STATE CONSUMER DISPUTES REDRESSAL COMMISSION
OF TELANGANA AT HYDERABAD
FA NO. 107 of 2016
AGAINST
CC NO. No. 31 of 2014, DISTRICT FORUM, KARIMNGAR
Between:
M/s. Kapil chit Fund Pvt. Ltd
Ramnagar, karimnagar,
Rep by its Recovery Officer .. Appellant/opposite party
and
Sri Mohd. Ali Pasha, S/o Rajan Shah,
Aged about 45 years, occ : Police Constable
P.C.No.2694, R/o H.No. 2-1-154,
Malkpur Village, Karimnagar .. Respondent/complainant
Counsel for the Appellant : Sri N. Amarnath
Counsel for the Respondent : Sri T.L.K. Sharma
Coram :
Hon’ble Sri Justice B.N.Rao Nalla … President
And
Sri Patil Vithal Rao … Member
Tuesday, the Twenty Nineth Day of August
Two Thousand Seventeen
Oral Order : (per Hon’ble Sri Justice B.N.Rao Nalla, Hon’ble President)
****
1) This is an appeal filed by the opposite party to set aside the impugned order dated 15.03.2016 passed in CC 31 of 2014 on the file of the District Forum, Karimnagar.
2) For the sake of convenience, the parties are described as arrayed in the complaint before the District Forum.
3) The case of the complainant, in brief, is that he is the chit subscriber of the opposite party’s Chit Fund Company, in respect of chit bearing no.FLTO2G/6, worth of Rs.2,00,000/- which was commenced on 16.03.2011 and the period of chit was for 50 months, i.e., till the end of April, 2015. In the month of July, 2013, he had participated in the chit auction and became successful bidder, for the chit prize amount of Rs.1,69,000/- by foregoing a sum of Rs.31,000/- and he had furnished sureties, as per the directions of the opposite party chit fund company, but the OP company did not pay the prize amount and did not respond to his request and hence on 25.11.2013, he had lodged complaint with the Registrar of Chits, Karimnagar and in response to the same, the Chit Registrar, summoned the opposite party and asked them to pay chit prize amount of Rs.1,69,000/-. For which shockingly the opposite party stated that out of the Chit prize amount of Rs.1,69,500/-, the opposite party had adjusted an amount of Rs.44,500/- towards the decretal amount of Rs.84,224/- in respect of decree passed in O.S.No.496 of 2008, on the file of Hon’ble Prl. Junior Civil Judge, Karimnagar in respect of the Chit No.KRT17F/42 pertains to Mirza Yousufunnisa Begum and to whom, the complainant stood as guarantor. On 30.09.2011 an E.P. was filed against (1) Mohd Abdul Saleem and (2) Mohd. Sirazuddin and got obtained warrant for attachment of their salaries, to an extent of Rs.42,112/- and Rs.42,280/- respectively, totaling to Rs.84,392/- towards full and final settlement and the same was effected on 25.02.2012. As on 25.02.2012, when the chit fund company attached the salaries of Judgment Debtors, how the opposite party will hold the amount of Rs.44,500/- belonging to the complainant, in respect of the auction, which was conducted on 13.07.2013. As such, the adjustment of chit prize amount to an extent of Rs.44,500/- is nothing but illegal, by this the opposite party company has excessively collected chit prize amount. In the meanwhile, the opposite party company withheld an amount of Rs.9,250/- in respect of chit MKT15E-16 pertains to Vijayender J (JV) and to whom, the complainant has stood as guarantor. Moreover, the said chit pertains to Vijayender was transferred to Sunil Kumar Araveti. The said chit pertains to the year 2010 and he became defaulter on 31.08.2011 that means much prior to becoming complainant a successful bidder. Despite successful bidder, the complainant was not paid prize amount thereby, he mentally suffered. It is nothing but deficiency in service on the part of opposite party company, towards its chit members, as such the opposite party is liable to pay the amount. Hence the complaint to direct the opposite party to pay an amount of Rs.1,84,210/- inclusive of interest @ 18% p.a. from the date of bid i.e., 29.07.2013 to 29.01.2014 along with compensation of Rs.2,00,000/- towards compensation and mental agony along with costs.
