BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION AT BANGALORE (URBAN)

DATED 24^TH DAY OF NOVEMBER 2023

ORDER

SMT.M.SHOBHA, PRESIDENT

1. The complaint has been filed under Section 35 of C.P.Act (hereinafter referred as an Act) against the opposite party for the following reliefs against the opposite party:-

1. Direct the opposite party to pay a sum of Rs.1,60,000/- as well as damages towards mental agony and hardship inflicted by the OP to the complainant.
2. Direct the OP to pay the costs of the complainant and pass another order as this Commission deems fit in the interest of justice and equity.

2. The case set up by the complainant in brief is as under:-

The opposite party is running a chit fund business and the OP company published by add, on the basis of the add and some known peoples have told to the complainant, under the circumstances complainant invested the amount and open the membership with OP2 vide bearing group name RFL-41 and Ticket No/B.No.29, chit amount Rs.5,00,000/- every month Rs.10,000/-.  As the complainant was interested to join the chit to OP and paid every month Rs.10,000/- since from 23.09.2020 upto 14.07.2021 as on 14.07.2021 complainant has paid 11 installments of Rs.1,10,000/- with dividend for Rs.1,10,000/-.  

3. The complainant further submits that, the complainant participate the chit auction but, the OP refused to accept the complainant to participate in the auction proceedings, hence complainant stopped the further installment and demanded to return back the amount paid along with dividend.  Several times Complainant demanded the OP to refund the chit amount of Rs.1,10,000/-, but the officials of the OP postponed for one or the other reason and failed to repay the said amount. Hence complainant got issued legal notice on 29.03.2023, OP has replied to the said notice with untenable answer. Hence complainant has filed this complaint.  
4. In response to the notice, opposite party appeared before this commission, though sufficient time was given to the OP to file their version, have not filed version nor has filed affidavit evidence on their behalf. Hence version and affidavit evidence of OP is taken as nil.
5. The complainant has filed his affidavit evidence and relies on 10 documents. 
6. Heard the arguments of the complainant.  Opposite party has not addressed any oral argument and nor they have filed any written arguments.
7. The following points arise for our consideration:-

1. Whether the complainant proves deficiency of service on the part of opposite party?
2. Whether the complainant is entitled to relief mentioned in the complaint?
3. What order?

8. Our answers to the above points are as under:

       Point No.1:  Affirmative

      Point No.2 : Affirmative in part

      Point No.3 : As per final orders

REASONS

9. Point No.1 AND 2: We carefully perused the pleadings and evidence of both the parties. It is undisputed fact that the opposite party is a registered company and running the chit business in Bangalore and they are in the business of promoting and conducting the chits as per the provisions of Chit fund act.
10. The complainant joined the company as a subscriber to pay the monthly installments.  The complainant subscribed for chit group No. RFL-41 and Ticket No/B.No.29, Chit amount of Rs.5,00,000/- every month Rs.10,000/-.  Complainant has joined the chit and paid Rs.10,000/- every month from 23.09.2020 to 14.07.2021. After that the complainant has approached the opposite party to participate in the chit auction, but the OP refused to accept the complainant to participate in the auction proceedings. Hence complainant stopped the further installment and demanded to return back the amount along with dividend.
11. It is the specific grievance of the complainant that the opposite party has not allowed the complainant to bid the chit and not paid any amount to the complainant and he has stopped the payment to the opposite party and they have not returned the deposited amount. Ops are not taking any steps to refund the amount paid by this complainant and thereby the opposite party has cheated this complainant.  
12. The complainant in support of her contention has filed her affidavit evidence and produced Ex.P1 to P10.  The complainant has reiterated all the allegations made in the complaint. Ex.P1 is the copy of the form payment receipt, Ex.P2 is the copy of the legal notice, Ex.P3 is the postal receipt, Ex.P4 is the acknowledgement, Ex.P5 is the reply to the notice and Ex.P6 is the copy of the five payment receipts.  The complainant has paid totally Rs.1,10,000/- to the opposite party towards subscription amount.  The OPs have also issued reply notice to the complainant as Ex.P5 denied all the allegations made against them. They have taken a contention that this complainant has approached the OP company and requested to pay the paid up amount, since this complainant was unable to pay the monthly chits installments regularly.  However has informed that they want some time to clarify with the total paid up amount and chit cancellation amount and after that they will inform the complainant later. Inspite of that the complainant has got issued legal notice demanding the alleged amount, hence these Ops are not liable to pay the alleged amount since the said alleged amount is not legally enforceable debt, since the total paid amount and cancellation amount has not been clarified properly.
13. After received the reply from the OP as per Ex.P6 the complainant has approached this commission.  Even though the OP has appeared before this Commission through their counsel had failed to file their version and to lead their evidence.  If really the complainant has not paid the chit amount regularly and illegally demanded this OP to pay the entire amount nothing prevented them from filing their version and adduce their evidence before this commission. When the Ops have not at all adduced their evidence, there is no reason to disbelieve the evidence of PW1 and Ex.P1 to P6.  All these documents and evidence clearly discloses that the complainant has paid chit amount regularly from the day it was started on 23.09.2020 till 14.07.2021 for 11 installments as per Ex.P1. After that the complainant has stopped paying the chit amount since the OP have not allowed him to participate in the auction proceedings. When the Ops have not allowed the complainant to participate in the auction proceedings, the complainant has stopped paying the chit amount and requested the OP to refund the entire amount paid by her.  Since the payment of chit amount till the completion of the chit would serve no purpose in view of the conduct of the OP in not allowing the complainant to participate in the auction proceedings.
14. Under these circumstances, the complainant is entitled for the relief claimed in the complaint.  The Ops have neither allowed the complainant to participate in the auction nor allowed the complainant to pay the installments and thereby the Ops have committed unfair trade practice and also deficiency in service and also played fraud on the complainant.  Hence the complainant is entitled for the relief claimed. Hence, we answer the above point No.1 in the Affirmative and Point No.2 Partly in the Affirmative.
15. POINT NO.3: Having regard to the discussion made, we are of the opinion that complaint requires to be allowed in part.  The opposite party is directed to pay Rs.1,10,000/- along with interest at the rate of  10% per annum from the date of complaint till realization, pay Rs.20,000/- as compensation and Rs.10,000/- as cost of litigation expenses to the complainant. Hence, we proceed to pass the following;

ORDER

         The complaint is allowed in part.

         The opposite party is directed to pay Rs.1,10,000/- (Rupees One Lakh Ten Thousand only) along with interest at the rate of 10% per annum from the date of complaint till realization to the complainant.

         The opposite party is also directed to pay Rs.20,000/- (Rupees Twenty Thousand only) towards compensation and Rs.10,000/- (Rupees Ten Thousand only) towards cost of litigation expenses to the complainant. 

         The OP shall comply this order within 60 days from this date, failing which the OP shall pay interest at 12% p.a. after expiry of 60 days on Rs.1,10,000/- till final payment.

         Furnish the copy of this order and return the extra pleadings and documents to the parties.

 (Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Open Commission on this 24^TH day of November, 2023)

Documents produced by the Complainant-P.W.1 are as follows:

Documents produced by the representative of opposite party – R.W.1;

NIL