Andhra Pradesh

Chittoor-II at triputi

CC/57/2013

D.Lokesh S/o. D.Jaya Prakash (Minor)Rep. By his father D.Jaya Prakash - Complainant(s)

Versus

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

M.Subrahmanyam

07 May 2016

ORDER

Date of first filing: 25.07.2013

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

 

 

 

SATURDAY THE SEVENTH DAY OF MAY, TWO THOUSAND AND SIXTEEN

 

 

 

C.C.No.57/2013

 

 

Between

 

D.Lokesh,

S/o.D.Jaya Prakash (minor),

Rep. by its father D.Jaya Prakash,

Plot No.36, S.D.K.Nagar,

Opp. Govt. Hospital,

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.81/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

DELIVERED BY SRI. M.RAMAKRISHNAIAH, PRESIDENT

ON BEHALF OF THE BENCH

           

            This complaint is filed by the minor through his father D.Jaya Prakash, under Section-12 of C.P.Act 1986, against the opposite party for the following reliefs 1) to direct the opposite party to pay Rs.3,00,000/- with interest at 18% p.a. from the date of last payment, 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 pay costs of the litigation.

            2.  The brief averments of the complaint are:-  that the opposite party is a registered chit company having its office originally at D.No.583A, K.K.Layout, Tirupati,  and later shifted to D.No.6-1-260, 1^st floor, Varadaraja Nagar, K.T.Road, Tirupati, and at present shifted to Vidyanagar Colony, Near Siddavatam Road, Badwel, Kadapa District (as per memo filed by the complainant in S.R.No.81/dt:02.02.16). The opposite party is running the chit company under the name and style of Sri Rayalaseema Chits with registration No.16/2007.

            3.  That the complainant joined as a member in the chit group No.SR3-ST03/25. 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/-. The complainant has paid 26 monthly installments / subscriptions i.e. up to May 2011. In the month of June 2011, the opposite party closed the chit and shifted its office to the present address without notice to its subscribers, that the complainant in all paid Rs.2,60,000/-, for which the opposite party has issued receipts under Exs.A1 and A2. The opposite party also gave a pass book under Ex.A3 in the name of complainant, which discloses the payments made by the complainant.  

            4.  Inspite of several representations and notice dt:27.12.2012, the opposite party did not pay the chit amount and did not give even reply to the notice. The opposite party adopted unfair trade practice and there is deficiency in service on the part of the opposite party, that the opposite party is avoiding to make the payment of chit amount. Hence the complaint. 

            5.  The opposite party remained exparte.

            6.  The complainant filed his chief affidavit and also written arguments and got marked Exs.A1 to A5 on his behalf.

            7.  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?

8.  Point No.(i):-  the complaint averments, allegations and the contents in evidence affidavit filed by the complainant remained unchallenged, as the opposite party did not choose to appear before the Forum inspite of service of notice. The complainant in support of his claim relied on Exs.A1 to A5. Ex.A1 is receipt No.2762 issued by the opposite party under which the opposite party collected Rs.1,00,083/- from the complainant towards subscription for 15 months. Ex.A2 is bunch of receipts 11 in number, under which the opposite party collected subscription from                16^th installment to 26^th installment. Exs.A1 and A2 shows that the complainant has paid Rs.2,60,000/-. Ex.A3 is the pass book issued by the opposite party in the name of the complainant, which supports the case of complainant, wherein total                      26 installments were entered into. The claim of the complainant is established by virtue of Exs.A1 to A3 and Ex.A4 is the notice dt:27.12.2012. Ex.A5 is the postal acknowledgement addressed to the Manager of the opposite party by name               K. Venugopal Reddy, which was received on behalf of opposite party. Returned cover with endorsement of “unclaimed” is also filed along with the complaint. Therefore, it appears that opposite party is intentionally avoiding to receive the notice and also avoiding to pay the chit amount to the subscriber, the complainant herein.

            9.  Establishing chit company and attracting the subscribers, joining them as members of the chit and collecting subscriptions from the subscribers, collecting chit amount for certain period and when the period is about to close, closing the chit transaction abruptly even without notice to the members of the chit and shifting the address of the opposite party, concealing its whereabouts, certainly amounts to unfair trade practice and also there is deficiency in service on the part of the opposite party. Accordingly this point is answered.   

            10.  Point No.(ii):-  in view of our discussion on point No.1, the complainant has established that the opposite party intentionally avoided to take notice and also with ill motive collected the amount from the subscribers and shifted its address without making payment to its subscribers. Under the above circumstances, the complainant, who has paid Rs.2,60,000/- towards chit amount of Rs.3,00,000/-, is entitled to the amount paid i.e Rs.2,60,000/- with subsequent interest from the date of last payment and also entitled to the compensation. Accordingly, this point is answered.

            11.  Point No.(iii):-  in view of our discussion on points 1 and 2, we are of the opinion that the complainant has established that the opposite party is guilty of unfair trade practice and also there is deficiency in service on the part of the opposite party, and therefore complainant is entitled to the reliefs sought for and complaint is to be allowed accordingly.

            In the result, 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) with interest at 9% p.a. 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 deficiency in service on the part of the opposite party and 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 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.2762 issued by the Opposite party to the Complainant. 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.