BEFORE THE DISTRICT CONSUMER FORUM :: WARANGAL
Present : Sri D. Chiranjeevi Babu,
President.
And
Sri.Patel Praveen Kumar,
Male Member.
Friday, the 18th day of March, 2011.
CONSUMER COMPLAINT No.27/2009
Between:
Boddireddy Rajpal Reddy, S/o.Nagi Reddy,
Age: 51 years, Occu: Business,
R/o.2-2-118/2, Naimnagar,
Hanamkonda, Warangal District. … Complainant
And
Kapil Chit Funds Pvt.Limited,
Branch Kazipet,
Rep.by its Foreman. …Opposite Party
Counsel for the Complainant :: Sri.R.Ananda Rao, Advocate.
Counsel for the Opposite Party :: Sri.P.Balachander Rao, Advocate.
This complaint is coming for final hearing before this Forum, the Forum pronounced the following order.
ORDER
Sri D. Chiranjeevi Babu, President.
This complaint is filed by the complainant Boddireddy Rajpal Reddy against the Opposite Party under section 12 of Consumer Protection Act, 1986 for a direction to pay the entire amounts of Rs.2,72,800/- paid under monthly installments, to pay the compensation amount of Rs.50,000/- towards damages with interest @ 24% p.a. and with costs.
The brief averments contained in the complaint filed by the complainant are as follows:
The case of the complainant is that the complainant is the subscriber of Opposite Party vide Chit Reference No.KZT50M-33 for Rs.10,00,000/- payable in 50 installments @ Rs.20,000/- per month. The complainant paid total amount of Rs.2,72,800/-. The Opposite Party assured for allotment of bid amount within 3 to 4 months, but failed to fulfill the same. Due to which the complainant sustained huge loss. In August, 2007 the complainant requested the Opposite Party to repay the amount paid by him. But the Opposite Party failed to pay the same. The complainant got issued the legal notice to Opposite Party on 24-02-2009, for which no reply is received. The acts of Opposite Party amounts to deficiency of service. Hence filed this complaint praying to direct the Opposite Party to pay Rs.2,72,800/- paid by the complainant, to award compensation of Rs.50,000/- and with costs.
The Opposite Party filed the Written Version stating that, it is true that the complainant was a subscriber in Chit No.KZT50M-33 of the Opposite Party for the chit value of Rs.10,00,000/-. It is absolutely false that this Opposite Party requested the complainant to join in the chit with the alleged assurance. There is no such practice in the Opposite Party Company. Moreover it is highly impossible to give the Bid amount without participation in the auction. The contents itself are contradictory and against the rules. The complainant is very much aware of the Chit Fund rules as he being the subscriber much earlier in WT80M-48 which he was withdrawn the prized amount. His son by name B.Krishna Reddy is the subscriber in Chit No.KZL05J-25 who also withdrawn the prized amount in which the complainant is the one of Guarantor. Thereafter committed defaults in these chits. So he cannot say as if he unaware the procedure nor rules of Chit Fund Act.
The payment of Rs.26,200/-, dt:06-06-2006 shown by the complainant does not believable at all, why because the complainant joined in the scheme on 30-06-2006 only, whatever the complainant paid the subscriptions was certainly entered in his account. But the complainant knowingly, dishonestly showing the alleged amounts in the complaint as not included in his account. The question of allotment of bid amount by this Opposite Party does not arise at all. There is a prescribed procedure for paying the prize amount, i.e., the complainant must participate in the auction and he should become the highest bidder and thereafter he should submit sufficient sureties particulars and the Opposite Party should verify and satisfy the sureties particulars given by the highest bidder and the required documents has to be executed, then only the question of payment will come in picture. In this case as per his own version he has not even participated, not became successful bidder, hence where the question of negligence on the part of this Opposite Party. On the other hand the complaint become the defaulter in chit No.WL80M-48 and Sri.B.Krishna Reddy the prized subscriber in chit No.KZL05J-25 is no other than his son to whom the complainant stood as guarantor who also committed defaulter apart from the complainant in Chit No.KZJ50M-33. The defaulted information was already given to the complainant in all these chits. But the complainant failed to comply the same though he was acknowledged the said notices. Therefore a removal intimation was also send on the complainant through Regd.Post due acknowledgement, dt:26-12-2007, after due notice. The complainant neither paid the dues nor replied. The Opposite Party filed a suit against the complainant and his guarantors for recovery of the amount under chit No.WT80M-48 and another suit filed against Sri.B.Krishna Reddy including complainant as one of the Guarantor for recovery of amount due under chit No.KZL05J-25. By suppressing all these facts the complainant filed this complaint with a malafide intention. It is also false that the complainant paid Rs.2,72,800/- as alleged in the complaint, hence denied by this Opposite Party and the Opposite Party requested this Forum to dismiss this case.
