By Sri. Mohamed Ismayil.C.V, Member

The grievance of the complainant is as follows:-

1.  The complainant is working in a food manufacturing unit and the opposite parties are conducting financial institution. On the basis of an advertisement in a news paper given by the opposite parties, the complainant subscribed a chitty numbered as 03/2017 initiated by the office of the first opposite party. The chitty period started on 29/03/2017 and ended up on 21/06/2021.   At the time of subscription of chitty the opposite parties assured that the remitted amount will not be lost and can be retrieved by the complainant. Believing the words of the first opposite party the hard earned money was paid by the complainant for chitty.  The subscribed chitty was worth of Rs. 5,00,000/- in 50 instalments and the complainant remitted total of Rs. 1,20,000/- by way of instalments. In auction of chitty, the complainant  was managed to secure the chitty amount of Rs. 3,50,000/- out of Rs.5,00,000/-. But the complainant failed to release the amount as he could not produce sufficient security before the opposite party. At the same time the complainant could not remit entire instalments of chitty because of his financial constraints and the amount in his chitty account remained Rs. 1,20,000/-. According  to the complainant on 30/06/2020, he remitted Rs. 13,800/- as per the direction given by the first opposite party in order to get back the entire amount for the treatment of his child. It was also undertaken by first opposite party that the deposited amount will be transferred to the account of the complainant and later the complainant can withdraw from his own account. But, subsequently the opposite parties are collecting a sizable amount from the account in every month and now Rs.692/- is shown as balance in the account. The opposite parties are collected money from the account of the complainant without availing permission and reason for the withdrawal of amount was not intimated. The opposite parties have no right to collect money from the account of the complainant. According to the complainant the intention behind the subscription of chitty was to raise fund for the treatment of his son, who was bedridden due to paralysis. The complainant subscribed chitty after getting assurance from the side of the opposite parties that the remitted amount will be returned to the complainant by completion of the chitty period. But the opposite parties not given back the deposited amount and thereby cheated the complainant. According to the complainant the opposite parties are withheld deposited amount without any valid reason. The opposite parties are committed deficiency in services towards the complainant so the complainant approached before this Commission praying for an order of direction to the opposite parties to refund Rs. 1,20,000/- to the complainant as amount of chitty instalments remitted in the chitty conducted by the opposite parties and to pay Rs. 2,00,000/- to the complainant as compensation for the deficiency in service committed towards the complainant.
2. The complaint is admitted on file and issued notice to the opposite parties and the opposite parties appeared and filed their version jointly.
3.  In the version it is contented by the opposite parties that the complainant is not maintainable either in law or on facts. The opposite parties are conducting non banking company under the government of Kerala. The opposite parties admitted the subscription of chitty by the complainant as stated in the complaint. According to the opposite parties, the complainant subscribed a chitty after fully conversant with the rules and regulations of the chitty.   Moreover the opposite parties directly convinced the complainants about the procedure as well as the liability of the chitty. The complainant signed the application form after understanding all   the details of the chitty.  According to the opposite parties on 22-09-2017 the complainant secured a chitty amount of Rs. 3,50,000/- after participating in an auction exclusively at the behest of him after deducting 30% of total amount of chitty. It is further added that the complainant remitted Rs. 95,756/- to the auctioned chitty out of the deposited amount of Rs. 1,20,000/- after deducting dividend of Rs. 24,244/- equal to 12 instalments paid. The complainant secured the chitty in action not at the third instalment but at the 7^th instalment. It is admitted by the opposite parties that the complainant could not release the amount as he failed to produce sufficient sureties. The opposite parties are denied the allegation of the complainant that the opposite parties given assurance of releasing entire deposited amount if the complainant was paid Rs. 13,800/- in the chitty account. It is also stated in the version that the opposite parties did not unauthorisedly withdraw amount from the account of the complainant and remained balance is not Rs. 692/-. As per the chitty norms, the deducted amount of the auction secured is required to be distributed equally among all the subscribers involved in the chitty after taking foreman’s commission and so those distributed amount cannot be refunded to the complainant. The complainant also availed benefit of this procedure. Even though repeated demands were made to produce sureties for realising the auctioned chitty amount, the complainant did not turn up. After making payments of five more instalments, the complainant discontinued payment of instalments of chitty. The complainant remitted Rs. 13,500/- on 29/06/2020 after sending of repeated notices. It is stated in the version that complainant was informed of his inability to make payments of chitty instalments. So the complainant decided to remit the present instalment of the auctioned chitty due from his chitty account and also agreed