Complaint filed on 02.08.2013

                                                                                                                      Compliant disposed on 19.01.2015 

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM  ::AT:: KARIMNAGAR, TELANGANA STATE

PRESENT: HON'BLE SRI B.SURESH, B.A., LL.M., Ist ADDL. DIST. & SESSIONS JUDGE AND PRESIDENT (FAC)
AND

SRI G.SREENIVASRAO, M.Sc.,B.Ed.,LL.B., PGADR (NALSAR), MEMBER

MONDAY, THE 19^TH DAY OF JANUARY,TWO THOUSAND FIFTEEN

CONSUMER COMPLAINT NO.101 OF 2013

Between:-

S.Rajeshwar  S/o.Chandraiah, Age 57 years, Occu: Contractor R/o. H.No.4-2-162, Medipalli Road, NTPC, Jyothinagar, Karimnagar Dist.

                                                                                                                            ... Complainant  

     AND

1. Sri Lokanatha Chit Fund Pvt. Ltd., H.No.4-2-227/3, Medipally Road, NTPC, Ramagundam, Karimnagar Dist. R/by its Foreman.
2. Katuku Manjula D/o.Laxminarayana Age: 40 Yrs, Occu: Business, Foreman R/o.H.No.4-2-227/3, Medipalli Road, NTPC, Ramagundam, Karimnagar Dist.

                                                                                                                        … Opposite Parties

          This complaint is coming up before us for hearing on  29-10-2014, in the presence of Sri A.Ashok Kumar Advocate, counsel for complainant, the counsel for opposite party no.2 Sri E.Madhusudan Eao filed only Vakalath, opposite party no.1 remained exparte and on perusing the material papers on record, and having stood over for consideration till this day, the Forum passed the following:

::O R D E R::

      This complaint is filed under Sec 12 of C.P.Act, 1986 seeking direction to opposite parties to pay Rs.8,00,000/- towards the amount paid by the complainant with interest @ 24% p.a. from the date of filing the complaint till realization and Rs.10,000/- towards loss sustained by the complainant and also to pay Rs.5,000/- towards costs of the proceedings.

The brief facts of the case are:

1        The complainant at the request of opposite party no.2 joined as a member of Chit Group (Ref LTD-1) having chit value of Rs.20,00,000/- with a monthly payment of subscription of Rs.1,00,000/- for a period of 20 months. He joined in it on 26.09.2011 and he continued paying installments @ Rs.1,00,000/- for four months.

          Similarly the complainant joined in another Chit Group with them having value of Rs.10,00,000/- on a monthly payment of subscription of Rs.40,000/- for a period of 25 months. He joined in it on 22.02.2011 and paid regularly 10 installments i.e., Rs.4,00,000/-. The opposite party no.2 received the installments and signed in the Pass Books issued by her for both the Chit Groups. After that the opposite party no.2 stopped receiving monthly installments and hiding herself. When complainant with great effort traced her, the opposite party no.2 informed that she closed the Chit Fund business and agreed to repay the amounts taken against both the Chit Groups i.e., Rs.8,00,000/-, within a few days. But she postponed to pay the said amount on one pretext or the other, even though the complainant made several requests. The complainant further averred that the opposite party no.2 stopped the business without information and could not repay the promised amount of Rs.8,00,000/- to the complainant and when finally the complainant requested the opposite party no.2 on 10.06.2013, the opposite party no.2 denied the payment of amount and threatened the complainant with dire consequences. So the complainant submits that the activities of opposite party no.2 amounts to unfair trade practice, deficiency in service and cheating also. He, therefore filed complaint before this Forum for necessary relief.

2        The Forum issued notices to both the opposite parties and they were returned back with remark as “addressee left” and once again the Forum sent notices after confirming the address from the complainant. Thereafter the opposite party no.1 remain exparte whereas the opposite party no.2 filed Vakalat through her counsel on 28.10.2013 but the counter was not filed to contest, despite several adjournments for a period of five months, hence the right to file counter by the opposite party was forfeited on 27.03.2014.

3        The complainant filed evidence affidavit along with documents and got marked from Ex.A1 to A6. The learned counsel for the complainant argued the matter before the Bench relying on the documentary evidence. Heard the counsel.

