Andhra Pradesh

Chittoor-II at triputi

CC/60/2013

D.Jahnavi D/o. D.Jaya Prakash, Aged about 12 yrs Rep. By her Father D.Jaya Prakash - Complainant(s)

Versus

Sri Rayalaseema Chits, Tirupati. - Opp.Party(s)

M.Subrahmanyam

07 May 2016

ORDER

Date of first filing: 12.09.2013

Date of first disposal:24.07.2014

Matter remanded and case restored on :25.01.2016

Date of disposal :07.05.2016

 

 

 

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II,

CHITTOOR AT TIRUPATI

 

 

      PRESENT: Sri.M.Ramakrishnaiah, President ,

        Smt. T.Anitha, Member

 

 

 

SATURYDAY THE SEVENTH DAY OF MAY, TWO THOUSAND AND SIXTEEN

 

 

 

C.C.No.60/2013

 

 

Between

 

D.Jahnavi Devi,

D/o. D.Jaya Prakash,

Rep. by her father D.Jaya Praksh,

Residing at Plot No.36,

S.D.K.Nagar, Opp. to Govt. Hosppital,

Srikalahasti Post & Mandal,

Chittoor District.                                                                                           … Complainant

 

 

 

And

 

 

Sri Rayalaseema Chits, Tirupati,

Rep. by its Manager K.Venugopal Reddy,

S/o. Ramasubba Reddy,

D.No.6-1-260, 1^st Floor,

Varadaraja Nagar, K.T.Road,

Tirupati,

Chittoor District.

 

Presently residing at:

 

K.Venugopal Reddy,

S/o. Ramasubba Reddy,

Vidya Nagar,

Near Siddavatam Road,

Badwel,

Kadapa District  516 227.

 

(as per memo filed by the complainant in S.R.No.83/dt:02.02.16)   …  Opposite party.

 

 

 

 

            This complaint coming on before us for final hearing on 02.05.16 and upon perusing the complaint and other relevant material papers on record and on hearing party-in-person for the complainant, and opposite party, remained exparte and having stood over till this day for consideration, this Forum makes the following:-

 

 

 

ORDER

DELIVERYED BY SRI. M.RAMAKRISHNAIAH, PRESIDENT

ON BEHALF OF THE BENCH

           

            This complaint is filed under Section-12 of C.P.Act 1986, by the complainant against the opposite party for the following reliefs 1) to direct the opposite party to pay Rs.3,00,000/- together with interest at 18% p.a. from the date of last payment of subscription, till realization, 2) to direct the opposite party to pay Rs.25,000/- towards compensation for the unfair trade practice and deficiency in service on the part of the opposite party and for causing mental agony to the complainant and 3) to direct the opposite party to pay costs of the litigation.   

            2.  The brief averments of the complaint are:-  that the opposite party is a registered chit organization under the name and style of Sri Rayalaseema Chits with registration No.16/2007,  running by its Manager K.Venugopal Reddy. The complainant joined as a member under the chit group No.SR3-ST03/13 for the chit value of Rs.3,00,000/-, chit term is 30 months, commencing from April 2009 to September 2011, monthly subscription is Rs.10,000/-. That the complainant paid       26 monthly subscriptions, totaling a sum of Rs.2,60,000/- up to May 2011. In the month of June 2011, the opposite party closed the chit and shifted its office to the present address at Badwel, Kadapa District. The opposite party originally started its office at D.No.583A, K.K.Layout, Tirupati, and subsequently it was shifted to D.No.6-1-260, 1^st floor, Varadaraja Nagar, K.T.Road, Tirupati, and thereafter shifted to the present address without notice to its subscribers. Inspite of several representations and notice dt:27.12.2012, the opposite party failed to either give reply or to pay the amount. Hence the complaint. 

            3.  The opposite party remained exparte. Though notices were sent to the opposite party, they were returned with endorsement “unclaimed”, as such the service is said to be sufficient and it was set exparte.  

            4.  The complainant filed his chief affidavit and written arguments and also got marked Exs.A1 to A5 on his behalf. Heard the complainant in person.

            5.  Now the points for consideration are:-

            (i).  Whether the opposite party is guilty of unfair trade practice? and whether

                   there is deficiency in service on the part of the opposite party?    

            (ii).  Whether the complainant is entitled to the reliefs sought for?

            (iii)  To what relief?

