This Complaint coming before us for hearing on 05-01-12 in the presence of Complainant and opposite party and upon perusing the material on record and having stood over till this day for consideration this Forum made the following:-

O R D E R

Per Smt. T. Suneetha, Member,

The complainant filed this complaint u/s 12 of Consumer Protection Act seeking direction on the Opposite Party to pay the balance amount of Rs. 16,554/- with interest @12% p.a., from 01-10-09 and Rs. 5,000/- towards compensation. 

2.     In brief the complaint averments are hereunder:

        The complainant joined as member of two chits.  The value of each chit is Rs. 1,00,000/- of each installment is Rs. 5,000\- per month and the duration of chits was 20 months.  At the time of joining the chits, the complainant had no financial source to pay two chits continuously and therefore opposite party informed him to pay the amount in installments according to his convenience and accordingly he successfully paid the chit installments of 1^st chit from 2/2008 and the 2^nd chit at the same rate upto 4/2009 without any interruption.  In all he paid Rs.62,448/- per each chit totaling to Rs, 1,24,896/- subsequently, due to financial stringency, he was unable to pay the rest of the instalments.  However, in the month of July, 2009 the complainant asked the opposite party to receive the instalments amount but he refused to do so without any reasonable cause.  The complainant attended chits 7/2009 (18^th chit) and it was given another party of the chit and then the opposite party has to give 19^th and 20^th chits amounts to the complainant by deducting rest of the installments and after several request at last they sent an amount of                         Rs. 1,24,896/-by way of cheque dated 30-01-09, still, the opposite party has to pay Rs. 16,554/- but did not pay the amount and tht it amounts to deficiency in service and hence the complaint for a directionto the opposite party to pay Rs. 16,554/- with interest @ 12% p.a., from 01-10-09, so also, Rs. 5,000/- towards compensation. 

3.  The Opposite Party filed version denying the allegations made in the complaint as under : - 

          The complainant does not come within the meaning go “consumer” under the Consumer Protection Act and that the opposite party’s firm is doing chit fund business and having three partners.  He never approached the opposite party and the total period of chit is 20 installments and out of them the complainant paid only 15 installments irregularly and he became defaulter from 16^th installment.  Therefore, subsequently, the opposite party firm paid the entire amount to him and without paying of the remaining five instalments he filed the complaint for the entire 20 instalments and hence it is not maintainable and that Rs. 1,24,896/- was paid to the complainant for the said two chit amounts for 15 instalments as full and final settlement under voucher dt.30-12-2009 vide cheque No. 007300 drawn on Central Bank of India, Tenali without deducting 5% commission on the chit value and that in spite of it, the complainant filed this complaint for wrongful gain and due to grudge and thus prayed to dismiss the complainant. 

4.      Both sides have filed their respective affidavits.  Exs.A-1 to A-3 were marked on behalf of complainant and Exs.B-1 and B-2 were marked on behalf of opposite party. 

5.      This Forum passed exparte order on 15-02-11 in CC.No.148 of 2010 directing the opposite party to pay Rs. 15,104/- to the complainant with interest @12%pa., from the date of termination of chit i.e., 01-10-09 till the date of payment and also to pay Rs. 1,000/- towards compensation and Rs.500/- towards costs.  The amounts ordered above shall be paid within a period of six weeks from the date of receipt of copy of the order, failing which the amounts ordered in point NO.2 shall carry . till the date of realization. 

6.      Aggrieved with the above order the opposite party filed FA705 of 2011 with A.P. State Consumer Disputes Redressal Commission, Hyderabad to set aside the exparte order passed by the District Forum.  The opposite party contended that the District Forum failed to consider the counter evidence affidavits and documents filed by opposite party ad passed an exparte order on 15-02-11 and that the District Forum failed to see Ex.A-3 filed by the complainant which established that the complainant received the entire amount in full and final settlement pertaining to both the chits and that the District Forum dismissed the petition filed by the Opposite party to set aside the exparte order dated 15-02-11 on the ground that it has no power to set aside its own order and that the District Forum erred in several technical aspects. 

7.      The Hon’ble A.P. State Commission, Hyderabad set aside the exparte order passed by the District Forum and remitted the matter to the District Forum for fresh disposal and passed orders dated 25-11-11 to that effect. 

