Andhra Pradesh

Visakhapatnam-II

CC/280/2011

K. Pydiraju - Complainant(s)

Versus

Sri Iswarya Chits and Finance - Opp.Party(s)

Pilla Bhaskar

31 Dec 2014

ORDER

Reg.of the Complaint:01-08-2011

                                                                                                                                 Date of Order:31-12-2014

BEFORE THE DISTRICT CONSUMERS FORUM-II

AT VISAKHAPATNAM

                   Present:

1.Sri H.ANANDHA RAO, M.A., L.L.B.,

       President

2.Sri C.V.RAO, M.A., B.L.,

                                             Male Member

3.Smt.K.SAROJA, M.A., B.L.,

       Lady Member

                                            

 

WEDNESDAY, THE 31^ST DAY OF DECEMBER, 2014

CONSUMER CASE NO.280 /2011

 

BETWEEN:

SRI KUPPA PYDIRAJU S/O K.DALAYYA,

HINDU, AGED 58 YEARS, R/AT D.NO.57-4-51,

DURGANAGAR, KANCHARAPALEM, VISAKHAPATNAM.

…COMPLAINANT

AND:

SRI ISWARYA CHITS & FINANCE,

REP. BY ITS FOREMAN, ALLU SANYASI NAIDU,

D.NO.49-24-54, 2^ND FLOOR, MAIN ROAD,

MADHURANAGAR, VISAKHAPATNAM.

…OPPOSITE PARTY

This case coming on 29-12-2014 for final hearing before us in the presence of SRI PILLA BHASKAR, Advocate for the Complainant and the SRI N.SAI KRISHNA, Advocate for the OP, and having stood over till this date for    consideration, this Forum made the following.

ORDER

(As per the Honourable President on behalf of the Bench)

1. The present complaint is filed by the Complainant against the Opposite Party, directing them to pay Rs.1,13,375/- with interest @ 24% p.a., from the date of filing of complainant till the date of realization, to pay an amount of Rs.50,000/- for causing mental agony and physical strain and costs.

2. The case of the complainant in brief is that the OP is running Chits and Finance in the name of Sri Iswarya and the Complainant has entered into agreement with them and joined in a Chit Group of the OP as a subscriber in a chit bearing No.LT3H-3H and the value of the chit is Rs.1,00,000/-. As per the agreement, he has to pay Rs.2,000/- p.a., in 50 installments and accordingly, he paid 47 installments regularly for which, receipts were passed and further entered the same in the Pass Book and that in June, 2010, he stood as successful bidder in an auction conducted by the OP wherein he agreed to foregone an amount of Rs.9,300/-as such the OP has to pay Rs.90,700/- and when he requested to pay the same, they failed to pay. On that, he got issued a legal notice demanding them to pay the amount with interest thereon and as there was no response, he filed the present complaint.

3. The case of the OP, by the denying the material averments of the Compliant, is that the admitting the complainant as subscriber of Chit and declared as successful bidder after payment of 47 installments for the foregone amount of Rs.9,300/-and they have to pay Rs.90,700/- as prize amount and the complainant stood as surety to one MVS APPA RAO in another chit and he committed default on that the OP filed O.S.2334/05 against both the said Appa Rao and the Complainant and the said suit is decreed with costs and in pursuance of the Decree, the OP filed E.P.107/09 against the said Appa Rao and the present complainant and at that juncture, the complainant gave consent letter to deduct Rs.30,000/- in his chit amount. Therefore, after deducting of 36,000/- from the prize amount of Rs.90,700/- they have to pay Rs.54,700/- .

4. To prove the case on behalf of the complainant, he filed his Sworn affidavit. On other hand, the OP Managing Partner filed affidavit to prove their case by marking exhibits and got marked Exhibits A1 to A5 on behalf of the complainant and Exhibit B1 is marked on behalf of the OP.

5. Both parties filed their written arguments.

6. Heard both sides.

7. Exhibit A1 is the Pass Book issued by the OP, Exhibit A2 is the Receipts in 15 Nos. starting from 20-01-2007 to 24-08-2010, Exhibit A3 is the intimation letter from OP to Complainant in 3 nos. dated 30-06-2010,  Exhibit A4 is the Lawyer’s Notice, date 31-05-2011, Exhibit A5 is the Acknowledgement.

8.     Exhibit B1 is the Letter Addressed by the complainant dated 24-12-  2009 to the Opposite Party.

9.     Now the point that would arise for determination in this  case is?

Whether there is any deficiency of service on the part of the OP and the complainant is entitled to any reliefs asked for?

10.    As seen from the record, it is not in dispute that the complainant opined as chit subscriber in OP for value of Chit for Rs.1,00,000/- and paid 47 installments out of 50 installments @ 2,000/-  per month regularly and in June, 2010 he became successful bidder in the auction conducted by the OP agreeing to forego an amount of Rs.9,300/- Exhibit A1 to A3 do the same. Now the dispute is to the payment of Rs.1,13,375/- as contended by the complainant and Rs.54,700/-  as contended by the OP.