6. Point No.(i):- on perusal of the averments in the complaint, chief affidavit and written arguments filed by the complainant as well as Exs.A1 to A5, it is found that the case of the complainant remained unchallenged. The complainant contending that he has paid 26 monthly installments / subscriptions out of 30 installments. Thus he has paid a total sum of Rs.2,60,000/- and he could not pay the remaining                 4 installments, as the opposite party totally closed the chit and shifted its office from Tirupati to present address without notice to the subscribers. In proof of the payments, the complainant relied on Exs.A1, A2 and A3. Under Ex.A1, the receipt bearing No.2763 dt:25.07.2010, he paid a sum of Rs.1,00,083/- for the installments from 1 to 15. Under Ex.A2 which consists of 11 receipts for the months of 16 to 26. Thus totally he paid a sum of Rs.2,60,000/-, which was duly supported by Ex.A3, issued by the opposite party in favour of the complainant and in which all the 26 monthly subscriptions were noted by the opposite party. Thus it is proved by the complainant that he has paid totally 26 monthly subscriptions amounting to Rs.2,60,000/-.

7.  The opposite party having established chit organization, lured the subscribers, make them to made payments for monthly subscriptions, abruptly closed the chit and went out of Tirupati and put-up his office at the present address in Badwel, Kadapa District, certainly amounts to unfair trade practice and there is also deficiency in service on the part of the opposite party. The opposite party under the guise of chit fund company collected huge amounts in lakhs from each consumer / subscriber and with false intention of unlawful gain, trying to avoid the payments to the subscribers. Under those circumstances, we are of the opinion that the opposite party not only adopting unfair trade practice but also there is deficiency in service on its part. The complainant has established his claim. Accordingly this point is answered.  

8.  Point No.(ii):-  under Exs.A1, A2 and A3, the complainant has established that he is a member of chit group No. SR3-ST03/13 for chit value of Rs.3,00,000/- and paid 26 monthly subscriptions, totaling a sum of Rs.2,60,000/-, which was duly supported by the entries in Ex.A3 pass book issued by the opposite party. Therefore, the complainant is entitled to the amount he paid in a sum of Rs.2,60,000/- along with interest and he is also entitled for the compensation, as he is a genuine consumer / subscriber. The opposite party is not supposed to cheat its customers / subscribers under the guise of chit company. Under the above circumstances, we are of the opinion that the complainant has established his case and he is entitled to the reliefs sought for. Accordingly this point is answered.

9. Point No.(iii):-  in view of our discussion on points 1 and 2, we are of the opinion that the complainant is made out his case. The opposite party is guilty of adopting unfair trade practice and also there is deficiency in service on its part, as such complaint is to be allowed accordingly.

In the result, complaint is allowed in part directing the opposite party to pay a sum of Rs.2,60,000/- (Rupees two lakhs sixty thousand only) with interest at 9% p.a. from the date of last payment i.e. from May 2011, till realization. The opposite party is also directed to pay Rs.25,000/- (Rupees twenty five thousand only) towards compensation for adopting unfair trade practice and also for deficiency in service on the part of the opposite party and for causing mental agony to the complainant. That the opposite party is also directed to pay Rs.2,000/- (Rupees two thousand only) towards costs of the litigation. The opposite party is further directed to comply with the orders within six (6) weeks from the date of receipt of copy of this order, failing which the compensation amount of Rs.25,000/- shall also carry interest at 9% p.a. from the date of this order, till realization.   

 

Dictated to the stenographer, transcribed and typed by him, corrected and pronounced by me in the Open Forum this the 7^th day of May, 2016.

 

       Sd/-                                                                                                                      Sd/-                                                                                                                                   

Lady Member                                                                                                      President

 

APPENDIX OF EVIDENCE

 

 

Witnesses Examined on behalf of Complainant.

 

PW-1: D.Jaya Prakash (Chief Affidavit filed).

 

Witnesses Examined on behalf of Opposite PartY.

 

-NIL-

 

                 EXHIBITS MARKED ON BEHALF OF THE COMPLAINANT

 

Exhibits (Ex.A)	Description of Documents
	Photo copy of the receipt No. 2763 issued by the Opposite party to the Complainant. Dt: 25.07.2010. Ex. A-1.
	11 Photo copies of receipts issued by the Opposite party to the Complainant. Ex A-2. Dt: 12.09.2010 to 14.05.2011.
	Photo copy of the pass book issued by the Opposite party in the favour of the Complainant. Ex. A-3.
	Office copy of the Legal Notice issued to the Opposite Party. Dt: 27.12.2012. Ex. A-4.
	Acknowledgement of the Opposite Party for the Legal Notice. Dt: 29.12.2012. Ex. A-5.

 

EXHIBITS MARKED ON BEHALF OF THE OPPOSITE PARTY

 

-NIL-

 

                                                                                                                                Sd/-                               

                                                                                                               President

            // TRUE COPY //

// BY ORDER //

 

Head Clerk/Sheristadar,

              Dist. Consumer Forum-II, Tirupati.

         

 

 Copies to:-    1. The complainant.

                       2. The opposite party.