This complaint is coming on for final hearing before us in the presence of SRI P.V.SHIVA PRASAD, Advocate for the complainant and SRI P.V.SUBBA RAO, Advocate for the Opposite Party, and having stood over for consideration, the Forum made the following:-
O R D E R
GANTA APPALA NAIDU, MEMBER
This complaint is filed U/s-12 of Consumer Protection Act, 1986 seeking reliefs to direct the Respondent to set off the amount of Rs.1,75,000/- belonging to the Complainant in the hands of the Respondent with accrued interest towards full clearance of Chit Groups of the Respondent bearing Chit Group No.PFR 08/41 towards 23 months and PKX 12/13 towards 8 months even though some financial loss accrued to the complainant, not to proceed against the complainant and her sureties with regard to the Chit Groups PFR 08/41 and PKX 12/13, pending disposal of the main complaint as a said amount of Rs.1,75,000/- lying with the respondent and to issue necessary directions which deem proper under the circumstances of the case on the following averments:
1. The complainant is the permanent resident of Parvathipuram since 3 decades approximately and the office of the respondent is also situated in Parvathipuram since so many years. The complainant is a house wife. While it is so, the agent of the respondent company motivated the Complaint to join the chit groups of Respondent company and in pursuance to the representations made by the agent of the said company i.e., Yalla Venkata Ramana, the complainant joined in the chit group bearing PFR 08/41, for total sum of Rs.5,00,000/- payable by the complainant at the rate of Rs.10,000/- per month. The complainant participated in the auction and received prize money and paying monthly installments regularly for 27 months and there is no dispute of whatsoever for the above facts. However, the respondent company retained Rs.50,000/- and another Rs.50,000/- totaling to Rs.1,00,000/- belonging to the complainant at the time of payment of prize money stating that the said amount will be put in fixed deposit so as to enable the complainant to credit it to the said chit group, if the complainant is unable to pay the last months dues, if any, and account for the accrued interest on the said FDR amount to the Complainant and after deducting the said amount of Rs.1,00,000/-, the prize amount was paid to the complainant.
2. The complainant was also motivated on behalf of the Respondent Company to join in the Second Chit Group bearing No.PKX 12/13 for total sum of Rs.1,50,000/- payable by the complainant @ Rs.3,000/- per month and there is only 8 months due amount payable by the complainant to the respondent company for the Second Chit Group and there is also no dispute of whatsoever in the above regard. While it is so, again the Respondent Company retrained a sum of Rs.25,000/- + Rs.25,000/- + Rs.25,000/- totaling to Rs.75,000/- representing that they will put these amounts in fixed deposits and they will repay the same with accrued interest to the complainant or the said amount will be appropriated to the Complainant’s Chit Group Subscriptions, if any, payable by the Complainant.
3. Since the Complainant is not educated sufficiently and also did not acquire any academic or technical degrees, she was easily convinced by the respondent company to believe that the said representations with regard to amount of Rs.1,00,000/- and Rs.75,000/- were retained by the Respondent Company only for the purpose of putting the same in fixed deposits. The complainant also furnished sureties for both the aforesaid Chit Groups and the Sureties have come from commanding respectable families.
4. As the complainant sustained financial loss in her family transactions and she is also sick with chronic medical problems, the complainant was compelled to spend huge amount to meet her medical expenses and hence, she is unable to pay the remaining 23 installments towards subscription for the Chit Group bearing PFR 08/41 and 8 installments for the Chit Group PKX 12/13. Therefore, the complainant made several personal approaches and also submitted several requests to the Respondent Company in their office at Parvathipuram to adjust the above said FDR amounts of Rs.1,00,000/- and Rs.75,000/- respectively with accrued interest there on, to the above 2 Chit Groups towards full clearance of the Chit Groups, even though, there may be some loss to the complainant in comparison with her total payment due on the said Chit Groups to the Respondent and FDR amounts with accrued interest payable to the complainant by the Respondent company. However, surprisingly, the Respondent Company in their oral discussions informed the complainant that the above amounts of Rs.1,00,000/- and Rs.75,000/- were not put in fixed deposits but placed in some other speculative business activities as a sequel to which, the said amounts are not payable at present and therefore, she came to the conclusion that the Respondent Company made false representations to gain financial and pecuniary interests from the customers particularly the complainant in this case. So, the conduct of the Respondent Company amounts to deficiency in service and unfair trade practice and hence liable to account for all the said monies to the complainant and the respondent is rightly entitled to receive due installments payable by the complainant at the same time. But, the respondent threatened to hit at her prestige and respect by degrading her in the society by raising loud noise at the house of the complainant and at the houses of her sureties. Hence this complaint.
5. Counter filed by the Respondent, denying the allegations made by the complainant except those which are specifically admitted therein and puts the complainant to strict proof of the same. It is also submitted that the respondent is running Chit Fund Business throughout South and North India, doing crores of business having Lakhs of subscribers and also gained their confidence and belief due to their prompt, valuable and good services. As per the advice and letter of the petitioner dated 3-1-2011, they deducted an amount of Rs.1,00,000/- from the prize money in the group and ticket no.08/41 and invested the said amount in Srhiram Ujwal Life Insurance in respect of 5 years policy which was also explained to the petitioner after satisfaction of which, she gave the aforesaid letter to the respondent. The petitioner also received the Insurance Policy but she never questioned or raised any objection after receipt of the said policy. It is also respectfully submitted that as per the Advice and Letter of the Petitioner dated 27-05-2010, they deducted an amount of Rs.25,000/- + Rs.25,000/- + Rs.25,000/- from the prize money in the group and ticket no.12/13 and invested the said amount in Shri Vikas Life Insurance in respect of 3 years policy, which was also explained to the petitioner after satisfaction of which, she gave the said letter to the respondent. The petitioner also received the Insurance Policy but never questioned or raised any objection after receipt of the aforesaid policy. Since, the said polices are not FDRs, the policy amount will be paid after lock-in period of 5 years and 3 years respectively.
