CONSUMER DISPUTES REDRESSAL FORUM – X

GOVERNMENT OF N.C.T. OF DELHI

Udyog Sadan, C – 22 & 23, Institutional Area

(Behind Qutub Hotel)

New Delhi – 110 016

Case No.1471/2005

MR. PREET PAL SINGH

R/O 142, SFS FLATS,

MALL APARTMENT, DELHI-110054

…………. COMPLAINANT                                                                             

Vs.

KKARNIT CHITS PVT. LTD.

THROUGH ITS MANAGER(FINANCE)

E-588, GREATER KAILASH-II,

NEW DELHI-110048

                                  …………..RESPONDENT

                                 Date of Order:07.08.2018

O R D E R

H.C. Suri - Member

The complainant Shri Preet Pal Singh has filed the present complaint under Section 12 of the Consumer Protection Act, 1986 against Kkarnit Chit Pvt. Ltd., hereinafter called the OP, alleging that the complainant was induced by the OP to become the member of one of his Chits  and on his assurance he became the member of one of the groups of the OP; he had been paying the instalments/contribution for the said group regularly and has never defaulted in the payment for any period regarding the said group; and that the complainant has paid a total amount of Rs.95,250/- on different dates vide cheques, as reflected in the statement to the OP during July, 2003 to January, 2005.  It is submitted that the OP never informed the complainant about the venue of the bidding of the chit and its date of auction and no account of statement was ever given to him; that on maturity of the abovesaid chit amount, the complainant requested the OP to clear the account and make payment as due but the OP failed to acknowledge the said letter and did not make the payment.   The complainant further submits that he repeatedly requested the OP verbally and in writing vide his letters dated 21.4.2005, 12.5.2005 and 24.6.2005 for sending the statement of accounts of the chit but the OP failed to make available any such record to the complainant; the OP was also served legal notice dated 12.7.2005 calling upon the OP for the detailed statement of account along with full payment of the chit amount, but the OP neither sent the statement of account of the chit to the complainant nor did he make any payment to the complainant of the amount due upon maturity of the chit.   It is further submitted that the OP is under legal obligation to make available  the records as requested by the complainant, and that the OP has failed to perform his duty; and that this amounts to deficiency in the service on the part of the OP.  The complainant has prayed that the OP be directed to pay a sum of Rs.1,20,000/- as payment due to the complainant upon the maturity of the chit fund, along with Rs.10,000/- as compensation on account of harassment and mental tension faced by the complainant, and also interest and costs.

The OP in its written statement submitted that the complaint is not maintainable  as it is not covered  under the Consumer Protection Act;  the complainant has not approached this Forum with clean hands and suppressed the material facts from this Forum; and the complaint is gross misuse of the law and the complainant has concocted and forged facts, and that the complainant wants to get benefit of his own wrongs, and that the complainant approached the Forum with dishonest intention to  grab the chit amount as the complainant paid the amount of Rs.70,850/- against Rs.1,01,850/- and a sum of Rs.31,000/- is still due upon the complainant and on the other hand, the complainant took a loan of Rs.1,00,000/- vide cheque no.301893 dt.2.3.2005 drawn on Bank of Maharashtra, G.K. II, New Delhi against the present chit  and failed to pay the loan amount even otherwise the Chit was ended in February, 2004.   It is submitted that this Forum has no jurisdiction to entertain the present complaint as per the clause no.13 of the chit agreement and if any dispute arises the same would be subjected to the jurisdiction of Faridabad Forum as there is registered office of the OP at Faridabad, Haryana so the present complaint is liable to be dismissed due to lack of jurisdiction.

The OP has denied all the allegations and averments mentioned in the complaint and submitted that the complainant has already received excess amount of Rs.17,000/-  and the OP reserves the right to recover the amount in due course of business.  The OP has submitted that the complaint may kindly be dismissed with heavy costs.

The complainant has filed rejoinder also to the WS filed by the OP and denied the contents of the WS as wrong; it is submitted that the OP has admitted the receipt of Rs.70850/- as against Rs.95,250/- paid by the complainant.  The complainant has denied that any loan of Rs.1 lakh against the aforesaid chit fund was taken.  It is submitted that if the aforesaid amount of loan was taken why the OP has not produced the bank account and documents for the same.  The complainant has denied  the allegations and averments that deny the contents of the complaint and reaffirmed and reiterated the contents of the complaint.

Both the parties have filed their respective evidence by way of affidavit  deposing their respective facts in this case on oath, and written submissions/arguments as well.

