Telangana

Mahbubnagar

CC/08/78

M Satyam @ Sathaiah S/o M. Ramulu O/c Excise Constable - Complainant(s)

Versus

M/s Sri Vahini Estates rep by its Partners - Opp.Party(s)

Sri N. Narender Goud & Sri M. Chennaiah Goud

31 Dec 2008

ORDER

BEFORE THE DISTRICT CONSUMER FORUM AT MAHABUBNAGAR

 

            Wednesday, the 31st day of December, 2008

 

                                                                               Present:- Sri M.Rama Rao, B.A.,LL.B., President

     Sri P.Venkateshwara Rao, B.com., LL.B., Member

       Smt.B.Vijaya Kumari, M.Sc. B.Ed., C.C.P., Member

 

                                                                                    C.C.NO. 78  Of   2008

Between:-

 

Satyam @ Sathaiah S/o M. Ramulu, Age: 46 years, Occ: Excise Constable, R/o Near Sanjana Nursing Home, Padmavathi Colony, Mahabubnagar.

                                                                                         

         … Complainant

And

1.   M/s Sri Vahini Estates, Rep. by its partners, Shop No.8-6-92/B,    

  Beside Petrolpump, Padmavathi Colony, Mahabubnagar.

 

2.   Sri Soma Shekar, S/o Mallappa, Age 45 years, Occ: Business,

   R/o Chowlapally village, Keshampet Mandal, Mahabubnagar Dist.

 

3. E.J. Robert, S/o E.D.John, age 39 years, Occ: Business, R/o H.No.1-1-9/1/6E, New Mothinagar, Mahabubnagar.

 

4. Challa Sai Baba, S/o Sheshadri Rao, age 40 years, Occ: Business,  R/o H.No.5-2-64, New Town, Rajendra Nagar, Mahabubnagar.

 

5. Devarsetty Srinivas, S/o Venkataiah, age: 38 years, Occ: Business, R/o H.No.8-4-172, Padmavathi Colony, Mahabubnagar.

 

6. Koramoni Krishnaiah, S/o Balaiah, age 45 years, Occ: Business, R/o H.No.3-7, Yenugonda village, Mahabubnagar Mdl., & District.

 

7. Surekha W/o Vishwanatham, age: 34 years, Occ: Business, R/o H.No.1-4-134/9, Parimalagiri, Mahabubnagar.

 

                                                                                          … Opposite Parties

 

 This C.C. coming on before us for final hearing on 17-12-2008  in the presence of Sri N. Narender Goud and Sri M. Chennaiah Goud, Advocates, Mahabubnagar for the complainant and Sri B. Ramnath Goud, Advocate, Mahabubnagar for the opposite parties 4 and 5 and the opposite parties 1, 3, 6 and 7 having been set exparte and the complaint against OP.No.2 is dismissed for default and having stoodover for consideration till this day, this Forum delivered the following:  

 

O R D E R

  (Smt.B.Vijaya Kumari, Member)

1.        This is a complaint filed on behalf of the complainant under section 12 of Consumer Protection Act, 1986 seeking a direction to the opposite parties to refund to the complainant Rs.12,150/- together with interest  @ 36% p.a. from June, 2003 and to pay Rs.10,000/- towards compensation for mental agony and Rs.5,000/- towards costs of the  complaint.
2.     The complaint averments are as follows:-  The opposite parties have started a Housing plot scheme under the name and style of Vahini Estates and they have started new venture “Pavani Nagar” in Sy.No.45 at Edira village, Mahabubnagar Mandal and District.   The duration of the scheme is 45 months and the extent of the plot is 150 sq. yards.  The total cost of the plot is fixed at Rs.45,000/-.    Each member has to pay Rs.450/- per month.    The complainant has joined as a member in the said scheme and the opposite parties have allotted membership No.220 to the complainant.  The complainant has paid upto 27 installments regularly @ Rs.450/- per month which comes to total of Rs.12,150/-.   After 27^th month onwards the opposite parties have closed their office due to internal disputes among the directors and they did not receive the installments from the members.  On 17.10.2006 the opposite parties got issued legal notice to the complainant alleging that the complainant is a defaulter and not entitled for allotment of the plot and the opposite parties are ready to repay the installments amount of Rs.12,150/- to the complainant.  After receipt of the notice the complainant has approached the opposite parties several times but the opposite parties have not paid the amount and they have postponed the same on one or other pretext.   The acts of the opposite parties amount to unfair trade practice and deficiency of service on their part.    Due to the attitude of the opposite parties the complainant has suffered mental pain and agony.     Therefore the opposite parties are liable to refund Rs.12,150/- to the complainant together with interest @ 36% p.a. from June, 2003 till the date of payment and also liable to pay Rs.10,000/- towards compensation for mental agony and Rs.5,000/- towards costs of the  complaint.    Hence the complaint.   

