BEFORE THE A.P.STATE CONSUMER DISPUTES REDRESSAL COMMISSION-HYDERABAD
F.A.No.843/2008 AGAINST C.C.No.71/2008, DISTRICT FORUM PRAKASAM AT ONGOLE
Between-
M/s.Kapil Chit Funds Pvt. Ltd.,
Rep. by its Manager cum Foreman,
Branch Office at Nehru Street,
Markapur, Prakasam District. Appellant/Opp.Party.
And
Mr.Avula Alluri, S/o.Rangaiah, aged
About 26 years, Occ-Finance Business,
R/o.D.No.7-547, Nagulaputta Veedhi,
Markapur, Prakasam District. Respondent/Complainant
Counsel for the Appellant- Sri M.Amarnath
Counsel for the Respondent-- Admission Stage.
Coram- THE HON’BLE SRI JUSTICE D.APPA RAO, PRESIDENT.
SMT.M.SHREESHA, MEMBER.
AND
SRI G.BHOOPATHI REDDY, MEMBER.
TUESDAY, THE FIFTEENTH DAY OF JULY,
TWO THOUSAND EIGHT.
ORAL ORDER- (Per Smt.M.Shreesha, Hon’ble Member)
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Aggrieved by the order in C.C.No.71/2008 on the file of District Forum, Prakasam at Ongole, opposite party preferred this appeal.
The brief facts as set out in the complaint are that the complainant joined as a member of opposite party in chit group MRTOLG/27, commenced in the month of April, 2006, value being Rs.2,00,000/- payable at Rs.4,000/- per month in 50 equal monthly instalments. He became the highest bidder on 28-4-2007, bid amount is Rs.83,500/- and the opposite party has to pay Rs.1,16,500/-. Opposite party furnished him surety proposal form. The complainant submitted in May, 2007, he submitted EC, valuation certificate, title deeds and link documents for the satisfaction of opposite party to process his payment and opposite party has also taken signatures on blank promissory notes and other documents and assured that they will make payment through cheque and acknowledged receipt of the above documents. It is the case of the complainant that they postponed the payment on some pretext or the other and did not communicate anything in this regard. The complainant submitted salary certificate of 4 employees in the 1st week of September, 2007 but he came to know that due to financial inability, the opposite party is unable to pay the amount. Hence the complaint for a direction to the opposite party to pay the chit amount of Rs.1,16,500/- with interest at 24 percent p.a. from the date of auction till realization after deducting the net monthly instalments on the due date payable by the complainant without any interest and to direct them to return the title deeds or salary certificates and to pay Rs.1,00,000/- towards compensation and Rs.5,000/- towards costs.
Opposite party filed counter stating that the complainant did not paid the chit instalments since May, 2007 onwards and on the date of auction i.e. 28-4-2007, he paid only a contribution amount of Rs.37,422/- after allowing dividends accrued on the paid instalments. The complainant on payment of the bid loss amount of Rs.53,000/- and arrears of instalments upto date in the chit, can participate in the next auction and in the event if the bid is confirmed in his favour, he is entitled to the prize amount as per the latest auction after furnishing sufficient sureties to their satisfaction. In the event, the complainant do not want to continue in the said chit, he shall immediately pay the sum of Rs.25,578/- to opposite party after adjustment of the paid amount of Rs.37,422/- and submitted that there is no deficiency of service and prayed for dismissal of the complaint.
Based on the evidence adduced i.e. Exs.A1 to A5 and B1 to B12 and the pleadings put forward, the District Forum allowed the complaint directing the opposite party to pay Rs.27,422/- with subsequent interest at the rate of 12 percent p.a. from 28-4-2007 till the date of realization together with Rs.2,000/- towards compensation and Rs.1,000/- towards costs. It further directed to comply the above order within four weeks, failing which the opposite party was directed to pay further compensation of Rs.5,000/-
Aggrieved by the said order, t
