Kerala

Kozhikode

CC/448/2016

NAVEEN U P - Complainant(s)

Versus

HILLARIOUS CHIT FUNDS PVT LTD - Opp.Party(s)

31 Jan 2024

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,KOZHIKODE

PRESENT: Sri. P.C. PAULACHEN, M.Com, LLB: PRESIDENT

Smt. PRIYA.S, BAL, LLB, MBA (HRM) :  MEMBER

Sri.V. BALAKRISHNAN, M Tech, MBA, LL.B, FIE: MEMBER

Thursday 18^th day of  January 2024

CC.448/2016

Complainant

Naveen. U.P,

S/o Sreenivasan.P,

Leela mandir,

Ashokapuram, Calicut – 1.

(By Adv. Sri. Bimaldas)

Opposite Parties

1.            Hillarious Chit Funds Pvt Ltd,

Head Office, 1^st floor Jayanthi Building,

Palayam, Calicut – 1.

2.            Don Bosco, The Managing Director,

Hilarious Chit Funds Pvt Ltd,

Residing at House No. 65A,

Vishnu temple Road,

Vishnu Nagar Residence Association (VNRA),

Near Nellikode Vishnu Temple,

Near Purushan Kadalundy (MLA’s House),

P.O Chevayoor, Kozhikode.

                                                 ORDER

By Sri. P.C. PAULACHEN  – PRESIDENT

            This is a complaint filed under Section 12 of the Consumer Protection Act, 1986.

2.  The case of the complainant, in brief, is as follows:

The complainant was one of the subscribers of the chitty (Ticket No. HE/96) conducted by the opposite parties, having a sala of Rs. 1,08,000/-. The complainant paid Rs. 3,000/- as the first instalment on 2/2/2012 and till 26/09/2014, the complainant regularly paid the monthly subscription amount, total being Rs. 82,550/-.

3. The complainant came to know that the opposite parties failed to pay the chit amount to the subscribers and the Managing Director and other officers of the first opposite party were not coming to the office. It was also realised that the first opposite party did not possess license issued by the Government of Kerala to conduct chit in Kerala. The complainant requested the second opposite party to refund the amount paid by him towards the chit, but in vain. The office of the company is closed. The second opposite party was not even picking the calls. It is revealed that several police complaints were lodged against the opposite parties by the subscribers to the chit. The act of the opposite parties in not returning the amount even after 2 years of the chit period amounts to unfair trade practice and deficiency of service. Hence the complaint to direct the opposite parties to refund Rs. 82,550/- along with compensation.
4. The first opposite party was set ex-parte. The second opposite party has filed written version.
5. The second opposite party has admitted that the complainant was a subscriber to the chit started by the first opposite party on 19/01/2012. The first subscription amount of Rs. 3,000/- was paid by him on 2/02/2012. The first opposite party has proper license and registration. The second opposite party had issued a cheque to the complainant for the amount due to him. No other amount is due to him from the opposite parties. The complaint is frivolous and vexatious. With the above contentions, the second opposite party prays for dismissal of the complaint with compensatory costs of Rs. 10,000/-.
6. The points that arise for determination in this complaint are;

1. Whether there was any unfair trade practice or deficiency of service on the part of the opposite parties, as alleged?
2. Whether the complainant is entitled to realise any amount from the opposite parties ? If so, what is the quantum?
3. Whether the complainant is entitled to claim compensation? If so, what is the quantum?
4. Reliefs and costs.

