Andhra Pradesh

Chittoor-II at triputi

CC/59/2013

D.Jaya Prakash S/o. Ramachandra Rao, - 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.59/2013

 

 

Between

 

D.Jaya Prakash,

S/o. Ramachandra Rao,

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.85/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 the chit amount of Rs.2,60,000/- with interest at 18% p.a. from the date of last payment, 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, having its office originally 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.   

            3.  That the complainant joined as a member in the chit group No.SR3-ST03/18. The chit value is Rs.3,00,000/-. Chit duration is 30 months commencing from April 2009 to September 2011, monthly subscription is Rs.10,000/-. That the complainant paid subscriptions for 26 months as shown in receipts under Exs.A1 and A2, as well as in the pass book under Ex.A3 issued by the opposite party. That the opposite party closed the chit in the month of June 2011 and shifted its address to Vidya Nagar, Near Siddavatam Road, Badwel, Kadapa District (as per memo filed by the complainant in S.R.No.85/dt:02.02.16). That the opposite party failed to pay the chit amount inspite of several representations and notice dt:27.12.2012. The opposite party after closing the chit shifted to the present address without notice to any of its subscribers with a view to avoid chit amounts to the subscribers and to conceal itself from its subscribers. Hence the complaint.    

            4.  The opposite party remained exparte.

  

            5.  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.

            6.  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?

7. Point No.(i):- on perusal of the complaint, evidence affidavit and written arguments filed on behalf of the complainant and also the contents under Exs.A1 to A5, it is found that the complainant joined in the chit group No.SR3-ST03/18, being run by the opposite party for the value of Rs.3,00,000/-. Out of 30 months duration, the complainant has paid 26 monthly subscriptions upto May 2011. Thereafter, the opposite party abruptly closed the chit and shifted its address to  Vidya Nagar, Near Siddavatam Road, Badwel, Kadapa District (as per memo filed by the complainant in S.R.No.85/dt:02.02.16) and avoided the payment of chit amount to the complainant despite several representations and notice under Ex.A4. In order to prove the payment, the complainant relied on Exs.A1 to A3. Under Ex.A1, the complainant paid a sum of Rs.1,00,083/- for the installments 1 to 15. Under Ex.A2, which consists of 11 receipts, with specific receipt Nos. and dates, paid the remaining 15 installments, except for the last 4 months. Ex.A1 having receipt No.2764, likewise the other          11 receipts under Ex.A2 also having its receipt numbers specifically. Since the opposite party closed the chit abruptly and shifted its office, the remaining 4 months subscriptions could not be paid by the complainant. Having established the chit fund organization under registration No.16/2007, the opposite party having collected         26 installments out of 30 installments, abruptly closing the chit and shifting its address is nothing but totally unfair trade practice and with a view to avoid the payments to its subscribers. Thus the opposite party not only guilty of unfair trade practice but also there is deficiency in service on the part of the opposite party. Under the guise of chit transaction, the opposite party has cheated several subscribers in the chits being organized by the opposite party. Under the above circumstances, we are of the opinion that the opposite party is not only guilty of adopting unfair trade practice but also there is deficiency in service on the part of the opposite party. Accordingly this point is answered.

8. Point No.(ii):-  since the complainant has paid 26 installments / subscriptions worth Rs.2,60,000/- under the belief that he will get a total amount of Rs.3,00,000/-, if the chit is continued for 30 monthly installments. But against the terms and conditions of the chit and also the interests of the subscribers, the opposite party has closed the chit abruptly in the month of June 2011 and shifted its office to the present address in Kadapa District, without notice to the complainant and other subscribers. The complainant since already paid a sum of Rs.2,60,000/-, as shown in Exs.A1 and A2, which was duly supported by Ex.A3 pass book issued by the opposite party, the claim of the complainant is to be accepted. In view of our discussion in point No.1, we are of the opinion that the complainant is entitled to the chit amount paid with interest and he is also entitled to the compensation and costs. Accordingly this point is answered.

9. Point No.(iii):- in view of our discussion on points 1 and 2, we hold that the complainant being the subscriber under chit group No. SR3-ST03/18 and paid Rs.2,60,000/- in 26 installments / subscriptions, he is entitled to the said amount of Rs.2,60,000/- with interest at 9% p.a. from the date of last payment i.e. from May 2011, and also for compensation and costs, and complaint is to be allowed accordingly.

In the result, the complaint is allowed in part directing the opposite party to pay to the complainant a sum of Rs.2,60,000/- (Rupees two lakhs sixty thousand only) chit amount paid along 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 for the deficiency in service on the part of the opposite party and also for causing mental agony to the complainant. 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 the 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.2764 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. Dt: 12.09.2010 to 14.05.2011. Ex. A-2.
	Photo copy of pass book issued by the Opposite party in favour of the Complainant. Ex. A-3.
	Office copy of the Legal Notice issued to 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.