BEFORE THE DISTRICT FORUM:KURNOOL
Present: Sri.S.Chinnaiah, B.A., B.L.,I/C President
And
Smt. C.Preethi, M.A.LL.B., Lady Member
Friday the 28th day of December, 2007
C.C.No. 75/07
Between:-
N. Rama Devi, W/o. Raja Sekhar Reddy,
H. No. 17-180, Somappa Colony, B-Camp Post, Kurnool. … Complainant
Versus
The Branch Manager, Sahara India Limited, Sector Office,
Soma Arcade, Opp. Zilla Parishad, Kurnool. … Opposite Party
This complaint is coming on this day for orders in the presence of Sri.P.Siva Sudharshan, Advocate, for the complainant, and Sri.S.S.Hussain, Advocate for the opposite party and upon perusing the material papers on record, the Forum made the following:-
ORDER
(As per Smt. C.Preethi, Hon’ble Member)
C.C.No.75-07
1. This consumer complaint of the complainant is filed under section 11 and 12 of C.P.Act,1986 seeking a direction on opposite party to refund a sum of Rs.36,005/- with 24% interest P.A., Rs.10,000/- towards mental agony, cost of the complaint and any other relief or reliefs which the complainant is entitled in the circumstances of the case.
2. The brief facts of the complainants case is that the complainant joined as member in Golden-7 scheme run by opposite party with account bearing No. 13335009745 for a period of 84 months and monthly installments is Rs.1,000/-. The complainant joined the scheme on 27.1.98 and paid all the 84 installments, as per the scheme the complainant is entitled to receive Rs.1,44,957-30/-. But the opposite parties on completion of scheme paid period Rs.1,08,952/-only and the complainant approached the opposite party and requested to pay the balance amount of Rs.36,005-30/- but the opposite parties has not taken any steps for payment of balance amount. Being vexed the complainant got issued legal notice dated 18.10.2005 and the opposite parties replied with vague allegations. Hence, the complainant approached the forum for reliefs as there is deficiency of service on part of opposite party.
3. In support of her case the complainant relied on the following documents viz., (1) original payment receipts (78), (2) office copy of legal notice dated 18.10.2005, (3) reply notice dated 3.11.2005 and (4) Xerox copy of cheque for Rs.1,08,952/- dated 27.5.2005, besides to the sworn affidavit of complainant in reiteration of her complaint avernments and the above documents are marked as Ex.A1 to Ex.A4 for its appreciation in this case.
4. In pursuance to the notice of this forum as to this case of the complainant, the opposite party appeared through their standing counsel and filed written version.
5. The written version of opposite party submits that as per agreement between the parties the arbitration clause (term No.11) specifically lays down that in case of any dispute between the company and applicant, should be referred in accordance with provisions of arbitration and Conciliation Act, 1996 and the Forum has no jurisdiction to entertain this case. It further submits that the complainant did not pay 84 installments regularly and as per Clause 3-B of terms and conditions of the scheme “installments shall be paid in the first week of every month in advance” and when the installments are not deposited in the first week in advance, the deposited installments can not be utilize as per advise plan for the benefit of the company in such circumstances as per terms and conditions of the scheme the said account has come within the category of default account and interest is not payable on default account and these accounts are settled as per company rules and there is no deficiency of service on part of opposite parties. It lastly submits that the complainant defaulted in depositing the installments due, hence the account became default account and she is not entitled to any interest on said account and seeks for the dismissal of complaint with costs.
6. In substantiation of their case the opposite party relied on the following documents viz., (1) application golden-7 No.986834, (2) pass book issued to the complainant, (3) party ledger maturity, dated 20.10.2005, (4) maturity settlement form No.986834, (5) receipt of with drawl, dated 25.5.2005 and (6) scheme interest particulars, besides to the sworn affidavit of opposite party in reiteration of his written version avernments and the above documents are marked as Ex.B1 to B6 for its appreciation in this case.