4) The opposite party in their written version contended that the amount of chit was not released by the opposite party to the complainant since he is a guarantor to other chit members who committed default in paying the due installments. When the opposite party had intimated about the defaulting members of the chit to whom the complainant stood as guarantor and that the opposite party is going to deduct the legal dues from his chit amount, the complainant lodged false complaint before the Chit Registrar and in Police Station also. As per the terms and conditions of the agreement in Chit Group No.KRT/17F Ticket No.42 in which the complainant was one of the guarantor, the opposite party has every right to deduct the amount from any of the guarantor and accordingly, the opposite party deducted the amount from the prized chit amount of the complainant pertains to the instant case. In a similar way, the complainant was also one of the guarantor in Chit No.MKT/15E Ticket No.16 pertains to one Vijender, who also committed default in paying the future chit installments and as such, the opposite party deducted the sum of Rs.9,250/-. Further, there is no wrong on the part of the opposite party in allowing the said Vijayender to join in another chit and transferring his chit to another person as the same is not in violation of the chit agreement. The instant chit is in no way concerned with the said chit. It is wrong to say that the opposite party withheld the entire chit amount of Rs.1,69,000/-. In fact the opposite party has informed the complainant to receive the said amount after deducting the legal debts, to which the complainant himself refused and filed the complaint with the false allegations only in order to escape from his legal liability. As such, the delay is only on the part of the complainant in receiving the remaining chit amount and thereby he is not entitled to claim any interest. Hence prayed to dismiss the case against the opposite party.
5) During the course of enquiry before the District Forum, in order to prove his case, the complainant filed his evidence affidavit and got marked Ex.A1 to A-10 and the opposite party filed Evidence Affidavit only. Heard the counsel on both sides .
6) The District Forum, after considering the material available on record, directed the opposite party to pay the chit prize amount of Rs.1.69 lakhs together with 9% interest p.a. w.e.f. date of bidding (29.07.2013) till realization and also directed to pay Rs.20,000/- as compensation for mental agony and hardship and Rs.4,000/- towards costs of the litigation within 30 days.
7) Aggrieved by the said order, the appellant/opposite party preferred this appeal before this Commission.
8) Counsel on both sides have advanced their arguments reiterating the contents in the appeal grounds, rebuttal thereof along with written arguments and heard the counsel on both sides. Ex. B-1 to B-8 are marked on behalf of the appellant/opposite party at the appellate stage before this Commission.
9) The points that arises for consideration are,
(i) Whether the impugned order as passed by the District Forum suffers from any error or irregularity or whether it is liable to be set aside, modified or interfered with, in any manner?
(ii) To what relief ?
10)Point No.1 :
There is no dispute that the respondent/complainant is a chit subscriber for the Chit no.FLTO2G/6 worth of Rs.2 lakhs w.e.f.16.03.2011 and he was the successful bidder for the chit prize amount of Rs.1,69,000/- in the month of July, 2013. There is also no dispute that the said chit prize amount was withheld by the appellant/ opposite party on the pretext of the respondent/complainant having stood as guarantor to chit no.KRT17F/42 pertaining to Mirza Yousufunnisa Begum, who is a defaulter and also as guarantor towards another chit no.MKT15E-16 of Mr.Vijayender, another defaulter. Now the dispute is for non-payment of chit prize amount to the respondent/complainant as successful bidder by the appellant/opposite party.
11). The appellant/opposite party argued that out of the total chit prize amount payable to the respondent/complainant was Rs.1,69,000/-, of which, an amount of Rs.44,500/- has been deducted and adjusted to the default chit of Smt. Mirza Yousufunnisa Begum in respect of chit No. KRT 17 F – 42 and to that effect a receipt No. RCQ 18/13 vide Ex. B-2 was issued to the respondent/complainant on 05.10.2013. But due to oversight the adjustment of the said amount has not been mentioned in the written version and the proof affidavit of the appellant. The appellant/opposite party filed Ex. B1 to B8 before this Commission at the appellate stage. We have perused them. We observed that the appellant/opposite party have adjusted Rs.9,250/- as per Ex.B-1 to the chit of P. Vijayender in respect of Chit No. MKT 15E, vide Ex. B3 and deducted Rs.865/- towards service tax vide Ex.B-4, Rs.7,290/- towards arrears in respect of the chit of the respondent/complainant vide Ex.B-5, Ex. B-6 is the prized amount payment voucher for Rs.1,69,000/-, as per Ex.B-7 Rs.550/- towards verification charges, Rs.3,000/- towards health insurance of the respondent and the balance amount of Rs.1,03,545/-dated 23.03.2015 has been paid to the respondent/complainant towards the balance chit prize amount by way of cheque No. 575186 under Ex.B-8 towards full and final satisfaction. But no receipt was filed for Rs.3,000/- towards health insurance.
12). Counsel for the respondent/complainant while admitting that he stood as guarantor for the above said two chits pertaining to Mirza Yousuffunisa Begum and Vijayender and contended that the appellant/opposite party is not supposed to adjust the amounts pertaining to Chit prize of the complainant. The decretal amount of Mirza Yousufunnisa Begum was already adjusted by attaching the salaryof Mohd Abdul Saleem and Mohd Sirajuddin for an amount of Rs.84,392/- towards full and final settlement. As there was no due, the question of holding of an amount of Rs.44,500/- out of the chit prize amount of the respondent/complainant does not arise. It is further argued that when the consumer case was pending on 23.03.2015, the appellant/opposite party without informing him got credited an amount of Rs.1,03,545/- instead of Rs.1,69,000/- which is lesser than Rs.65,455/-. He admitted to deduct an amount of Rs.11,705/- towards Chit service charges and health insurance amount vide Ex.B4, B5 and B7 and Rs.3,000- towards health insurance. Therefore, he claims that he is entitled to an amount of Rs.53,750/- with 9% interest w.e.f. 29.7.2013.
