| ORDER | | BEFORE THE DISTRICT CONSUMERS FORUM AT KHAMMAM Dated this, the 1st day of December, 2010 CORAM: 1. Sri Vijay Kumar, B.Com., LL.B., President 2. Smt.V.Vijaya Rekha, B.Sc. B.L., Member 3. Sri.R.Kiran Kumar, B.Sc., LL.B., Member C.C.No.27 of 2009 Between: Md.Khaja Moinuddin, s/o.Gulam Dastagir, age: 57 years, occu: Advocate clerk, r/o.H.No.8-4-148/1, near Ratidarwaja, Khammam Town and District. …Complainant and Margadarshi Chit Funds Pvt. Ltd., rep. by its Foreman, Khammam, r/o.Wyra Road, Khammam. …Opposite party This C.C. is coming on before this Forum for final hearing in the presence of Sri.G.Brahmaiah, Advocate for complainant and of Sri.G.Madhava Rao, Advocate for opposite party; upon perusing the material papers on record; upon hearing the arguments, and having stood over for consideration, till this day, this Forum passed the following:- ORDER (Per Sri.Vijay Kumar, President) This complaint is filed u/s.12-A of Consumer Protection Act, 1986. The averments made in the complaint are that the complainant is the subscriber of opposite party chit company, joined as a subscriber in the chit series No.LT-178-MM-21 to be subscribed into 50 monthly installments at the rate of Rs.2,000/- per month. The complainant participated in the auction conducted by the opposite party and became successful bidder and submitted the sureties as required by the opposite party and received the bid amount, being the prized subscriber has paying monthly installment regularly. The complainant again joined in another chit series No.LT-189-MM-36 to be subscribed into 50 installments @ Rs.2,000/- per month and has paid 14 installments and that he paid an amount of Rs.28,000/- to the opposite party and participated in the chit auction and became successful bidder. The complainant tried to submit sureties, but was unable to submit three sureties as demanded by the opposite party and submitted a letter to the opposite party to permit him to submit two sureties instead of three sureties, to withdraw the chit amount vide letter, dt.29-8-2006. Though the opposite party received letter, but they did not give any response or reply to him. Since the complainant was in dire need of the amounts to perform his son’s marriage, he borrowed the amount on interest. On account of avoidance of opposite party in paying chit amounts, the opposite party had committed deficiency of service. The complainant sent a letter to the opposite party on 10-3-2007 and on 2-4-2007 requesting the opposite party to adjust the amount of Rs.28,000/- paid as installments in chit No.LT-189-MM-36 in the chit series No.LT-178-MM-21, but the opposite party failed to adjust the amount. The opposite party had issued a letter on 23-3-2007 demanding to pay the entire amount in the chit No. LT-178-MM-21 without adjusting the amount of Rs.28,000/- paid by the complainant and threatened the guarantors to pay the entire amount. Hence, he filed this complaint for the refund of Rs.28,000/- which was already paid by him and to award Rs.50,000/- towards damages. 2. On receipt of the notice, the opposite party appeared through their counsel and filed counter and denied the averments made in the complaint. The opposite party admitted that as the complainant committed default in payment of monthly installments regularly from 10-12-2006 (32nd installment) in respect of chit No.LT 178 MM-21 and after serving the legal notice, dt.11-4-2007 as required under the provisions of Chit Fund Act filed a suit in O.S.No.128/2009 against the complainant and the guarantors, which is pending on the file of Prl. Junior Civil Judge, Khammam. It is further admitted in the counter that the complainant joined in chit No. LT 189 MM 36 and paid 13 installments @ Rs.2,000/- per month and declared himself as a successful bidder, thereafter he became defaulter. It is submitted that the opposite party has not received letter sent by the complainant. When the said notice was not received by them, the question of reply does not arise at all. It is further contended in the counter that the opposite party has issued legal notice on 11-4-2007 and the same was acknowledged by the complainant on 20-4-2007, which is subsequent to the alleged letter dt.29-8-2006, alleged to have addressed by the complainant. Though the said notice was acknowledged by the complainant, he did not raise any whisper in his complaint regarding the