Andhra Pradesh

Visakhapatnam-II

CC/396/2011

Arasavalli Gayatri Devi - Complainant(s)

Versus

Kapil Chit Funds Private Limited - Opp.Party(s)

Palakurthi Srinivasa Apparao

23 Jan 2015

ORDER

                                              Date of Registration of the Complaint:01-10.2011

                                                                                                Date of Order:23-01-2015

BEFORE THE DISTRICT CONSUMERS FORUM-II AT

                             VISAKHAPATNAM

 

P  r  e  s  e  n  t:

1.  Sri H. Ananda Rao, M.A., L.L.B.,

     President           

2. Smt K. Saroja, M.A. B.L.,

     Lady Member 

                                3. Sri C.V. Rao,  M.A., B.L.,

                                     Male Member

 

                             Friday, the 23^rd day of January, 2015.

                                 CONSUMER CASE No.396/2011

Between:-

Sri Arasavalli Gayatri Devi, W/o Darla

Narayanarao, Hindu, aged 48 years, residing

at D.No.19-177/16, Ramakrishnapuram (Via),

Krishnapuram (via), Chinagadili Mandalam,

Visakhapatnam (DT),

….. Complainant

And:-

The Branch Manager, KAPIL CHIT FUNDS

PRIVATE LIMITED, D. No. 43-9-149,

TSN Colony, Dondaparti, Visakhapatnam-530 016.

                                                                                            …  Opposite Party  

                           

          This case coming on 07.01.2015 for final hearing before us in the presence of Sri Palakurthi Srinivasa Appa Rao, Advocate for the Complainant and Sri P. Ravi Kiran, Sri N. Tarakeswara Rao and Sri B. Tirumala Reddy, Advocates for the Opposite Party and having stood over till this date for consideration, this Forum made the following:

 

                                                ORDER

          (As per Sri. H. Ananda Rao, Honourable President, on behalf of the Bench)

 

1.       This consumer complaint is filed by the Complainant against the Opposite Party directing him to refund an amount of Rs.26,045/- with interest @ 24% p.a. from the date of deposit till payment Rs.25,000/- towards costs deficiency of service and Rs.10,000/- towards litigation expenses.

 

 2.      The case of the Complainant in brief is that her late mother joined in Chit Group No. FVTO 1J/37 on 01.03.2010 for value of Rs.5,00,000/- payable at Rs.10,000/- per months for the period of 50 months and that the Opposite Party issued a pass book in her favour, on showing receipt of caution deposit amount Rs.42,776/- towards chit subscription amount and that since the inception of the chit group her mother-in-law has been sick on bed, not paying the chit subscription amount every month regularly and finally stated her mother-in-law died on 11.12.2010 due to ill-health.  

 

3.       That in the month of January, 2011 when the Complainant as a nominee enquired into the above chit on that she was informed if she is willing to continue the chit otherwise, ready to return back the amount on that she decided to take back the amount expressing inability to continue but the Opposite Party has not paid amount except Rs.16,371/- even after several demands, without assigning any reasons, as a result, she suffered both mentally and physically.   The acts of the Opposite Party reveal that gross deficiency of service towards her.    Hence, this Complaint.

 

4.       The Case of the Opposite Party denying the material averments of the Complainant admitted that the Complainant’s mother joined in the chit group of their company for value of Rs.5,00,000/- payable @ Rs.10,000/- per month for the period of 15 months and paid Rs.42,776/- towards caution deposit.    It is further case of the Opposite Party that the chit was commenced on 30.06.2009 and the Complainant’s mother joined i.e., on 01.03.2010 after 8 months of the commencement of the chit and the amount paid by her is amount of Rs.42,776/- after deducting dividends and that when he stopped to pay the chit from 30.06.2010 and she was removed from the Chit Agreement and subsequently died on 11.12.2010 and there after the present complaint came to the office of the Opposite Party on 23.03.2011 and requested for payment along with Death Certificate.   They paid total balance amount after deducting application charges Rs.225/- removed amount of Rs.50/ and removal incidental charges of Rs.150/-, Company Commission 5% on Rs.50,000/-, Rs.25,000/- and vacant chit  charges Rs.555/-  and paid the balance on 17.05.2011 for a sum of Rs.16,371/-  by way of cheque which was en-cashed by the Complainant.   Hene, the present complaint is not maintainable under law.

