Between:

G.Geetha Sudha,

W/o Madhusudhan,

R/o H.No.51/1043,

Seetaram Nagar,

Kurnool – 518 003.                                         …Complainant 

                                                                                          -Vs-      

   M/S.Chalapathi Chit Fund Private Limited,

   Represented by its Manager,

   D.No.14/01, First Floor,

   Raghuveer Towers,

 Anantapur District – 515 001.                          ...Opposite ParTy

This complaint is coming on this day for orders in the presence of Sri.H.K.Jalandher Rao, Advocate for complainant and opposite party called absent and upon perusing the material papers on record, the Forum made the following.

                                                ORDER

                         (As per Smt.S.Nazeerunnisa, Lady Member)                                                             C.C. No.17/2013

1.     This complaint is filed under section 11 and 12 of C.P. Act, 1986 praying:-

(a)          To direct the opposite party to pay the chit amount of Rs.10,00,000/- with interest @ 24% per annum from the date of the completion of the chit;

(b)          To pay a sum of Rs.25,000/- towards the compensation for mental agony and hardship;

(c)           To pay the costs of this complaint;

(d)          To any other reliefs as the Honourable Forum deems fit and proper in the circumstances of the case.

2.    The case of the complainant in brief is as under:- The complainant is the wife of G.Madhusudhan.  The said G.Madhusudhan joined as a subscriber in the opposite party chit bearing No.LT2 ZA-18 for Rs.10,00,000/-. He paid some installments of chit to opposite party and subsequently he was missing.  The Parigi Police Station Registered a case in Crime No.156/2007 and the police issued the certificate dated 11-11-2010 as the said person was “undetected” and final report was filed on 29-04-2009.   The complainant informed the same to opposite party, the opposite party insisted the complainant to pay remaining chit installments and also assured that the chit should be transferred in her name and after completion of entire chit installments, the amounts to be paid to the complainant.  Accordingly she paid all the installments regularly.  After completion of the installments she requested to opposite party for payment of chit amount.  As the opposite party not paid the amount, the complainant got issued Legal Notice dated 31-01-2011 to opposite party.  The opposite party replied the same dated 15-02-2011 by admitting the payment of amount and further false allegations.  The complainant has given reply notice to the reply notice of opposite party, the opposite party received the same but did not respond.  There is deficiency of service of the part of opposite party.  Hence the complaint.

3.     Opposite party called absent and set exparte.

4.     On behalf of the complainant Ex.A1 to A9 are marked and sworn affidavit of the complainant is filed.

5.     Complainant filed written arguments.

6.     Now the points that arise for consideration are:

                     i.        Whether there is deficiency of service on the part of Opposite Party?

                    ii.        Whether the complainant is entitled for the reliefs as prayed for?

                  iii.        To what relief?

7.      POINTS i and ii:- It is the case of the complainant that her husband G.Madhusdhan Setty joined as a subscriber in opposite party (M/S.Chalapathi Chit Fund Private Limited) bearing No.LT2 ZA 18 for Rs.10,00,000/-.  Her husband paid some installments of chit to opposite party and subsequently he was missing.  The Parigi Police Station Registered a case in Crime No.156/2007 and Sub-Inspector of Police issued certificate dated 11-11-2010, as the said G.Madhusudhan was “undetected” which is marked as Ex.A7.  Ex.A6 is the copy of Final Result of the proceeding dated 29-04-2009.  The complainant informed the same to opposite party, the opposite party assured the complainant that the chit should be transferred in her name and insisted to pay remaining chit installments.  The complainant paid entire installments of the chit to the opposite party.  Ex.A1 is the chit installments paid receipts (Nos.38) after completion of the installments, the complainant requested to opposite party for payment of amount, but the opposite party did not respond.  The complainant got issued legal notice dated 31-01-2011 to opposite party for demanding payment of amount, which is marked as Ex.A2.  The opposite party issued reply notice dated 15-02-2011 (Ex.A3) by admitting the payment of chit installments with further false allegations.  The complainant has given reply notice dated 01-03-2011 to the reply of opposite party, it is marked as Ex.A4.  The opposite party received the same under Ex.A5, but the opposite party did not take any steps to pay the amount to the complainant.

