R. VIJAYAKUMAR, MEMBER.

This is a complaint filed U/S.12 of the Consumer Protection Act  for getting an amount of Rs.14,500/- as per  the statement of accounts produced by the complainant and interest  up to the payment of this amount.

          The complainant’s case is that without paying back the amount  remitted  by the complainant as chitty installments, the opp.party sent a notice to the complainant,  claiming Rs.10875/- + interest at the rate of 14%.

          The complainant was a chital holding No.141 in chitty No.2/2004,   The chitty was priced in the 1^st  installment itself.   Even though the complainant was ready to remit the installments of chitty  deducting the interest of his price money, the opp.party did not care to deposit  the price money  in a fixed deposit in the complainant’s favour  after deducting 30% commission etc.  The complainant approached the opp.party  requesting to allow him to verify  the records related to his chitty accounts.  But the opp.party rejected his requests informing that he is a chronic defaulter  and demanding to remit the balance amount.  No notice was sent to the complainant after 6.8.2004 till the expiry of the period of chitty.   The opp.party had sent a notice to the complainant  containing  false allegations and demanding Rs.10875+interest at the rate of 14% .   The act of opp.party is against the prevailing law.   The irresponsible act  of the opp.party is deficiency in service and it amounts  to severe mental pain and  agony to the complainant.  Hence the complainant filed this complaint for getting reliefs.

          The opp.party’s case is that the complainant did not offer sufficient security for releasing the price money or depositing the same  in FD Account.  The complainant had remitted only 6 installments and thereafter committed default.  After two installments 4 remittances were belated.  The opp.party informed the complainant to remit the installments.   Registered Notice also was  sent to the complainant.   Even then the complainant was not responded..   The price money of Rs.70,000/- is only sufficient to settle up to the 44 installments.   The remaining amount and the debit balance of Rs.331/- along with  the interest at the rate of 14% is due to the opp.party.   The complainant has  subscribed another chitty commenced on 31.1.2007 vide No.17/07 chital No.17 for the  sala of Rs.50,000/- .  He became a chronic defaulter is that chitty also.   After sending proper notice  the complainant was removed and    the  chitty  was substituted .  No loss or injury sustained by the complainant.   There is no unfair trade practice or deficiency in service from the part of opp.party.  Hence the complaint is liable to be dismissed.

          Complainant filed affidavit.

PW.1 examined. Exts.P1 and P3 marked.

From the part of opp.party DW.1 examined  and Exts. D1 to D8  marked

Heard both sides.

The points that would arise for consideration are:

1.     Whether there is any deficiency in service from the part of opp.party?

2.     Compensation and cost.

POINTS 1 AND 2

          Admittedly the complainant joined  in chitty No.2/04, Chital No.141 having sala of Rs.1,00,000/- conducted by  the opp.party.  It is also admitted that the chitty was priced in the 1^st lot itself.  The price money was not released and the fact that the complainant did not offer sufficient security also is admitted.  It is further admitted that the complainant had remitted 6 installments of chitty with the opp.party and thereafter defaulted in payment of installments.

          The main contention of the complainant is that even though he was ready to pay the balance amount of the monthly installment after deducting interest  of price money, the opp.party had not given any proper information or notice to the complainant.  They   did not care to deposit the price money in a fixed deposit in favour of the complainant.   The complainant was included in the defaulter list also. They had undertaken the chitty suomoto and  substituted with another chital and conducted the chitty upto the end of chitty  paid.

 According to the complainant the opp.party had kept the price amount for 50 months without any authority and misused that amount for their own purpose.  No notice was issued to the complainant after 6.8.04  and before 6.3.08 informing that he had defaulted in payment of chitty installments.

          The learned counsel for the complainant would argue that it is clear from  the statements in the version itself that they had adjusted 44 installment from the price amount, and six installment were remitted by the complainant previously.  Hence no amount is due to the opp.party by the complainant.  The complainant is entitled  to get interest of the amount for 50 months.

          It is also argued   by the learned counsel for the complainant that from the admission of DW.1 while in  cross examination it is clear that  there is no condition in the variyola regarding the utilization of  the price  amount for which  sufficient security was not given

          The learned counsel for opp.party argued that the price amount , after deducting commission can be disbursed or deposited in favour of the chital only when sufficient security has been given.   Even though the complainant had remitted 6 installments, only two installments were remitted properly in time.  Other 4 installments were paid belated.  The complainant was informed to remit the defaulted installments. The opp.party  sent notice to the complainant,.  Default Recovery  team visited the complainant .  Ext. D2 and D3  series are office copy of  the notices sent to the complainant.  It is  evident that the opp.party had given proper notice to the complainant.   Ext.D4 series are also evident that the opp.parties sent legal   notice  along with acknowledgement card.    Ext. D5 is the office copy of recovery notice dated 5.11.2008 .   D6 is the office copy of Form 24, Ext. D7  are the office copies of chitty variola and chitty ledger.   Ext.D8 is the personal ledger of chitty No.2/04-141.   Since the complainant is a chronic defaulter and as an amount is due to them , the opp.party had every right to proceed against the complainant.   The complainant has to pay an amount of Rs.11,089/- to the complainant.   The price money of Rs.70,000/- was sufficient  only to settle up to 44 installments and  6 installments amounting  Rs.12,000/-[2000x6] remaining unpaid   There is a debit balance of Rs.331/- also.   The balance amount of Rs.1242/- price money after adjusting installments is to be deducted from the total due amount Rs.12331/-         

