Date of filing: 14.3.2014.
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.65 of 2014
Between:
Ch.V.Nagalakshmi, W/o Late Narasimha Sastry, Hindu, 45 years, R/o Nallagate Down, Krishnalanka, Vijayawada, Krishna District.
. … Complainant.
AND
M/s Shriram Chits Pvt., Ltd., Rep., by its Branch Manager, D.No.22-126, 1st Floor, Bank Street, Nuzuvidu – 521 201.
. … Opposite Party.
This complaint coming on before the Forum for final hearing on 27.10.2014, in the presence of Sri P.Mohan Rao, Advocate for complainant and Sri D.Raja Sekhar, advocate 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 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 subscriber in the chit conducted by the opposite parties in the year 2011 for Rs.2,50,000/-payable in 40 months at the rate of Rs.6,250/- per month. Subsequently the complainant bid the chit in the month of January, 2012 and she became successful bidder. At the time of payment of bid amount the opposite party insisted the complainant to take insurance policy for an assured sum of Rs.3,00,000/- on payment of premium of Rs.27,533/-. As the complainant is in need of money, accepted for the same. Accordingly the opposite party paid the bid amount after deducting the premium amount for the aforesaid policy and also premium for another policy. Subsequently the complainant paid subscriptions upto July, 2013 and later she failed to pay the same. Thus, the opposite party demanded the complainant to pay the subscription amounts. At the same time the agents of the opposite party also approached the complainant and requested to pay the due amounts. But there is lot of difference in both the figures alleged by opposite party and its agents. The complainant suspects that there is some missing credits to her chit account. At this moment the complainant approached the opposite party and requested to furnish statement of account, for which the opposite party assured that they will send the same through their agent. The complainant also issued a letter to the opposite party requesting to close her two insurance policies lying with their sister concern and adjust the said amount to her chit account. But till today the opposite party did not send the statement of account and more over threatening the complainant which amounts to clear 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 handover the chit account statement to the complainant relating to her chit to receive the pending dues under the above chit and to pay compensation of Rs.50,000/- and also 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 has joined in the chit fund group maintained by the opposite party for the value of Rs.2,50,000/-, Rs.6,250/- per month. In auction No.4 conducted by the opposite party company, the complainant has participated in the auction and became the highest bidder. Thereby the complainant has produced the sureties/guarantors (1) P.Prem Kumar (2) N.V.Padma Kumari, (3) Shaik Shakimunnisa after that the opposite party released the prize amount to the complainant. After receiving the prize amount the complainant has paid an amount of Rs.1,06,755/- including payments made before auction and committed default thereafter i.e., from 10.3.2013. Finally the opposite party got issued demand notice on 4.3.2013 demanding the complainant and her guarantors to pay the defaulted amounts. But though the complainant had received the said legal demand notice she had not paid any amount so far. As there is no option the opposite party filed a dispute under Section 64 of Chit Fund Act, 1982 before the District Registrar, Vijayawada (Chit Registrar) the said claim was numbered as 150/2014 and the same was pending before the Arbitrator. Knowing the procedure and action taken by the opposite party against the complainant and her guarantors the complainant told that the statement of account has not given. In fact the legal staff of the opposite party had supplied the statement of account to her. The complainant is a Central Government employee knowing fully well the law but she did not turn to pay the due amounts. There is no deficiency in service on the part of the opposite party and prayed to dismiss the complaint with costs.
3. On behalf of the complainant she gave her affidavit and got marked Ex.A.1 to Ex.A.7. On behalf of the opposite party Sri G.Ramalingeswara Rao Branch Manager gave his affidavit and got marked Ex.B.1 to Ex.B.3.
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 not hand over the chit account statement relating to her chit to pay the pending dues?