to transfer the balance chitty amount of Rs. 1,17,240/- to the Sugama Security account in order to facilitate the payment of balance monthly instalments of auctioned chitty. According to the opposite parties Sugama Security account is a scheme introduced by KSFE. As per this scheme one subscriber can transfer sufficient amount equal to chitty’s future liability in every month. The opposite party is also providing 5.5% of interest to the balance amount kept in this scheme. After the transfer of amount to the 50^th instalment Rs. 1,224/- is remained as balance in the account of the complainant. According to the opposite parties, once chitty is auctioned by a subscriber, he cannot transfer his right in favour of another person. A duty is cast upon the subscriber to produce security for the future liability of auctioned chitty. So there is no assurance from the side of the opposite parties to release the amount already deposited by the complainant. As per the condition mentioned in Serial No. 15 A of the chitty agreement, bidder of chitty auction should produce security to release amount within 60 days occurring from the 30^th day of chitty auction. It is contended by the opposite parties that even after success of the auction on 22-09-2017 the complainant remitted chitty instalments on 21-10-2017, 21-11-2017, 21-12-2017, 21-01-2018 and 21-02-2018. So the alleged lodging of information about his inability to produce security by the complainant is false and unbelievable. The opposite parties sent notices on 07-05-2018 and 24-05-2019 to the complainant directing him to collect the chitty amount. According to the opposite parties, no subscriber would lost money deposited in the chitty irrespective of the number of instalments he paid if he did not participate in chitty auction. The subscriber, who do not auctioned chitty, commit default in payment of instalments is availed with opportunity to transfer the chitty to another subscriber and can collect the remitted amount from the opposite parties after making due notice.  If the defaulter of instalments do not exchange the chitty, then the opposite parties would refund the deposited amount after the completion of chitty period. But if the subscriber auctioned a chitty, he cannot exchange his chitty as the opposite parties are bound to distribute the discount amount among other subscribers of the chitty. According to the opposite parties, the complainant auctioned the chitty amount at the discount of Rs. 1,50,000/- and the deposit in the chitty remained only Rs.1,20,000/-.  So it is stated in the version that the amount remained in the chitty account of the complainant is not sufficient to meet future liability of the prize money of auctioned chitty.   As per agreement executed between the complainant and opposite parties there is ample power vested with the opposite parties to collect the liability amount from the complainant.  The complainant remitted Rs. 13,500/- in order to facilitate the discharge of liability through Sugama Security Account. This payment is evident from chitty payment voucher and chitty personal ledger. The complainant adopted Sugama Security Scheme due to his inability to pay the future liability of the auctioned chitty.  As per the scheme if any amount is remained after discharging liability, it will be returned to the subscriber. The complainant defaulted payment of instalments from 21-02-2018 onwards and so on 30-06-2020 Rs. 2,29,608/- were transferred to make payment of defaulted instalments. On the day of chitty payment the complainant deposited Rs. 1,17,240 /- to Sugama Security i.e. for the future 12 instalments calculating Rs. 10,000/- per month even though there is chance for deduction of Veethappalisha. The allegation of non approval from the side of the complainant in the matter of transfer of amount from his chitty account to Sugama Security Account is false and incorrect and documents pertaining to Sugama Security deposit scheme and its application are signed by the complainant himself. It is contented by the opposite parties that they did not commit any deficiency in service as prayed in the complaint. It is stated in the version that the opposite parties are acted in accordance with law and prayed the dismissal of complaint with compensatory cost.
4.      The   complainant and  the  opposite parties filed affidavits and documents.The documents produced from the side of the complainant is marked as Ext.A1 andExt.A2. Ext.A1 document is the copy of chitty passbook issued by the opposite parties to the complainant showing the payment of instalments of chitty. Ext. A2 document is the original receipt dated 29-06-2020 showing payment of Rs. 13,500/- made by the complainant. The documents produced by the opposite parties are marked as Ext.B1 to Ext.B8 documents. Ext.B1 document is the copy of minutes of proceedings of chitty No.3/2017.  Ext.B2 document is the copy of letter dated 07-05-2018 issued by the opposite parties to the complainant. Ext.B3 document is the copy of letter dated 24-05-2018 issued by the opposite parties to the complainant. Ext. B4 document is the copy of request letter dated 29-06-2020 issued by the complainant to the opposite parties.   Ext. B5 document is the copy  of chitty  agreement dated 23-03-2017 executed between the opposite parties and the complainant. Ext.B6 document is the copy of chitty personal ledger. Ext.B7 document is the copy of prize money payment voucher dated 30-06-2020.  Ext.B8 document is the copy of payment slip dated 07-07-2020.
5. Heard in detail both sides. Perused documents and affidavits. The points arisen for the consideration of the Commission are as follows:-
6. Whether the opposite parties committed any kind of deficiency in service towards the complainant as alleged?
7. Relief and cost of the proceedings, if any.

