BEFORE THE MANDYA DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, MANDYA PRESENT: 1. SIDDEGOWDA, B.Sc., LLB., President, 2. M.N.MANOHARA, B.A., LLB., Member, 3. A.P.MAHADEVAMMA, B.Sc., LLB., Member, ORDER Complaint No.MDF/C.C.No.40/2009 Order dated this the 29th day of June 2009 COMPLAINANT/S Sri.Y.K.Ananda S/o Kalaiah, R/o B.Yarahalli, Kothathi Hobli, Mandya Taluk. (By Sri.J.Rajendra., Advocate) -Vs- OPPOSITE PARTY/S The Branch Manager, Shriram Chits (Karnataka) Pvt. Ltd., Vishnubhavan Complex, Opp. Jubilee Park, Ashokanagara, Mandya. (By Sri.H.S.Nagendra., Advocate) Date of complaint 16.04.2009 Date of service of notice to Opposite party 27.04.2009 Date of order 29.06.2009 Total Period 2 Months 2 Days Result The complaint is dismissed. However, there is no order as to costs. Sri.Siddegowda, President 1. This complaint is filed under section 12 of the Consumer Protection Act, 1986 against the Opposite party for a direction to repay the Chit amount of Rs.40,651/- with interest at 18% and also compensation of Rs.2,00,000/-. 2. The case of the complainant is that the complainant is a member of Opposite party Chit Fund Company and obtained the chit ticket No.37017/11 on 20.04.2005 for Rs.50,000/-. The complainant was regularly paying the chit amount for the improvement of his silkworm seeds business and bid the chit on 12.01.2009 for Rs.40,651/-. As per the rules, the Opposite party ought to have paid the chit amount within 30 days from the date of bid. But, the Opposite party did not pay the chit amount, in spite of direct approach and legal notice dated 09.03.2009. The complainant would have got profit of Rs.1,50,000/- from his business, if the Opposite party had paid the bid amount in time. Therefore, the present complaint is filed. 3. The Opposite party has filed version, admitting the complainant is the member of chit fund for Rs.50,000/. The complainant was irregular in payment of the installment chits, though the collectors were going and demanding. It is denied that the complainant would have got profit, if the amount has been paid in time. As per the agreement, after bid of the chit amount within 21 days, the complainant should furnish the security for the remaining installments and thereafter within 30 days or on the next bid date, the Opposite party has to pay the amount. Denying that in spite of legal notice no reply was sent, the Opposite party Manager approached the complainant 2, 3 times i.e., on 07.03.2009 and 08.03.2009 and offered the cheque of Rs.40,651/-, but the complainant refused to saying reasons and quarreled and intentionally got issued a legal notice on 09.03.2009. Even afterwards, the Opposite party tried to 2 to 3 times for settlement, but on account of failure, the amount was deposited to the complainants account on 20.03.2009. After the bid, the complainant had to put signature to the agreement furnishing the bank name, account number and photo. Due to the delay for these by the complainant, there is some delay in depositing the amount. Though the complainant was a defaulter to protect the customer, the membership was not cancelled and without demanding for the deposit of arrears, the complainant was allowed to bid the chit and after the bid, the arrears was deducted and the balance has been deposited. Therefore, the delay was only due to the negligence of the complainant and the Opposite party has not committed any deficiency in service and the complaint should be dismissed with costs. 4. During trial, the complainant is examined and has produced Ex.C.1 to C.4. The Opposite party is examined and Ex.R.1 to R.4 are produced. 5. We have heard both the sides. 6. Now the points that arise for our considerations are:- 1. Whether the Opposite party has committed default in repaying the bid amount to the complainant? 2. Whether the complainant has suffered loss of Rs.1,50,000/-? 3. Whether the Opposite party has committed deficiency in service? 4. Whether the complainant is entitled to the relief sought for? 7. Our findings and reasons are as here under:- 8. The undisputed facts are that the complainant is a customer of the Opposite party Chit Fund Company and he is the member of the chit under ticket No.37017/11 from 20.04.2005 for Rs.50,000/- and on 12.01.2009 he participate the bid chit for Rs.40,651/-. According to him, within 30 days, the Opposite party should have paid the amount, but in spite of demand and legal notice, the Opposite party has failed to deposit the amount. The contention of the Opposite party is that due to the negligence of the complainant, there was delay in depositing the amount, because he has not followed the rules of the chit fund by not furnishing the bank address, account number, photo and has not put signature to the documents and though the cheque was offered, the complainant refund and got issued legal notice and Opposite party has not committed any negligence. Now, if we analyse the document produced and the evidence, it is clearly established that there is a delay in payment of the chit amount due to the lapses of the complainant, though the legal notice was issued and phone calls are made at 3 times. 9. Firstly, according to the complainant, he was regularly depositing the chit installments, but the complainant himself has produced Ex.C.1, the installment payment details and Opposite party has also produced Ex.R.2 the same details. If we examine these documents, it is very clear that the complainant was not regular and he was in the habit of depositing the installment after two months, three months and even 5 months. As contended by the Opposite party for this, Opposite party has not levied any interest, in spite of the conditions mentioned in Ex.R.1 to which the complainant is a signatory and Ex.R.1 is the agreement between the complainant and the Opposite party. As per the condition, if there is a default in payment of the installments, the subscriber is not entitled to the dividend and the subscription should be paid within 10th of every month, otherwise interest at 24% should be paid. But, in the accounts of the complainant as per Ex.C.1, the Opposite party has not added any interest nor deducted the