The complainant in support of his claim, filed his Affidavit in the form of chief examination and also marked Exs.A-1 to A-15. On behalf of Opposite Party V.Nagaraju filed his Affidavit in the form of chief examination and also marked Exs.B-1 to B-21.
Now the point for consideration is:
1) Whether there is any deficiency of service on the part of the Opposite Party?
2) If so, to what Relief?
Point No.1:-
The main argument of the complainant’s counsel is that he was joined as a Subscriber with the Opposite Party Chit Group for value of Rs.10,00,000/-. The duration of the chit is for a period of 50 months @ Rs.20,000/- per month as monthly subscription commenced from 30-06-2006. The complainant has paid the first installment vide Receipt No.5168 for Rs.20,000/- on 30-06-2006. Thereafter, the complainant has paid 11 monthly subscription installments regularly totaling to an amount of Rs.2,20,000/- and the said amounts were entered in the Pass Book issued by the Opposite Party. Thereafter the complainant has also paid an amount of Rs.26,200/- vide Temporary Receipt No.11837, dt:06-06-2006 and further complainant paid an amount of Rs.26,600/- vide Temporary Receipt No.15591 dt:07-08-2007 in all totaling to Rs.2,72,800/-. Further the Opposite Party has not allotted the bid amount to this complainant as assured by him. The complainant has joined the chit of Opposite Party duly expressing his view for enlargement of his business, thus paid huge amounts to the Opposite Party since the Opposite Party is not paying an amount of Rs.2,72,800/- and he requested this Forum to direct the Opposite Party to pay the said amount to the complainant.
For this, the Opposite Party’s Advocate argued elaborately and whatever the arguments advanced by the complainant’s counsel is not at all correct oneand the complainant knows everything the rules and regulations of the Chit Fund Company and the Complainant intentionally filed this case for getting the amount and further the Opposite Party admitted the fact that the complainant is the subscriber of the Opposite Party not only chit No.KZT50M-33 he is also subscriber in chit No.WT80M-48 and his son Sri.B.Krishna Reddy is the subscriber in chit No.KZL05J-25. Hence the complainant is well aware the procedure for allotment of bid. He himself admitted that he has not participated in the auction. It is highly impossible to allot the bid amount without becoming highest bidder in the auction. It is also admitted by himself that he has not paying the installments after 11 installments and denied the amounts claimed by the complainant, which was already entered in his account. The complainant committed default in paying the installments as non-prized subscriber in chit No.KZJ50M-33 and his prized chit No.WL80M-48 and his son’s prized Chit No.KZL05J-25 in which the complainant is also one of the guarantor to the said chit amount. The same was intimated to the complainant through certificate of posting and also through Registered Post due acknowledgement which were served on him but he has failed to reply nor complied. The Opposite Party admitted that the total amount paid (includes dividends by the complainant is Rs.2,52,425/- only but not Rs.2,72,800/- as stated by the complainant). It is true, the complainant is one of the guarantor to the chit of his son. The same was intimated to the complainant through certificate of posting and also through Registered Post due acknowledgement which was served on him but he has failed to reply nor complied, the Acknowledgment filed before this Forum i.e. Ex.B-7.
Thereafter, the complainant was removed from the rolls by following the procedure prescribed under the chit fund act and also agreement of chit executed by the complainant himself with due information to the complainant only, the amount lying in this chit account was adjusted in his two other above mentioned chits to discharge the due thereon.
As per Written Version, the total amount paid by the complainant including the dividends by the complainant is Rs.2,52,425/- only but not Rs.2,72,800/-. If any non prized subscriber committed default continuously for 3 monthly installments, as per the clause 17 of Chit Agreement he will not entitled for dividends, he shall be liable to be removed from the list.
