Tamil Nadu

South Chennai

CC/246/2014

R.Alexandar - Complainant(s)

Versus

M/s.Sree Gokulam Chits & Finance Co P Ltd - Opp.Party(s)

S.Palanivelayutham

22 Jul 2019

ORDER

                                                                        Date of Filing  : 16.05.2014

                                                                          Date of Order : 22.07.2019

                                                                                  

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (SOUTH)

@ 2^ND Floor, T.N.P.S.C. Road, V.O.C. Nagar, Park Town, Chennai – 3.

 

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

TR. R. BASKARKUMARAVEL, B.Sc., L.L.M., BPT., PGDCLP.  : MEMBER

 

C.C. No.246/2014

DATED THIS MONDAY THE 22^ND DAY OF JULY 2019

                                 

R. Alexandar,

S/o. Mr. Ramasamy Nadar,

Pulayanvilai,

Karungal,

Kanyakumari District – 629 157.                                   .. Complainant.                                                     

 

                                                                                          ..Versus..

 

1. M/s. Sree Gokulam Chits & Finance Co. (P) Ltd.,

Rep. by its General Manager,

Corporate Office,

Sree Gokulam Towers,

No.66, Arcot Road,

Chennai – 600 024.

 

2. M/s. Sree Gokulam Chits & Finance Co. (P) Ltd.,

Rep. by its Assistant General Manager,

Rama Subramaniya Shopping Complex,

Veppumoodu Junction,

Nagercoil,

Kanyakumari District.                                             ..  Opposite parties.

 

Counsel for the complainant                  : M/s. S. Palanivelayutham &

                                                                  another

Counsel for the opposite parties 1 & 2  : M/s. L. Rajasekar

 

ORDER

THIRU. M. MONY, PRESIDENT

       This complaint has been filed by the complainant against the opposite parties 1 & 2 under section 12 of the Consumer Protection Act, 1986 prays to refund the excess amount of Rs.1,95,620/- collected by the opposite parties and to pay a sum of Rs.10,00,000/- towards compensation for mental agony, deficiency in service and unfair trade practice with cost of Rs.10,000/- to the complainant.

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

The complainant submits that he joined the opposite parties’ chit in the year 2004 in the group bearing No.G2J32 Ticket No.8.  The duration of the chit is for 20 months. The chit amount is Rs.10,00,000/-.  The monthly instalment is Rs.50,000/-.   The complainant submits that he was regularly paying the monthly instalment of the chit without any default. The complainant submits that the complainant was prized the chit at Rs.7,50,000/- and received the price amount and regularly paying the monthly instalment.  At one occasion, the complainant was not able to pay the chit amount.  After some delay when the complainant attempted to pay the chit amount, the opposite parties refused to collect the default instalment.  Thereafter the opposite parties initiated arbitration proceedings before the Sub-court, Padmanabapuram vide A.R.C. No.872 of 2006. The opposite parties without furnishing the details, claimed a sum for Rs.3,90,000/- on 19.06.2012.  The complainant paid Rs.3,50,000/- as part payment on 20.06.2012 and he paid a sum of Rs.40,000/- towards full and final settlement.   The complainant submits that he approached the opposite parties to furnish the particulars of balance due amount.  But the opposite parties has not furnished the same.  Hence, the complainant sent a letter of communication to the District Registrar Office of chits, Central Chennai for which, he received a reply dated:27.01.2014 with details of the amount collected by the opposite parties.  The complainant submits that as per the statement of accounts, the opposite parties collected a sum of Rs.1,94,380/- as excess.  The opposite parties claimed various amount under different head viz. Rs.54,426/- towards interest, Rs.96,503/- towards E. P. Claim with further interest, Rs.5,255/- under the head expenses and Rs.39,850/- for further interest and expenses for auction and other formalities. The complainant submits that he hailed from a middle class family and after much struggle in his life he paid the balance lumpsum amount as demanded by the opposite parties but the opposite parties for their illegal enrichment collected a huge amount from him.   The act of the opposite parties is nothing but deficiency in service and unfair trade practice in collecting excess amount from him.  However, the opposite parties has arbitrarily and negligently failed to issue the statement of accounts for the huge amount collected from him.   Hence, the complaint is filed.

2.      The brief averments in the written version filed by 1^st opposite party which is adopted by the 2^nd opposite party is as follows:

The opposite parties 1 & 2 specifically deny each and every allegations made in the complaint and put the complainant to strict proof of the same.    The 1^st opposite party is a Private Limited Company registered under the Companies Act and the 1^st opposite party is engaged in chit and finance business.  The opposite parties submit that the complainant enrolled himself as one of the subscribers to the Chit Group bearing No.G2J32 Ticket No.8 and the Chit Value was Rs.10,00,000/-.  The opposite party submits that the Chit commenced on 28.09.2002 and terminated on 28.04.2004.  The Chit was for a period of 20 months and the monthly subscription was Rs.50,000/-.   The opposite parties submit that the complainant bidded the chit and he was declared as the prized subscriber and the prized money was disbursed to him.    The opposite parties submit that the complainant has committed default in payment of the future subscriptions and the opposite party was constrained to initiate Arbitration Proceedings in ARC No.872 of 2006 before the Chit Registrar on 29.12.2006 directing the complainant to pay a sum of Rs.2,48,806/- with interest at the rate of 12% p.a.  