legal notice, dt.11-4-2007. The complainant failed to furnish guarantors the opposite party sent a letter on 6-4-2006 informing the complainant that the prized amount has been deposited in approved bank in current account, in compliance with the provisions of the Chit Fund Act. The complainant had paid 14th installment on 27-4-2006, his request for refund of the amount was not considered, as it is not permissible. There is no deficiency of service on the part of opposite party, the complainant is not entitled for any damages as alleged in the complaint. The prized amount has already been deposited in the bank and the same was informed to the complainant and it was adjusted every month towards future subscription of the complainant and after such adjustment of 15th to 49th month, by April, 2009 an amount of Rs.8,576/- is lying to the credit, which is to be adjusted to the suit account (O.S.No.128/2009) as the opposite party is having lien over such amount as per the provisions of the Chit Fund Act, Rules and Bye-laws and prayed to dismiss the complaint. 3. On behalf of the complainant, the following documents are filed and marked as Exs.A.1 to A.5 Ex.A.1 - copy of letter sent by the complainant to the opposite party with courier receipt, dt.29-8-2006. Ex.A.2 - Copy of letter sent by the complainant to the opposite party with courier receipt, dt.10-3-2007. Ex.A.3 - Copy of letter sent by the complainant to the opposite party with courier receipt, dt.2-4-2007. Ex.A.4 - Letter got issued by the opposite party to the complainant, dt.23-3-2007. Ex.A.5 - Photocopies of receipts (Nos.12) 4. On behalf of the opposite party, chief affidavit is filed and following documents filed and marked as Exs.B.1 to B.4. Ex.B.1 - Bye-Laws No.377/04-05 Ex.B.2 - Agreement of chit, dt.15-3-2005 Ex.B.3 - certified photocopy of written statement filed by the complainant as D.No.1 in O.S.128/2009 Ex.B.4 -Computer extract copy of ledger in respect of LT-189-MM-36 of the complainant. 5. Both the parties filed written arguments. Heard both sides. Perused the oral and documentary evidence. Upon which the points that arose for consideration are, 1. Whether the complainant is entitled to ask for the refund of the amount of Rs.28,000/-? 2. To what relief? Point No.1: 6. It appears that the complainant is a subscriber of chit series No. LT 178 MM-21 to be subscribed into 50 monthly installments at the rate of Rs.2,000/- per month and he is also the subscriber of another chit series No. LT-189-MM-36 to be subscribed into 50 installments @ Rs.2,000/- per month. In both the chits, he became successful bidder. In the first chit he submitted sureties and received the chit amount and has been paying monthly installments regularly. As regards the another chit, which is the subject matter of this complaint, he became a successful bidder and paid 14 installments, i.e.Rs.28,000/-, instead of three sureties, the complainant requested the opposite party to permit him to submit two sureties to withdraw the chit amount. On this aspect of the case is concerned, he referred to a letter, dt.29-8-2006 and also professional courier receipt bearing No.486877, which is sent to the opposite party, but there was no response to the said request. On the other hand, the opposite party has totally denied that the complainant has sent such letter to him, as the complainant being unpaid prized subscriber, who became a defaulter from 15th installment onwards, the prized amount was deposited in the current account of the bank. As the complainant failed to furnish some security to receive prized amount, the same was intimated to the complainant on 6-4-2006 by way of registered post and intimated to the complainant that the prized amount has been deposited in approved bank in current account. It is for the complainant to furnish sufficient security for due payment of future subscription. The request of the complainant to adjust the amount of Rs.28,000/- is not permissible and he is not entitled for any such adjustment. The learned counsel for the opposite party vehemently argued and submitted that as per Bye-Laws, Ex.B.1 at col.No.17 it is mentioned that the subscriber must furnish necessary security or sureties to the satisfaction of the foreman. On a careful perusal of Ex.B.1, at para 14 clearly postulates regarding the security to be furnished. The prized subscriber must furnish necessary