Further, the repayment of contribution to the chit on the termination of the non-prized or unpaid subscriber was clearly mentioned in clause No.15(1) and (4) of Ex.B-1. As per this clause the complainant is entitled only the net amount of subscription deposited by himself less 5% of chit amount towards damages for a breach of contract. In this case the complainant accrued Rs.70,000/- has dividend till he committed default. Hence this amount i.e. Rs.70,000/- has to be deducted from the total amount i.e. Rs.2,52,425/- - (minus) Rs.70,000/- = Rs.1,82,425/- is the actual paid amount by the complainant. As per the rule 15(4) of the Chit Agreement the Foreman has a right to less 5% commission as such an amount of Rs.50,000/- is deductable from Rs.1,82,425/- = Rs.1,32,425/- only.
Further, out of the said amount the fore-man has right to deduct and adjust if the subscriber having any non-prized amount with the foreman, the foreman has right to foreclose such chit amount and adjust the amount towards his liability in prized chit areas as per clause 17 (C) of chit agreement i.e.Ex.B-1. As such the complainant was defaulted in prized chit No.WT80M-48 where his liability is Rs.39,739/- hence this amount is transferred from the suit to the above chit vide JV No.3304 of 2007 dt:29-09-2007 with the due information to the complainant and adjusted in that chit.
As per the clause 17 (D) of chit agreement in Ex.B-1, if the subscriber is a surety to any prized subscriber who is a defaulter, the amount paid by such subscriber either for non-prized chit amount or deposit will be foreclosed by the foreman and the amount will be adjusted towards the defaulted subscription. As such prized subscriber and this subscriber jointly and severally liable to such debts. So as per this provision the foreman transferred and adjusted an amount of Rs.34,928/- on 28-09-2007 vide JV No.3274/07 and Rs.35,323/- on 28-12-2007 through JV No.5039/07 and Rs.22,435/- on 28-04-2008 through JV No.358/08 to discharge the due of his own son Sri.B.Krishna Reddy chit No.KZL05J-25 in which the complainant is one of the guarantor. All these transactions were taken place with the information, consent and by following the procedure prescribed in the chit agreement only. As per Written Version, the complainant requested to less on the Company commission on 28-11-2008. Hence the foreman by using his discrimination power, (on humanity grounds) an amount of Rs.12,500/- out of the company commission adjusted to discharge the part of due in chit No.KZL05J-25 through JV No.1702/08 dt:28-07-2008. So the Opposite Party considered the complaint and using his discrimination power and further, all the amounts were shown in the Statement of Account of Sri.B.Krishna Reddy Chit No.KZL05J-25 i.e. son of the complainant. The complainant paid remaining amount of 31st installment in chit No.KZL05J-25 on the next day of the said settlement i.e., 29-07-2008. This adjustments were clearly shown in the Statement of Account Chit No.KZL05J-25 which was filed before this Forum i.e. Ex.B-21. The said B.Krishna Reddy not paid the remaining installments even after the adjustment of the amounts and caused to file O.S.No.171 of 2009 for recovery of the due amount. The certified copies of the suit also filed by the complainant himself which clearly prove the defense taken by the Opposite Party and the real facts. We already stated supra with regard to the amounts paid by the complainant and the amounts deposited in the chits, for the chit of his son as he was guarantor and the some of the amounts were deposited in the chit of his son. So we see that the complainant is not entitled to get anything, because he is a defaulter first itself. The defaulter cannot claim anything and further the same amount is deposited in the amounts, the amounts were clearly shown in the Statement of Accounts i.e. Ex.B-21 of Sri.B.Krishna Reddy Chit No.KZL05J-25. The said B.Krishna Reddy not paid the remaining installments even after the adjustment of the amounts and caused to file O.S.No.171 of 2009 for recovery of the due amount. So, already there is a suit was also filed against B.Krishna Reddy as well as complainant and the suit is pending. When the suit is pending, how the complainant filed this complaint before this Forum. Further we already stated supra that the complainant is not entitled to get anything from the Opposite Party.
As per Ex.B-21 i.e. Statement of Account, the total amount paid including dividend Rs.3,79,029/- and the amount due is of Rs.1,20,971. We accept this document filed by the Opposite Party, we accept the Written Version and Affidavit filed by the Opposite Party and we come to conclusion that whatever the complainant has stated in complaint is utterly false and he is not entitled to get anything.
For the foregoing reasons given by us, we come to the conclusion that the complainant is not entitled to get anything and accordingly this first point is decided in favour of Opposite Party against the complainant.