dividends. In fact, the dividend has been added whenever the payments are made and the balance installment was collected and as per Ex.R.2 accounts, the total amount including the dividend was only Rs.43,736/-, though the chit amount is Rs.50,000/- and according to the complainant, it is a last bid and the bid amount is only Rs.40,651/-. According to the Opposite party, after 34 to 35 installments, the complainant did not deposit any amount towards the monthly installment till the time of bid by him. As per Ex.R.2 on 11.04.2008 he has deposited Rs.2,500/- and then on 08.09.2008 he has deposited Rs.5,000/-, thereafter he did not deposit amount at all. Only after last bid, the remaining amount deducted from the bid amount and adjusted. Therefore, it is very clear that the Opposite party to retain the subscriber, the Opposite party has received the installments as and when, the complainant paid and allowed the dividend regularly and membership was not cancelled and no interest was levied and even the last installment was not paid and only from the chit amount of Rs.6,540/- has been deducted and adjusted and the balance amount was deposited on 20.03.2009 to the account of the complainant. It is undisputed that after legal notice dated 09.03.2009, the Opposite party has deposited the cheque dated 07.03.2009 to the account of the complainant as per Ex.R.3 and R.4. In spite of it, the complainant without verifying his bank account has filed this complaint on 16.04.2009. The evidence of the complainant is that since, the Opposite party did not ask, he did not put any signature in to office. Of course, the Opposite party had admitted that the complainant had furnished the bank account number at the time of agreement, but without putting the signature to the receipts and furnishing the photo, it is unexpected for the Opposite party to deposit the amount. The evidence of the Opposite party that on 07.03.2009, the cheque was prepared and offered and the complainant was contacted on 07.03.2008, but the complainant did not heading the words, the complainant got issued a legal notice on 09.03.2009. The complainant case is that the Opposite party should have sent the cheque to his address cannot be believed, because the subscriber has to visit the office and signed the papers of discharge and obtain the cheque. But, the conduct of the complainant reveals that he has not visited the Opposite party office, but through phone only he has contacted as per Ex.C.3 at 2 times and it reveals that the complainant has furnished the bank account number, but did not visit the office to sign the discharge voucher and to furnish the photo as per the agreement. The complainant has admitted in his cross-examination that he did not put any signature to any document in the Opposite party office saying that the Opposite party did not ask. His evidence cannot be believed that a chit found company will not issue cheque without obtaining the proper identification with photo and proper discharge voucher. 10. The contention that through the legal notice, there is no reply by the Opposite party, but before the legal notice, the cheque was prepared and thereafter, after the service of the legal notice, the chit amount deposited to the account of the complainant. On 11.03.2009, notice has been served as per postal acknowledgement Ex.C.2(a) on 20.03.2009 the cheque amount has been deposited to the account of the complainant and without verifying the same, the complainant has rushed to lodge the complaint. Therefore, considering the above facts, it has to be inferred and conclusion has to be drawn that the complainant has not come to the Forum with clean hands and therefore, the complainant has failed to prove that the Opposite party has committed default in repayment of the chit amount to him in time. 11. The complainant has stated and deposed that if the chit amount was paid in time, he would have got the profit of Rs.1,50,000/- as he was doing Silkworm Seed Production. As per Ex.C.4 licence is obtained by one Smt.Vedavathi and the complainant is authorized to purchase the seeds from the department and it reveals that he has not stopped the business and there are no documents to prove for what amount he was purchasing silkworm seeds every month and per day how much he was selling and what was the profit. Mere oral evidence of the complainant that would have fetched profit of Rs.1,50,000/- within a month is highly exaggerative and cannot be accepted. Admittedly, the Opposite party has got 30 days time to pay the bid amount. On 12.01.2009, he bid the chit amount and so within a month means 12.02.2009 the complainant should have got the amount from the Opposite party. But, on 07.03.2009 the Opposite party prepared the cheque and due to the negligence of the complainant, the cheque was not presented, because he did not appear before the Opposite party to sign the papers by furnishing the photo. 12. The complainant has sought for a direction to the Opposite party for payment of chit amount of Rs.40,651/- with interest at 18% p.a. from 12.01.2009 till payment and loss of Rs.1,50,000/- and compensation of Rs.50,000/- totally Rs.2,40,651/-. But, without verifying his bank account though the amount was deposited on 20.03.2009, the complainant has rushed to this Forum by filing the complaint on 16.04.2009 and therefore, the intention of the complainant could be gathered, though he has committed negligence without following the conditions in spite of getting benefit of dividend in spite of default in payment of chit installments and though the Opposite party has not imposed any interest for late payments and though for default his membership was not cancelled. The complainant has tried to get monitory benefit by resorting to filing the complaint. Therefore, under these circumstances, the complainant is not entitled to any amount claimed in the complaint. 13. In the result, we proceed to pass the following order; ORDER The complaint is dismissed. However, there is no order as to costs. (Dictated to the Stenographer, transcribed, corrected and then pronounced in the open Forum this the 29th day of June 2009). (PRESIDENT) (MEMBER) (MEMBER)