6. Point No. (1) and (2):-

           According to the complainant he subscribed a chitty conducted by the opposite parties and remitted chitty instalments for 12 times to a total  tune of Rs. 1,20,000/-.  The complainant produced the copy of chitty pass book to prove the transaction and the same is marked as Ext. A1 document. The chitty is worth Rs. 5,00,000/- and its repayment covers in 50 instalments. It is also stated that he participated in chitty auction and at the time of 3^rd instalment and managed to succeed in the bid for securing the chitty amount to the tune of Rs. 3,50,000/- after reduction of Rs 1,50,000/-. But he could not release the chitty amount as he was not able to produce sufficient sureties before the opposite parties. It is stated in the affidavit as well as in the complaint that he could not remit the balance of 38 instalments because of financial crisis and same was conveyed to opposite parties. When the complainant attempted to release the deposited amount from his chitty account, the opposite parties did not release the amount and his account showed Rs.692 as the balance amount.  According to the complainant the opposite parties had no right to withheld the amount kept in his chitty account and the act of opposite parties are deficiency in services. Moreover he alleged that the opposite parties are acted arbitrarily against the assurance given at the time of enrolment of chitty that the entire amount would be returned to the subscriber. The opposite parties admitted the fact of subscription of chitty by the complainant and his participation in the chitty auction and success in the bid. The opposite parties also admitted the facts that the complainant did not release the auctioned prized money from his account. Evaluating the available evidences produced by both sides it can be seen that claim of the complainant lacks merit in this case. According to the complainant he subscribed the chitty to create fund for the treatment of his child. It is contended by the complainant that the opposite parties were assured of refund of entire deposited amount even though he failed to remit entire instalments. After the payment of 12 instalments the complainant informed his financial crisis to the opposite parties. According to the complainant, the opposite parties advised him to remit Rs.13,800/- in the chitty account in order to release the entire deposited amount. The complainant produced Ext.A2 document to prove the payment made on 29-06-2018. But the opposite parties vehemently opposed the arguments of the complainant. It is contented by the opposite parties that the complainant signed chitty application after fully acquainted with the conditions stipulated in the chitty agreement. The opposite parties are produced agreement of chitty executed between the opposite parties and the complainant and same is marked as Ext.B5 document. It is contented by the opposite parties that as per the condition mentioned in serial No. 15A of Ext.B5 document the successful bidder should produce the security to release the amount within 60 days occurring from the 30^th day of chitty auction. According to the opposite party, as per agreement, no subscriber would lost the money deposited in the chitty irrespective of number of instalments paid if he did not participate in chitty auction. But here in this case the Commission finds that the complainant participated in chitty auction and succeeded his bid but failed to produce security. So the claim of the complainant to withdraw the deposited amount of 12 instalments is not tenable and against the condition of chitty agreement. The opposite parties denied the contentions made by the complainant that the complainant auctioned chitty at the time of 3^rd instalment. According to the opposite parties the complainant participated in auction at the time of 7^th instalment. Ext.B1 document is the copy of minutes of proceedings of chitty No. 3/2017 produced by the opposite parties. When going through Ext.B1 document it can be seen that the complainant participated in auction at the time of 7^th instalment of the chitty. Another contention raised by the complainant is that the opposite parties were collected a sizable amount from his chitty account in every month and remained balance is very tiny one. According to the complainant the opposite parties collected money from his chitty account without any legal authority and other legal sanction. These contentions of the complainant cannot give much importance as it lacked piece of evidence. The opposite parties produced Ext.B2 and B3 documents to prove their averments in the version. Ext B2 and Ext B3 documents are the letter sent by the opposite parties to the complainant demanding to produce the sureties to release the prize money. After receiving the Ext.B2 and Ext.B3 documents, the complainant signed Ext.B4 document on 29-06-2020 and contents reveal his willingness to transfer the prize money of auctioned chitty to Sugama Security Deposits. It is stated by the opposite parties that the complainant informed of his inability to make repayment of auctioned chitty. It has came out in evidence that as per the Sugama Security deposit scheme, the complainant could make repayment towards auctioned price money by transferring the deposit amount of his chitty and the prize money kept unreleased into the Sugama Security Deposit Scheme thereby facilitate to make payment of monthly instalments to the auctioned chitty. The opposite parties produced Ext.B6 document and Ext.B7 document to prove that aspect. Ext B6 document shows that the repayment of price money of auctioned chitty was made through Sugama Security deposit scheme by the complainant. Ext B7 document also reveals the deposit of prize money into Sugama Deposit Scheme by the complainant. So it is crystal clear that the complainant adopted an availed way out to repay the auctioned prize money by way of instalments after adopting the scheme introduced by opposite parties. Moreover the complainant also agreed to transfer the chitty deposit of Rs. 1,20,000/- to the repayment of prize money of the auctioned chitty. The opposite parties also produced Ext B8 document to support their contention taken in the version. Ext.B8 document is the repayment slip signed by the complainant and it shows that the complainant had received Rs.2800/- after repayment of prize money of auctioned chitty. Analyzing the entire evidences available on record, this Commission finds that complainant is failed to establish his contention raised in his complaint. So on the ground of lack of evidence this complaint is dismissed. Parties are directed to bear their own cost respectively. 