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 material on hand the complainant joined in the chit conducted by the opposite party on 10th November, 2011, the chit amount is Rs.2,50,000/- payable at Rs.6,250/- in 40 monthly instaments. The termination of the chit is 22.1.2015 the complainant executed the chit agreement under Ex.B.2. As per statement of account she prized the said chit on 9.2.2012 for loss of Rs.1,00,000/- and the prized amount is Rs.1,50,000/-. While the auction would be conducted under the said chit on 23.1.2012 the opposite party received the subscription from the complainant for Rs.6,250/- on 7.11.2011 before 2½ months and she paid the subscriptions on 7.11.2011, 22.12.2011, 23.1.2012, 9.2.2012, 26.3.2012, 4.6.2012, 31.7.2012, 16.8.2012, 17.9.2012, 26.12.2012, 31.12.2012, 30.9.2013, 27.11.2013 under valid receipt. She was defaulted for April, May, October and November in 2012 but she paid two payments in December, 2012. When the complainant was defaulted the opposite party issued legal notice under Ex.B.3 dated 4.3.2013 to her and her sureties. As per Ex.B.3 the complainant paid 13 subscriptions in full and 14th subscription as part. After receiving the legal notice from opposite party the complainant got issued a legal notice Ex.A.1 dated 20.7.2013 stating that the opposite party had allowed the complainant to bid the chit on a condition that she has to take an insurance policy on her name with opposite party Shriram life insurance company for an assured sum of Rs.3,00,000/- at an early subscription of Rs.27,533/- for 15 years vide policy No.NP101200020378 dated 28.2.2012, as she is in need of money, she forcibly accepted for opposite party’s proposal. After fulfilling all the opposite party formalities the opposite party branch had made the payment chit prized amount after deducting the above said present insurance policy premium amount and also previous insurance policy (for assured sum of Rs.1,00,000/- with the same story in another chit group) pending premium amounts and other incidents. She requested the opposite party to wait till 31st August of 2012 to clear the dues. The opposite party received the said reply notice under Ex.A.2. As again the opposite party sent another legal notice dated 10.1.2014 and the complainant got issued legal notice Ex.A.3 dated 25.1.2014 stating that after receiving legal notice of opposite party. She paid Rs.30,000/- on 31.12.2013 towards pending dues and she also gave a request letter to the opposite party branch to forward the letter to its sister concern insurance company for cancellation of her insurance policies and adjust that amount to her chit due if any and requested to send chit account statement to arrange funds to clear the chit dues. The opposite party received the said notice under Ex.A.4 and as there is no reply the complainant got issued another notice under Ex.A.5 dated 6.2.2014 demanding the opposite party to send account statement copy of the complainant chit. The opposite party received the same under Ex.A.6. Ex.A.7 is receipt dated 31.12.2013 for an amount of Rs.10,000/- payable by the complainant to the opposite party.
7. On hearing both the parties we, the Forum came to understand that the opposite party is in practice of joining the subscribers who joined in the chits and prized the chit amount, forcibly make them to take policy of its sister concern compulsory and deduct the chit amount as premium of the policy. There are several others reported the same in this Forum. If the subscribers of the chit, defaulted in payment, used to impose various charges and penalties highly and put them into troubles. This acts of the opposite party is illegal and not acceptable under law. The opposite party did not deny the allegations of the complainant that the opposite party forcibly entrusted the policy and deduct the premium amount from her prized chit amount. The complainant stated that she requested the opposite party to cancel the two policies and to adjust the premium amount to her chit dues. But the opposite party did not do so. The opposite party act to take insurance policies by force. Therefore there is not only deficiency in service on their part but also unfair trade practice to use force towards complainant to take policy. The complainant mentioned in the complaint that she gave a letter to opposite party branch to cancel the two policies. But it was not mentioned in the prayer. But the complainant cannot be suffer by the mistake done by the counsel in not mentioning for cancellation of two policies in prayer. Therefore the opposite party is liable to cancel the said two insurance policies and to adjust the premium amounts to the chit dues. When the complainant is unable to pay the premium chit dues, it is illegal for the opposite party to impose additional interest without to her adjust the policy premium. She is entitled to get the reliefs as she prayed.
POINT No.3:-
9. In the result, the complaint is allowed in part and the opposite party is directed to close the two policies of the complainant, which were given by the opposite party; to adjust the premiums of that policies to the chit amount due and to give A/c statement, and to give three months time to pay the chit dues if any extra, to pay costs of Rs.2,000/- for this complaint. Time for complainant one month. Rest of the claims of the complainant are 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 party:
P.W.1 Ch.V.Nagalakshmi, D.W.1 G.Ramalingeswara Rao,
Complainant, Branch Manager of the
(by affidavit) opposite party
(by affidavit)
Documents marked
On behalf of the complainant:
Ex.A1 20.07.2013 Office copy of legal notice.
Ex.A.2 . . Postal acknowledgement.
Ex.A.3 25.01.2014 Reply notice issued by the complainant.
Ex.A.4 . . Postal acknowledgement.
Ex.A.5 06.02.2014 Office copy of Rejoinder notice issued by the complainant.
Ex.A.6 . . Postal acknowledgement.
Ex.A.7 31.12.2013 Photocopy of receipt issued by the opposite party for Rs.10,000/-.
On behalf of the opposite party:
Ex.B.1 . . Copy of Statement of account.
Ex.B.2 10.11.2011 Photocopy of agreement of chit.
Ex.B.3 04.03.2013 Photocopy of legal demand notice issued by the opposite party along with photocopies of three postal
acknowledgements.
PRESIDENT(FAC)
