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.4,02,000/- principle 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-33, and Ticket No/B.No.14, every month Rs.10,000/- and chit amount of Rs.5,00,000/- as agreed by the complainant and OPs.  As the complainant was interested to join the chit to OP and paid every month Rs.10,000/- since from 17.04.2017 upto 26.03.2022.  The complainant has completed all the chit amount.

3. After completion of the chit amount the complainant requested the OP to refund the chit amount.  Even after several demands made by the complainant, the OP agreed to return Rs.4,52,000/- through two cheques drawn on Bank of India, R.T.Nagar Branch.  As per the assurance and promise of OP2 the complainant has presented the cheques for encashment before Sri.M.Vishweshwaraiah Co-operative Bank, Bangalore and it was sent for clearance to the Bank of India, wherein the cheque was dishonored and returned with an endorsement dated 13.04.2022 and 25.04.2022, stating that the Funds insufficient in his account. Immediately after receipt of the endorsement the complainant has approached the OP and requested them to repay the amount covered under the cheques. After several months the OP2 transferred Rs.40,000/- and Rs.50,000/- and Rs.40,000/- in total Rs.1,30,000/- out of Rs.4,52,000/- through NEFT to the account of the complainant.
4. It is further case of the complainant case, inspite of several demands made by him the OP have not responded to pay the balance amount of Rs.3,22,000/-.  The complainant has approached OP2 branch and an official assured to pay the amount in a short period, but they failed to repay the amount. Hence the complainant has got issued legal notice on 29.03.2023 and the said notice was served on the OP on 01.04.2023. After service of notice the OP has issued reply notice by giving untenable answer.
5. It is further case of the complainant that, he has invested his hard earned money in the OP company for the purpose of his children education and marriage performance, but the Ops have cheated the complainant. Hence the complainant has subjected to mental agony, anxiety and suffered depression due to the deficiency of service made by the OP. Hence the Ops are liable to pay damages of Rs.50,000/- including the principal amount of Rs.3,22,000/- with interest at 18% p.a.  When the Ops have failed to pay the amount inspite of repeated request, the complainant has filed this complaint.  
6. 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.
7. The complainant has filed his affidavit evidence and relies on 12 documents. 
8. Heard the arguments of the complainant.  Opposite party has not addressed any oral argument and nor they have filed any written arguments.
9. 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?

10. 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

11. 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.
12. The complainant joined the company as a subscriber to pay the monthly installments.  The complainant subscribed for chit group RFL-33, and Ticket No/B.No.14, every month Rs.10,000/- and chit amount of Rs.5,00,000/- as agreed by the complainant and OPs.  As the complainant was interested to join the chit to OP and paid every month Rs.10,000/- since from 17.04.2017 upto 26.03.2022.  The complainant has completed all the chit amount.
13. After that the complainant has approached the opposite party to return the chit amount. the OP2 has agreed to return a sum of Rs.4,52,000/- and he has issued two cheques of each rs.2,00,000/- and also Rs.2,52,000/- drawn on Bank of India, R.T.Nagar branch, Bangalore. As per the assurance and promise made by the OP2 the complainant has presented the cheque for encashment but both the cheques were dishonored and returned with an endorsement stating that the funds insufficient in the bank account of the OP.  after several months and repeated request the OP2 has paid an amount of Rs.1,30,000/- through NEFT and has not paid the balance amount of Rs.3,22,000/-.  When the OP has failed to refund the balance amount of Rs.3,22,000/- the complainant has issued a legal notice for which the OP has also issued a reply notice denying all the allegations made in the notice.
14. It is the specific grievance of the complainant that the opposite party has not refunded the balance amount of Rs.3,22,000/- even after completion of the chit amount.
15. The complainant in support of his contention has filed his affidavit evidence and produced Ex.P1 to P12.  The complainant has reiterated all the allegations made in the complaint. Ex.P1 is the form payment receipts Ex.P2 is the copy of the cheques Ex.P3 is the bank return memo, Ex.P4 and P8 are the copy of pass book, Ex.P9 is the copy of the notice, Ex.P10 is the postal receipts, Ex.P11 is the acknowledgement, Ex.P12 is the reply to the notice. The complainant has paid the entire chit amount and completed chit transaction as per Ex.P1. the Ops were agreed to refund a sum of Rs.4,52,000/- after completion of the chit and they have issued two cheques and the two cheques were dishonored for insufficient funds in the account of the OP. the Ops have paid only Rs.1,30,000/- through NEFT to the complainant. Inspite of his demand and request they have not refunded the remaining amount of Rs.3,22,000/-.   The OP have also issued reply notice to the complainant as Ex.P12 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 total 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.
16. After received the reply from the OP as per Ex.P12 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 P12.  All these documents and evidence clearly discloses that the complainant has paid entire chit amount regularly from the day it was started till the completion of chit transaction as per Ex.P1. After completion of the chit the complainant has requested the OP to refund the entire amount paid by him.  The OP have agreed to refund Rs.4,52,000/- and issued two cheques but both the cheques were dishonored with an endorsement that funds insufficient. After that the OP have paid Rs.1,30,000/- though NEFT and failed to pay the balance amount of Rs.3,22,000/-.
17. Under these circumstances, the complainant is entitled for the relief claimed in the complaint.  The Ops have failed to refund the amount even after completion of the chit amount and harassed the complainant by issuing the cheques even though there were no sufficient funds in their bank account 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.
18. 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 liable to pay Rs.3,22,000/- along with interest at the rate of  10% per annum from the date of completion of chit till realization, and liable to pay Rs.50,000/- 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.3,22,000/- (Rupees Three Lakh and Twenty Two Thousand only) along with interest at the rate of 10% per annum from the date of completion of the chit till realization to the complainant.

         The opposite party is also directed to pay Rs.50,000/- (Rupees Fifty 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.3,22,000/- 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