11.    Admittedly the complainant has not filed any rejoinder disputing  that he stood as surety to one MVS APPA RAO in another chit and on committing default a suit was filed in o.s.2334/05 and it was Decreed and in pursuance of the Decree E.P.107/2009 was filed against him and at that juncture, he gave a consent letter to deduct Rs.30,000/- in the present chit amount. To prove the case of OP, they relied upon Exhibit B1 letter dated 24-12-2009 stated to have been issued by the complainant herein to the OP. On a perusal of Exhibit B1, it is evident that the present complainant herein addressed to OP in tune with the case of the OP. It also discloses that a suit was filed against him and it was settled on compromise in Rs.1,20,000/- but Appa Rao paid only Rs.90,000/- and he gave an undertaking that an amount of Rs.30,000/- may be undrawn from his chit amount. Perusal of Exhibit B1  clinches that the complainant himself gave an undertaking before OP to receive Rs.30,000/- from his undrawn amount. On scrutiny of Exhibit B1, we are of the considered view that the OP proved that the contents of Exhibit B1 are correct. If, that be so, the OP is at liberty to deduct an amount of Rs.30,000/- from out of the present chit amount. Therefore, from out of the total prize amount of Rs.90,700/-, Rs.30,000/- is deducted while as per Exhibit B1 it comes to Rs.60,700/- for which the complainant is entitled.

12.    Admittedly, the complainant has to pay 3 future installments since, he paid only 47 installments from out of 50 installments which comes to Rs.6,000/- in addition to that being commission of chit value has to be paid by the complainant i.e., Rs.5,000/-, if  these amounts are deducted i.e., Rs.5,000/-, it comes to Rs.49,700/-. For these reasons, we are of the considered view that the complainant is entitled to receive Rs.49,700/- from the OP.

13.    Now the question that comes up for consideration, at this stage of our discussion is, what is the rate of interest, for which the Complainant is entitled.  The rate of interest claimed by the Complainant is 24% p.a.  This rate of interest claimed by the Complainant appears to be excessive. Of course, it is a fact that the transaction covered by Ex.A1 to A3 is in commercial in nature, but that does not and cannot mean to say that the Complainant is licensed to claim interest @ 24% p.a. on Ex.A1 to A3.  But, at the same time, it is imperative on our part to award a reasonable interest.   Having regard to all these facts and circumstances, we sincerely feel having considered the case on hand awarding of interest @ 12% p.a. would better serve the ends of justice.    Consequently, we proposed to fix the rate in question @ 12% p.a. on Ex.A1 in question.   Accordingly interest is ordered.

14.    Whether the Complainant is entitled for compensation of Rs.50,000/- is to be considered.   It appears as seen from the evidence of the Complainant that the Complainant was compelled to approach the Opposite Party and therefore experienced a lot of physical strain besides mental agony and financial loss.   It is an un-dispute fact that the Opposite Party did not refund the amount subscribed by the Complainant.   Naturally that may have put the Complainant to suffer some mental agony besides physical stress and strain.   In this view of the matter, we sincerely feel that it is a fit case to award compensation.   But that does not and cannot mean to say that the Complainant claim for compensation is acceptable.    Having regard to all these facts and circumstances, we are of the considered opinion, award of compensation of 5,000/- would better serve the ends of justice.   We therefore, proposed to award compensation of Rs.5,000 /-,  in the circumstances of the case on hand. Accordingly, this point is answered.

15.    Before parting our discussion, it is incumbent and imperative on our part to consider the costs of litigation.    The Complainant ought not have to approach this Forum, had his claim for payment prize amount of Rs.90,700/- or reliefs sought for has been honored by the Opposite Parties within a reasonable time and in any view of the matter, the Complainant’s claim for costs deserves to be allowed.   In our considered and unanimous opinion awarding a sum of Rs.2,500/- as costs would be appropriate and reasonable.   Accordingly costs are awarded.

16.    In the light of our discussion, referred supra, the complainant is entitled to receive the amount which was payable to him by the OP i.e., Rs.49,700/- together with subsequent interest @12% p.a., from the date of payment and a compensation of Rs.5,000/- towards compensation and also costs of Rs.2,500/- to the Complainant.

17.    In the result, the complaint is allowed in part, directing the OP to pay an amount of Rs.49,700/- (Rupees Forty Nine Thousand and Seven Hundred only) with subsequent interest @12% p.a., from the date of this complaint till the date of realization and further directed to pay an amount of Rs.5,000/- (Rupees Five Thousand only) towards compensation and costs of Rs.2,500/- (Rupees Two Thousand and Five hundred only) to the Complainants. Time for compliance, one month from the date of this order.

Dictated to the Stenographer, transcribed by him, corrected and pronounced by us in the open Forum, on this the 31 day of December, 2014.

   Sd/-                                                    Sd/-                                                                Sd/-

L.MEMBER                                        M.MEMBER                                                 PRESIDENT

 

APPENDIX OF EVIDENCE

Exhibits Marked for the Complainants:

Exhibits	Date	Description	Remarks
A-1		Pass Book issued by the OP	Original
A-2	20-01-2007 To 24-08-2010	Receipts in 15 Nos	Original
A-3	30-06-2010	Intimation Letter from op to complainant in 3 nos.	Original
A-4	31-05-2011	Laywer’s Notice	Original
A-5	01-06-2011	Acknowledgement	Original

 

Exhibits Marked for the OP     -nil-

 

Exhibits	Date	Description	Remarks
B-1	24-12-2009	Letter from the Complainant to the OP	Original

 

  Sd/-                                                      Sd/-                                                                  Sd/-

L.MEMBER                                        M.MEMBER                                                 PRESIDENT