Smt. Rajarapu Jhansirani, W/o. Late Sambashiva Rao, R/o. H.No.6-1-409, V.D.O's Colony, Khammam Town and District. - Complainant(s)
Versus
The Branch Manager, Shri Ram City Union Finance, Khammam Branch-2 & Others - Opp.Party(s)
M. Narasimha Rao, advocate, Khammam.
19 Oct 2010
ORDER
BEFORE THE DISTRICT CONSUMER FORUM AT KHAMMAM Varadaiah Nagar, Opp CSI Church consumer case(CC) No. CC/09/69
Smt. Rajarapu Jhansirani, W/o. Late Sambashiva Rao, R/o. H.No.6-1-409, V.D.O's Colony, Khammam Town and District.
...........Appellant(s)
Vs.
The Branch Manager, Shri Ram City Union Finance, Khammam Branch-2 & Others The Branch Manager, Shri Ram Chits Limited, Khammam Branch-2 The Managing Director, Shri Ram City Union Finance Ltd., Chennai
...........Respondent(s)
BEFORE:
Complainant(s)/Appellant(s):
OppositeParty/Respondent(s):
OppositeParty/Respondent(s):
OppositeParty/Respondent(s):
ORDER
BEFORE THE DISTRICT CONSUMERS FORUM AT KHAMMAM Dated this, the 8th day of September, 2010 CORAM: 1. Sri Vijay Kumar, B.Com., L.L.B. - President, 2. Smt.V.Vijaya Rekha, B.Sc. B.L. - Member 3. Sri R. Kiran Kumar, B.Sc. L.L.B - Member C.C. No.69/2009 Between: Smt.Rajarapu Jhansirani, w/o.late Sambasiva Rao, age: 43 years, occu:Household, r/o.C/o.6-1-409, V.D.Os coony, Khammam Town and District. Complainant. and 1. The Branch Manager, shri Ram City Union Finance Khammam branch-2, D.o.2-3-99, II Floor, Andhra Bank Upstairs, Gandhi chowk, Khammam. 2. The Branch Manager Shri Ram Chits Limited, Khammam Branch 2, D.o.2-3-99, II floor, Andhra Bank upstairs, Gandhi chowk, Khammam. 3. The Managing Director, Shri Ram City Union Finance Limited, Regd. No.1-2-3, Anagappa aikan Street, Chennai. Opposite parties This C.C. is coming before us for final hearing, in the presence of Sri. M.Narasimha Rao, Advocate for Complainant, and of Sri.G.Hareender Reddy, Advocate for opposite parties; upon perusing the material papers on record; upon hearing the arguments and having stood over for consideration, this Forum passed the following:- O R D E R (Per Sri R. Kiran Kumar, Member) This complaint is filed under section 12(A) of the Consumer Protection Act, 1986. The brief facts of the complaint are that the complainant is the subscriber of opposite party No.2, joined in chit group bearing No.36046 vide ticket No.13 and the complainant invested Rs.50,000/- in the opposite party No.1 and 3s organization and she was given 50 debentures by the opposite party No.3 through opposite party No.1, vide distinctive debenture Nos. 42476359 to 42476408 and was given a certificate vide its No.50035713, dated 21-12-2006 for a period of 24months and the date of redemption is 21-12-2008. At the time of issuance of debentures the opposite parties 1 and 3 agreed to pay Rs.8.5% on the said debentures and the opposite party No.2 agreed to adjust the interest amount into the chit group ticket of complainant. After the date of redemption i.e. 21.12.2008, the complainant approached the opposite party No.1 for repayment of the amount with prescribed interest, the complainant noticed that on 22.04.2008 without giving notice and without consent the opposite parties cancelled the debentures and converted the redeemable amount of Rs.50,000/- into chit ticket No.13, for their companys purpose, the opposite party 1 to 3, are liable to pay the entire redeemable amount of Rs.50,000/- with prescribed interest i.e. Rs.50,000/- along with interest accrued there on from the date of redemption of the debentures belonging to the complainant. As the opposite parties without giving notice, cancelled the debentures and converted the same into the redeemable amount of Rs.50,000/-, they are liable to pay Rs.50,000/- with interest @24% p.a. and the opposite parties No.1 to 3, are also liable to pay damages for an amount of Rs.50,000/-. And also submitted that the complainant approached the opposite parties No.1 and 2s office for the redemption of the debenture amount and opposite parties refused to pay the amount of Rs.50,000/- and dragged the same. Vexed with attitude of opposite parties, the complainant got issued legal notice on 13.02.2009, the same was served and in spite of receiving the legal notice, the opposite parties neither gave reply nor paid debentures amount, which amounts to deficiency of service, for that the complainant approached the Forum for redressal. 