Andhra Pradesh

Chittoor-II at triputi

CC/51/2013

J.Markandeyulu S/o.Ankama Rao - 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

 

 

 

SATURYDAY THE SEVENTH DAY OF MAY, TWO THOUSAND AND SIXTEEN

 

 

 

C.C.No.51/2013

 

 

Between

 

J.markandeyulu,

S/o. Ankama Rao,

D.No.13-2-226, Chinna Kapu Street,

Tirupati 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.80/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.1,50,000/- with interest at 18% p.a. from the date of final payment, till realization, 2) to direct the opposite party to pay compensation of Rs.25,000/- for the unfair trade practice adopted by the opposite party and for causing mental agony to the complainant and also for the deficiency in service on the part of the opposite party and 3) to pay costs of the litigation.

            2.  The brief averments of the complaint are:-  that the opposite party being the business organization running 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, which was subsequently shifted to D.No.6-1-260, 1^st floor, Varadaraja Nagar, K.T.Road, Tirupati, represented by its Manager K.Venugopal Reddy.

            3.  That the complainant joined as a member in the chit group No.SR1-MT/25, for the chit value of Rs.1,50,000/-, chit duration is 30 months, monthly subscription is Rs.5,000/-, chit commence from April 2009 and it will be concluded by September 2011. Complainant paid 30 subscriptions in full; in proof thereof he filed the receipts. The opposite party also issued chit pass book. The opposite party having collected total 30 subscriptions in a sum of Rs.1,50,000/-, closed the chit from June 2011 abruptly. The opposite party did not pay the chit amount till date inspite of several representations and notice dt:27.12.2012. Hence the complaint.

            4.  The opposite party remained exparte.

            5.  The complainant filed his evidence affidavit and written arguments and 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 case record, Exs.A1 to A5 and written arguments filed on behalf of the complainant and upon hearing the complainant in person, it is found that the case of complainant remained unchallenged, as the opposite party remained exparte. Therefore, the contents of the complaint, as well as the allegations made against the opposite party were deemed to have been admitted by the opposite party.

            8.  The complainant is a member in the chit group No.SR1-MT/25, for the chit value of Rs.1,50,000/- and the complainant pleaded that he has paid the total subscriptions for 30 months, which comes to Rs.1,50,000/-. Ex.A1 is the receipt bearing No.1276 for Rs.22,030/- for the period of 7 months from 1^st installment to    7^th installment. Ex.A2 is other receipts, 18 in number, through which the complainant paid installments / subscriptions for 26 months. Remaining 4 months is due. The complainant further stated that he has paid the last installment on 23.01.2013, for which no receipt is available. Though the complainant pleaded in his complaint that he has paid total 30 installments, but on record it is only for 26 installments. For the total installments, the amount paid comes to Rs.1,33,983/- including the dividend. So far as the remaining 4 installments are concerned, the complainant stated that the company was closed from the month of June 2011; as such no one is available in the company to collect the amount of remaining 4 installments. There are no latches on the part of the complainant. Ex.A3 is the photocopy of pass book issued by the opposite party. Even according to pass book, only 26 installments were paid. Under the above circumstances, we are of the opinion that the change of address of the opposite party chit company without notice to its subscribers and closing the chit abruptly and avoiding the payment of amount paid by the subscribers, certainly amounts to unfair trade practice. Inspite of repeated representations and notice sent to opposite party as shown in Ex.A5, the opposite party neither gave reply nor paid the amount to the complainant / subscriber. Thus, there is deficiency in service on the part of the opposite party. Accordingly, this point is answered.  

            9. Point No.(ii):- in view of our discussion on point No.1, since the complainant has paid 26 installments / subscriptions at Rs.5,000/- per each subscription, the total amount comes to Rs.1,30,000/- only but not Rs.1,50,000/-. If the remaining 4 installments were paid, then the total amount comes to Rs.1,50,000/-. Therefore, we are of the opinion that the complainant is entitled to the amount paid actually with interest and also compensation for unfair trade practice and deficiency in service on the part of the opposite party. 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 complainant’s case remained unchallenged. Therefore, the complainant is entitled to the amount paid actually i.e. Rs.1,30,000/- with interest at 9% p.a. from the date of last payment i.e. May.2011, till realization and the complainant is also entitled for the compensation and costs of the litigation. Accordingly, the complaint is to be allowed.

            In the result, the complaint is partly allowed directing the opposite party to pay to the complainant a sum of Rs.1,30,000/- (Rupees one lakh thirty thousand only) with interest at 9% p.a. from May 2011, till realization. The opposite party further directed to pay to the complainant a sum of Rs.25,000/- (Rupees twenty five thousand only) towards compensation for adopting unfair trade practice and also for the deficiency in service on the part of the opposite party, and also opposite party is 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: J. Markandeyulu (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 receipt No. 1276 issued by the Opposite party to the Complainant. Dt: 10.10.2009. Ex. A-1.
	18 Photo copies of the receipts issued by the Opposite Party to the Complainant. Dt: 29.11.2009 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 the Opposite Party. Dt: 23.01.2013.  Ex. A-4.
	Acknowledgement of the Opposite Party for the Legal Notice. Dt: 29.01.2013.  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.