Date of filing: 25.2.2014.
Date of disposal:5.11.2014.
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM - II:
VIJAYAWADA, KRISHNA DISTRICT
Present: SMT N. TRIPURA SUNDARI, B. COM., B. L., PRESIDENT (FAC)
SRI S.SREERAM, B.COM., B.A., B.L., MEMBER
WEDNESDAY, THE 5TH DAY OF NOVEMBER, 2014.
C.C.No.64 of 2014
Between:
M.Shamshuddin Baig, S/o Ismail Baig, Pvt., Employee, Indian, Muslim, R/o Ranigarithota, Krishna Lanka, Vijayawada – 13.
. … Complainant.
AND
1. M/s Kapil Chits Pvt., Ltd., Rep., by its Manager, D.No.26-1-106, Gayatri Nagar, 3rd Street, Sadhana High School Street, Nellore – 524 004.
2. M/s Kapil Chits Pvt., Ltd., Rep., by its Branch Manager, D.No.20-27-51, Museum Road, Governorpet, Vijayawada – 2.
. … Opposite Parties.
This complaint coming on before the Forum for final hearing on 27.10.2014, in the presence of Sri G.Nagi Reddy, Advocate for complainant and Sri S.S.C.Bose, advocate for opposite parties and upon perusing the material available on record, this Forum delivers the following:
O R D E R
(Delivered by Hon’ble President (FAC) Smt N. Tripura Sundari)
This complaint is filed under Section 12 of the Consumer Protection Act, 1986.
The averments of the complaint are in brief:
1. The complainant joined as a member in the chit conducted by the opposite parties for a sum of Rs.3,00,000/- payable in 30 monthly subscriptions at the rate of Rs.10,000 /- per month. The complainant became successful bidder on 28.10.2009 and after fulfilling the requirements the opposite parties paid the bid amount. Till then the complainant paid monthly subscriptions regularly. While so, on 5.12.2012 the complainant received a notice from the opposite parties demanding the complainant to pay Rs.40,000/- with interest at 18% per annum. After receipt of the said notice the complainant approached the opposite parties and requested them to settle the matter for which the executive of the opposite parties informed that if the complainant pay a sum of Rs.30,000/- at a time the matter will be closed. Believing the same the complainant paid Rs.30,000/- on 23.12.2012 and obtained valid receipt from the executive of the opposite parties and he informed the complainant that the company will sent clearance letter by closing the account. But after about 10 months the opposite parties sent another legal notice dated 10.10.2013 demanding the complainant to pay Rs.20,000/- with interest at 18% per annum from the date of default. The opposite parties instead of closing the account demanding the complainant to pay additional sum of Rs.20,000/-. On receipt of the said notice the complainant sent notice to the opposite parties demanding to send the closure letter. The opposite parties received the said notice and failed to give any reply. More over on 18.01.2014 the 1st opposite party presented the cheque for Rs.25,000/- in their bank account which was obtained as security from the complainant at the time of payment of bid amount. The said cheque was returned with an endorsement insufficient funds. The acts of the opposite parties show clear negligence and deficiency in service. Hence the complainant is constrained to file this complaint against the opposite parties praying the Forum to direct the opposite parties to close the chit under reference No.FKVMO3H, Ticket No.5 and to provide clearance letter or closure letter, to return all the documents belongs to the complainant which was obtained as security for the chit, to pay Rs.50,000/- towards damages for mental agony and to pay costs.
2. The 2nd opposite party filed his version and the 1st opposite party adopted the same.
The version of the opposite parties is in brief:
The complainant was not joined the opposite parties branch and he joined opposite party branch at Kavali Nellore District. He is not added the Kavali Branch. The opposite parties denied all the allegations of the complaint and submitted that after receiving the legal notice dated 5.12.2012 from the opposite parties the complainant paid Rs.30,000/- but it is not full and final settlement as alleged by the complainant. The executive by name Sri J.Ravi did not give any assurance to the complainant. The company has no knowledge about the alleged letter dated 23.12.2012. The Kavali branch of opposite parties got issued legal notice to the complainant and his guarantors to pay balance amount on 10.10.2013, to discharge the balance amount. The complainant got issued the alleged cheque dated 18.1.2014 and the same was presented and returned with an endorsement of “funds insufficient”. The Kavali Branch of Kapil Chits (Kosta) Pvt., Ltd., reserves its right to take appropriate legal steps with regard to dishnoured cheque in the court of law. The said Kavali Branch Kapil Chits (Kosta) Pvt., Ltd., is dealing with the complainant as per the chit agreement. There is no deficiency in service on the part of the opposite parties and prayed to dismiss the complaint with costs.
3. On behalf of the complainant he gave his affidavit and got marked Ex.A.1 to Ex.A.9. On behalf of the opposite parties the 2nd opposite party Sri M.Mahipal, Branch Manager gave his affidavit and got marked Ex.B.1 and Ex.B.2.
