This Complaint coming up before us for hearing on 12-03-12 in the presence of Sri.K.V.K. Suresh, advocate for complainant and of Sri. K. Venkata Reddy, advocate for opposite party, upon perusing the material on record after hearing both sides and having stood over till this day for consideration this Forum made the following:-

O R D E R

Per Smt T. Suneetha, Member:-

The complainant filed this complaint u/s 12 of Consumer Protection Act seeking directions on the opposite party to award Rs.14,000/- as a compensation and legal expenses.

2.   In brief the averments of the complaint are hereunder:

          The complainant joined as a subscriber in the opposite party on 28-10-08 in Chit Reference No. PDS02F /19 and the chit value of Rs.1,00,000/- and the chit installment is Rs.4,000/- per month with dividend and the chit period is 25 months.  In the month of December, 2008 the complainant was successful bidder for an amount of Rs.65,000/- and the same was received by the complainant after one month i.e., January,2009.  Subsequently, the complainant paid the chit installments regularly, but some installments were not paid             within time due to his family problems. The complainant paid the installments with penalty and the opposite party issued the receipts and the chit was also closed.  The opposite party did not enter the entries in Passbook.  Surprisingly on 12-02-2011 the complainant received a phone call from the opposite party stating that he was the defaulter in some of the installments and intimated that the complainant has to pay an amount of Rs.12,000/- towards the installments.  Immediately the complainant approached and requested the opposite party to show and issue the statement of his account regarding the chit.  But they have not issued any statement of account. The employees of the opposite party have been harassing the complainant and also guarantors of the chit to pay the remaining chit installments even though the complainant paid the full chit amount and the opposite party is liable to pay compensation.  Hence the complaint.

The following is the version of opposite party in brief as follows:

3.     This opposite party submits that as per the chit agreement at col. No. 17 it was clearly mentioned that “when a prized subscriber defaults in payment, a penalty of 6 paisa per rupees or part there of will be charged for the first month and if the default continues over a month such a member will not be entitled to dividends also in addition to aforesaid penalty charges.  If the default is continued consecutively for a period of 3 months, the prized subscriber and the executants of the security bonds shall loose the future dividends and the benefit of paying the future subscriptions in installments.  They shall become liable to make a consolidated payment of the future subscriptions inclusive of the defaulted installments with interest at the rate of 18% per annum from the date of default.  This opposite party further submits that the complainant aware of the above said condition and the same was also mentioned in the pass book issued to the complainant and that the complainant is a prized subscriber of Kapil Chit Funds (P) Ltd.. and he paid the installments irregularly. As per the terms of the chit agreement penalty was imposed for the payments made by the complainant and that the same was informed to the complainant and the complainant never raised any objection when he was paying installments with penalty.  This opposite party further submits that the details of the payments and penalty mentioned in the statement of account in detail and the copy of it was also given to the complainant but by suppressing the above facts the complainant filed this complaint with false averments.  This opposite party, therefore prays to dismiss the complaint with costs and pass such other necessary orders in the interest of justice.

4.     Both parties filed their respective affidavits. Exs.A1 to A11 were marked on behalf of complainant. Exs.B1 to B3 were marked on behalf of the opposite party.

5.      NOW THE POINTS FOR CONSIDERATION ARE :

1. Whether there is deficiency of service on the part of opposite

    Party?

2.  To what relief the complainant is entitled to?

6.      POINT NO.1 The complainant’s allegation is that the opposite party without issuing any statement of account to the complainant was harassing the complainant and his guarantors by making phone calls for payment of dues in connection with a chit bid by the complainant despite total installments paid by the complainant.

7.     The opposite party’s version is that penalty amount of Rs.17,400/- is due from complainant.

Sections 32&33 of the Chit fund Act 1982 reveals as follows :-

Section 32  :  Prized subscriber to pay subscriptions regularly:- Every prized subscriber shall pay his subscriptions regularly on the dates and times and at the place mentioned in the chit agreement and, on his failure to do so, shall be liable to make a consolidated payment of all the future subscriptions forthwith.

Section 33: foreman to demand future subscriptions by written notice:-

1. A foreman shall not be entitled to claim a consolidated payment from a defaulting prized subscriber under section 32 unless he makes a demand to that effect in writing. 

8.     As per the above sections the demand for the amount due if any from the customer should be made in writing.  In this case the opposite party contended that it has sent statement of account to the complainant but did not file any document to that effect.

 9.    Making phone calls to the complainant and the guarantors was not denied specifically by the opposite party.  Therefore adverse inference can be drawn to the effect that opposite party is making phone calls to guarantors demanding payment of installment without issuing any notice to complainant. Thus the opposite party bothering guarantors of the complainant would effect the relationship, credence and good will of the complainant with the guarantors and it amounts to deficiency of service on the part of opposite party.

10.    POINT NO.  2:    The opposite party ought to have sent written notice to the complainant, instead of perturbing the guarantors.  Therefore opposite party committed deficiency of service.

11.   Under these circumstances, fixing liability on opposite party would meet the ends of justice.

12.    In the result, the complaint is allowed in part in terms as          indicated below:

1. The opposite party is directed to serve complainant’s statement of Account to the complainant.
2. The opposite party is directed to pay Rs.3,000/- as a compensation towards mental agony to the complainant.
3. The opposite party is further directed to pay Rs.1,000/- towards legal expenses to the complainant.

        Above orders shall be complied within a period of six weeks from the date of receipt of copy of this order, failing which, the amounts ordered in item No.2 shall also carry interest at 9% p.a. till the date of realization.

Typed to my dictation by Junior Stenographer, corrected by us and pronounced in the open Forum dated this the, 27^th day of March, 2012.

          MEMBER                        MEMBER                                  PRESIDENT

APPENDIX OF EVIDENCE

DOCUMENTS MARKED

For Complainant:

For opposite party: 

PRESIDENT