6. It is also most respectfully submitted that the complainant availed a personal loan of Rs.90,000/- from the Respondent Company and she committed default in payment of the loan amount. It is further submitted that the complainant after availing the said loan and after receipt of the prize money in both the chits, the petitioner failed to pay the monthly subscriptions as mentioned supra to the respondent, which is an admitted fact as can be seen from the facts. Even though, the respondent demanded the petitioner to pay the monthly subscriptions in both the chits and also pay the amount due under the personal account, the petitioner brought the issue of FDRs into picture only with a view to avoid payment of due amounts and she also filed this mischievous complaint. Since there is no deficiency of service on the part of the respondent, the petition is not maintainable and is liable to be dismissed with exemplary costs.
7. Exhibits A1 to A4 are marked on behalf of the complainant and Exhibits B1 and B2 are marked on behalf of the Opposite Party.
8. Heard arguments. Posted for orders. The orders are as follows:-
9. The counsel for both the parties advanced arguments vehemently by reiterating what they have stated in the Complaint, Counter, Evidence Affidavit and brief Written Arguments respectively. The main contention of the complainant is that even though, she specifically requested the respondent company to put the retained amounts in fixed deposits, they have not done so but put the same in some other business activities which amounts to deficiency in service, unfair trade practice and dereliction of duty and further stating that she is not well educated and hence, they have filled up the blank signed white papers taken from her as per their convenience, and put the monies in Insurance Policy against her wish and will which is unfair on their part. Hence, she requested the respondent company several times to adjust the aforesaid monies towards the due installments in respect the two chit groups and also the Personal Loan Account but they did not do so, ignoring her repeated requests.
10. The main contention of the Respondent company is that as per the wish and letters of the complainant only, they have put the retained monies in Insurance Policies, also after explaining to the complainant the related aspects and to her satisfaction. Since, the complainant is due to the extent of 23 installments in respect of the First Chit Group and 8 installments in respect of the Second chit Group in addition to her default in Personal Loan Account, she filed this complaint and came with an unwarranted pleading to adjust the above amounts only with a view to avoid payment of the aforesaid dues and by filing this mischievous petition by bringing the FDRs issue into the picture.
11. Now the Point for consideration is, whether there is deficiency in service or dereliction in duties or unfair trade practice on the part of the respondent company?
12. From the material available on record and the oral arguments submitted by both the parties, it is evident that the Respondent Company acted as per the letters of the petitioner dated 27-05-2010 and 3-1-2011 by putting the retained monies in the Insurance Policies and they have not acted otherwise. It is also clearly established that when the payment of balance 23 and 8 due installments in both the chit groups respectively; and also default in payment of the personal loan account are insisted, the complainant conveniently came with a petition and further pleadings with regard to the FDRs issue, which is not acceptable even based on the principles of natural justice. As she clearly requested in the aforesaid letters, the respondent company put the monies in Insurance Policies and hence, it is only an afterthought of the complainant. Hence, there is no deficiency or unfair trade practice on the part of the Opposite Party.
13. However, in the Brief/Memo of Written Arguments, the Opposite Party admitted that the petitioner can apply for withdrawal of the insurance amount but till date she did not apply for the same nor surrendered the policies without which they cannot adjust the amount towards the arrears due from the complainant. In the above circumstance, we are of the considered view that the complainant can now approach the respondent company with a request to settle the amount on the Insurance Policies as per their norms applicable and adjust the same towards the due arrears, since there is no deficiency of service or dereliction in duty or unfair trade practice on the part of the Respondent Company.
14. In the result, the complaint is partly allowed directing the Complainant to approach the Respondent Company with a request to settle the amount on the Insurance Policies as per their norms by surrendering the polices in original and adjust the realized amounts towards arrears of installments due to them and the Respondent Company is directed to settle the insurance amount as per their norms within one month from today. No order as to costs and both parties are directed to bear their own costs.
Dictated to the Steno, transcribed by him, corrected by me and pronounced by us in the open Forum, this the 7th October, 2014.
President Member
C.C.No.40 of 2013
APPENDIX OF EVIDENCE
WITNESSES EXAMINED
For Complainant:- For Opposite Party:-
PW 1. RW 1.
DOCUMENTS MARKED
For Complainant:-
Ex.A-1: Bunch of receipts in chit Group No.PFR08/41 for Rs.5,00,000/- issued by the Shriram chits (P) Ltd.,
Ex.A-2: Bunch of receipts in chit Group No.PKX 12/13 for Rs.1,50,000/- issued by the Shriram chits (P) Ltd.,
Ex.A-3: Bunch of four Booklets of the Shriram chits (P)Ltd.,
Ex.A-4: Medical Records of Complainant.
For Opposite Parties:-
Ex.B1: Letter from the Complainant to OP dated 27-05-2010
Ex.B2: Letter from the Complainant to OP dated 03-01-2011
President Member
