Tamil Nadu

South Chennai

CC/194/2015

M.Noorullah Sheriff - Complainant(s)

Versus

M/s.Law Officer, Shriram Chits Tamil Nadu P Ltd., - Opp.Party(s)

Party in Person

12 Apr 2018

ORDER

                                                                                                                Date of Filing  : 22.04.2015

                                                                           Date of Order : 11.04.2018

 

DISTRICT CONSUMER DISPTUES REDRESSAL FORUM, CHENNAI (SOUTH)

@ 2^ND Floor, Frazer Bridge Road, V.O.C. Nagar, Park Town, Chennai – 3.

PRESENT: THIRU. M. MONY, B.Sc., L.L.B, M.L,                    : PRESIDENT

                 TMT. K. AMALA, M.A. L.L.B.                                :  MEMBER-I

C.C. NO.194 /2015

WEDNESDAY THE 11^TH DAY OF APRIL 2018

                                 

M. Noorullah Sheriff,

S/o. Late. Abdullah Sheriff Sahib,

No.51/24 A, Laskar Street (or)

1A, Railway Station Road,

Alundur,

Chennai – 600 016.                                                      .. Complainant.

                                                            ..Versus..

 

The Law Officer,

Shriram Chits Tamil Nadu Pvt. Ltd.,

No.145, Ground Floor,

Santhome High Road,

Mylapore,

Chennai – 600 016.                                                  ..  Opposite party.

 

For complainant                      :  Party in person

Counsel for opposite party     :  M/s. K. V. Ananthakrushnan & others

 

ORDER

THIRU. M. MONY, PRESIDENT

       This complaint has been filed by the complainant against the opposite party under section 12 of the Consumer Protection Act, 1986 seeking compensation for a sum of Rs.4,00,000/- for mental agony with cost.

1.      The averments of the complaint in brief are as follows:

          The complainant is a subscriber in M/s. Shriram Chits Tamil Nadu Pvt. Ltd. bearing Ticket No.4270/65016/30 Puraswakkam Branch, Chennai.  The complainant is regular and prompt in paying chit subscription without default.  The complainant was allowed to participate in the auction of the chit wherever a person who commits default in the payment of subscription was also allowed to participate in the auction, because he is known to staff of the opposite party and the opposite party agents on behalf of subscriber without a valid Authorization letter from the subscriber participate in the bid to raise the bid amount.  The complainant took the chit on 10.02.2014.  Upon the demand of Mr. Shanker, AGM, Mr. Vinodhkanna, BM, Mr. Ravi, Manager OM and Mr. Periasamy, Manager recovery, the complainant has given 9 nos. post dated cheques from SBI Alandur, Chennai – 600 016.  After the completion of formalities and procedures, the prize amount was given to the complainant only on 13.06.2014 belatedly after 4 months by the opposite party.  The complainant personally met the Commissioner of Police, Egmore dated:07.08.2013 and gave a letter to him informing the fraudulent act of the opposite party in monthly Auction bid etc.   The complainant has sent a letter dated 24.09.2013 to P.I.O. o/o. District Registrar, South Chennai informing that the opposite party is allowing Subscriber participating in the monthly chit bid when the subscribers have not paid their monthly installment for more than 2 months which is against the bye law of the opposite party.  The complainant sent a letter dated:31.08.2013 to the M.D. of the opposite party stating the act of the opposite party.  The complainant sent a letter dated:28.11.2013 to the IGP Registration, Chennai  and also the complainant sent a legal notice to the G.M. and the AGM of the opposite party dated:25.06.2014 requesting  to pay the prize money.  Again the complainant, sent a letter dated:21.07.2014 to the o/o AGM of the opposite party  stating that the opposite party is charging interest in the monthly installment.  Thus the act of the opposite party caused mental agony and thus leads to deficiency of service.  Hence this complaint is filed.

2.      The brief averments in the written version filed by the opposite party is as follows:

        The opposite parties deny each and every allegations except those that are specifically admitted herein.   It is an admitted fact that the complainant was a subscriber in Chit group No.4270/65016/30 with Purasawakkam Branch, Chennai and the complainant bid the chit on 10.02.2014 and was given the prize amount. Towards security and payment of future subscription, he gave nine post dated cheques belatedly.   Hence the amount was released only on 13.06.2014.  The opposite party issued a detailed reply dated:07.07.2014 to the complainant’s notice dated:25.06.2014.   The complainant bid the auction on 09.12.2014 for the prize amount of Rs.3,90,000/- and bid the amount of Rs.1,10,000/-.  Since the sureties furnished did not satisfy the requirement of law, the foreman to accommodate the opposite parties took six post dated cheques and released the prize amount.  The opposite party submits that in so far as the subscriber Hariprakash is concerned, he bid the auction on 10.06.2013 for higher bid amount of Rs.1,25,000/- six months before the complainant bid the chit on 10.02.2014.   So also, Sankar C bid the auction on 10.07.2013 for the prize amount of Rs.1,25,000/-.  It is not possible for all the 40 subscribers to bid on a single auction day.  When there is competition, it would be decided by lot only.  No illegality in conducting the lot.  The complainant’s bid amount is Rs.1,10,000/- less than the earlier auction for the prize amount Rs.3,90,000/-.  The complainant without knowing or understanding the scope of chit scheme has made unwarranted and unnecessary allegations against the opposite party.   In this chit group of 40 subscribers, none made any allegations against conducting the chit auction.  The prize money was released to the complainant after 4 months is because the complainant did not furnish surety in time to secure the future installment and not on account of any default or deficiency committed by the company.  Hence  there is no  deficiency of service on the part of the opposite party and the complainant is not entitled to any compensation or cost.

