Date of filing:4.4.2013
Date of Disposal:10.1.2014.
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II::
VIJAYAWADA, KRISHNA DISTRICT.
Present: SRI A. M. L. NARASIMHA RAO, B.SC., B. L., PRESIDENT
SMT N. TRIPURA SUNDARI, B. COM., B. L., MEMBER
SRI S.SREERAM, B.COM., B.A., B.L., MEMBER
FRIDAY, THE 10th DAY OF JANUARY, 2014.
C.C.No.71 OF 2013.
Between :
Sri Pradeep Goel, S/o Hansraj Goel, Hindu, 40 years, Business, R/o Labbipeta, Vijayawada – 10.
….. Complainant.
And
M/s Kapil Chits (Kosta) Pvt., Ltd., Rep., by its Branch Manager, D.No.20-27-51, Museum Road, Governerpet, Vijayawada, Krishna District.
…..Opposite Party.
This complaint is coming before us for final hearing on 7.1.2014 in the presence of Sri S.Tulasi Ram, Counsel for complainant and Sri S.S.C.Bose, Counsel for opposite party and upon perusing the material available on record, this Forum delivers the following:
O R D E R
(Delivered by Hon’ble Member Smt N. Tripura Sundari)
This complaint is filed under Section 12 of the Consumer Protection Act, 1986.
1. The averments of the complaint are in brief:
The complainant joined as a member in two chits bearing ticket Nos.38 and 40 for Rs.10 lakhs each payable in 40 monthly instalments at the rate of Rs.25,000/- each. The complainant bid the chit bearing No.38 and the opposite party paid the bid amount. At the time of payment of prize money under Chit No.38, the opposite party deducted a sum of Rs.15,000/- towards subscription for health club, for which the complainant herein filed a complaint before this Forum C.C.No.324/11 and the same was allowed with a direction to the opposite party herein to return the subscription amount of Rs.15,000/- along with interest at 9% per annum. As the opposite party failed to pay the said amount the complainant filed P.P. and thereafter the opposite party paid the ordered amount. The complainant paid 24 instalments under both the chits and he has to pay 16 instalments by the end of December, 2012. While the matter stood thus, having grudge against the complainant, the opposite party deducted a sum of Rs.50,000/- towards interest and penal charges from the non-prized chit No.40 without any prior notice. The complainant has to pay an amount of Rs.1,19,775/- as on February, 2013. The opposite party did not give any dividend to the complainant and when the complainant questioned about the same, they gave arrogant replies, which amounts to deficiency in service. Hence the complainant is constrained to file this complaint against the opposite party praying the Forum to direct the opposite party to refund Rs.50000/- collected from the complainant together with interest at 9% per annum; to return the interest amount, penalties and dividends to a tune of Rs.1,00,000/- to the complainant, to pay Rs.10,000/- towards compensation for mental agony and to pay costs.
2. The version of the opposite party is in brief:
The opposite party denied all the allegations of the complaint and submitted that the complainant is a subscriber of the opposite party’s chit fund company having two chits vide ticket Nos.FVWLOZP-38 and FVWLOZP-40. The complainant participated and prized the Chit No.38, and he is liable to pay Rs.6,00,000/- future liability in respect of chit No.38 at the time of receiving the prize amount. The complainant gave lean chit No.40 (non-prized) for Rs.2,86,400/- and also kept insurance bonds for security of future liability of chit No.38. As the complainant committed default of chit amounts in both chits, the opposite party sent several reminders and notices under registered post with acknowledgements and the said notices were received by the complainant but he kept quiet. The complainant also sent notice to opposite party and the opposite party sent reply notice. As the complainant failed to pay the arrears of chit amount, the lien amount was adjusted from chit No.40 to chit No.38 as per law. The opposite party informed this facts before and after adjustments and finally the complainant chit No.40 was removed as per law. The opposite party explained all the facts in its reply notice dated 14.9.2012 to the notice of the complainant dated 11.8.2012 Thereafter the complainant issued re-joined on 13.10.2012 and opposite party issued reply notice dated 22.10.2012. The opposite party clearly mentioned in its notice that the opposite party collected Rs.50,000/- only towards company commission as per chit agreement, but not towards penalty. If the complainant paid the entire dues, the opposite party will return the LIC bonds which were kept for security with the opposite party. The complainant did not pay the arrears to the opposite party. There is no deficiency in service on the part of opposite party towards the complainant hence prayed to dismiss the complaint with costs.