8.     It is further case of the complainant that to knock away the amount, the opposite party made false allegations that her husband stood as guarantor of B.Sarada and M.Narasimhulu and he executed guarantee agreement.  As the original members had not paid the amount of Rs.55,682/- and Rs.33,472/-, there is a “lien” over the amount of the guarantor and further stated in his reply notice that the husband of the complainant made his brother G.Uma Maheswaraiah as his nominee under the said chit fund.  The complainant filed an affidavit of G.UmaMaheswaraiah duly attested by notary stating that being the nominee he has no objection to pay the said amount to the complainant, as the wife of G.Madhusudhan under the said chit fund. It is marked as Ex.A9.  The complainant also filed a Xerox copy of House Hold Card of the complainant attested by Notary which is marking as Ex.A8 where in it is clearly mentioned that the complainant is the wife of G.Madhusudhan setty. 

9.     As seen from Ex.A6 and Ex.A7 it is clear that the husband of the complainant G.Madhusudhan was missing on 19-10-2007. The complainant paid remaining installments to opposite party.  Ex.A1 is the installments receipts.  As per Ex.A1 it is clear that the staff of opposite party collected the installment amount at Kurnool and also issued the receipts.  The opposite party also admitted the payment of amount in his reply legal notice Ex.A3.  So she is a consumer under the Consumer Protection Act.  There is no proof to show that G.Madhusudhan the husband of the complainant executed any guarantee agreement.  Taking into consideration all the material on record we are of the view that the opposite party intentionally induces the complainant to pay remaining installments subsequent to her husband was missing.  The opposite party neither transferred the subscriber name in her name nor paid the chit fund amount after the completion of installments.  We found there is deficiency of service on the part of opposite party and caused mental agony to the complainant.  As the nominee has no objection to receive the said amount by the complainant.  The opposite party is liable to pay Rs.10,00,000/- to the complainant under the Chalapathi Chit Fund.

10.    In the result, the complaint is partly allowed directing the opposite party to pay Rs.10,00,000/- along with interest 12% from the date of last installment and further direct to pay Rs.10,000/- towards mental agony and Rs.2,000/- as a cost of the case.  Time for compliance is one month from the date of the order.

        Dictated to the stenographer, transcribed by her, corrected and pronounced by us in the open bench on this the 7^th day of June, 2013.

         Sd/-                                                                                                                 Sd/-

LADY MEMBER                                                                                              PRESIDENT (FAC)              

                       APPENDIX OF EVIDENCE

                                                      Witnesses Examined

For the complainant : Nill               For the opposite party : Nill

List of exhibits marked for the complainant:-

Ex.A1                Chit installments payment receipts (Nos.38).

Ex.A2                Office copy of Legal Notice dated 31-01-2011 issued by

                complainant counsel to opposite party.

Ex.A3                Reply notice dated 15-02-2011 issued by opposite party to

                complainant counsel.

Ex.A4                Office copy of Reply Notice dated 01-03-2011 issued by

                complainant counsel to opposite party.

Ex.A5                Postal Acknowledgement.

Ex.A6                Office copy of Final Result.

Ex.A7                Office copy of Certificate dated 11-11-2010 issued by Sub

                Inspector of Police Ranga Reddy District along with House

                Hold Card.

Ex.A8                Photo copy of House Hold Card.

Ex.A9                Affidavit of G.Uma Maheswaraiah attested by Notary.

                                               List of exhibits marked for the opposite party:- NILL

        Sd/-                                                                                                                                Sd/-              

LADY MEMBER                                                                                                            PRESIDENT  (FAC)   

                                      // Certified free copy communicated under Rule 4 (10) of the

  A.P.S.C.D.R.C. Rules, 1987//

Copy to:-

Complainant and Opposite parties  :

Copy was made ready on             :

Copy was dispatched on               :