               Dated this 16^th day of January , 2023.

MOHANDASAN K., PRESIDENT

PREETHI SIVARAMAN C., MEMBER

MOHAMED ISMAYIL C.V., MEMBER

APPENDIX

Witness examined on the side of the complainant                     : Nil

Documents marked on the side of the complainant                   : Ext.A1&A2

Ext. A1 : Copy of chitty passbook issued by the opposite parties to the complainant

                showing the payment of instalments of chitty.

Ext. A2 : Document is the original receipt dated 29-06-2020 showing payment of Rs.    

               13,500/- made by the complainant.

Witness examined on the side of the opposite party                     : Nil

Documents marked on the side of the opposite party                   : Ext. B1 to B8

Ext.B1 : Document is the copy of minutes of proceedings of chitty No. 3/2017.  

Ext.B2: Document is the copy of letter dated 07-05-2018 issued by the opposite

              parties to   the complainant.

Ext.B3 : Document is the copy of letter dated 24-05-2018 issued by the opposite

               parties to  the complainant.

Ext.B4 : Documents is the copy of request letter dated 29-06-2020 issued by the

              complainant to the opposite parties.

Ext.B5 : Document is the copy of chitty agreement dated 23-03-2017 executed

                between the opposite parties and the complainant.

Ext.B6 : Document is the copy of chitty personal ledger.

Ext.B7 : Document is the copy of prize money payment voucher dated 30-06-2020.

Ext.B8 : Document is the copy of payment slip dated 07-07-2020.

MOHANDASAN K., PRESIDENT

PREETHI SIVARAMAN C., MEMBER

MOHAMED ISMAYIL C.V., MEMBER