BEFORE THE DISTRICT FORUM: KURNOOL

Present: Sri. T.SundaraRamaiah, B.Com B.L., President

And

Sri. M.Krishna Reddy, M.Sc., M.Phil., Male Member

And

Smt. S.Nazeerunnisa, B.A., B.L., Lady Member

Monday the 9^th day of May, 2011

CC.No 135/2010

BETWEEN:

G.Nagabhushanam,  S/o. Late G.Devadas,

H.No.51-1026 F1, L.I.C. Colony, Kurnool.                                   

…Complainant

-Vs-

The Branch Manager, Shriram Chits Private Limited,

H.No.50/760-A-121, 1^st Floor, Sri Balaji Complex,  Gayatri Estates,

Kurnool- II Branch.

                                …Opposite Party

This complaint is coming on this day for orders in the presenceof Sri G.Nagabhushanam, Advocate for complainant and Sri B.V.RamanaReddy, Advocate for opposite party and upon perusing the material papers on record, the Forum made the following.

ORDER

(As per Sri. M.Krishna Reddy, Male Member)

                                      CC. No. 135/2010

1.     This complaint is filed under section 11 and 12 of C. P. Act, 1986 seeking a direction on opposite party:-

(a)    To continue his chit membership accepting his due installments or to refund the amount of Rs.24,087/-  paid as installments with 24% P.A. interest.          

(b)    To pay Rs.20,000/- as compensation for mental agony.

1. To pay Rs.500/- as cost of the case.

2.     In short the complaint is that the complainant was a subscriber of chit bearing No.3425/58019/36 and bye leaves No.6/2008/2009.  He became a chit member on 23-07-2008 and was paying the installments regularly up to November 2008 to the company directly.  From December 2008 the installments were paid to the company collection agent at this home up to February 2009.  Unexpectedly the complainant received a letter da ted 16-02-2009 intimating him about the refund of Rs.9,980/- deducting Rs.10,000/- towards damages for the breach of contract and Rs.20/- for incidental changes from the total amount of Rs.20,000/- he deposited.  But before the delivery of this letter to him on 24-02-2009, the collection agent collected the January 2009 installment on 23-02-2009, keeping February 2009 installments as due. He received another letter dated 16-03-2009 stating that his membership is removed and Rs.13,467/- in refundable  deducting 5% of chit value of Rs.10,000/- towardsdamages for breach of contract and Rs.20/- for incidental charges from Rs.23,487/- paid by the complainant.  Inspite of the complainant personal request, no action was taken by the opposite party to continue his membership.  Vexed with the attitude of the opposite party, a legal notice was issued by the complainant on 06-04-2009 to continue his membership.  As the opposite party did not respond to the notice, though he                                 received it, the complainant filed this complaint before the forum seeking appropriate reliefs.

3.     The complainant filed sworn affidavit and documents marked as Ex.A1 to A9 in support of his case.

4.     Persuant to the receipt of notice of this forum, opposite party filed written version denying his liability to the complainant’s claim.  The opposite party submitted that the complainant joined as chit member on 23-07-2008 vide group and ticket No.58019/36 for the chit value of Rs.2 lakhs with 50 monthly installments, by paying Rs.5,600/- as  1^st installment including admission fee.  The opposite party avered that the complainant’s membership was removed a s he was paying installments irregularly.  The same was intimated to the complainant through the letters dated 16-02-2009 and 16-03-2009. The opposite party accepted the payments made by the complainant as stated infra,

1. Rs.5,000/- on 23-07-2008.
2. Rs.3,250/- on 23-09-208.
3. Rs.3,250/- on 25-1 0- 2008.
4. Rs.5,000/- on 06-11-2008.
5. Rs.3,500/- on  19-01-2009
6. Rs.3,487/- on 23-02-2009 to the total of Rs.23,487/- .

The payment of Rs.3,487/- on 23-02-2009 was made after receiving removal notice da ted 16-02-2008.   Further the complainant failed to deposit arrears even after receiving another removal notice dated 16-03-2009.  Assuming that complainant has no intention to continue as chit member, since he did not pay installments consequently for more than three months, his membership was removed on15-12-2009 in accordance to see 20 (1) of AP Chit Fund Act 1971.   As there is no deficiency on his part, the opposite party prayed for the dismissal of the case.                                                     