Point No.2: To what Relief:- The first point is decided in favour of opposite party against the complainant this point is also decided in favour of opposite party against the complainant.
In the result, this complaint is dismissed without costs.
(Dictated to the Stenographer, transcribed by her, corrected and pronounced by us in the open Forum today, the 18th March, 2011).
President Male Member
District Consumer Forum, Warangal
APPENDIX OF EVIDENCE
WITNESSES EXAMINED
On behalf of Complainant On behalf of Opposite Party
Affidavit of complainant filed. Affidavit of Opposite Party filed.
EXHIBITS MARKED
ON BEHALF OF COMPLAINANT
1. Ex.A-1 is the Pass Book of complainant issued by Opposite Party.
2. Ex.A-2 & Ex.A-3 are the original receipts of the complainant issued by Opposite Party
bearing No.11837 dt:06-06-2007 & No.15591, dt:07-07-2007.
4. Ex.A-4 is the Xerox slip stating that the “Cheque returned,unpaid due to funds insufficient”
from ICICI Bank, Warangal Branch.
5. Ex.A-5 is the Postal Receipt.
6. Ex.A-6 to Ex.A-8 are the original Chit Receipts.
9. Ex.A-9 is the original Statement of Accounts of the complainant from Andhra Bank.
10. Ex.A-10 is the Pass Book of the complainant by Andhra Bank.
11. Ex.A-11 is the Xerox copy set of complaint in the Court of Principal Sr.Civil Judge,
Warangal of the complainant and Opposite Party.
12. Ex.A-12 is the Xerox copy of Legal Notice of the complaint in the Court of Principal
Sr.Civil Judge, Warangal of the complainant and Opposite Party..
13. Ex.A-13 is the Xerox copy of Account Statement of Sri.B.Krishna Reddy issued by
Opposite Party.
14. Ex.A-14 is the Xerox copy of Minutes of the 889th Meeting of the Opposite Party.
15. Ex.A-15 is the Xerox copy of Prized Amount Payment Voucher of
Sri.B.Krishna Reddy.
ON BEHALF OF OPPOSITE PARTY
1. Ex.B-1 is the Original copy of Agreement of Chit issued by Opposite Party.
2. Ex.B-2 is the Original copy of Removal letter of the complainant by Opposite Party.
3. Ex.B-3 is the Acknowlegment.
4. Ex.B-4 is the Xerox copy of Removal Notice to the complainant by Opposite Party.
5. Ex.B-5 is the Xerox copy of some address in hand writing
6. Ex.B-6 is the original letter dt;22-09-2007 to the complainant by Opposite Party.
7. Ex.B-7 is the acknowledgement.
8. Ex.B-8 is the original letter dt:24-09-2007 from Opposite Party to the Kapil Chit Funds
Pvt.Ltd., Hanamkonda Branch.
9. Ex.B-9 is the original Journal Voucher of Sri.B.Krishna Reddy by Opposite Party
dt:28-09-07.
10. Ex.B-10 is the original Journal Voucher of Sri.B.Krishna Reddy by Opposite Party
dt:28-09-07.
11. Ex.B-11 is the original letter to the complainant by Opposite Party.
12. Ex.B-12 is the Postal Receipt.
13. Ex.B-13 is the Acknowledgment.
14. Ex.B-14 is the original copy of Amount Particulars being the guarantors by the
Opposite Party.
15. Ex.B-15 is the original copy of Account particulars of the complainant issued by
Opposite Party.
16. Ex.B-16 is the original Journal Voucher (Duplicate Voucher) of Sri.B.Krishna Reddy
by Opposite Party dt:28-09-07.
17. Ex.B-17 is the original Journal Voucher (Duplicate Voucher) of the complainant
by Opposite Party dt:29-09-07.
18. Ex.B-18 is the original copy of Journal Voucher (Duplicate Voucher) being the guaranters
by Opposite Party dt:28-12-07.
19. Ex.B-19 is the is the original Journal Voucher (Duplicate Voucher) of Sri.B.Krishna Reddy
by Opposite Party dt:28-04-08.
20. Ex.B-20 is the original Journal Voucher (Duplicate Voucher) of the complainant
by Opposite Party dt:28-07-08.
21. Ex.B-21 is the original copy of Account statement of Sri.B.Krishna Reddy.
PRESIDENT
