BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION AT BANGALORE (URBAN)

DATED 29^TH DAY OF APRIL 2024

ORDER

SMT.M.SHOBHA, PRESIDENT

1. The complaint has been filed under Section 35 of C.P.Act (hereinafter referred as an Act) against the opposite party for the following reliefs against the opposite party:-

1. Direct the OP to refund the chit amount of Rs.21,00,000/- to the complainant along with 18% interest from the date of payment.
2. Direct the OP to pay the compensation of Rs.10,00,000/- for the mental agony caused to the complainant by the OP.
3. Direct the OP to pay Rs.25,000/- towards the litigation cost.
4. Pass such further or other orders as this Hon’ble forum may deem fit.

2. The case set up by the complainant in brief is as under:-

The opposite party is running a chit fund business and the OP company published by add, on the basis of the add the complainant invested the amount and open the membership with the OP company with a maturity amount of Rs.21,00,000/- and he has to pay monthly installment of Rs.30,000/- from 09.01.2022 and Rs.30,000/- from 09.01.2022.  As per the basic rules of the chit fund company the OP have issued an account book in the name of the complainant.

3. The complainant in total has paid the monthly installments amounting to Rs.21,00,000/-.  Though the complainant has paid the entire chit amount regularly and even after completion of the chit period the OPs have not shown any interest to repay the total amount along with benefit.  The complainant has personally approached the OP office but they have not properly responded.  When the complainant has demanded for return of the money specifically the OP have rudely behaved with the complainant by using filthy language.  The OPs have also used rowdy elements as bodyguard.  In view of this the complainant was unable to reach the OP office to get back the chit amount. When the things stood developed all the customers of the OP chit business have reached the OP office.  At that time the ulsoor police rushed to the OP office and they have also registered a complaint against the OP in CR No.131/2023 for the offences punishable u/s 403, 406, 420 r/w 34 of IPC along with other offences.  The OPs have escaped from the clutches of law.
4. The complainant is suffering from severe financial loss and she is in need of chit amount.  Hence she got issued legal notice to the OP on 31.07.2023 and notice was unserved and returned with shara “No such person in the said address”.  After that the complainant has filed this complaint against the OP before this commission.
5. After filing of the complaint notice was issued to the OP even though paper publication.  The OP remained absent and placed exparte.
6. The complainant has filed his affidavit evidence and relies on 08 documents. 
7. Heard the arguments of the complainant and also filed written arguments.
8. The following points arise for our consideration:-

1. Whether the complainant proves deficiency of service on the part of opposite party?
2. Whether the complainant is entitled to relief mentioned in the complaint?
3. What order?

9. Our answers to the above points are as under:

       Point No.1:  Affirmative

      Point No.2 : Affirmative in part

      Point No.3 : As per final orders

REASONS

10. Point No.1 AND 2: We carefully perused the pleadings and evidence of the complainant. The allegations made in the complaint and the documents and the oral evidence of the complainant remained unchallenged since the OP failed to appear before this Commission.
11. The complainant has filed her affidavit evidence and relied on 08 documents. Ex.P1 is the copy of the advertisement given by the OP company in Economic Times, Ex.P2 & P2a are the copies of the pass book issued by the OP company in favour of the complainant, Ex.P3 is the copy of the complaint given before the Ulsoor police station and Ex.P4 is the copy of the FIR, Ex.P5 is the copy of the legal notice, Ex.P6 is the postal receipt and Ex.P7 is the undelivered postal cover.
12. It is clear from the evidence and the documents that the complainant being a self earning person was impressed by the advertisement given by the OP with an intention to get more interest on the amount has approached the OP company and opened the account.  As per their basic rules they have also issued the account book as per Ex.P2 and it clearly discloses that the complainant has opened the account for the chit amount of Rs.21,00,000/- with two monthly installment of Rs.30,000/- each.  It is also clear from the account book that the complainant started paying the amount from 09.01.2022 and he has paid the entire installment amounting to Rs.21,00,000/-.
13. Inspite of completion of the chit period the OP refused to refund the amount with additional benefits agreed by the Ops as per the terms of the chit.  After that the complainant and others have approached the Ulsoor police and the police have registered a complaint against the OP company. After that the Ops is absconding.  After that the complainant has also got issued legal notice as per Ex.P5 but it was returned unserved with shara “no such person in the said address.”
14. It is clear from the oral and documentary evidence that the Ops even though have received the entire chit amount have refuse to return the amount with agreed benefits in favour of the complainant as per their basic rules.  The complaint registered by the Ulsoor police against the OP also clearly discloses that the OP is a fraud company and they have cheated the customers without paying the chit amount even after completion of the chit period.  Under these circumstances, the complainant has clearly established the unfair trade practice, deficiency of service and also fraud committed by the OP chit fund company.
15. Under these circumstances, the complainant is entitled for the relief claimed in the complaint.  Hence the complainant is entitled for the relief claimed. Hence, we answer the above point No.1 in the Affirmative and Point No.2 Partly in the Affirmative.
16. POINT NO.3: Having regard to the discussion made, we are of the opinion that complaint requires to be allowed in part.  The opposite party is directed to pay Rs.21,00,000/- along with interest at the rate of  10% per annum from the date of payment till realization, pay Rs.50,000/- as compensation and Rs.10,000/- as cost of litigation expenses to the complainant. Hence, we proceed to pass the following;

ORDER

         The complaint is allowed in part.

         The opposite party is directed to pay Rs.21,00,000/- (Rupees Twenty One Lakhs only) along with interest at the rate of 10% per annum from the date of payment till realization to the complainant.

         The opposite party is also directed to pay Rs.50,000/- (Rupees Fifty Thousand only) towards compensation and Rs.10,000/- (Rupees Ten Thousand only) towards cost of litigation expenses to the complainant. 

         The OP shall comply this order within 60 days from this date, failing which the OP shall pay interest at 12% p.a. after expiry of 60 days on Rs.21,00,000/- till final payment.

         Furnish the copy of this order and return the extra pleadings and documents to the parties.

 (Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Open Commission on this 29^th day of April, 2024)

Documents produced by the Complainant-P.W.1 are as follows:

Documents produced by the representative of opposite party – R.W.1;

NIL