 

3.      The opposite parties 4 and 5 filed counter with the following averments:- It is true that the complainant has joined as a member in the scheme introduced by the opposite parties.   The said scheme was started in the month of April 2000 and the same was ended by the month of November, 2004.    The duration of the scheme was 45 months.   Total plot cost was fixed at Rs.45,000/-.   As per the scheme, members of the scheme have to pay Rs.20,250/- in 45 monthly installments  @ Rs.450/- per month commencing from the month of April 2000 and Rs.10,000/- was to be paid for the reservation of plot and Rs.7,000/- was to be paid on 20^th month of the scheme and Rs.7,750/- was to be paid at the end of the scheme in the month of November, 2004.   But the complainant has failed to pay the plot cost as per the scheme and committed default.   The complainant has paid only 27 monthly installments @ Rs.450/- per month, which comes to total of Rs.12,150/- and has not paid remaining plot cost as per the scheme and became defaulter.   As per the scheme the member who fails to pay remaining plot cost is not entitled to get plot.   Entire plots were allotted and given to the members of the scheme who paid as per the scheme and no plots are available.   The scheme was over by the month of November, 2004.    The opposite parties have already issued legal notice dated 17.10.2006 to the complainant to receive amount paid by him after deducting the scheme loss.   The said notice is received by the complainant and he did not approach the opposite parties and claim any amount.  The complainant is not entitled for any interest, compensation and costs as alleged in the complaint as the complainant has committed default and the complainant is entitled to only Rs.9,150/- by deducting scheme loss of Rs.3,000/-.    Therefore the complaint may be dismissed with costs. 

 

4. The opposite parties 1, 3, 6 and 7 remained exparte and the complaint against the opposite party No.2 is dismissed for default.

 

5.  The complainant filed his affidavit and got marked Exs.A-1 to A-21.

 

6.  The opposite parties 4 and 5 filed affidavit and did not file any documents on their behalf.

 

7. The point which falls for consideration is whether the complainant is entitled to the reliefs as prayed for?

 

8.      The contention of the complainant is that according to the scheme conditions he has paid 27 monthly installments out of 45 monthly installments @ Rs.450/- per month which comes to total of Rs.12,150/-.   After 27^th month the opposite parties have closed their office due to disputes among the partners and they did not receive the further installments amount.  On 17.10.2006 the opposite parties have sent a notice to the complainant alleging that the complainant has committed default and is not entitled for allotment of plot and that the OP firm is ready to repay the installments amount of Rs.12,150/- to the complainant.  After receipt of the notice, the complainant has approached the opposite parties but the opposite parties have not paid the amount and postponed the same on one or other pretext.    The acts of the opposite parties amount to unfair trade practice and also deficiency of service on their part.    Due to the acts of the opposite parties the complainant has suffered mental pain and agony.       

   On the other hand, the opposite parties have taken plea that the complainant has paid only 27 monthly installments @ Rs.450/- per month which comes to total of Rs.12,150/- and has not paid the remaining plot cost as per the scheme and became defaulter.   As per the scheme conditions, the complainant is entitled to only Rs.9,150/- after deducting the scheme loss of Rs.3,000/-.   In counter, the opposite parties have stated that they have already issued legal notice on 17.10.2006 to the complainant to receive the amount paid by him after deducting the scheme loss.   But the complainant did not approach the opposite parties to receive the amount.   