2. On behalf of the complainant, the following documents were filed and marked as Exhibits. Ex.A1:- Photocopy of debenture certificate issued by opposite party No.3, dated 21.02.2006. Ex.A2:- Ledger extract of the chit series bearing No.36046 vide ticket No.13, dated 05.02.2009. Ex.A3:- Photo copy of office copy of legal notice, dated 13.02.2009. Ex.A4:- Courier Receipts (Nos.4) issued by the D.T.D.C Courier Company, Khammam Branch. Ex.A5:- Photo copy of delivery run sheet issued by D.T.D.C. Courier Company. 3. On receipt of notice, the opposite party No.1 to 3 appeared through their counsel and filed counter. In the counter, they admitted the contention of the complainant joining as subscriber in Chit Group No.SZEL 46/13 and also admitted that the complainant had invested an mount of Rs.50,000/- in the Shriram City Uninon Finance Ltd., Khammam, which is the sister concern company of opposite party No.2, for a period of 24 months i.e. up to 21.12.2008. The opposite parties also submitted that, the complainant while withdrawing the prize amount in chit, she agreed to adjust the interest amount to the chit from debentures and also pledged the debentures towards security to the opposite party No.2s company for the due payment of future installments and she also given undertaking that In case of her default, the opposite party No.2 may get this FDR/C debentures amount released in favour of the opposite party No.2 and adjust towards arrears and future liability payable by her in the said chit. As there was arrears of due amount payable by the complainant, the opposite party No.2 adjusted the due amount from the debentures deposited by the complainant, as per the documents executed by her. Subsequently, the opposite party No.2 requested the complainant to get the balance amount, but the complainant without receiving the amount from opposite party No.2 got issued legal notice with false and baseless allegations. 4. On 12.07.2010, while the matter is coming for filing written arguments, counsel for opposite party No.1 to 3 filed a petition I.A.No.83/2010, under order 8 rule 9 with section 151 of CPC, to permit him to file additional counter and the same was allowed on the same date. 5. As per the averments of the additional counter, the opposite parties submitted that the chit period of the complainant was terminated on 30.12.2007, the complainant failed to pay the balance amount towards chit installments, she committed default from 48th installment to 50th installment, the opposite parties sent the Debenture Bond on 18.04.2008 for cancellation, opposite party No.3 granted the interest of Rs.354.20ps/- for the month of April 2008, which was adjusted towards chit and the same was shown in the ledger dated 28.04.2008, and as the Debenture Bond cancelled prior to its maturity, the amount of Rs.2,479-30ps/- was adjusted towards interest and remaining amount of Rs.47,520-70/- was sent to the opposite party No.2, out of that Rs.2,809/- was adjusted towards 48th to 50th installments, balance amount of Rs.44,590-10ps/- and interest of Rs.354-20ps/- is with the chit credit, in total the amount of Rs.44,944-30ps/- is available with the chit credit and the same was informed to the complainant. As such the opposite parties prayed to dismiss the complaint. 6. On behalf of the opposite parties, the following documents were filed and marked as Exhibits. Ex.B1:- Ledger extract of the complainant. Ex.B2:- Installmentwise payment details. Ex.B3:- FDR Certificate deposited with Shriram Chits Pvt. Ltd., dated 16.05.2006. Ex.B4:- Debenture Bond lien towards chit Form No.XII. 7. As per the written arguments in para No.2 of the complainant, the complainant admitted that she did not pay monthly installments 48 to 50. Further, prayed that the opposite party No.1 without giving notice, cancelled the Debenture Bond of Rs.50,000/-, after deducting Rs.2,479/- sent Rs.47,520/- to the chit account which is against the procedure under Chit Fund Act., 1982 and also which amounts to criminal breach of contract. According to the act, if any security amount wants to be adjusted towards chit amount, giving notice to the concerned parties is mandatory. As the opposite parties committed breach of contract against complainant they are liable to pay entire redeemable amount of Debenture Bond No.50035713, dated 21-12-2006 for Rs.50,000/- with accrued interest and also damages of Rs.50,000/-. 