3. On behalf of the complainant he gave his affidavit and got marked Ex.A.1 and Ex.A.2 and on behalf of the opposite party Sri Karra Srinivas, Branch Manager gave his affidavit and got marked Ex.B.1 to Ex.B.16.
4. Heard and perused.
5. Now the points that arise for consideration in this complaint area:
1. Whether there is any deficiency in service on the part of opposite party
towards the complainant in collecting the excess amount of Rs.50,000/- and in
not returning the secured L.I.C. bonds to the complainant?
2. If so is the complainant entitled for any relief?
3. To what relief the complainant is entitled?
POINTS 1 AND 2:-
6. On perusing the documents the complainant joined as a member in chit funds of opposite party in two chits Ex.A.1 ticket Nos.38 and 40 for Rs.10 lakhs each payable in 40 monthly instalments at the rate of Rs.25,000/- each. He bid the chit No.38 and the opposite party paid bid amount. As per Ex.A.1, the complainant paid upto 18 instalments in both chits totaling to Rs.4,50,000/- in each. The complainant says that the opposite party deducted a sum of Rs.50,000/- from chit No.40 towards interest and penal charges without prior notice from the non-prized chit. As per Ex.A.2 the complainant has to pay Rs.1,19,175/- as on February, 2013.
7. The opposite party says that the complainant prized the chit No.38 and he is liable to pay Rs.6,00,000/- future liability in respect of the said chit. So he gave lien chit No.40 which is non-prized and also kept insurance bonds with the opposite party for future liability of chit No.38. As the complainant committed default in both chits. The opposite party served notice Ex.B.1 dated 16.11.2011 stating that the complainant’s chit lien FVWLO2P-40 amount was transferred to prized chit No.38 as the complainant did not pay the chit No.38 dues. The complainant received the same under Ex.B.2. The opposite party sent another notice Ex.B.3 dated 10.4.2012 stating that the complainant was not paying instalments from January, 2012 to April, 2012 in chit No.40, which was given as lien to chit No.38. Hence the chit amount laid in chit No.40, the lien amount should be transferred to chit No.38. The complainant received the said notice under Ex.B.4. The opposite party sent Ex.B.5 dated 12.4.2012 stating that it was confirmation notice of complainant’s removal from membership from chit No.40 and it was terminated as per the Chit Fund Act. The total amount paid by the complainant was Rs.3,31,600/- less 5% of the chit amount towards damages for breach of contract Rs.50,000/- and incidental charges Rs.150/- net amount due to the complainant Rs.2,81,450/-. As the complainant failed to pay the arrears of chit amount, his lien chit No.40 amount was transferred to chit No.38 dues and a notice Ex.B.8 dated 17.7.2012 was sent to the complainant and the complainant received the same under Ex.B.9. On receiving Ex.B.8 notice from the opposite party the complainant sent a legal notice Ex.B.10 dated 11.8.2012 demanding the opposite party to send account copy of the chits and to return the L.I.C. bonds. The opposite party issued a reply legal notice Ex,.B.11 dated 14.9.2012 through its advocate with all details that at the time of receiving the bid amount in chit No.38, the future liability of the complainant in that chit was Rs.6,00,000/- and he gave lien the chit No.40 amount and L.I.C. bonds as surety. As the complainant failed to pay the arrears in both chits the amount laid in the chit No.40 was adjusted to the due of chit No.38 and it was terminated as per Chit Fund Act. The same was informed to the complainant and the complainant was due of Rs.1,23,850/- and without clear the due amount in chit No.38, it is not possible to return the L.I.C. bonds. The complainant received the same under Ex.B.12 and issued re-joinder notice Ex.B.13 stating that deduction of Rs.50,000/- towards penalty and other charges are not maintainable under law and demand to sent detailed account copies of Chit Nos.38 and 40 and the details of the allottee of chit No.40 after its termination. The opposite party got issued reply legal notice to Ex.B.13 under Ex.B.14 dated 22.10.2012 stating that the deduction of Rs.50,000/- was towards company commission as per chit agreement Ex.B.16 dated 17.12.2010 and to receive the L.I.C. bonds after paying the arrears of chit No.38.
