alleged that subscriptions were paid in full and he was not aware any balance as demanded by the opposite party to be paid by him and in order to settle the same he had demanded statement of accounts from the opposite party, issued legal notice under Ex.A1 dated 18.8.2008 which was acknowledged under Ex.A2 for which the reply has said to be sent under Ex.A3 dated 3.10.2008 in which only it is stated that the guarantor Saravanakumar issued a cheque for Rs.78,988/- on 8.9.2008 which was said to have been dishonoured by repudiating the issuance of cheque and denying the same a reply notice was given by the complainant under Ex.A4 and subsequently, only after 2 years in letter dated 13.8.2010 under Ex.A6, the opposite party once again sent a notice claiming a sum of Rs.73,855/- with penal interest for Rs.47,267/-.  In all for Rs.1,21,122/- as due payable to one Sri Vari Travels and it was not explained how the Sri Vari Travels connected with the complainant or its guarantor.  The District Forum considered all the relevant materials observed when the complainant demanded for furnishing statement of account in order to settle the due if any payable instead of furnishing the same, the opposite party stated that it could be collected by the complainant from their office and stating that it is not mandatory for furnishing the statement.  When the subscriber chit holder disputed the payment of chit amounts wants to ascertaining the details regarding the payments already made and the amount to be paid if any, it is the bounden duty of the opposite party to furnish the same and even before the District Forum or before this Commission, they have failed to produce the entire chit transaction details regarding the complainant and also the details of criminal complaint for the alleged cheque issued by the guarantor Saravanakumar and instead they initiated proceeding by sending notice etc, only in 2010 after 2 years of notice sent by the complainant under Ex.A1 clearly established the negligence and deficiency in service on the part of the opposite party and thereby the District Forum given  direction for  furnishing the statement  of account  and also to pay a sum of Rs.10,000/- as compensation for mental agony along with the cost of Rs.3000/- with which findings we are in agreement and we find no error or infirmity, irregularity or illegality and thereby this appeal deserves to be dismissed as devoid of merits and accordingly

          In the result, the appeal is dismissed by confirming the order of the District Forum in CC.No.422/2010, dated 26.09.2011.

          There will be no order as to costs in the appeal.

          The directions of the District Forum shall be complied within a period of six weeks from the date of this order.

 

P.BAKIYAVATHI                       A.K.ANNAMALAI                    R.REGUPATHI

     MEMBER                                  (J) MEMBER                          PRESIDENT

 

 

INDEX; YES/ NO

VL/D;/PJM/CHIT