 

9.      There is no dispute with regard to the payment of amount of Rs.12,150/- by the complainant in 27 monthly installments out of 45 monthly installments and he has not paid further installments.   There is no material before us to show that the OPs closed the firm well before the scheme period.   The OPs have also not filed any material to establish that they are entitled for Rs.3,000/- towards scheme loss.   Thus we hold that the complainant is a willful defaulter and he is not entitled for scheme plot.   In such circumstances, the complainant is entitled for refund of amount of Rs.12,150/- paid by him together with interest thereon as the amount was utilized by the OPs.   In our opinion 18% p.a. interest is quite reasonable to award from the date of last payment to till issuance of notice by OPs i.e., 17.10.2006 vide Ex.A-21.   We further hold that as interest is awarded on the amount to be refunded, the complainant is not entitled for any further sum as compensation.   However the complainant is entitled for Rs.1,000/- towards costs of the proceedings.      

 

10.     In the result, the complaint is allowed partly.   The opposite parties 1, 3 to 7 are jointly and severally directed to refund Rs.12,150/- together with interest @ 18% p.a. from June, 2003 to till 17.10.2006 and Rs.1,000/- towards costs of the proceedings to the complainant within 30 days from the date of receipt of this order, failing which the complainant is entitled to receive the amount at the same rate of interest till the payment.   The complaint against the opposite party No.2 is dismissed for default.

 

        Typed to dictation, corrected and pronounced by us in the open Forum on this the 31^st day of December, 2008.           

 

        

 MEMBER                                MEMBER                              PRESIDENT 

       Appendix of evidence

       Witness examined

 

For complainant: Nil                                                 For opposite parties:  Nil

Exhibits marked for Complainant:-   

 

Ex.A-1:        Installment receipt, dt.11.5.2001.

Ex.A-2:        Installment receipt, dt.12.9.2001.

Ex.A-3:        Installment receipt, dt.11.7.2001.

Ex.A-4:        Installment receipt, dt.12.9.2001.

Ex.A-5:        Installment receipt, dt.12.9.2001.

Ex.A-6:        Installment receipt, dt.12.11.2001.

Ex.A-7:        Installment receipt, dt.12.11.2001.

Ex.A-8:        Installment receipt, dt.12.12.2002.

Ex.A-9:        Installment receipt, dt.12.12.2002.

Ex.A-10:      Installment receipt, dt.12.12.2002.

Ex.A-11:      Installment receipt, dt.12.12.2002.

Ex.A-12:      Installment receipt, dt.12.12.2002.

Ex.A-13:      Installment receipt, dt.12.12.2002.

Ex.A-14:      Installment receipt, dt.12.12.2002.

Ex.A-15:      Installment receipt, dt.12.12.2002.

Ex.A-16:      Installment receipt, dt.12.12.2002.

Ex.A-17:      Installment receipt, dt.12.12.2002.

Ex.A-18:      Installment receipt, dt.12.12.2002.

Ex.A-19:      Installment receipt, dt.11.3.2003.

Ex.A-20:      Installment receipt, dt.11.3.2003.

Ex.A-21:      Legal Notice, dt.17.10.2006.

 

Exhibits marked for OPs:-   

 

     - Nil-

 

By the Forum:

     - Nil-

                                                                                                                                                                                                                            PRESIDENT

Copy to:-

1. Sri N. Narender Goud and Sri M. Chennaiah Goud, Advocates, Mahabubnagar for the complainant.
2. Sri B. Ramnath Goud, Advocate, Mahabubnagar for OPs. 4 and 5.
3. M/s Sri Vahini Estates, Rep. by its partners, Shop No.8-6-92/B, Beside Petrolpump, Padmavathi Colony, Mahabubnagar.
4. Sri Soma Shekar, S/o Mallappa, Age 45 years, Occ: Business, R/o Chowlapally village, Keshampet Mandal, Mahabubnagar Dist.
5. E.J. Robert, S/o E.D.John, age 39 years, Occ: Business, R/o H.No.1-1-9/1/6E, New Mothinagar, Mahabubnagar.
6. Koramoni Krishnaiah, S/o Balaiah, age 45 years, Occ: Business,  R/o H.No.3-7, Yenugonda village, Mahabubnagar Mdl., & District.
7. Surekha W/o Vishwanatham, age: 34 years, Occ: Business, R/o H.No.1-4-134/9, Parimalagiri, Mahabubnagar.