7. The evidence consists of the oral evidence of PW1 and Exts A1 to A5 on the side of the complainant. No evidence was let in by the opposite parties.
8. Heard both sides. The complainant has filed brief argument note.
9. Points 1 to 3: The first opposite party is a Private Ltd Company engaged in chitty business. The second opposite party is the Managing Director of the company. The complainant was a subscriber to the chit started by the first opposite party. He was in regular remittance of the chit amount and the total amount remitted by him works out to Rs. 82,550/-. The grievance of the complainant is that the opposite parties conducted the chit without license and defaulted in paying the chit amount to the subscribers, following which, several criminal cases were lodged against them and thereafter the complainant stopped payment of the chit instalments and demanded repayment of the amount already paid by him towards the chit, but the opposite parties failed to pay the amount even after completion of the chit period and thereby the opposite parties have indulged in unfair trade practice and also there was deficiency of service on their part.
10. The second opposite party alone filed written version and contested the matter. The first opposite party has chosen to remain absent. The second opposite party has admitted the conduct of the chit and also the fact that the complainant was a subscriber to the chit who has remitted a total amount of Rs. 82,550/- towards the chit. The plea raised by the second opposite party is one of discharge.
11. In order to substantiate his case, the complainant got himself examined as PW1, who has filed proof affidavit and deposed in terms of the averments in the complaint and in support of the claim. Ext A1 is the copy of the chit pass book, Ext A2 is the copy of the receipt dated 2/02/2012, Ext A3 is the cheque dated 22/04/2017 for Rs. 82,550/-, Ext A4 is the dishonour memo dated 15/05/2017 of the Calicut Town Service Co-operative Bank and Ext A5 is the original receipt dated 02/02/2012.
12. That the complainant was a subscriber to the chit conducted by the opposite parties is admitted. It is not disputed that the complainant had been in remittance of the monthly chit amount and the total amount remitted by him towards the chit comes to Rs. 82,550/-. This is further evidenced by Ext A1 document.
13. The plea of the contesting second opposite party is one of discharge. According to him, the amount due to the complainant was paid by way of cheque and no  more amount is due to him in connection with the chit. Ext A3 is the cheque dated 22/04/2017 for Rs. 82,550/- issued by the second opposite party to the complainant. PW1 has deposed that Ext A3 cheque was bounced on presentation. Ext A4 dishonour memo shows that Ext A3 cheque on presentation was dishonoured and returned for the reason “funds insufficient”.  So the plea of discharge pleaded by the second opposite party is not true. It is true that he had issued Ext A3 cheque to the complainant in discharge of the liability. But the cheque was dishonoured due to insufficiency of funds and thus the liability is not discharged.  It has come out in evidence that the chitty was not completed by the opposite parties and was discontinued in the mid-way and payments were due to several subscribers, for which, police complaints had been lodged.
14. Apart from Ext A3, the opposite parties have not produced any other document to prove that they have repaid the amount of Rs. 82,500/- remitted by the complainant towards the chit. The plea of discharge taken by the second opposite party is not proved. The opposite parties are liable to refund Rs. 82,550/-  to the complainant, being the amount paid by him towards the chit. The act of the opposite parties in not paying the chit amount constitutes gross deficiency of service and unfair trade practice. Undoubtedly, the complainant was put to severe mental agony and inconvenience due to the irresponsible attitude and conduct of the opposite parties, for which, he is entitled to be compensated adequately. Considering the entire facts and circumstances, we are of the view that a sum of Rs. 20,000/- shall be reasonable compensation in this regard. The complainant is also entitled to get Rs. 5,000/- as cost of the proceedings from the opposite parties. The opposite parties are jointly and severally liable.
15. Point No. 4:- In the light of the finding on the above point, the complaint is disposed of as follows;

a)  CC.448/2016 is allowed.

b) The opposite parties are hereby directed to pay a sum of     Rs. 82,550/- (Rupees eighty two thousand five hundred and fifty only) to the complainant, being the amount paid by him towards the chit,  with interest @ 6% per annum from the date of the complaint ie 17/10/2016 till actual payment.

c) The opposite parties are directed to pay a sum of Rs. 20,000/- (Rupees twenty thousand only) as compensation to the complaint for the mental agony and hardship suffered.   

d) The opposite parties are directed to pay a sum of Rs. 5,000/- (Rupees five thousand only) as cost of the proceedings to the complainant.

  e) The payment as afore stated shall be made within 30 days of the   receipt of copy of this order.

Pronounced in open Commission on this, the 31^st day of January, 2024.

Date of Filing: 17/10/2016. 

 

             Sd/-                                                Sd/-                                                  Sd/-

       PRESIDENT                                    MEMBER                                        MEMBER

 

APPENDIX

Exhibits for the Complainant :

Ext A1 -  Copy of the chit pass book.

Ext A2 - Copy of the receipt dated 2/2/2012, Ext A3 is the cheque dated 22/4/2017.

Ext A4 - Dishonour memo dated 15/05/2017 of the Calicut Town Service Co-operative Bank.

Ext A5 -   Original receipt dated 02/02/2012.

Exhibits for the Opposite Parties

NIL

Witnesses for the Complainant

PW1 -     Naveen.U.P (Complainant)

Witnesses for the opposite party

 Nil

 

          Sd/-                                                       Sd/-                                                 Sd/-

       PRESIDENT                                    MEMBER                                        MEMBER

 

 

 

True copy,

 

                                                                                                             

                                                                                                                           Sd/-                            

                                                                                                                    Assistant Registrar