While dealing with the pleadings of the parties in this matter, the first question that arises is whether the complainant is a Consumer as defined under the Consumer Protection Act, and secondly as to whether this Forum has the jurisdiction to try this complaint. Thirdly, whether the complainant had taken any loan of Rs.1,00,000/- against the Chit of the complainant.

We have gone through the case file carefully.

It is not in dispute that the complainant was one of the members of the Kkarnit Chits Pvt. Ltd. hence the complainant is a consumer.  Reference in this regard is placed on the case of M/s Kapil Chit Fund (P) Ltd. Vs Mahmood Khan – 1(2014) CPJ 203 (AP). 

So far as territorial jurisdiction is concerned, it is not in dispute that the corporate and administrative office of OP is situated at E-588, Greater Kailash-II, New Delhi and the same is within the territorial jurisdiction of this Forum.  OP has sent a letter dated 10.01.2003 to the complainant regarding payment of seventh installment and the same has been sent from this office of OP which is within the territorial jurisdiction of this Forum.  The complainant has sent letters dated 15.04.2005, 21.04.2005, 12.05.2005 and legal notice dated 12.07.2005 at this office of OP company which is within the territorial jurisdiction of this Forum, hence this Forum has got the territorial jurisdiction to entertain the present complaint.

OP has taken a plea that as against the total amount of Rs.1,01,850/- the complainant has paid a sum of Rs.70,850/- leaving outstanding amount of Rs.31,000/- and the complainant has also taken a loan of Rs.1 lakh vide cheque bearing No.301893 dated 02.03.2005. 

The complainant has placed on record the details showing that he has paid a sum of Rs.95,250/-.  OP has not filed bank details to show that only a sum of Rs.70,850/- has been paid.  So far as payment of loan of Rs.1 lakh to the complainant is concerned, the complainant has filed an affidavit to show that “he has not taken any loan from OP.  It was New Khushdil Hotel which has taken the loan from OP.  The complainant has nothing to do with New Khushdil Hotel.  It is father of the complainant who is proprietor of New Khushdil Hotel”.  OP has failed to prove that the complainant has taken a loan of Rs.1 lakh from OP.  It is proved that the complainant has paid a sum of Rs.95,250/- from 15.07.2003 to 12.01.2005, vide cheques (the details placed on record). 

OP has taken a plea that Chit ended in the month of February 2004 and the complainant approached this Forum on 07.09.2005 after a gap of 19 months and this shows his malafide intentions and wants to take advantage of his own wrongs.  We failed to understand as to on what basis OP has stated that Chit ended in the month of February 2004.  OP has placed on record the details of payment.  As per OP, the last cheque was received on 27.11.2004 and further payments due for 30.11.2004, 30.12.2004 and 30.01.2005 and 28.02.2005 were not received.  That means that Chit was continued till 28.02.2005 and not upto February 2004.  The complainant has placed on record the details of the cheques which sows that the last payment was made by him on 12.01.2005 vide cheque no.140589 for a sum of Rs.10,000/-.  Hence the plea taken by OP that Chit ended in February 2004, is wrong even to the knowledge of OP.

The complainant has sent letters dated 21.04.2005, 12.05.2005, 24.06.2005 to OP regarding the statement of accounts but those were not sent by OP.  OP has stated these letters to be forged one and denied receipt of these letters as they were sent through UPC.  The complainant has sent these letters not only by UPC but also by registered post and has placed receipts on record.  The receipts of legal notice dated 12.07.2005 is not disputed by OP.  OP has not even sent reply to this notice. 

OP is a Pvt. Ltd. Company.  During the course of proceedings, Mr. A.K. Garg, MD of OP Company, expired and the details of his legal heirs have been placed on record, but that has nothing to do with these proceedings as the Company is a separate legal entity. 

It is proved that the complainant has paid Rs.95,250/- to OP and he has not taken any loan from OP.  It is a clear cut case of deficiency in service on the part of OP.

OP is directed to refund a sum of Rs.95,250/- to the complainant alongwith interest @ 9% p.a. from the date of filing of the complaint.  OP is further directed to pay Rs.10,000/- towards compensation and Rs.5,000/- towards litigation expenses.

Let the order be complied with within one month of the receipt thereof.  The complaint stands disposed of accordingly.

            Copy of order be sent to the parties, free of cost, and thereafter file be consigned to record room.

    (RITU GARODIA)                                    (H.C. SURI)                                                   (A.S. YADAV)

        MEMBER                                                MEMBER                            PRESIDENT