Kerala

Idukki

CC/138/2020

Sunny Thomas - Complainant(s)

Versus

m/s Karavellymattam chits and pvt ltd - Opp.Party(s)

Adv: prince j pananal

23 Jun 2022

ORDER

DATE OF FILING : 20.10.2020

IN THE CONSUMER DISPUTES REDRESSAL COMMISSION, IDUKKI

Dated this the  23^rd  day of June, 2022

Present :

SRI. C. SURESHKUMAR                   PRESIDENT

SMT. ASAMOL P.                             MEMBER

SRI. AMPADY K.S.                           MEMBER

CC NO.138/2020

Between

Complainant                                           :   Sunny Thomas,

                                                                  Chirappurathu House,

                                                                  Anchiri P.O., Alakkode,

                                                                  Thodupuzha – 685 585.   

       (By Advs: Prince J. Pananal

& Shijomon Joseph)

And

Opposite Parties                                     : 1. Karivelimattam Chits Private Ltd.,

                                                                   Amba Building, Thrikkakkara,

                                                                   Kochi – 22.

                                                                    Represented by its Managing Director.

      2. Navas K.K.,

          Managing Director,

                                                                   Karivelimattam Chits Private Ltd.,

                                                                   Amba Building, Thrikkakkara,                                                                                          Kochi – 22.

     3.  Salim, 

                                                                   Director,

                                                                    Karivelimattam Chits Private Ltd.,

                                                                   Amba Building, Thrikkakkara,

                                                                   Kochi – 22

O R D E R

SRI. C. SURESHKUMAR, PRESIDENT

 

1. This is a complaint filed under Section 35 of the Consumer Protection Act, 2019 (the Act, for short). Case of the complaint is briefly discussed hereunder:

                                                                                                                (cont….2)

• 2  -

          First opposite party is a private Chit Company represented by its Managing Director.  2^nd opposite party is the Managing Director as such and 3^rd opposite party is Director of the said Company.  Complainant had subscribed for a chit, namely chit No.THOD 516, which had a prize amount of Rs.10 lakhs.  Complainant had remitted chit instalments totalling to Rs.5,50,100/- from 6.10.2014 till 19.7.2016.  Thereafter functioning of the chit became irregular and finally branch office at Thodupuzha was closed down.  At that time, employees of opposite party had approached the complainant and convinced him to be satisfied with the amount paid by him towards chit instalments and not to claim anything more.  Complainant had agreed for this.  However, cheque issued for the amount by 1^st opposite party had bounced upon presentation.  When this was informed, complainant was promised that cheque amount along with 18% interest will be returned to him.  However, contrary to the assurance made, amount was not repaid despite repeated requests for the same.  Complainant had earlier availed a loan of Rs.7 lakhs from Thekkumbhagam Sevice Co-operative bank.  He had intended to repay a major portion of the same after getting his dues from opposite parties.  As they had failed to remit the amount, complainant had to sell his property and to settle his liability towards  Co-operative bank.  He had sustained a loss of Rs.3 lakhs on account of this.  Non-return of paid instalments amounts to deficiency in service.  So also sudden stoppage of chit, before  time is also agrave latches  on the part of opposite parties which would constitute deficiency in service at the first place.  Complainant submits that he is entitled to be compensated for the loss suffered by him due to deficiency in service apart from getting repayment of chit instalments collected from him.  He prays for return of Rs.5,50,100/- with interest at the rate of 18% per annum from 5.9.2016 onwards, the probable profit in auction amounting to Rs.1,36,000/- with 12% interest from 1.2.2018 onwards, compensation of Rs.3 lakhs for the loss sustained in selling his property for closing the loan from Co-operative Bank,  compensation of Rs.2 lakhs towards deficiency in service and costs as deemed fit by thiscommission.  Along with the complaint, complainant has submitted 4 documents.  1^st one is chit collection report,  2^nd document is dishonoured cheque for Rs.5,50,100/-,  3^rd document is cheque returned memo and 4^th document is collection report copy of the chitty from 6.10.2014 till 19.7.2016. 

 

          2. Complaint was taken on file and notice was issued to opposite parties.  Despite receipt of notice, opposite parties 1 to 3 had not appeared.  Hence they were set exparte.  Though case was posted for complainant’s evidence, he has not turned despite availing repeated opportunities.  Hence evidence is closed.  We have gone through the complaint and documents produced from the side of complainant.  Now the points which arise for consideration are :

1)  Whether complainant is entitled to get back Rs.5,50,100/- being chit instalments paid by him ?                                                                                                          (cont…3)

-  3  -

2)  Whether he is entitled for his share in probable profits if chit were to terminate on the date of maturity amounting to Rs.1,36,000/- ?

3)  Whether complainant is entitled for getting damages of Rs.3 lakhs for loss sustained due to non payment of amount mentioned in clause 1) above ?

4)  Whether complainant is entitled for Rs.2 lakhs as damages for deficiency in service ?

5) Reliefs and costs ?

 

3.  Point Nos.1 to 4 are considered together :

 

          Complainant averments that complainant had paid Rs.5,50,100/- as chit instalments from 6.10.2014, till 19.7.2016 stand proved by documents produced from the side of complainant.  However, nothing was produced to show that complainant had cleared the liability due to Co-operative bank by selling his property and had thereby incurred a loss of Rs.3 lakhs, since opposite parties have not returned the aforesaid amount of Rs.5,50,100/- to him.  So also mode of calculation, of claimed share in profit, is not pleaded.  Nor  is there any evidence in support of this claim.  Therefore, we are of the view that claim for Rs.1,36,000/- as probable share in profits and for compensation  of Rs.3 lakhs have not been proved by complainant.  We have already  found that, complainant has proved his case for return of Rs.5,50,100/- which was the total amount paid by him towards chit instalments, for a chit which was terminated, contrary to the agreement between complainant and opposite parties.  Such termination itself amounts to deficiency in service.  So also, non-repayment of instalments paid to subscribers. Considering the amount due and also the fact that cheque issued for clearing the liability was dishonoured, we are of the view that complainant is entitled for an amount of Rs.50,000/- as compensation on this account.  He is also entitled for litigation cost of Rs.5,000/-.  Point Nos.1 to 4 are answered accordingly.

 

4. Point No.5 :

 

          In the result, petition is allowed in part with costs upon the following terms :

 

1. Opposite parties 1 to 3 shall pay a sum of Rs.5,50,100/- to the complainant with interest at the rate of 18% per annum from 5.9.2016 till the date of payment or realization.

 

2. Complainant will be also entitled for a compensation of Rs.50,000/- from opposite parties for  deficiency in service occasioned to him by them. The amount will carry interest at the rate of 12% per annum from the date of petition till the date of payment or realization.                                                                                                       (cont….4)

-  4  -

 

3.  Complainant will be entitled to realise Rs.5000/- from opposite parties 1 to 3 as litigation costs.

 

4. Amount ordered above shall be paid within a period of 30 days from the date of receipt of a copy of this order.

 

          Pronounced by this Commission on this the  23^rd   day of June, 2022

 

 

                                                                                                Sd/-

                                                SRI. C. SURESHKUMAR, PRESIDENT

                                                                             Sd/-

           SMT. ASAMOL P., MEMBER

                             Sd/-

SRI. AMPADY K.S., MEMBER

 

 

Appendix : Nil.

 

 

 

                                                                                      Forwarded by Order,

 

 

                                                                                ASSISTANT REGISTRAR