4        Now the point for consideration is, whether the opposite parties are responsible for the unfair trade practice and deficiency in service against the complainant? If so, to what relief?

POINT:

5.       This complaint is related to the unfair trade practice committed by a Chit Fund Company. The complainant in good faith joined in two Chit Groups having a Chit Value of Rs.20,00,000/- and Rs.10,00,000/- respectively. The complainant paid four monthly installments @ Rs.1,00,000/- in one group and similarly paid monthly installments @ Rs.40,000/- for a period of 10 months. So altogether he had paid Rs.4,00,000/- in each Chit Group amounting to the total value of Rs.8,00,000/-. To prove this he had filed Ex.A1 & A2 (Chit Pass Books) and Ex.A3 to A5 which are the receipts for an amount of Rs.2,40,000/- collectively paid (to Chit Group Ref LTD-1) during the period from October to December, 2011 and Ex.A6 is the Certificate of Incorporation for the opposite party no.1 during the period 2011 and 2012. On close scrutiny of Ex.A1, it is seen that the Pass Book acknowledges the receipt of Rs.2,40,000/- (under Ex.A3 to A5) , received during the period from October to December, 2011. And from Ex.A2 Chit Pass Book in which it is acknowledged i.e. signed by opposite party no.2 that the amounts were received from February, 011 to November, 2011 amounting to Rs.2,48,920/- and the signatures on both the Pass Books and on the Vakalath filed by the opposite party no.2 are tallied and confirms that the opposite party no.2 did receive these amounts amounting to a total of Rs.4,88,920/-. It seems that after November, 2011, the opposite party no.2 had not made any acknowledgment in the Pass Book. This leads to two opinions. Firstly, the complainant may be a defaulter. Secondly, the opposite party no.2 herself must have stopped the business abruptly to various reasons. If complainant is a defaulter, the opposite party no.2 after filing the Vakalath, she would have preferred to file her counter explaining the case or rebutting the allegations of the complaint, whereas even after five months of filing the Vakalath she had not filed the counter. This confirms the second opinion that she/opposite party no.2 must have stopped the business abruptly as per the allegations of the complainant. Further it is observed that Ex.A6 shows that she was running a registered Chit Fund in the name of opposite party no.1 ( SRI LOKNATHA CHI FUND PVT.LTD.) in such a case she is the Foremen of the Chit Fund Company and she has to follow the rules and regulations as per the A.P.Chit Fund Act and the rules thereon. Whereas she/opposite party no.2 closed down the business without giving notices to the subscribers and the Registrar of Chit Funds. So this proves that she is responsible for the unfair trade practice and certainly caused deficiency in service and liable to pay amount to the complainant.

6.       In view of the circumstances discussed in the aforesaid paragraphs the Forum is of the considered opinion that opposite party no.2 is responsible to refund the amount collected towards both the Chit Groups amounting to Rs.4,88,920/- as per the documentary evidence produced by the complainant under Ex.A1 and A2 and not as alleged by him of Rs.8,00,000/-.

7.       In the result the complaint is allowed partly and opposite party no.1 & 2 are jointly and severally directed to refund back the amount of Rs.4,88,920/- along with interest @ 9% per annum from the date of filing of the complaint i.e., 02.08.2013 till realization, and also to pay the compensation of Rs.5,000/- for the mental agony and Rs.2,000/- as costs of the litigation. Time for compliance one month.

          Dictated to Stenographer and transcribed by her and after correction, the orders pronounced by us in the open court this the 19^th day of January, 2015.

Sd/-                                                                                                             Sd/-

MEMBER                                                                                      PRESIDENT(FAC)                  

NO ORAL EVIDENCE HAS BEEN ADDUCED ON EITHER SIDE

FOR COMPLAINANT:                       

1. Ex.A1 is the original copy of Pass Book (Chit Group LTD-1) issued by opposite party.
2. Ex.A2 is the original copy of another Pass Book issued by opposite party.
3. Ex.A3, A4 and A5 are the original copies of Receipts issued by opposite party with different dates and amounts.
4. Ex.A6 is the photo copy of Certificate of Incorporation.

FOR OPPOSITE PARTY: -NIL-

Sd/-                                                                                                             Sd/-

MEMBER                                                                                      PRESIDENT(FAC)