8. Upon perusing the material papers on record, basing on their arguments, now the point that arose for consideration is, 1) Whether the complainant is entitled for the claim? POINT:- In this case, the complainant joined as a subscriber of opposite party No.2 Company, chit bearing No.36046, vide ticket No.13 and also invested Rs.50,000/- in opposite party No.3 organisation, issued 50 debentures on 21.12.2006, for a period of 24 months. The complainant while withdrawing the prize amount in chit, she pledged the debentures towards security for the due payment of future installments. She also given undertaking that in case of default in chit, the opposite party No.2, may get release the debentures amount and adjust the arrears due. In the complaint, the complainant failed to mention about the joining of chit and put 50 debentures as security towards chit for future installment at the time of the receiving prize amount. The complainant in her complaint, contended that after the date of redemption i.e. 21.12.2008, when she approached the opposite party No.1 for collecting the debenture amount, she noticed that on 22.04.2008, the opposite party No.1 cancelled the debentures which is highly condemnable and the opposite party No.1 and 2 are to be punished under the breach of trust. To support their case counsel for the complainant relied on sections 32 and 33 of Chit Fund Act, 1982. After carefully examining the material on record, and as per Ex.B1 to B4, we observed that the complainant committed default from 48th to 50th installments in the chit. As per the terms and conditions in Form No.XII executed by the complainant, In the event of default in paying my monthly subscription to chits and if arrears are more than three months, you are at liberty to discharge the Deposit/Debenture on my behalf and the proceeds may be adjusted towards my arrears and future installments for which I am giving my irrevocable power to your company to send the receipt/certificate for payment. As per Ex.B1, the complainant committed default from 48th installment i.e. from October 2007, but the opposite party waited till 18.04.2008 and sent the Debenture Bond on 18.04.2008, for cancellation as it was pledged by the complainant towards the chit lien. And also the opposite parties paid an amount of Rs.354.20ps/- towards interest for the month of April 2008. From the facts of the complaint, we dont find any irregularities committed by the opposite parties. With regard to sections 32 and 33 relied by the counsel for the complainant these sections not attract the present case as at the time of receiving prize amount the complainant executed a willing letter giving authorization to opposite parties through Ex.B4. From the above we dont think the opposite parties have committed any breach of contract against the complainant, The complainant is entitled to receive the amount of Rs.44,944.30 ps. and she is not entitled to any relief as sought in the complaint. Accordingly the complaint is disposed of. 9. In the result, the complaint is disposed off accordingly. Dictated to steno, corrected and pronounced by us in the open forum on this 8th day of September, 2010. PRESIDENT MEMBER MEMBER DISTRICT CONSUMERS FORUM, KHAMMAM APPENDIX OF EVIDENCE Witnesses examined for complainant: -None- Witnesses examined for opposite parties: -None- Exhibits marked for complainant: Ex.A1:- Photocopy of debenture certificate issued by opposite party No.3, dated 21.02.2006. Ex.A2:- Ledger extract of the chit series bearing No.36046 vide ticket No.13, dated 05.02.2009. Ex.A3:- Photo copy of office copy of legal notice, dated 13.02.2009. Ex.A4:- Courier Receipts (Nos.4) issued by the D.T.D.C Courier Company, Khammam Branch. Ex.A5:- Photo copy of delivery run sheet issued by D.T.D.C. Courier Company. Exhibits marked for opposite parties: Ex.B1:- Ledger extract of the complainant. Ex.B2:- Installmentwise payment details. Ex.B3:- FDR Certificate deposited with Shriram Chits Pvt. Ltd., dated 16.05.2006. Ex.B4:- Debenture Bond lien towards chit Form No.XII PRESIDENT MEMBER MEMBER DISTRICT CONSUMERS FORUM, KHAMMAM
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