O R D E R

AS PER SRI G.APPALA NAIDU,MEMBER

     This Complaint is filed under section-12 of C.P.Act, 1986 seeking the reliefs to direct the OP to pay the prize money of Rs.4,75,000/- (Four Lakhs and Seventy Five Thousand Only) and a sum of Rs.28,500/- (Rupees Twenty Eight Thousand and Five Hundred only)towards interest at 24% per annum from the date of auction till the date of filing of the complaint and subsequent interest at 24% per annum from the date of filing of complaint till the date of realization towards financial loss and also to pay an amount of Rs.1,00,000/- (Rupees One Lakh only) towards compensation for mental tension and agony suffered by the complainant and costs of the complaint along with such other relief or reliefs as Honourable Forum deems fit and proper in the interest of justice on the following averments:-   

     The complainant submits that she is the subscriber of the Chit Group of OP bearing no.FBLT 03J with token No.10 and the value of the said chit being Rs.5,00,000/- (Rupees Five Lakhs Only) and the period being 40 months and the subscription amount per month is Rs.12,500/-( Rupees Twelve Thousand and Five Hundred only).  The complainant regularly paid the monthly subscription amounts after deducting the auction share (Profit or dividend ) for the entire period of 40 months within the schedule time and the amounts as demanded by the OP. It is further submitted that as the entire chit period is completed on 25.03.2014, the complainant was declared as the prized subscriber of the chit by the OP as it is the last bid auction.  In the said auction as per rules of the OP the complainant agreed to forego an amount of Rs.25,000/- (Rupees Twenty Five Thousand Only) as discount and as such the OP is liable to pay a sum of Rs.4,75,000/- (Four Lakhs and Seventy Five Thousand only) to the complainant as “prize money”.  Since there is no future liability for her to pay any further amount, she need not observe any legal obligations/formalities such as furnishing of sureties etc., to the OP in order to obtain the said prize money.  Therefore the OP is liable to pay the amount of Rs.4,75,000/- (Rupees Four Lakhs Seventy Five Thousand only) immediately after the date of last auction but the OP did not pay the same.  Inspite of her waiting period and continued follow up with the OP to get the aforesaid amount there is no response from the OP and also trying to escape from their liability on one pretest or the other besides causing intentional and inordinate delay causing also mental agony, hardship, inconvenience and financial loss to the complainant. Therefore the complainant got issued registered lawyer’s notice on 21.05.2014 demanding the OP to pay the chit amount (prize money) along with interest at 24% per annum failing which she will be having no option except to approach the appropriate Court/Forum for redressal of her grievances but the OP having received the said notice did not prefer to give any reply or paid the prize money as demanded by the complainant.  Hence this complaint.

     The OP did not file any counter or evidence affidavit or brief written arguments respectively. Also the OP did not present or represented in this Forum though notice served to him but remained ex-parte.

     The complainant filed evidence affidavit and brief written arguments respectively.

     Exhibit A1 to A4 are marked on behalf of the complainant and no exhibits were marked on behalf of the O.P.

     Heard arguments.  Posted for orders.  The orders are as follows:-

     On perusal of the material placed on record it is observed that the chit period of the chit group of OP bearing No.FBLT 03J with token No.10 was completed on 25.03.2014 and the complainant was declared as the prized subscriber of the said chit by the OP as it is the last bid auction.  In the said auction as per rules of the OP the complainant agreed to forego an amount of Rs.25,000/- (Rupees Twenty Five Thousand only) as discount and accordingly the OP is liable to pay a sum of Rs.4,75,000/- (Rupees Four Lakhs and Seventy Five Thousand only) to the complainant as prize money immediately since no legal formalities/submission of sureties are required to be completed as there is no future liability on the part of the complainant.  Further the OP intentionally kept quite and did not pay the aforesaid amount inspite of regular follow up from the complainant and legal notice issued on her behalf and against the principles of also natural justice and equity thus causing inconvenience, hardship, mental agony and financial loss to the complainant resulting in deficiency in service, dereliction in duty and unfair trade practice on the part of OP.  It is also observed that after filing of the complaint before this Forum, surprisingly the OP directly deposited a sum of Rs.4,75,000/- (Rupees Four Lakhs and Seventy Five Thousand only) in the bank account of the complainant even without informing her anything about the said deposit either by phone or by letter but the complainant came to know about the same by way of SMS (short mail service) since her SB account was connected to automatic operation customer service.

     It is further observed that the Branch Manager of OP at Bobbili vide his letter addressed to the complainant also committed to pay the prize money by 27.04.2014 by way of Demand Draft but failed to do so.

     The OP also remained Ex-parte and accordingly adverse inference can be drawn that they have nothing to present in the Forum to contradict the contentions/allegations leveled by the complainant in her complaint and therefore it amounts to acceptance of the same by the OP. Since the contents of the complaint remained uncontroverted/undisputed, we are of the considered view that the OP is liable to pay interest on the prize money from the date of the last auction till the date of realization besides compensation and costs, as the prize amount was directly deposited by the OP in the bank account of the complainant without intimation that too after this complaint is filed in this Forum.

     In the result, the complaint is partly allowed directing the OP to pay interest at 12% per annum on the prize money from the date of the last auction till the date of realization and Rs.5,000/- (Rupees Five Thousand Only) towards compensation/damages for mental agony caused to the complainant and Rs.2,000/-(Rupees Two Thousand Only) towards costs which includes advocate fee of Rs.1,000/- (Rupees One Thousand Only).  Further the OP is directed to comply this order within one month from today. 

    Dictated to the Steno, transcribed by him, corrected by me and pronounced by us in the open Forum, this the 10th day of March, 2015.

MEMBER                                      PRESIDENT

C.C.No.42 / 2014

APPENDIX OF EVIDENCE

WITNESSES EXAMINED

For complainant:-                   For opposite parties:-

PW 1                                  RW1   &  RW2

DOCUMENTS MARKED

For Complainant:-

Ex.A-1 :Letter issued by the OP admitting the contentions      

        Of complaint that the complainant is the member of    

        Chit group and that she is the prized subscriber

        and the OP is liable and admitted to pay the    

        bid amount by the date 27.04.2014.

Ex.A-2 :Letter issued by the OP admitting the contentions

        Of complaint that the OP is liable to pay

        Rs.4,75,000/- towards prize money and it has called           

        the subscriber for furnishing sureties and cover

        with post office seal, Dt.28.04.2014. 

Ex.A-3 :Registered Legal notice got issued by the

        complainant through his counsel, Dt.21.05.2014.

Ex.A-4 :Postal Acknowledgment showing receipt of

        registered, Dt.30.05.2014.

For OP’s – NIL -

                                                  President