4. Heard and perused.
5. Now the points that arise for consideration in this complaint are:
1. Whether there is any deficiency in service on the part of the opposite parties in
settling the claim of 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 on hand, the complainant joined in the chit conducted by opposite parties for a sum of Rs.3,00,000/- payable in 30 months at the rate of Rs.10,000/- per month. Ex.B.1 shows the same. As per complainant he is successful bidder on 28.10.2009 and after fulfilling the requirements the opposite parties paid the bid amount. Till then he paid monthly subscriptions regularly. While so on 5.12.2012 he received a legal notice Ex.A.1 from the opposite parties demanding him to pay Rs.40,000/- with 18% interest per annum. After receipt of the notice the complainant approached the executive of the opposite parties and requested to settle the matter. On the advise of the said executive he paid Rs.30,000/- on 23.12.2012 under Ex.A.2 for final settlement. But after 10 months the opposite parties sent another legal notice Ex.A.4 dated 10.10.2013 demanding the complainant to pay Rs.20,000/-. On receipt of the said notice he got issued legal notice Ex.A.5 dated 5.11.2013 demanding the opposite parties to send closure letter. The opposite parties received the said notice under Ex.A.7 dated 6.11.2013 and failed to give any reply. The opposite parties issued another legal notice Ex.A.9 dated 15.2.2014 that the opposite parties presented a cheuqe on 18.1.2014 at HDFC Bank at Nellore Branch which was obtained as security from the complainant at the time of paying the bid amount. The said cheque was return as “Funds insufficient”. Ex.A.8 HDFC statement of the account of the complainant shows that on 18.1.2014 the cheque was deposited and the same was withdrawn on the same day as there is no funds.
7. The opposite parties says that receiving the legal notice the complainant paid Rs.30,000/- on 5.12.2012 but it is not full and final settlement. The executive of the opposite parties did not give any assurance to the complainant. The complainant is the subscriber of the opposite parties chit at Kavali Branch. When the Kavali Branch issued legal notice on 10.10.2013 to the complainant and his guarantors to pay balance amount, the complainant issued the said cheque on 18.1.2014 and the same was presented and returned with an endorsement “funds insufficient”. As per Ex.B.2 account statement copy of the complainant relating to his chit, the chit was closed on 28.10.2011 then the complainant’s due was Rs.56,216/-, he paid Rs.7,600/- on 29.10.2011 and it was adjusted March, April of 2011 and the due is Rs.48,099/- again he paid on 17.6.2012 Rs.15,200/- and the due amount is Rs.32,549/-; he paid Rs.30,000/- on 29.1.2013. As the opposite party issued notice on 5.12.2012 for due amounts of Rs.40,000/- with interest at the rate of 18 per annum. Actually the complainant is in due of Rs.32,549/- as on 17.6.2012 but he issued the legal notice near about after six months on 5.12.2012 only to gain interest. What prevent the opposite parties to issue demand notice after termination of the chit in 28.10.2011? Again the opposite party demanded for penalty and collection charges Rs.3,895/- and Rs.11,684/- respectively. Balance amount of Rs.32,549/- as on 17.6.2012 he paid Rs.30,000/- and remaining balance is only Rs.2,549/-. But after 10 months the opposite parties sent legal notice Ex.A.4 and demanding to pay Rs.20,000/- is illegal. The opposite parties used to debit the amount of Rs.125/- from 16.2.2013 to February, 2014 as interest. This is illegal on the part of opposite parties and if there is any cheque with them they have to present after termination of the chit. The complainant demanded to issue statement copy of his chit but the opposite parties did not issue the same to the complainant. Hence there is deficiency in service on the part of the opposite parties and they are liable to deliver all the documents which were retained with them including cheques. The complainant has to pay only Rs.2,549/- and the opposite parties are not entitled any further interest thereon.
POINT No.3:-
8. in the result, the complaint is allowed in part and the opposite parties are directed to close the chit of the complainant after receiving Rs.2,549/- from the complainant and to deliver the closure letter, to return all documents relating to the complainant which were obtained as security purpose of the chit to return the cheque which was dishonoured, and to pay costs of Rs.2,000/- to the complainant. Time for compliance one month. Complainant also directed to pay Rs.2,549/- to opposite parties. Rest of the claims of the complainant is dismissed.
Typewritten by Stenographer, corrected by me and pronounced by us in the open Forum, this the 5th day of November, 2014.
PRESIDENT(FAC) MEMBER
Appendix of evidence
Witnesses examined
For the complainant: For the opposite parties:
P.W.1 M.Shamshuddin Baig, D.W.1 M.Mahipal,
Complainant, Branch Manager of the
(by affidavit) 2nd opposite party
(by affidavit)
Documents marked
On behalf of the complainant:
Ex.A1 05.12.2012 Copy of notice issued by the 1st opposite party to the complainant.
Ex.A.2 23.12.2012 Receipt issued by the 1st opposite party .
Ex.A.3 23.12.2012 Photocopy of letter to the 1st opposite party.
Ex.A.4 10.10.2013 Copy of notice issued by the 1st opposite party to the complainant.
Ex.A.5 05.11.2013 office copy of Reply notice issued by the complainant.
Ex.A.6 05.11.2013 Postal receipt.
Ex.A.7 . . Track report of the Postal Department.
Ex.A.8 . . Photocopy of Statement of account HDFC Bank.
Ex.A.9 15.02.2014 Office copy of legal notice issued by the O.P. to complainant.
On behalf of the opposite parties:
Ex.B.1 28.09.2009 Photocopy of chit agreement.
Ex.B.2 11.09.2014 Copy of statement of account issued by the 1st opposite party.
PRESIDENT(FAC)
