This complaint is coming on for final hearing before us in the presence of Sri P.Rajeswara Rao, Advocate for the complainant and Sri K.Srinivasa Rao and Sri D.Rama Rao, Advocates for O.Ps.1 and 2 and having stood over for consideration, the Forum made the following:-

O   R   D   E   R

          This is a complaint filed under Section 12 of Consumer Protection Act seeking the reliefs to direct the O.Ps to pay the prize amount of Rs.3,70,000/- with interest at 24% p.a., and also to pay a sum of Rs.5,000/- towards compensation for mental agony suffered by the complainant and Rs.2,000/- towards costs on the following averments:

          The complainant joined as a member of the Chit Fund Scheme run by the O.Ps at Bobbili Branch on 29-6-2011 and was allotted ticket No.17 in group code FBLT06J.  The total value of the said chit is Rs.5,00,000/- to be subscribed at Rs.10,000/- per month for 50 months and accordingly an agreement was signed by the complainant at Parvathipuram.    As per terms of the agreement the O.Ps have agreed that the prize amount will be released immediately after furnishing the sureties to the satisfaction of the foreman.

          It is averred that as the complainant was in need of money he participated in the auction held for the month of  December, 2013 and foregone an amount of Rs.1,30,000/- and became the highest bidder and to get the prize amount he immediately furnished the surety for the due payment of the entire future monthly installments of the complainant regularly as required by the foreman.  The O.Ps did not release the prize money without any reasonable cause though he complied the formalities.  The complainant has approached the O.Ps many a time and requested them to pay the prize amount but of no avail.  The complainant got issued a notice dt.4-4-14 demanding the O.Ps to pay the prize amount with interest at 24% p.a., but to no effect.  Hence the complaint.

          The respondents filed counter traversing the material allegations made in the complaint and has averred that the complainant did not furnish proper sureties for realization of the chit amount and after he furnished the sureties,  a cheque was prepared for an amount of Rs.3,32,250/- on 2-4-2014 and intimated the said fact to the complainant.  The complainant did not come in time to receive the cheque and insisted for issuing demand draft for the prize amount upon which a D.D was taken on 3-5-2014 for the above said sum and has given the same to the complainant.  The complainant having received the said D.D filed the complaint with false allegations and as the men of O.Ps were not in dereliction of duties and as there is no deficiency in service on their part, the complaint merits no consideration and is liable to be dismissed. 

          In furtherance of complainant’s case the chief affidavit of complainant is filed and Ex.A.1 and A.2 are marked on his behalf.  Per contra the O.Ps filed the affidavit evidence of R.W.1 and did not get any documents marked on their behalf.  Both the parties have filed their respective brief written arguments and their counsel also submitted oral arguments.

          Perused the material placed on record. Now the point for consideration is whether the complainant is entitled to get the reliefs prayed for ?

          As seen from the pleadings it is an admitted fact that the complainant joined as a Member of the Chit Fund scheme run by the O.Ps for the value of Rs.5,00,000/- and has participated in the auction held in the month of December, 2013.  As per complainant he furnished the sureties to get the prize amount but the O.Ps did not pay the said amount to have an illegal gain.  To substantiate the said contention he did not disclose the name of the surety and as to on what date the surety was furnished to get the prize amount.  As per O.Ps the complainant did not furnish the surety as directed by them and after furnishing surety they prepared cheques for a sum of Rs.3,32,250/- on          2-4-2014 and as the complainant did not agree to receive the cheque and insisted for issuance of D.D., on 3-5-2014 a D.D was given to him for the above said sum. 

Before filing this complaint a notice was got issued by the complainant on 4-4-2014 and as the O.Ps did not respond to the said notice the complaint was filed.  The O.Ps did not deny the issuance of notice by the complainant.  The O.Ps have not given any reply to the above said notice.  If really the O.Ps are true in their contention that the complainant did not furnish surety immediately after the auction was held in the month of December,2013 they should have given a reply to Ex.A.1 notice but they did not do so.  Since the complainant did not dispute about receipt of D.D for the prize amount in the month of May, 2014,  we are of the considered opinion that he received the same without any protest.  As the O.Ps did not disclose as to when the complainant furnished surety we are of the considered opinion that for retaining the prize amount till May, 2014 they are liable to pay interest @ 12% p.a., from the date of furnishing surities till the date of receipt of prize amount.  Though the complainant claimed a sum of Rs.3,70,000/- towards prize amount he did not disclose as to why he accepted the D.D for Rs.3,32,250/- towards prize amount in the month of May, 2014.  It is not his case that under protest he received the said D.D from the O.Ps.   Once they have received the above said sum towards prize amount it can safely be concluded that the O.Ps have paid the prize amount to the complainant under the above said D.D in the month of May, 2014.  Since the O.Ps did not issue the cheque or D.D immediately after the surety was furnished by the complainant and as they have not responded to the notice got issued by the complainant we are of the consideration that there is deficiency in service on the part of O.Ps in making payment of prize amount to the complainant.  Hence the complainant is entitled to get interest and costs.

          In the result, the complaint is partly allowed directing the O.Ps to pay interest to the complainant at the rate of 12%p.a., on Rs.3,32,250/- (Rupees three lakhs, thirty two thousand, two hundred and fifty only) from the date of furnishing sureties till the date of payment of prize amount and also to pay a sum of Rs.3,000/- (Rupees three thousand only) for causing mental agony to the complainant and Rs.1,000/- (Rupees one thousand only) towards advocate fee.  The O.Ps are directed to comply the order within one month from the date of receipt of the order.

Dictated to the Typist, transcribed by her, corrected by me and pronounced by us in the open Forum, this the 4^th day of March, 2015.

Member                                                           President

C.C. 31 of 2014

APPENDIX OF EVIDENCE

WITNESSES EXAMINED

     For P.W.1                                                                  For R.W.1                                                                               

DOCUMENTS MARKED.

For complainant:-

1. Ex.A.1 Office copy of Legal notice dt.4-4-2014
2. Ex.A.2 Original Postal receipts (2)

For O.P:-   NIL                                                                                                                                                                                                                President.