Andhra Pradesh

Chittoor-II at triputi

CC/58/2013

G.Krishnaiah S/o.Late G.Chengaiah - 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.58/2013

 

 

Between

 

G.Krishnaiah,

S/o. late. G.Chengaiah,

Residing at Kanakampalem Village,

Nandimangalam Post,

Puttur 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.82/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.2,50,000/- 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 Rs.2,000/- towards costs of the litigation.   

            2.  The brief averments of the complaint are:-  that the opposite party is a registered chit company under the name and style of Sri Rayalaseema Chits with registration No.16/2007, having its office at D.No.583A, K.K.Layout, Tirupati,  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-ST03/05. The chit value is Rs.2,50,000/-. Chit duration is 25 months commencing from April 2009 to April 2011, monthly subscription is Rs.10,000/-. The complainant has paid 16 monthly installments / subscriptions i.e. up to July 2010. The opposite party issued pass book and receipts. The complainant paid a sum of Rs.1,60,000/-

            4. that the opposite party closed its office and later shifted to present address i.e. Vidyanagar, near Siddavatam road, Badwel, Kadapa District (as per memo filed by the complainant in S.R.No.82/ dt:02.02.2016), without notice to the subscribers. Inspite of several representations and notice dt:27.12.2012, the opposite party failed to pay the chit amount. Hence the complaint.    

            5.  The opposite party remained exparte.

            6.  The complainant filed his chief affidavit and written arguments and also 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):-  in order to prove the claim of the complainant, the complainant relied on Exs.A1 to A3. Under Ex.A1 the complainant has paid a sum of Rs.44,017/- for the 1^st to 7^th installment under receipt No.1275 issued by opposite party on dt:10.10.2009. Under Ex.A2, which consists of 9 receipts for the subscriptions from 8^th to 16 month. Thus, totally the complainant has paid                  16 installments at Rs.10,000/- per each subscription, which comes to a total sum of Rs.1,60,000/-. The complainant paid the subscriptions up to July 2010. Abruptly the opposite party has closed the chit and shifted to the present address at Vidyanagar, near Siddavatam road, Badwel, Kadapa District (as per memo filed by the complainant in S.R.No.82/ dt:02.02.2016). Later, inspite of several representations and also notice dt:27.12.2012, the opposite party neither gave reply nor paid the chit amount. In support of his case, the complainant relied on Exs.A1 to A3. Ex.A3 is the pass book given by the opposite party in the name of the complainant, which proves 16 monthly subscriptions paid by the complainant. Therefore, the complainant’s claim appears to be genuine. The opposite party having established its chit company under registration No.16/2007 lured the subscribers, open the chit groups and collected the amounts in lakhs from various subscribers and abruptly shifted its office to some other place intentionally to avoid the payment of chit amount to the subscribers certainly amounts to unfair trade practice and there is deficiency in service on the part of the opposite party, which tried itself to conceal its address and identity only with an ill motive for unlawful earnings and to avoid lakhs of rupees to its subscribers. Accordingly this point is answered.

9.  Point No.(ii):-  to answer this point, the complainant’s claim for Rs.2,50,000/- is not justifiable, but he is entitled to the amount paid actually. By virtue of Exs.A1, A2 and A3, the complainant has proved that he made the payment of Rs.1,60,000/- under 16 monthly subscriptions covered by Exs.A1 and A2, which was fairly supported by the entries made under Ex.A3 by the opposite party and was given in the name of the complainant. Therefore, we are of the opinion that the complainant is entitled to the amount of Rs.1,60,000/- paid by him towards chit installments with interest and compensation. Accordingly, this point is answered.

10. Point No.(iii):-  in view of our discussion on points 1 and 2, we are of the opinion that the opposite party is guilty of unfair trade practice and there is deficiency in service on the part of the opposite party. Therefore, the complainant is entitled to the chit amount he paid under the chit group No.SR3-ST03/05 with interest at 9% p.a. from the last date of payment i.e. July 2010, till realization. That the complainant is entitled to a sum of Rs.25,000/- towards compensation for the unfair trade practice adopted by the opposite party and for the deficiency in service on the part of the opposite party and also entitled to a sum of Rs.2,000/- towards costs of the litigation 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.1,60,000/- (Rupees one lakh sixty thousand only) with interest at 9% p.a. from the month of July 2010 (date of last payment), till realization. The opposite party is also directed to pay Rs.25,000/- (Rupees twenty five thousand only) 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. The opposite party also directed to pay Rs.2,000/- towards costs of the complaint. 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 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: G. Krishnaiah (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. 1275 issued by the Opposite party to the Complainant. Dt: 10.10.2009. Ex. A-1.
	9 Photo copies of receipts issued by the Opposite party to the Complainant. Dt:20.12.2009 to 04.07.2010. 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. Ex. A-4. Dt: 27.12.2012.
	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.