13). Counsel for the appellant/opposite party argued that as per terms and conditions of chit agreement, the opposite party has every right to deduct the amount from any of the guarantor and accordingly, the respondent/opposite party has deducted under two chits groups of KRT/17F Ticket no.42 and MKT/15E ticket no.16 pertaining to Vijayender for a default amounts. He further argued that though Ex. A11 office order was passed to deduct the salary of JD-3Mohd Sirazuddin, subsequently the amount was not deducted. In this regard, we are of the opinion that it is for the appellant/opposite party to take necessary steps for the same but the respondent/complainant is not liable for the same.
14). Counsel for the respondent/complainant argued that Viyayender, to whom the respondent/complaint stood guarantor, is Police constable and drawing monthly salary of Rs.25,000/- and instead of proceeding against him, the adjustment of his chit prize amount without his consent is illegal and the chit of Vijayender was transferred to Sunil Kumar Araveti. The Said chit pertains to the year 2010 and he became defaulter on 31.08.2011, much prior to complainant becoming of successful bidder. we consider that since he is a Government employee, the appellant/opposite party can take appropriate steps to attach his salary and deduct from the same.
15). As rightly observed by the District Forum in the Ex.A4 to A6 EP No.28 of 2012 in OS No.496 of 2008 between opposite party/chit company (DHr) and 5 JDrs in which the complainant is seen as 4th JDr, but the relief sought in the EP was against J.Dr 2 (Md.Abdul Saleem for Rs.42,280/-) and JDr 3 (Md.Sirajuddin for Rs.42,112/- ) even the warrants were executed against J.Dr 2 & 3 only as per the docket proceedings in EP 28/12 (Ex.A10) and the Vijayender chit was adjusted to Suneel Kumar Araveti as per Ex.A9, in which complainant’s name is not figured as one of the sureties. Hence, the amount has to be deducted from the salaries of other J.Drs as directed by the Jr. Civil Judge Court, Karimnagar but not from the complainant. There is deficiency in service on the part of the appellant/opposite party in not paying the entire prize amount to the respondent/complainant. The appellant/opposite party already filed E.P before the Jr. Civil Judge, Court, Karimnagar and the said court passed orders in that connection and without taking steps on that direction deducting the said amount for chit prize amount of complainant on the pretext of being guarantor to two chits is unwarranted.
16). After considering the foregoing facts and circumstances and also having regard to the contentions raised on behalf of the appellant/opposite party, this Commission is of the view that there is deficiency in service on the part of the appellant/opposite party in not paying an amount of Rs.53,750/- on the pretext that he is guarantor to two chits and hence the appellant/opposite party is liable to pay an amount of Rs.53,750/- with interest @ 9% P.A. from 29.07.2013 till realization, Rs.20,000/- towards compensation for mental agony and hardship and costs of Rs.4,000/- to the respondent/complainant. This Commission answered further Point No. 1, accordingly.
17. Point No. 2 :
In the result, the Appeal is dismissed and the impugned order is modified directing the appellant/opposite party to pay an amount of Rs.53,750/- with interest @ 9% P.A. from 29.07.2013 till realization, Rs.20,000/- towards compensation for mental agony and hardship and costs of Rs.4,000/- to the respondent/complainant. Time for compliance four weeks.
PRESIDENT MEMBER Dated :29.08.2017.
APPENDIX OF EVIDENCE
DOCUMENTS MARKED
FOR APPELANT/OPPOSITE PARTY :
Ex.B-1: 05.10.2013 : Duplicate receipt for Rs.9,250/- adjusted from chit prize amount of the respondent/complainant
Ex.B-2: 05.10.2013 : duplicate receipt for Rs.44,500/- adjusted from Chit prize amount of the respondent/complainant
Ex.B-3: 05.10.2013 : duplicate receipt for Rs.550/- adjusted from chit prize amount of the respondent/complainant
Ex.B-4: 05.10.2013 : duplicate receipt for Rs.865/ adjusted from chit prize amount of the respondent/complainant
Ex.B-5: 05.10.2013 : duplicate receipt for Rs.7,290/- adjusted from chit prize amount of the respondent/complainant
Ex.B-6: 05.10.2013 : Cash voucher showing the payment of the chit prize amount to the respondent/complainant
Ex.B-7: - : Adjustment letter submitted by the
respondent/complainant for adjustment of the prize amount.
Ex.B-8: 24.03.2015 : Statement showing the payment of Rs.1,03,545/- to the respondent/complainant
PRESIDENT MEMBER Dated :29.08.2017.