7. Hence, the point for consideration is to what relief the complainant is entitled alleging deficiency of service:?
8. It is the case of the complainant that she joined as a member of Golden-7 scheme vide Ex.B1 run by opposite party with account No.13335009745, and a pass book vide Ex.B2 was issued to the complainant. The period of the scheme was for 84 months and monthly installment was of Rs.1,000/- each. The complainant paid all installments vide Ex.A1 and on maturity the opposite party has to pay Rs.1,44,957-30 to the complainant, but paid only Rs.1,08,952/-. The complainant there after requested the opposite party to pay the remaining balance amount and on 18.10.2005 got issued legal notice vide Ex.A2, dated 18.10.2005 and the opposite party replied vide Ex.A3 dated 3.11.2005, stating that the complainant has to pay monthly installments in the first week of every month in advance and the complainant was very irregular in paying installments and as per terms and conditions of the scheme, she was a defaulter and her account was a default account and she is not entitled to the matured amount of Rs.1,44,957-30/- . The written version of opposite parties also submits that as per Clause 3b the “monthly installment shall be paid in the first week of every month in advance” and last para of Clause-4 says that “Accounts where in the depositor has not continued the account up to 84 months regularly shall be termed as default account”. Where as the last para in Clause-4 in Ex.B1 says that “Accounts where in the depositor has not continued the account upto 84 months shall be termed as default accounts”. No where in the terms and conditions, it is mentioned that if the depositor has not paid the installment before first week of every month, it will be treated as default account, and interest will not be paid to the said account, the last para of Clause-4 says only about the depositor not continuing the account up to 84 months.
9. There is nothing in the documents filed and marked by opposite party that if the installments are not paid in the first week of every month less interest will be paid as per company’s Rule. The main contention of opposite party is that the complainant was very irregular in paying the monthly installments but the opposite party without any hesitation accepted the belated payments. Hence, when once the opposite party accepted the belated payment, now at the time payment of maturity amount cannot take a stand that the complainant was very irregular in payment of installments. Hence, the said contention of opposite party is rejected as untenable.
10. The other contention of opposite party is that as per Clause-11 any dispute between the company and applicant, it should be referred to the arbitrator appointed by the company. The complainant relied on the citation of National Commission reported in IV 2004 CPJ Page 80 between Oriental Insurance Company Limited Vs. M.R. Bhingerwala, where in, it was held that Forum can not direct the parties to go for arbitration. Hence, relying the above decision, referring the matter to the arbitration is also rejected.
11. To sum up, the opposite party accepted the delayed payment of installments without any hesitation, it is deemed that the installments are accepted and the opposite party at the time of payment of maturity can not deduct the interest, as there is nothing mentioned in the terms and conditions to pay less interest if the installments are paid irregularly. Hence, the complainant is certainly remaining entitled to the balance amount of Rs.36,005/- and costs of Rs.500/-.
12. In the result, the complaint is allowed directing the opposite party to pay to the complainant the balance amount of Rs.36,005/- with 9 % interest from the date of filling of this case i.e., 25.5.2007 till realization along with costs of Rs.500/- within a month from the date of receipt of this order.
Dictated to the stenographer, transcribed by her, corrected and pronounced by us in the open Forum on this the 28th day of December, 2007.
Sd/- Sd/-
MEMBER I/C PRESIDENT
Appendix of evidence
Witness examined
For Complainant: For Opposite parties:
-Nil- -Nil-
Documents marked
For the Complainant:
Ex.A-1. Original receipts ( No. in 78)
Ex.A-2. Office copy of legal notice, dated 18.10.2005.
Ex.A-3. Reply notice, dated 3.11.2005.
Ex.A-4. Xerox copy of cheque for Rs.1,08,952/-
dated 27.5.2005.
For the opposite parties:
Ex.B1. Application Golden – 7 No.986834.
Ex.B2. pass Book
Ex.B3. Party ledger maturity copy.
Ex.B4. Maturity settlement form No.986834.
Ex.B5. Receipt of with drawl , dated 25.5.2005.
Ex.B6. Scheme Interest particulars.
By the Forum:
-Nil-
I/C PRESIDENT
Copy to :-
1.Sri. P. Siva Sudharshan, Advocate, Kurnool for the complainant.
2.Sri.S.S. Hussain, Advocate , Kurnool for the opposite party.
Copy was made ready on:
Copy was dispatched on :
Copy was delivered to parties:
