Tamil Nadu

South Chennai

315/2011

R.Kumaresan - Complainant(s)

Versus

Margadarsi Chits Pvt Ltd - Opp.Party(s)

M/s. C.Regu Rajan

09 Oct 2018

ORDER

                                                                        Date of Filing  : 30.08.2011

                                                                          Date of Order : 09.10.2018

 

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (SOUTH)

@ 2^ND Floor, Frazer Bridge Road, V.O.C. Nagar, Park Town, Chennai – 3.

 

PRESENT: THIRU. M. MONY, B.Sc., L.L.B, M.L.                    : PRESIDENT

                 TMT. K. AMALA, M.A., L.L.B.                                : MEMBER-I

 

C.C. No.315/2011

DATED THIS TUESDAY THE 09^TH DAY OF OCTOBER 2018

                                 

R. Kumaresan,

S/o. Mr. S. Ramachandran,

No.268W, Balaji Nagar,

Paramathi Velur,

Namakkal District.                                                      .. Complainant.                                                           ..Versus..

 

 

The Manager,

Margadarsi Chits Private Limited,

‘A’ Wing 1 & 2 Parsn Manare,

No.602, Anna Salai,

Chennai – 600 006.                                                    ..  Opposite party.

          

Counsel for complainant       :  M/s. C. Regu Rajan & others

Counsel for opposite party   :  M/s. D. Shivakumaran & others

 

ORDER

THIRU. M. MONY, PRESIDENT

       This complaint has been filed by the complainant against the opposite party under section 12 of the Consumer Protection Act, 1986 praying to continue the chit No.LTO 16 TMA/17 and to transfer the chit on someone to pursue and to pay a sum of Rs.2,00,000/- towards compensation for hardship, mental agony and financial loss with cost to the complainant.

1.    The averments of the complaint in brief are as follows:-

The complainant submits that he was the prized subscriber of the chit No.LTO 16 TMA/26 and Chit No.LTO 05 BMA/32 of Rs.5,00,000/- each which were successfully closed.  The complainant submits that as he could not continue with the Chit No.LTO 16 TMA/17 amounting to Rs.5,00,000/- due to financial constraint,   he kept the account alive to enable transfer by remitting readmission charge.   The complainant submits that from the very inception as a subscriber the complainant is regularly paying the subscription without any default.  The complainant submits that the complainant issued legal notice dated:13.12.2005 not to close the chit.  The complainant submits that so far he has paid a sum of Rs.1,28,227/- till the month of November 2005.  The complainant issued repeated letters and finally legal notice dated:18.11.2010 to the opposite party for which, evasive reply dated:24.11.2010 was issued by the opposite party.  The complainant also sent a rejoinder dated:22.12.2010 for which, the opposite party has not sent any reply.  The act of the opposite party caused great mental agony.  Hence the complaint is filed.

2.      The brief averments in the written version filed by the  opposite party is as follows:

The opposite party specifically denies each and every allegation made in the complaint and puts the complainant to strict proof of the same.   The opposite party states that the complainant was the Assistant Manager in Indian Bank joined as a subscriber a chit No.LTO 16 TMA/17.   The complainant joined in 3 chits are as follows:-

Chit No.                        Amount (in Rs.)

LTA 016 TMA - 26        5,00,000/-

LTA 005 BMA – 32       2,50,000/-

LTA 016 TMA – 17       5,00,000/-

The chit Nos. LTA 016 TMA - 26 and LTA 005 BMA - 32 are closed.  The complainant joined a chit No. LTA 016 TMA - 17 in June, 2004.  The chit amount is Rs.5,00,000/- .  The period of chit is 50 months.  The monthly subscription is Rs.10,000.  The complainant paid the subscription for the 1^st month i.e. March 2004.  The complainant defaulted in payment of subscription from  the months of April, May, June and July, 2004.  The opposite party after complying the formalities invoking Sections 27 & 28 and removed the complainant from the chit group on 28.10.2004.  Thereafter, the complainant entered into a fresh agreement dated:30.11.2004.  The second time also, the complainant defaulted in payment of subscription for the month of August, September and October, 2004.  Due action initiated and the complainant is removed from the group on 28.02.2005.   Thereafter, once again, the complainant rejoined the chit and entered into a fresh agreement on 09.03.2005 once again for the third time the complainant defaulted in payment of subscription and was removed from the chit group on 30.07.2005.  Once again, the complainant rejoined the chit group on 25.08.2005 and entered into a fresh agreement.  During such rejoining, the complainant issued a cheque towards subscription for the month of July and August, 2005 which was dishonoured.  Hence, the complainant was terminated on 30.11.2005 after issue of due notice and due returns filed with the registrar.  On 01.02.2006, the complainant  sent a demand draft for a sum of Rs.20,000/- with a letter dated:01.02.2006.  While acknowledging the demand draft, the opposite party sent a letter dated:01.02.2006 and the complainant was called upon to pay the balance amount towards subscription of  Rs.41,546/-.  On 30.03.2006, the complainant sent a letter stating that he is going to transfer the chit to somebody else for which, the opposite party sent a reply informing that as per the chit agreement and the provision of the Chit Fund Act, 1982 it cannot be possible at that stage and the complainant was removed from the chit for 3 times.  There is no deficiency on the part of the opposite party.  Hence the complaint is liable to be dismissed.