security or sureties to the satisfaction of the foreman for payment of future installments. On the other hand the learned counsel for complainant refers to Formation & Management of Chit Funds, wherein at Para No.17-A, it is postulated that two permanent employees of the State or Central drawing an unencumbered minimum monthly basic pay required for future installments, in case where the future liability is Rs.50,000/- or less. Thus, it became clear that two sureties are sufficient to meet the future liability. In this particular case where the future liability is not exceeding Rs.50,000/-. It is not out of place to mention here that though the complainant has offered to furnish two sureties to the satisfaction of the Foreman, but it was not accepted. Instead of making payment to the complainant, the said amount is deposited in bank on the ground that the complainant failed to furnish the sufficient security and made him disentitled to receive the prized amount. 7. The learned counsel for the complainant vehemently argued and made reliance to a decision reported in 2000 ALD (Cons.) 84 wherein their lordships held that refund of amounts paid by subscriber of the chit in case if he discontinued, the opposite party is bound to refund the amount. In this case also the complainant joined in the chit to be paid in 50 monthly installments at the rate of Rs.2,000/- per month and paid 14 installments. The total amount paid by the complainant is Rs.28,000/-, thereafter he committed default then he claimed for the payment of the prized amount, the opposite party did not pay to him, though he offered to furnish two sureties, nor refunded the installments paid by him. 8. The complaint is filed under Consumer Protection Act, 1986 and the relief is being granted to the complainant on the basis of deficiency of service on the part of opposite party, therefore Tribunals under Consumer Protection Act, 1986 are not bound by section 61 of the A.P. Chit Fund Act, 1971, because the complainant is not under that Act. Therefore, the amount with held by the opposite party is without any justification whatsoever, the complainant is entitled for the refund of the said amount with interest. 9. The complainant is declared as a successful bidder and inspite of offering two sureties as required under the Act, the opposite party failed to pay the prized amount of Rs.50,000/-. This act on the part of opposite party is a kind of violation of privity of contract and amounts to deficiency in service. Therefore, the complainant has decided to discontinue/withdraw from the chit and therefore he is entitled for the refund of the amount paid by him. In view of the aforesaid authority, the opposite party is directed to refund the amount of Rs.28,000/- paid by the complainant together with interest at 9% P.A. from the date of filing of the complaint till the date of deposit, Rs.5,000/- towards damages and Rs.1,000/- towards costs of the litigation. 10. Accordingly, the complaint is disposed off, directing the opposite party to refund an amount of Rs.28,000/- paid by the complainant together with interest at 9% P.A. from the date of filing of the complaint till the date of deposit, Rs.5,000/- towards damages and Rs.1,000/- towards costs of the litigation. Dictated to the steno, transcribed by her, corrected and pronounced by us in the open forum on this 1st day of December, 2010. PRESIDENT MEMBER MEMBER DISTRICT CONSUMERS FORUM KHAMMAM Appendix of Evidence Witnesses examined for complainant: - None- Witnesses examined for opposite parties: - None- Exhibits marked for complainant: Ex.A.1 - copy of letter sent by the complainant to the opposite party with courier receipt, dt.29-8-2006. Ex.A.2 - Copy of letter sent by the complainant to the opposite party with courier receipt, dt.10-3-2007. Ex.A.3 - Copy of letter sent by the complainant to the opposite party with courier receipt, dt.2-4-2007. Ex.A.4 - Letter got issued by the opposite party to the complainant, dt.23-3-2007. Ex.A.5 - Photocopies of receipts (Nos.12) Exhibits marked for opposite parties : Ex.B.1 - Bye-Laws No.377/04-05 Ex.B.2 - Agreement of chit, dt.15-3-2005 Ex.B.3 - certified photocopy of written statement filed by the complainant as D.No.1 in O.S.128/2009 Ex.B.4 - Computer extract copy of ledger in respect of LT-189-MM-36 of the complainant. PRESIDENT MEMBER MEMBER DISTRICT CONSUMERS FORUM KHAMMAM | |
