BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION AT BANGALORE (URBAN)

DATED 12^TH DAY OF JUNE 2023

ORDER

SMT.M.SHOBHA, PRESIDENT

1. The complaint has been filed under Section 35 of C.P.Act (hereinafter referred as an Act) against the OP for the following reliefs against the OP:-

1. Direct the Ops to pay Rs.4,00,000/- with interest at 18% p.a., from November 2020 to till date of the complaint and pass such other order.
2. Direct the OP to pay Rs.50,000/- as compensation for causing mental agony.
3. Cost of the complaint
4. Pass such other direction that this Hon’ble Commission deems fit to grant in the interest of justice and equity.

2. The case set up by the complainant in brief is as under:-

The complainant filed this complaint for refund of chit amount due by the Ops, thereby causing loss which amounts to deficiency in service rendered by the OP and that has caused lot of inconvenience and financial loss to the complainant.

3. The complainant working in a private company and her family eking out their livelihood based on the monthly salary of the complainant derived from her job. The complainant came to know the OP through her cousin and based on her faith in the OP chit fund company and influenced by the OP and by believing their words the complainant become a subscriber to the chit scheme with effect from 05.08.2019.

4. It is further case of the complainant that the complainant understood that the scheme is a part of saving for her future, she has subscribed for a chit for the value of Rs.4,00,000/- payable at the rate of Rs.10,000/- for a period of 40 months with OP chit company.  Every month the monthly subscription amount was transferring from complainant’s ICICI bank account to Ops central bank account through electronic transfer since the bid amount was very huge she could not bid the chit amount in the middle. Finally the chit was allotted with maturity value of Rs.4,50,000/-.

5. It is the main grievance of the complainant that after completion of the maturity period the complainant has approached the Ops personally and made several correspondences to refund the chit amount due Rs.4,00,000/-.  The complainant herself along with other chit members repeatedly request the OP personally and as well as by phone to return the complete chit amount, but instead of refunding the chit amount the Ops had always postpone to refund the chit amount. During the last week of May 2021 the Ops have taken one year time to pay the amount due to the death of father of OP1 and husband of OP2.  The complainant and other chit members considering the fact on the humanity ground waited for one year.  After that they tried to approach the Ops and to their shock and surprise the Ops have shifted their residence to other location and thereby avoiding the meeting of the clients and phone calls.

6. It is further case of the complainant that the Ops being a responsible chit company in the society doing the chit business and they have acted in most negligent and unfair manner in dealing with the complainant. There is a deficiency of service on their part which resulted in mental agony and pushed the complainant into a pathetic condition.  The complainant has got issued legal notice on 14.12.2022 which was refused by the Ops and returned to complainant advocate office on 16.12.2022. Hence the complainant has filed this complaint.

7. Notice was sent to the OPs through RPAD, but the Ops have refused the same and Ops remained absent.

8. The complainant has filed his affidavit evidence and relies on 04 documents. 
9. Heard the arguments of advocate for the complainant. Perused the written arguments filed by the complainant.

10. The following points arise for our consideration as are:-

1. Whether the complainant proves deficiency of service on the part of OP?
2. Whether the complainant is entitled to relief mentioned in the complaint?
3. What order?

11. Our answers to the above points are as under:

Point No.1:  Affirmative

Point No.2: Affirmative in part

Point No.3: As per final orders

REASONS

12. Point No.1 AND 2: These two points are inter related and hence they have taken for common discussion.  We have perused the allegations made in the complaint, affidavit evidence of complainant, written arguments and documents filed by the complainant.  Though notice was sent to the Ops, same was returned as they have refused. Hence OPs neither challenged the allegations made in the complaint and also documents and they remained unchallenged.