5.     Sworn affidavit and documents marked as Ex.B1 to B3 are filed by opposite party to substantiate his case.

6.     Both parties filed their written arguments.

7.     Hence the points for consideration are:

1. Whether the complainant hasmade not any case to prove the deficiency of service on the part of opposite party?

1. Whether the complainant is entitled to the reliefs as prayed for?

1. To what relief?

8.     Point No.1&2 :-  Ex.B1, the  agreement of chit, shows that opposite party accepted the membership of the complainant, allotted ticket No.58019/36 by receiving first installment.  It also contains terms and conditions of chit.  Ex.A1 to A5 are the bills for the installments paid by the complainant.  Ex.B3, the extract of ledger, shows that the complainant paid Rs.23,487/- towards installments for the months from 7/8 to 2/9 except 12/8.  The complainant was a nonprized subscriber on the date of removal his membership.  Ex.A7 the notice of membership removal dated 16-02-2009, which was received by the complainant on 24-02-2009.  On the date of receipt of Ex.A7 the complainant was not default for three consecutive months but he has to pay a single installmentfor 12/8 only.  Ex.A8/B2, another confirmation notice of membership removal dated 16-03-2009.  Under section 16 of Ex.B1 if a non prized subscriber fails to deposit his monthly subscription before due date, penalty can be charged at the rate of three price per rupee and part thereof.  If he fails to pay subscription for three consecutive installments, the membership shall be liable to be removed from the list of subscribers.  The opposite party has power to wave penaltyand can continue the membership ofdefaulty Ex.A9, the legal notice dated 06-04-2009 issued by the complainant, informing his willingness to pay arrears for the continuation of his chit membership.  Not considering the intention of the complainant and provisions of section 16 of Ex.B1, the opposite party terminated the member ship of the complainant unilaterally, though he has power to wave penalties.  The opposite party submitted an order 1999 CPJ–2-174 stating that Consumer Fora has no jurisdiction to entertain and enquire in to a complaint in matters relating to chit fund transactions in view of section 64 of the chit fund Act 1982.  Per contract the complainant filed another order 2003-CPJ–0 230–NCDRE in which the order of District Forum against a chit fund company was made final by the National Commission.  Another order of High Court of Andhra Pradesh2004-ALT-2-822was produced by the complainant.  This order holds that the chit fund companies are amenable to the jurisdiction of the Consumer Fora under the provisions of C.P. Act 1986.  From what is stated above and under the provisions of C.P. Act 1986 the complainant in entitled for the reliefs as claimed by him.

9.     Point 3 :-The complainant claimed Rs.24,087/- with 24% P.A. interest.  The membership of Rs.600/- deducted and deposited installments amount of Rs.23,487/- with 18% P.A. interest from 24-02-2009 is allowed for refund.   The opposite party did not deal the case of complainant properly and made him to suffer mentally.  Hence Rs.2,000/- is sanctioned as compensation for mental agony is place of Rs.20,000/-.

10.    In the result the complaint is  allowed directing the opposite party to refund Rs.23,487/- with 18% P.A. interest from 24-02-2009 to the date of realization, Rs.2,000/- towards compensation for mental agony and Rs.500/-  as cost of the case.  The time for compliance is one month from the date of receipt of this order.

        Dictated to the stenographer, transcribed by her, corrected and pronounced by us in the open bench on this the day 9^thof May, 2011.
 

Sd/-                                        Sd/-                              Sd/-

MALE MEMBER                      PRESIDENT                   LADY MEMBER

APPENDIX OF EVIDENCE

Witnesses Examined

For the complainant :Nil    For the opposite party:Nill

List of exhibits marked for the complainant:-

Ex.A1        ShriramChits Private Limited, Kurnool, Bill of installment payment for Rs.3,250/- dated 23-09-2008.

Ex.A2.       Shriram Chits Private Limited, Kurnool, Bill of installment payment for Rs.3,250/- dated 25-10-2008.

Ex.A3        Shriram Chits Private Limited, Kurnool, Bill of installment payment for Rs.5,000/- dated 06-11-2008.

Ex.A4        Shriram Chits Private Limited, Kurnool, Bill of installment payment for Rs.3,500/- dated 18-01-2009.

Ex.A5        Shriram Chits Private Limited, Kurnool, Bill of installment payment for Rs.3,487/- dated 23-02-2009.

Ex.A6                Statement of account previous transactions letter,

dated 16-01-2009.

Ex.A7        Notice of member’s removal letter dated 16-02-2009, along with speed post cover.

Ex.A8        Notice of member’s removal letter dated 16-03-2009, along with speed post cover.

Ex.A9        Office copy of legal notice dated 06-04-2009 along with acknowledgement.

List of exhibits marked for the opposite party:-

Ex.B1        Agreement of Shriram Chit Private Limited, chit value of Rs.2,00,000/-.

Ex.B2                Photo copy of Notice of member’s removal letter

dated 16-03-2009.

Ex.B3                Statement of account of removed subscriber,

dated 08-10-2010.

Sd/-                                        Sd/-                              Sd/-

MALE MEMBER                      PRESIDENT                 LADY MEMBER

// Certified free copy communicated under Rule 4 (10) of the

A.P.S.C.D.R.C. Rules, 1987//

Copy to:-

Complainant and Opposite parties  :

Copy was made ready on             :

Copy was dispatched on               :