BEFORE THE  

F.A.No. 176 

Between

The Chief Manager
M/s Kapil Chit Fund (P) Ltd.,
D.No.1-8-104, Near Municipality Office
Medak

Appellants/opposite party

Mr.S.Rajeshwar S/o Sri Balaram
aged about 40 years, occ: Electrician
R/o Ramnagar colony, Medak.

                                                       Counsel for the Appellant             

Counsel for the Respondent  

 QUORUM:       SRI R.LAKSHMINARSIMHA RAO, HON’BLE MEMBER

TWO THOUSAND THIRTEEN

1.    `16,025/-to the respondents.

2.    The respondent  `2,00,000/-   `.4,000/-   `15,675/-- .The appellant removed the respondent’s name from the rolls of the chit by issuing notice dated 15.12.2009 to him.

3.    `7,000/- to the appellant which the appellant failed to receive and he came to know that the appellant by the time allotted the chit ticket to some other person.

4.    `16,025/- paid by him and he requested the appellant to go through the news items in regard to the order of this Commission against the appellant that in case another subscriber is substituted the chit fund company cannot collect commission from both subscribers.

5.    `15,675/-/-. It is contended that as per the terms of chit agreement, on the subscriber committing default of three successive instalments, his membership would be terminated and he has to pay 5% of the chit value as liquidated damages. letter dated 15.12.2009. After deducting 5% commission from the amount received from the respondent, the appellant expressed its readiness to pay the amount of`10,150/- to the respondent.

6.    The Legal Officer of the appellant company 

7.    the contents of the chit agreement are in fine print and they were not brought to the notice of the appellant and the appellant admitted the respondent as member in the chit group without verifying his paying capacity to subscribe to the chit ticket.                                                                                                                                                                                                                                                                                                                         

8.    Aggrieved by the order of the District Forum, the opposite party has filed appeal contending that the District Forum had not considered the evidence in correct perspective and that the District Forum failed to consider that the respondent had not paid chit installments

9.    

1. appellant

2. To what relief?

10.   :    `2,00,000/-. 

11.   thrd

12.   th

13.    

14.    

If a non-prized Subscriber fails to deposit his/her monthly subscription before the due date, an interest shall be charged @ 18% per annum.   

If a Non-prized Subscriber fails to pay subscription for three consecutive instalments, he shall be liable to be removed from the list of Subscribers and the Foreman, at his option, shall be entitled to substitute a new Subscriber in place of defaulting Subscriber or may himself subscribe for the ticket and the defaulted ticket of the chit will be dealt with in accordance with the relevant provisions of the Chit Funds Act.

The Foreman, at his discretion, can waive the interest partly or fully and can also postpone the removal of membership in suitable and deserving cases.   . 

15.    

“ The bye laws have the force of law. Section 21(a) of the laws reads as under:

21. 

(a)    

The Foreman, at his discretion, can waive the penalties partly or fully and also postpone the removal, in suitable and deserving cases.  

A cancelled member is entitled to the amount actually subscribed by him, i.e., exclusive of dividends, less 5% of the chit amount towards damages for breach of contract, 

16.           

We observe from the record             

The learned counsel for the appellant/opp.party         

17.             

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19.     

                                                                               MEMBER

కె.ఎం.కె*