3.   In order to prove the averments in the complaint, the complainant has filed proof affidavit as his evidence and documents Ex.A1 to Ex.A19 marked.  Proof affidavit of the opposite party filed and no documents filed on the side of the  opposite party.

4.      The point for consideration before the Forum is :-

1. Whether the complainant is entitled to a sum of Rs.4,00,000/- towards compensation with cost as prayed for?

5.      On Point:

Heard both sides.  Perused the records namely the complaint, written version, proof affidavits, written arguments, documents etc.  The complainant pleaded and contended that he is a subscriber in a Chit group bearing No.4270/65016/30.   The chit value was Rs.5,00,000/- and the monthly subscription was Rs.12,500/-.  The complainant was a regular subscriber which is also proved from Ex.A3, Statement of Accounts.  Further, the contention of the complainant is that, when the complainant was qualified to bid the Chit, he bid the chit for a sum of Rs.3,90,000/- on 09.02.2014 and bid for a sum of Rs.1,10,000/-.  Further, the contention of the complainant is that immediately after bidding, the opposite party chit foreman is liable to pay the prize amount.  Since the bid amount is not paid for a long time, the complainant issued legal notice Ex.B5 for which, the opposite party sent  Ex.B6, reply.  Further the contention of the complainant is that, evenafter repeated request and letters and also complaint before the Chit Registrar, the opposite party has not disbursed the amount.  At long last, the opposite party released a sum of Rs.3,19,000/- towards the price amount after 4 months.  The delay in disbursement of price amount caused greater mental agony and hardship.  The opposite party wrongly withheld the amount for 4 months which amounts to deficiency in service.   The learned Counsel for the opposite party contended that admittedly, the complainant is a subscriber in the Chit group No.4270/65016/30 and the complainant bid the chit on 10.02.2014 for which, the prize amount is Rs.3,90,000/-.  The complainant has issued 9 postdated cheques dated:13.06.2014 for security and the prize amount was disbursed on 13.06.2014.  The allegation of the complainant that the opposite party wantonly non disbursed the prize amount is utter false.  Immediately after bidding the chit in the subsequent month, the amount will be disbursed on furnishing security.  In this case, the complainant has not furnished security within the reasonable period.  Immediately after furnishing security by way of post dated cheques, the prize amount was disbursed and  there was a delay of 3 months alone caused.  Considering the facts and circumstances of the case, this Forum is of the considered view that, the opposite party is liable to pay a sum of Rs.8,775/- towards interest at the rate of 9% pa. for 3  months for the prize amount of Rs.3,90,000/- and to pay a sum of Rs.10,000/- towards compensation for mental agony with cost Rs.5,000/-.

In the result, this complaint is allowed in part.  The opposite party is directed to pay a sum of Rs.8,775/- (Rupees eight thousand seven hundred and seventy five only) towards interest at the rate of 9% p.a. for 3 months for the prize amount of Rs.3,90,000/- and to pay  a sum of Rs.10,000/- (Rupees ten thousand only) towards compensation for mental agony with cost of Rs.5,000/-  (Rupees Five thousand only) to the complainant.

The aboveamounts shall be payable within six weeks from the date of receipt of the copy of this order, failing which, the said amounts shall carry interest at the rate of 9% p.a to till the date of payment.

Dictated  by the President to the Steno-typist, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the 11^th day of April 2018. 

 

MEMBER –I                                                                       PRESIDENT

COMPLAINANT SIDE DOCUMENTS:

		Copy of letter addressed to Sri Ram Chits P. Ltd, Chennai
		Copy of Letter address to the Commissioner of Police, Chennai – 6
		Letter addressed to the M.D. Shriram Chits (TN) P. Ltd
		Copy of letter address to the P.I.O. o/o The Registration Chits, Chennai – 14
		Copy of letter addressed to the Appellate Authority o/o The C.M, Office, Chennai – 9.
		Copy of the letter received from the o/o C.M. office, Chennai – 9.
		Copy of letter received from the P.I.O., o/o The I.G., Registration, Chennai -28
		Copy of the letter received from the P.I,O., o/o, the Registration of Chits, Royapettah, Chennai – 14.
		Copy of the letter addressed to the Appellate Authority o/o I.G. Registration, Chennai – 28.
		Copy of letter received from o/o The registration, Chennai-7
		Copy of the letter addressed to the A.G.m. Shri Ram Chits TN (P) Ltd, Chennai – 5.
		Copy of the letter addressed to the A.G.m. Shri Ram Chits TN (P) Ltd, Chennai – 5.
		Copy of legal notice sent to Shri Ram chits Ltd, Chennai -5.
		Copy of the current months due intimation letter of Shriram Chits.
		Copy of the letter addressed to the Regional Office, Shri Ram Chits P Ltd, Chennai – 5
		Copy of the letter received to the complainant’s legal notice, Chennai – 4.
		Copy of the letter sent to Registered Office Shri Ram Chits P.Ltd, Chennai 5.
		Copy of Installment wise payment details
		Copy of Installment wise payment details

 

OPPOSITE  PARTY SIDE DOCUMENTS:  NIL

 

MEMBER –I                                                                       PRESIDENT