 

 

 

5.       To prove the case of the Complainant she filed her affidavit and got marked Exs.A1 to A3.   On the other hand, on behalf of the Opposite Party the Recovery Officer of the Company filed his sworn affidavit and got marked Exs.B1 to B5.

 

6.       Ex.A1 is the Cash Receipt No. CHQ 132/09 an amount of Rs.42,776/- issued by the Opposite Party in favour of the Complainant dated 01.03.2010.   Ex.A2 is the Cash payment Account Ledger Receipt an amount of Rs.16,371/- issued by the Opposite Party in favour of the Complainant dated 11.03.2011.  Ex.A3 is the Death Certificate issued by the GVMC dated 18.12.2010.

 

7.       Ex.B1 is the Chit Agreement between the Complainant and the Opposite Party dated 23.06.2009.   Ex.B2 is the letter addressed by Complainant to the Opposite Party on 23.03.2011.  Ex.B3 is another letter addressed by the Complainant to the Opposite Party dated 26.03.2011.  Ex.B4 is the attested copy of SBI Pass Book.   Ex.B5 is the Cash Voucher for Rs.16,371/- issued by the Opposite Party in favour of the Complainant dated 17.05.2011.

 

8.       Both parties are filed their respective written arguments.

 

9.       Heard oral arguments from both sides.

 

10.     Now the points that arise for determination is:-

Whether there is any deficiency in service on the part of the Opposite Party and the Complainant is entitled for the reliefs of advance amount with interest, compensation and costs.

 

11.     As seen from record, the point for consideration, is whether the Complainant is entitled for refund of an amount of Rs.26,045/- with interest as contended by her or Rs.16,371/-  which was already paid to her after deducting the necessary charges and company commission as contended by the Opposite Party.    It is the admitted case of both sides that the mother of the Complainant after joining a subscriber of the chit, she paid total amount of Rs.42,776/- by showing her as nominee of the Complainant herein, and after the death of the Complainant when the present complaint approached the Opposite Party they settled the chit amount for Rs.16,371/- and paid the same to the Complainant by way of cheque vide Ex.B5, after receiving Ex.B3 letter from the Complainant herein along with Death Certificate.   According to the Complainant, the Opposite Party is not entitled to deduct the company commission 5% of Rs.50,000/- = Rs.25,000/-.   It is also her case that without assigning reasons high handedly they deducted the commission charges of Rs.25,000/- from out of the total chit amount of Rs.42,776/-.    In view of the contention of the Complainant burden shift, on the Opposite Party to prove the same.

 

12.     The Opposite Party drew my attention to the Clause-9 of Ex.A1 and submitted the Foreman Commission shall be @ 5% of the chit amount i.e., to say Rs.25,000/- which was duly agreed by the mother of the Complainant at the time of joining as subscriber of the chit.   Ex.A1 was duly signed by the subscriber i.e., mother of the Complainant and the Foreman.   On a perusal of the record, and as seen from the contention of the Complainant, we are of the considered view, that it is for the Opposite Party to establish that none else joined in the place of the mother of the Complainant in their chit group for value of Rs.5,00,000/- payable at Rs.10,000/- per month for the period of 50 months.    Admittedly the Opposite Party has not filed the list of the persons who joined in the chit group along with their subscription.   It is a material document to resolve the disputed in controversy but for the reasons best known to the Opposite Party, they have not filed the said material document.   It is not the case of the Opposite Party that the chit group members register is not available with them.    Having regard to all these facts and circumstances, it can be held that some members might have been joined in the place of the mother of the Complainant as subscriber and continued in the 50 months chit group, which may be the result, the Opposite Party failed to file this same. In view of non-filing of the said material document it can be held that adverse inference has to be drawn against the Opposite Party.     For these reasons, we are of the considered view that the Opposite Party is not entitled to deduct the company commission @ 5% of Rs.5,00,000/- = Rs.25,000/-, however, he is entitled to receive the company commission from out of the 10 installments already paid by the mother of the Complainant herein, besides other incidental charges.   If that be so, the Opposite Party is liable to pay an amount of Rs.20,000/- to the Complainant together with interest thereon  i.e., from the date of issuance Ex.B2 letter dated 20.03.2011.

