Before the District CONSUMERS Forum: Kurnool

Present:Sri.K.V.H.Prasad, B.A., LL.B., President

And

Smt.C.Preethi, M.A., LL.B., Member

Sri.R.Ramachandra Reddy, B.Com., LL.B., Member

Thursday 26^TH day of February, 2004

C.D.No.131/2003

C.M.Sada Siva Reddy alias C.M.S.Reddy,

S/o C.M.Narayana Reddy,

R/o H.No.10-51,

Krishna Nagar,

Kurnool.                                     . . . Complainant represented by his Counsel

                                                     Sri.U.Satyapal Reddy, Advocate

-Vs-

S.Yogeswara Goud,

Foreman and Managing Partner,

Suthradari Chit Funds,,

Door No.40/331-1,

Gandhi Nagar,

Kurnool.                                   . . . Opposite party represented by his counsel

                                             Sri.E.Sreenivasulu, Advocate

O R DE R

1.       This Consumer Dispute case of the complainant is filed under Section 12 of the C.P. Act seeking an award directing the opposite party for refund of the complainant the chit value of Rs.1,00,000/- with interest at 18% per annum from June, 2002 and Rs.25,000/- towards compensation and Rs.2,000/- towards costs.

2.       The brief facts of the complainant’s case are that on 06-05-1999 the complainant joined “Chit Fund” Scheme organized by the opposite party under the style and the name of “Suthradari Chit Funds” (Regd.,) as its Foremen and the Managing Partner and the value of the chit was Rs.1,00,000/- and the duration of  Chit was 40 months  at the monthly premiums of Rs.2,500/- per month and the complainant made monthly premium payments till June, 2002 and as not lifted any chit during the said tenure he is entitled to the chit value amount on conclusion of said chit’s 40^th  installment occurred in the June, 2002.  But the opposite party in-spite of several demands did not pay the chit amounts of Rs.1,00,000/- to the complainant and deprived of the said amount of the complainant causing mental agony besides to monitory in convenience and constrained the complainant to this case.

3.       In pursuance of the receipt of the notice of this Forum as to this case of the complainant the opposite party caused appearance through his counsel and filed written version contesting the case by denial of the complaint averments and requiring its strict proof by the complainant and seeks the dismissal of the complaint with costs as the case of the complainant is barred by limitation and the complainant  has defaulted the payment of 39the and 40^th premium installments of the chit and thereby not entitling to the value of the chit and also disowning  any of its concern to the  receipt date 11-10-2000.

4.       While the complainant’s side relied upon the documentary record in the Ex.A1 to Ex.A3 besides to his sworn affidavit in reiteration of the complaint averments, the opposite party has merely filed his sworn affidavit in reiteration of his defence.

5.       Hence, the point for consideration is whether the complainant has made out the deficiency of service on the part of the opposite party and his entitleness for the reliefs sought?

6.       The Ex.A1 and Ex.A2 are the bunch of receipts issued by “Suthradari Chit Funds” for the amount of monthly premium installments of the chit from the complainant.  The receipts in Ex.A1 is the bunch of 38 receipts covering from May, 1999 and concluding by 15-06-2002 envisaging the receipt of the payments of the installments No.1 to 38 of the said chit No.SCF-IA-18.  The Ex.A2 is the bunch of receipt covering the 1^st to 12^th and 14^th to 33th and 37^th to 39^th installments premiums covered in the Ex.A1.   The Ex.A3 is the said chit Pass Book showing the payment of 38^th monthly premium installments of the said chit with reference to the receipt numbers mentioned in the Ex.A1 and mere entry of the 39^th installments without any reference to its receipt number.  But the receipt No.37 dated 24-07-2002 of the Ex.A2 bunch of receipts envisages the payments of 39^th premium installments of Rs.2,375/- and the date of the said receipt and the amount mentioned therein finds place in Ex.A3 as 39^th installment. Hence, the non mentioned of the receipt No.37 of 24-07-2002 appears to be an oversight error.  The opposite party alleges the receipt date 11-10-2000 does not bear his signature and hence it is of no concern to him.  But there appears no water and soundness in the said contention in the absence of any answer form the opposite party for its corresponding entry in the Ex.A3 at serial No.18 with reference to the said receipt number of Ex.A1.  As the complainant has not filed any cogent receipt envisaging the payment of 40^th monthly installments of the said chit form the above what remains clear is that the complainant has paid in all 39 monthly premium installments of the said chit only and was in default of the payment of the 40^th monthly premium installments the payment of which only entitles him to the value of the chit as per the applicable rules and conditions at its conclusion.  As the complainant, thus being defaulter of the 40^th premium installments of the said chit, he is not remaining qualified for the chit value as claimed.

 7.      The said chit as was for 40 months duration concluding by its last installments payment in August, 2002 the entitleness for the permissible amount of the chit to the complainant is arriving  on the last payment dated 24-07-2002 only.

8.       This case is filed by the complainant on 03-09-2003 i.e.,  within one year 2 months  from the said last payment there appears no merit and force in the contentions of the opposite party as to the limitation to the complainant’s case.

9.       As the complainant paid only 39^th installments, the complainant is remaining entitled to that amount which out on deduction of the last premium installment that was defaulted by the complainant the deficiency of the service of the opposite party is remaining clear from his very conduct of not paying the said due amount.

10.     Hence, the case of the complainant is allowed directing the opposite party who appears the Managing Partner of the said chit fromtheEx.A3 to pay the residuary amount on working out the deduction of the 40^th monthly premium amount from the occurred amount of the complainant with the opposite party, along with interest at 12% per annum for the date on which it has fallen due to the complainant i.e., from the date of efflux of the 40^th installments, along with Rs.2,000/- each towards compensation and costs, within a month of the receipt of this order.  In default the opposite party shall be liable to pay the awarded amount with 18% per annum from the date of the said default till realization.

Dictated to the Stenographer, Typed to the Dictation corrected by us pronounced in the Open Court this the 26^th day of February, 2004.

MEMBER                                    PRESIDENT                                           MEMBER

APPENDIX OF EVIDENCE

Witnesses Examined

For the complainant:- Nil                                    For the opposite party:- Nil

List of exhibits marked for the complainant:-

Ex.A1          Bunch of 34 original receipts issued by opposite party in favour of the complainant.

Ex.A2          Bunch of 33 receipts issued by opposite party in favour of the complainant.

Ex.A3          Pass Book with up to dates entires under chit reference SCF-IA-18 issued by the opposite party to the complainant.

List of exhibits marked for the opposite party:- Nil

MEMBER                                    PRESIDENT                                           MEMBER