8.      Now the points for determination are : 

        1.  Whether the Opposite party committed deficiency of service?

        2.  To what relief the complainant is entitled to? 

9.      POINT NO. 1:-     The opposite party refunded Rs.1,24,896/- which it received from the complainant as subscription of 15 installments for two chits exclusive of dividend.  It is the statutory obligation of the opposite party chit fund company to adhere to Sec.33 of A.P. Chit Funds Act 1971 in the absence of any chit agreement. 

        Section 33(a) of A.P. Chit Funds Act reads as follows : 

          a).  Every non-prized subscriber shall unless otherwise provided for in the chit agreement, be entitled to get back his contribution at the termination of the chit without deduction for dividend, if any, received by him. 

        Provided that any person to whom the rights of a non prized subscriber are transferred under Sections 27, 28 and 29shall, in addition to his own contributions, be entitled to get back the contributions, such non-prized subscriber, subject to the conditions specified in this clause. 

10.    The opposite party did not file chit agreement or its bye- laws before this Forum.  It is not the case of opposite party that the complainant comes under provision of Sec.33(a)

11.  Ex.B-1 and B-2 dated 30-12-09 are the vouchers filed by the opposite party showing the refund of Rs.1,24,896/- (Rs.62,448/- each) .  In Exs.B-1 and B2 the words ( in transliteral language) “ Poorthi parishkaram krindha naku muttinadi” were written. 

The contention of the complainant is that opposite inserted those words.  On seeing Exs-B-1 and B-2 on can come to a conclusion that those words were written subsequently.   

12.    Even otherwise the complainant filed this complaint within fifteen days of Exs.B-1 and B-2.  Therefore it can be said that the complainant received the amount covered by Exs. B-1 and B-2 under protest. 

13.    The Opposite party relied on the decision reported in 2008(3) CPJ(NC) & 2011 (2) CPJ 246. 

        The decision reported in Model Chit Corporation Limited and other Vs. Dr.Meera 2008 (3) CPJ 72(NC) is not applicable to the facts of the case in the absence of by laws of opposite party. 

        The decision reportd in Ajay Varma Vs.United India Insurance Company Limited 2011 (2) CPJ 246 (NC) has no application to the facts of the case in viw of proximity between Ex.B-1 and B-2 and filing of the complaint. 

14.   Opposite party failed to fulfill its statutory obligation which is enumerated in Section 33(a) of A.P. Chit Funds Act,. 1971 which amounted to deficiency of service.  This point is answered against the opposite party. 

15.    POINT NO. 2:-   The complainant subscribed for two chits of               Rs. 1.00.000/-  each spread over for 20 months @ Rs.5,000/-p.m. Exs.A-1 and A-2 revealed that the complainant paid for 15 months i.e., Rs.75,000/- each.  The complainant is not entitled to any dividend for unpaid installments.  An amount of Rs.1,00,000/- (Rs.5,000/- each for both the chits) has to be deducted by way of Foreman commission.  Therefore the complainant is entitled to receive Rs. 15,104/-

        The Chit value of both                                 =      Rs.2,00,000/-

        (Less) Value of foreman commission              =      Rs.   10,000/-

                                                                        =      Rs.1,90,000/-

        (Less) Amount towards unpaid installments of-

                                         Both chits                         =      Rs.   50,000/-

                                                                        =      Rs. 1,40,000/-

        (Less) Amount refunded by the Opposite party        =      Rs.  1,24,896/-

        Amount which the complainant is entitled               =      Rs.    15,104/-

The complainant is also entitled to

16.    In the result the complaint is allowed in part in terms as indicated below: 

        1.  The opposite party is directed to pay Rs. 15,104/-  to the

                  complainant with interest @12%pa., from the date of

                  termination of chit i.e.,01-10-09 till the date of payment. 

1. The opposite party is directed to pay Rs. 1,000/-(Rupees one thousand only)  towards compensation and Rs.500/- (Rupees five hundred only) towards costs. 
2. The amounts ordered above shall be paid within a period of six weeks from the date of receipt of copy of the order, failing which the amounts ordered in point NO.2 shall carry interest @9%pa., till the date of realization. 

Typed to my dictation by Junior Stenographer, corrected by us and pronounced in the open Forum dated this the 12^th day of January, 2012. 

MEMBER                                                                             PRESIDENT

APPENDIX OF EVIDENCE

DOCUMENTS MARKED

For Complainant : 

For OPPOSITE PARTY :

PRESIDENT