3.    To prove the averments in the complaint, the complainant has filed proof affidavit as his evidence and documents Ex.A1 to Ex.A11 are marked.  Proof affidavit of the opposite party is filed and documents Ex.B1 to Ex.B18 are marked on the side of the opposite party.

4.      The points for consideration is:-

1. Whether the complainant entitled to continue the chit No.LTO 16 TMA/17 and transfer the chit to someone else as prayed for?
2. Whether the complainant entitled to a sum of Rs.2,00,000/- towards compensation for mental agony, deficiency in service etc with cost as prayed for?

5.      On point:-

Both parties filed their respective written arguments. Heard the opposite party’s Counsel also.  Perused the records namely the complaint, written version, proof affidavits, documents etc.  Admittedly, the complainant is the subscriber of the chit No.LTO 16 TMA/17 amounting to Rs.5,00,000/- and entered into Ex.A1, Agreement.  Further the contention of the complainant is that from the very inception as a subscriber the complainant is regularly paying the subscription without any default.  But the complainant has not produced any record to prove that he has paid the subscription regularly without any default.  On the other hand, it is seen from Ex.B3, Ex.B6, Ex.B9, Ex.B12 etc shows that the complainant is a chronic defaulter.   Further the contention of the complainant is that he could not continue the chit due to financial constraint and kept the chit account alive to enable him to transfer by remitting readmission charges.  His Advocate also issued notice not to close the chit.  But on a careful perusal of records, it is seen that the complainant is a chronic defaulter in payment of subscription resulting the opposite party to inform the Chit Registrar and repeatedly the complainant’s chit account was closed and removed from the said chit.   After due payment, deducting the dividend amount repeatedly the complainant was reinstated after due execution of fresh agreement etc.  Further the contention of the complainant is that so far he has paid a sum of Rs.1,28,227/- till the month of November 2005.  The complainant issued repeated letters and finally legal notice dated:18.11.2010 to the opposite party for which, evasive reply dated:24.11.2010 was issued by the opposite party.  The complainant also sent a rejoinder dated:22.12.2010 for which, the opposite party has not sent any reply.  Since the opposite party has not come forward to permit the complainant to continue the chit and has not paid the amount paid towards subscription  the complainant is constrained to file this case.  But it is seen from the records that the complainant was removed from the chit repeatedly and at long last on 30.11.2005, thereafter the complainant filed this case only on 30.08.2011 which is apparently barred by limitation. 

6.     The learned Counsel for the opposite party contended that the complainant was the Assistant Manager in Indian Bank joined as a subscriber in the chit No.LTO 16 TMA/17.   The complainant joined in 3 chits are as follows:-

Chit No.                        Amount (in Rs.)