13. The complainants have filed there affidavit evidence, reiterated all the allegations made in the complaint. In addition to that she has relied on four documents. Document No.1 is the chit fund pass book, document No.2 is the copy of the bank statement, document No.3 is the legal notice and document No.4 is the copy of the aadhar card of the complainant.
14. The complainant who is working in a private security agency and she and her family is eking out their livelihood from her earnings.  The complainant has agreed to join the OP chit fund company impressed by the words of the Ops and approached them for subscribing the chit fund account.  The Ops have issued chit fund pass book as document No.1 and it clearly discloses that the complainant has started paying the amount from 05.08.2019 and she has continuously paid the subscription amount for 40 months amounting to Rs.4,00,000/-.  After payment of the amount and after arrival of the maturity period till this date chit amount has not refunded by the Ops.  The complainant and other members have constantly and consistently approaching the Ops personally and telephonically despite the same the Ops have failed to refund the chit amount and thereby they have committed deficiency of service.  At last the Ops have taken one year time due to the death of father of the OP1 and husband of OP2 the complainant and other chit members have waited for one year on the humanitarian ground. After that the Ops have left their residential house and they have started residing in the unknown address.  They were not available for contact by the complainant.
15. She has also got issued legal notice.  The notice was returned as refused.

16. The complainant has relied on the decision of two judgements rendered by the FAC, in Sri Satyanarayana –vs- M/s Sri.Rishab Chit Fund India Pvt. Ltd., and the decision of Mohd Ali Pashi –vs- M/s Kapil Chit fund Pvt. Ltd.

17. The facts and circumstances in the above decisions and the facts and circumstances in this case are one and the same.  In the above two decisions, the Hon’ble FAC has relied on the decisions of the Hon’ble NCDRC in Udayapur Cement works –vs- Punjab Water Supply & Sewerage Board and the decision of the Hon’ble High Court of Andhra Pradesh, Branch Manager, Margadarshi Chits –vs- District Consumer Disputes, reported in AIR 2004 AP 343.  It is clearly held in this decision that the service means, service of any descriptions which is made available to potential users and includes the provision of facilities in connection with banking, financing, insurance, transport, processing, supper of electrical and other energy, board or lodging or both housing construction entertainment, amusement or the purveying of news or other information but does not include the rendering of any service free of charge or under a contract of personal service.  It is clearly held by the High Court of Andhra Pradesh that the chit fund companies are amenable to the jurisdiction of the consumer commissions under the provisions of C.P.Act 1986.

18. It is the duty of the Ops to refund the amount after termination of the chit. Inspite of service of the notice from this Commission, the Ops remained absent and they have not contested the complaint by appearing before this Commission and it clearly discloses their negligence and non refund of the chit fund amount to the complainant. It is nothing but deficiency of service by the OP1 and 2.

19. The complainant has paid the chit amount from her salary and the entire family of the complainant is depending on the salary of the complainant to eke out their livelihood. The complainant decided to become the subscriber of the OP chit fund company in order to save her money. When the OPs have failed to refund the amount after the maturity and after completion of the chit period of 40 months the complainant has suffered mental agony and even she has waited for one year in view of the assurance given by the OP1 and 2.  Instead of refund the amount the Ops have left their permanent address and they are started residing in some unknown address and they are avoiding the calls from the complainant and other chit members.  The conduct of the Ops clearly discloses that they are negligent and they have committed deficiency of service and also unfair trade practice on their part. Instead of refunding the amount they have left the address by cheating the chit members.

20. Under these circumstances the complainant is entitled for the relief claimed in this complaint. The complainant has clearly established the negligence and deficiency in service and the unfair trade practice on the part of the Ops. Hence we answer point No.1 in affirmative and point No.2 partly in affirmative.

21. Point No.3:- In view the discussion referred above complaint is liable to be allowed in part.  Ops are liable to pay a sum of Rs.4,00,000/- with interest at 12% p.a., from November 2020 to till the date of realization.  Ops are liable to pay compensation of Rs.50,000/- for causing mental agony and torture with litigation expenses of Rs.20,000/- to the complainant. we proceed to pass the following;

O R D E R

1. The complaint is allowed in part.
2. Ops are directed to pay a sum of RS.4,00,000/- with interest at 12% p.a., from November 2020 to till the date of realization. 
3. Ops are further directed to pay compensation of Rs.50,000/- for causing mental agony and torture with litigation expenses of Rs.20,000/- to the complainant.
4. The OPs shall comply this order within 60 days from this date, failing which the OP shall pay interest at 14% p.a. after expiry of 60 days on Rs.4,00,000/- till final payment.
5. Furnish the copy of this order and return the extra pleadings and documents to the parties.

(Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Open Commission on this 12^th day of JUNE, 2023)

Documents produced by the Complainant-P.W.1 are as follows:

Documents produced by the representative of opposite party;

NIL