3.     The opposite parties submit that they have initiated a criminal Proceedings against the complaint for an offence Under Section 138 Negotiable Instruments Act before the Hon’ble Judicial Magistrate, Kullithurai in S.T.C. No.943 of 2007 for dishonor of cheque.  The opposite parties state that they filed an Execution Petition in E.P No.39/2011 before the Hon’ble Sub-Court, Padmanabhapuram. The opposite parties submit that the complainant had issued a cheque for repayment of the dues and the cheques were returned unpaid for the reason “Funds Insufficient” and the Criminal Prosecution was launched against the complainant before the Hon’ble Judicial Magistrate Court, Kulithuraii.   The opposite parties recorded full satisfaction on 28.06.2012.  Thereafter, the criminal prosecution was withdrawn on 24.07.2012.   The opposite parties submit that in the complaint that from the statement of account furnished by the opposite arties he came to know that the actual amount due was a sum of Rs.1,94,380/- and the opposite parties have collected a sum of Rs.3,90,000/- is not correct.   The opposite parties state that there is no deficiency in service or unfair trade practice as alleged by the complainant.  Hence, the complaint is liable to be dismissed.

4.     To prove the averments in the complaint, the complainant has filed proof affidavit as his evidence and documents Ex.A1 to Ex.A4 are marked.  In spite of sufficient time is given, the opposite parties 1 & 2 has not filed any proof affidavit to prove the contention raised in the written version and hence, it is concluded as “No Proof Affidavit’ on the side of the opposite parties 1 & 2.

5.      The points for consideration is:-

1. Whether the complainant is entitled to refund a sum of Rs.1,95,620/- as prayed for?
2. Whether the complainant is entitled to a sum of Rs.10,00,000/- towards compensation for mental agony, unfair trade practice, deficiency in service etc with cost of Rs.10,000/- as prayed for?

6.      On point:-

The opposite parties after filing written version failed and neglected to file proof affidavit to prove the contention raised in the written version. The complainant filed proof affidavit and documents but not turned up to file either written argument or advance oral argument.  The complainant pleaded and contended that he joined the opposite parties’ chit in the year 2002 in the group bearing No.G2J32 Ticket No.8.  The duration of the chit is for 20 months. The chit amount is Rs.10,00,000/-.  The monthly instalment is Rs.50,000/-.  Further the contention of the complainant is that he was regularly paying the monthly instalment of the chit but there is no proof.   But the opposite parties does not have the habit of issuing the payment receipt.  Further the contention of the complainant is that the complainant was prized the chit at Rs.7,50,000/- and received the price amount and regularly paying the monthly instalment.  At one occasion, the complainant was not able to pay the chit amount.  After some delay when the complainant attempted to pay the chit amount, the opposite parties refused to collect the default instalment.  But there is no record. Thereafter the opposite party initiated arbitration proceedings before the Sub-court, Padmanabapuram vide A.R.C. No.872 of 2006. The opposite parties without furnishing the details claimed a sum for Rs.3,90,000/-.  On 19.06.2012, the complainant paid Rs.3,50,000/- as part payment as per Ex.A1 and on 20.06.2012, he paid a sum of Rs.40,000/- towards full and final settlement as per Ex.A2.  But the complainant has not produced any full satisfaction receipt.  

7.     Further the contention of the complainant is that he approached the opposite parties to furnish the particulars of balance due amount. But the opposite parties has not furnished the same.  Hence, the complainant sent a letter of communication to the District Registrar Office of chits, Central Chennai as per Ex.A3 for which, he received a reply dated:27.01.2014 with details of the amount collected by the opposite parties as per Ex.A4.  Further the contention of the complainant is that as per the statement of accounts, the opposite parties collected a sum of Rs.1,94,380/- as excess as per Ex.A3 which amounts to unfair trade practice.  The opposite parties claimed various amount under different head viz. Rs.54,426/- towards interest, Rs.96,503/- towards E. P. Claim with further interest, Rs.5,255/- under the head expenses and Rs.39,850/- for further interest and expenses for auction and other formalities.  But on a careful perusal of records, the complainant has not produced the award of the arbitration proceedings and the claim in the execution proceedings; without the production of the arbitration awards and without the execution proceedings, this Forum is not able to conclude that the alleged payment of excess amount by the complainant. The complainant has not stated any reason for the non-production of arbitration awards and claim in the execution proceedings which amounts to suppression of facts.  Considering the facts and circumstances of the case this Forum is of the considered view that this complaint has to be dismissed.

In the result, this complaint is dismissed.   No costs.    

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 22^nd day of July 2019. 

 

 

MEMBER                                                                                PRESIDENT

 

COMPLAINANT SIDE DOCUMENTS:-

Ex.A1	19.06.2012	Copy of the payment receipt issued by the 2nd opposite party
Ex.A2	20.06.2012	Copy of the payment receipt issued by the 2nd opposite party
Ex.A3	22.01.2014	Copy of the communication issued by the 1st opposite party
Ex.A4	27.01.2014	Copy of communication received by the complainant from the office of the District Registrar Office

    

OPPOSITE PARTIES 1 & 2’ SIDE DOCUMENTS:-  ‘No Proof Affidavit’

 

                              

MEMBER                                                                                PRESIDENT