 

 13.    Now the question that comes up for consideration, at this stages of our discussion what is the rate of interest for which the Complainant is entitled.   The rate of interest claimed by the Complainant is 24% p.a.  This rate of interest claimed by the Complainant appears to be excessive, of course, it is a fact that the transaction covered by Ex.B2 is in commercial in nature, but that does not and cannot mean to say that the Complainant is a licenced to claim interest @ 24% p.a. on Ex.B2.    But at the same time, it is an imperative on our part to award a reasonable interest.   Having regard to all these facts and circumstances, we sincerely feel having considered the case on hand awarding of interest @ 12% p.a. on Ex.B2 would better serve the ends of justice.    Consequently, we proposed to fix at rate in question @ 12% p.a. on Ex.B2 in question.   Accordingly interest is ordered.

 

14.     Whether the Complainant is entitled for compensation of Rs.25,000/- is to be considered.   It appears as seen from the evidence of PW-1 that the Complainant was compelled to approach the Opposite Party and therefore experienced a lot of physical strain besides mental agony and financial loss. It is un-dispute fact that the Opposite Party did not refund the amount subscribed by the Complainant.   Naturally that made have put the Complainant to suffer some mental agony besides physical stress and strain.   In this view of the matter, we sincerely feel that it is a fit case to award compensation.   But that does not and cannot mean to say that the Complainant claim for compensation is acceptable.    Having regard to all these facts and circumstances, we are of the considered opinion, award of compensation of 5,000/- would serve the ends of justice.   We therefore, proposed to award compensation of Rs.5,000 /-,  in the circumstances of the case on hand. Accordingly this point is answered. 

 

 

 

 

15.     Before parting our discussion, it is incumbent and imperative on our part to consider the costs of litigation.    The Complainant ought not have to approach this Forum had his claim for refund of the sum of Rs.26,045/- or reliefs sought for have been honored by the Opposite Parties within a reasonable time and in view of the matter, the Complainant’s claim for claims for cost deserves to be allowed.   In our considered and unanimous opinion awarding a sum of Rs. 2,500/- as costs would appropriate and reasonable.   Accordingly costs are awarded.

16.     In the result, Complaint is allowed, in part directing the Opposite Party to refund an amount of Rs.20,000/- (Rupees twenty thousand only) with interest @ 12% p.a. from the date of Ex.B2 i.e., on 20.03.2011 till the date of realization, to pay a compensation of Rs.2,500/- (Rupees two thousand only) and costs of Rs.2,500/- (Rupees two thousand and five hundred only) to the Complainant.   Time for compliance, one month.

 

     Dictated to the Steno, transcribed by him, corrected and pronounced by us in the Open Forum, this the 23^rd  day of January, 2015.

Sd/-                                     Sd/-                                            Sd/-

Male Member                   Lady Member                                          President

 

                             APPENDIX OF EVIDENCE

For the Complainant:-

NO.	DATE	DESCRIPTIONOFTHEDOCUMENTS	REMARKS
Ex.A1	01.03.2010	Cash Receipt No.CHQ 132/09 for Rs.42.776 issued by the OP in favour of the Complainant.	Original
Ex.A2	11.03.2011	Cash payment Account Ledger Receipt for Rs.16,371/- issued by the OP in favour of the Complainant.	Original
Ex.A3	18.12.2010	Death Certificate issued by the GVMC	Original

For the Opposite Party:-                                             

No.	DATE	DESCRIPTIONOFTHEDOCUMENTS	REMARKS
Ex.B1	23.06.2009	Chit Agreement between the Complainant and the Opposite Party	Original
Ex.B2	23.03.2011	Letter addressed by the Complainant to the OP	Original
Ex.B3	26.03.2011	Letter addressed by the Complainant to the OP	Original
Ex.B4		SBI Pass Book	Photo copy
Ex.B5	17.05.2011	Cash Voucher for Rs.16,371/- issued by the OP in faour of the Complainant	Original

         

     Sd/-                                Sd/-                                                 Sd/-

Male Member                     Lady Member                                    President