8. On going through the Ex.B.16 chit agreement under chit Fund Act the terms and conditions in para VI Clause 1. Non-prized subscriber: 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 default continues for more than two months, the subscriber will not be entitled to dividends in addition to the aforesaid interest charges. A subscriber who has not made upto-date payments of all the instalments due from him/her, will not be permitted to bid in the auction.
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. A removed subscriber, not substituted, may be re-admitted on such terms as the foreman deems proper. A removed subscriber 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. This amount is payable on application at the end of the chit period or earlier, if the vacancy is substituted”.
9. The complainant and the opposite party signed on the said agreement. Therefore we the Forum agreed with the submissions of the opposite party and we hold that there is no deficiency in service on the part of opposite party towards the complainant in deducting the amounts from the complainant’s non-prized chit and not returning the L.I.C. bonds as per chit fund terms and conditions. The complainant is not entitled to get Rs.50,000/- as it is 5% commission of the chit to the opposite party. The complainant is also not entitle to get L.I.C. bonds back without paying the arrears of the prized chit to the opposite party. Accordingly these points are answered.
POINT No.3:-
10. In the result, the complaint is dismissed without costs.
Typewritten by Stenographer K.Sivaram Prasad, corrected by me and pronounced by us in the open Forum, this the 10th day of January, 2014.
PRESIDENT MEMBER MEMBER
APPENDIX OF EVIDENCE
WITNESSES EXAMINED
For the complainant: For the opposite party:-
P.W.1 Sri Pradeep Goel D.W.1 Karra Srinivas
Complainant Branch Manager of the
(by affidavit) opposite party
(by affidavit)
DOCUMENTS MARKED
On behalf of the Complainant:
Ex.A.1 . . Two Pass books.
Ex.A.2 . . Ledger from 1.1.2011 to 19.2.2013
For the opposite party:-
Ex.B.1 16.11.2011 Letter from the opposite party branch at Bandar Road,
Vijayawada to the complainant.
Ex.B.2 . . Postal acknowledgement.
Ex.B.3 10.04.2012 Letter from the opposite party branch at Bandar Road,
Vijayawada to the complainant.
Ex.B.4 . . Postal acknowledgement.
Ex.B.5 12.04.2012 Letter from the opposite party branch at Bandar Road,
Vijayawada to the complainant.
Ex.B.6 23.04.2012 Default Subscriber Statement issued by the opposite party
branch at Bandar Road, Vijayawada to the complainant.
Ex.B.7 . . Postal acknowledgement.
Ex.B.8 17.07.2012 Letter from the opposite party branch at Bandar Road,
Vijayawada to the complainant.
Ex.B.9 . . Postal acknowledgement.
Ex.B.10 11.08.2012 Office copy of legal notice.
Ex.B.11 14.09.2012 Reply notice.
Ex.B.12 . . Postal acknowledgement.
Ex.B.13 13.10.2012 Office copy of Rejoinder Notice.
Ex.B.14 22.10.2012 Reply notice for rejoinder notice issued by the complainant.
Ex.B.15 . . Postal acknowledgement.
Ex.B.16 17.12.2010 Photocopy of Chit Agreement.
PRESIDENT