We have carefully verified Ext. D1  variyola.  The  conditions of the  agreement  is explained in the variyola.   Mode of payment of price amount is explained as per conditions   15 and  16 [a] [b] and [c] .  As per these conditions chitty amount can be disbursed only on offering sufficient  security for the amount to be released.

          As the complainant had not taken any steps for realizing the amount offering security the priced amount was kept with the opp.party.  There is no way other than keeping this amount  with the opp.party .   Ext.D2 is the notice sent by the opp.party on 23.6.08 which clearly shows, that the opp.party informed the complainant about his arrear amount, due to the opp.party and they will forced to initiate RR proceedings if the complainant did not clear the dues within one week from the date of the notice.   Ext. D3 notice and acknowledgment proves that another notice was sent on 5.8.08 by the opp.party .  Ext. D4 and D5 also evident for the issuance of proper notice on 4.10.08  and 5.11.08.  Ext. D6 proves the  issuance of Form 24 Requisition of Recovery of amount.   Ext.D7 is the chitty personal register of the complainant.   The allegation of the complainant that no intimation had been given to him till the end of the chitty is defeated by these documents.   The opp.party could clearly prove that proper informations had been given to the complainant periodically.

          The learned counsel for the complainant further argued that the complainant is entitled to get the amount deposited in the chitty along with veethappalisa after the expiry of period of chitty as per condition  19 [a] of variyola.

          The learned counsel further argued that condition No.19[a] is related to the complainant’s case  and he should be considered as a chital who has not participated in the chitty auction or had not removed from the chitty and who has defaulted in the payment of subscription and as per clause 30 the conditions in the variyola the complainant has every right to realize the amount from the opp.party’s security deposit etc.   We have carefully verified the conditions contained in the variyola.

In our  considered opinion the complainant will not come under the category of 19 [a] as the complainant in the instant case, is a chital who had priced in the 1^st lot itself.  It is the duty of the complainant to release the money  or  deposit the price amount in a fixed deposit offering sufficient security to the opp.party. 

          The statement that the 1^st notice informing that the chitty was priced in favour of  him was issued only after 4 years is unbelievable as it lacks bonafides.   The complainant also responsible to enquire the position of chitty in which he was joined as a chittal,  priced in the 1^st  draw itself and later he became a chronic defaulter. The learned counsel for the complainant further argued that actually the complainant is not a defaulter as 44 installments were adjusted from the price money and the amount of  6 installments already remitted by the complainant directly. On perusal of Ext. D8 chitty personal Register we find that 6 installments amounting Rs.2000/- remaining as defaulted installments 45 to 50 .  It is clearly stated in the calculation of RR amount that the price money [Rs.70,000/-] is sufficient to adjust installments 7 to 44 only [Rs.68758] allowing veethappalisa and balance from the price money is Rs.1242/-.   There is a   Debit balance of Rs.331/-  The total amount to be remitted by the subscriber is – 12000+331-1242 =11089/-  From the calculation it is clear that 37 installments are adjusted from the price amount   and 1 to 6 installments were paid by the complainant and 45 to 50 installments are remaining  unpaid.. We have made through verification of the entire documents produced before us.  We cannot find any deficiency in service from the part of opp.parties.   The complainant failed to establish their case.

          Considering all the facts and  based on the above discussed points we are of the opinion that there is no deficiency  in service from the part of opp.party

          In the result, the complaint is dismissed.   There is no order as to costs.

          Dated this the 30^th day of November, 2012.

                                                                        :

I N D E X

List of witnesses for the complainant

PW.1. – V. Somaraj

List of documents for the complainant

P1. – Notice

P2. – Subscription chart

List of witnesses for the opp.parties

DW.1. – Sherly George

List of documents for the opp.parties
D1. – Variyola

D2. – Notice dated 23.6.2006 and copy of postal journal

D3. – Recovery notice and copy of acknowledgement card

D4. –Legal notice and acknowledgement card[Photoco0py]

D5. – Recovery notice issued on 5.11.2008

D6. – Revenue Recovery Requisition to the Dist. Collector [Form 24]

D7. – Copy of chitty variola and chitty ledger

D8. – Copy of chitty ledger 2/04