LTA 016 TMA - 26        5,00,000/-

LTA 005 BMA – 32       2,50,000/-

LTA 016 TMA – 17       5,00,000/-

The chit Nos. LTA 016 TMA - 26 and LTA 005 BMA - 32 are closed.  The complainant joined a chit NO. LTA 016 TMA -  17 in June, 2004.  The chit amount is Rs.5,00,000/- .  The period of chit is 50 months.  The monthly subscription is Rs.10,000/-.   Ex.B1 is the Chit Agreement.  The complainant paid the subscription for the 1^st month i.e. March 2004 as per Ex.B2, receipt.  The complainant defaulted in payment of subscriptions      from the months of April, May, June and July, 2004.  The opposite party after complying the formalities invoking Sections 27 & 28 and removed the complainant from the chit group on 28.10.2004.  Thereafter, the complainant entered into a fresh agreement as per Ex.B4 & Ex.B5.  The second time also, the complainant defaulted in payment of subscription from the month of August, September and October, 2004.  Due action initiated and the complainant is removed from the group on 28.02.2005 as per Ex.B6.   Thereafter, once again the complainant rejoined the chit and entered into a fresh agreement as per Ex.B7 & Ex.B8 on 09.03.2005. Once again for the third time the complainant defaulted in payment of subscription and was removed from the chit group on 30.07.2005 as per Ex.B9.  Once again, the complainant rejoined the chit group on 25.08.2005 and entered into a fresh agreement as per Ex.B10 & Ex.B11.  During such rejoining, the complainant issued a cheque towards subscription for the month of July and August, 2005 which was dishonoured.  Hence, the complainant was terminated on 30.11.2005 after issue of due notice and due returns filed with the registrar as per Ex.B12.  On 01.02.2006, the complainant  sent a demand draft for a sum of Rs.20,000/- with a letter as per Ex.B13.  While acknowledging the demand draft, the opposite party sent a letter dated:01.02.2006 and the complainant was called upon to pay the balance amount towards subscription of  Rs.41,546/- as per Ex.B14 & Ex.B15.  On 30.03.2006, the complainant sent a letter as per Ex.B16 stating that he is going to transfer the chit to somebody else for which, the opposite party sent a reply as per Ex.B17 informing that as per the chit agreement and the provision of the Chit Fund Act, 1982 it cannot be possible at that stage and the complainant was removed from the chit for 3  times.   There is no deficiency on the part of the opposite party.  The complainant is not entitled to any amount since it is barred by limitation. Considering the facts and circumstances of the case this Forum is of the considered view that the complaint has to be dismissed.

In the result, this complaint is dismissed.    No costs.

Dictated  by the President to the Steno-typist, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the 09^th day of October 2018. 

 

MEMBER –I                                                                      PRESIDENT

COMPLAINANTS’ SIDE DOCUMENTS:

Ex.A1	26.09.2003	Copy of model chit agreement
Ex.A2	10.10.2005	Copy of legal notice to opposite party with postal receipt
Ex.A3	13.12.2005	Copy of legal notice to the complainant
Ex.A4	04.02.2006	Copy of letter to the opposite party by the complainant
Ex.A5	12.03.2006	Copy of letter to the opposite party by the complainant
Ex.A6	22.03.2006	Copy of letter to the complainant by the opposite party
Ex.A7	30.03.2006	Copy of letter to the opposite party by the complainant
Ex.A8	05.09.2008	Copy of letter to the opposite party by the complainant
Ex.A9	18.11.2010	Copy of legal notice to the opposite party with postal receipt
Ex.A10	24.11.2010	Copy of reply notice to the complainant’s Counsel
Ex.A11	22.12.2010	Copy of rejoinder to the opposite party with postal receipt

 

OPPOSITE  PARTY SIDE DOCUMENTS: 

Ex.B1	26.06.2004	Copy of Chit Agreement between the complainant and the opposite party
Ex.B2	26.06.2004	Copy of acknowledgement by the complainant for receipt of copy of Chit Agreement
Ex.B3		Copy of intimation to the Registrar of Chits about the removal of the complainant after due notice due to his default in payment of subscription (for removal on 28.10.2004)
Ex.B4	30.11.2004	Copy of Chit agreement between the complainant and the opposite party
Ex.B5	30.11.2004	Copy of acknowledgment by the complainant for receipt of copy of Chit Agreement
Ex.B6		Copy of intimation to the Registrar of Chits about the removal of the complainant after due notice due to his default in payment of subscription (for removal on 28.02.2005)
Ex.B7	09.03.2005	Copy of Chit Agreement between the complainant and the opposite party
Ex.B8	09.03.2005	Copy of acknowledgement by the complainant for receipt of copy of Chit Agreement
Ex.B9		Copy of intimation to the Registrar of Chits about the removal of the complainant after due notice due to his default in payment of subscription (for removal on 30.07.2005)
Ex.B10	25.08.2005	Copy of Chit Agreement between the complainant and the opposite party
Ex.B11	25.08.2005	Copy of acknowledgement by the complainant for receipt of copy of Chit Agreement
Ex.B12		Copy of intimation to the Registrar of Chits about the removal of the complainant after due notice due to his default in payment of subscription (for removal on 30.11.2005)
Ex.B13	01.02.2006	Copy of letter from the complainant to the opposite party with demand draft for Rs.20,000/-
Ex.B14	07.02.2006	Copy of reply by the opposite party
Ex.B15	08.02.2006	Copy of postal acknowledgment to the office
Ex.B16	30.03.2006	Copy of letter from the complainant to the opposite party
Ex.B17	22.04.2006	Copy of reply by the opposite party to the complainant
Ex.B18		Copy of complainant’s ledger account

 

 

 

MEMBER –I                                                                      PRESIDENT