COMPLAINT FILED: 02-12-2009 <br /> DISPOSED ON: 07-04-2010<br /> <br /> BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE (URBAN)<br /> <br /> 7TH APRIL 2010<br /> <br /> PRESENT:- SRI. B.S.REDDY PRESIDENT <br /> SMT. M. YASHODHAMMA MEMBER <br /> SRI.A.MUNIYAPPA MEMBER <br /> COMPLAINT NO.2840/2009<br /> <br /> <br /> COMPLAINANT <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> Smt.Krishnammal.N.<br /> W/o.Late Srinivasan.S<br /> Aged about 72 years,<br /> Residing At: No.6, LIC Colony, <br /> Yeshvanthapur, Bangalore–22.<br /> <br /> Advocate – Sri.Philomena Ross<br /> <br /> V/s.<br /> <br /> OPPOSITE PARTIES 1.The Manager, <br /> ShriRam chits (Karnataka) Pvt. Ltd., Branch:Vijayanagar,<br /> Centre:Vijayanagar,<br /> At No.1019A/442, <br /> Service Road, 2nd Main Road,<br /> Vijayanagar,Bangalore-40. <br /> <br /> 2.The Manager,<br /> ShriRam Chits(Karnataka) Pvt. Ltd., Registered & Administration Office at:<br /> “Akshodaya” No.29/1, <br /> 1st Floor, 10th Cross, <br /> Wilson Garden, <br /> Bangalore – 560 040.<br /> <br /> Advocate–Sri.Suresh Subbaiah<br /> <br /> <br /> O R D E R<br /> <br /> SHRI. B.S.REDDY PRESIDENT<br /> <br /> The complainant filed this complaint u/s. 12 of the C.P. Act of 1986 seeking direction against Opposite Parties (herein after called as OP) to pay the auctioned amount of the chit along with damages to an extent of Rs.5,26,000/- with interest at 40% p.a. and further to return the original Debenture Certificates along with the damages of Rs.10,000/- on an allegations of deficiency in service on the part of the OPs.<br /> <br /> The case of the complainant to be stated in brief is that:-<br /> <br /> 2. OPs are running chit fund business, the complainant through agent of OP-1 had become subscriber in OP-1 Branch for chit value of Rs.5,00,000/- for 50 months and monthly subscription of Rs.10,000/-. The first instalment subscribed from 25-07-2005, the complainant paid the subscription up to the date of bid i.e., 48th instalment and totally OP has collected a sum of Rs.4,80,000/-(Rs.4,02,750+Rs.77,250/-dividend). The complainant had bid her chit on the 48th instlment on 11-06-2009 leaving the minimum amount of Rs.25,000/- in the total chit amount of Rs.5,00,000/- i.e., Rs.4,75,000/- was her bid amount and as such complainant was liable to pay only the due 2 instalments i.e., for 11-07-2009 and 11-08-2009 and hence the complainant given the consent to deduct the said instalment amount of Rs.20,000/- at on payment as prepaid and OP-1 liable to pay bid amount of Rs.4,55,000/-. In all chit bid amount of Rs.4,80,000/- is due from OPs as per the agreement. OPs are responsible to release the auctioned / prized money within 7 days of date of auction OP-1had confirmed the bid amount and taken all the documents from the complainant and also taken the signature on the blank and some other document and after accepting the document and certificates it is the duty and obligation of OPs to serve as per the terms and condition of the agreement. OPs were liable to pay on or next auctioned date i.e., 11-07-2009 but they failed to repay the money even after taking the required security. The complainant is a senior citizen of 72 years and suffering from old age sick i.e., Mitral Stenosis, (Cardiac Problem). The complainant visited OPs office but Ops were only giving evasive answer and not considered the complainant’s request and was only harassing the complainant. OPs deliberately avoiding to repay the complainant’s amount. The complainant got issued notice dated 23-10-2009. The complainant suffered financial loss her interest and dividend for the above said period and amount sum of Rs.50,000/- and also incurred a 4expenses of Rs.15,000/- and incurred a medical expenses of Rs.3,000/- because of OPs deficiency in service. OPs are liable to pay Rs.5,96,500/- (i.e., Rs.10,000/- per month including the dividend of 48 months i.e., Rs.4,80,000/- + Rs.1,16,500/-) along with interest at 36 % p.a. OP-1 also misguided the complainant that they are ready to pay the interest at 40% p.a. for the auctioned amount up to the repayment within 2 months, after 2 months the complainant visited the OP requested for repayment but OP denied the payment and requested for some more time. Then complainant filed a written complaint before OP-2, OP-2 replied that they are not concerned with the transaction that are taken place between OP-1. OP-2 as the Head Office failed in their duty to settle the matter. The debenture certificate of the son of the complainant was taken as security, the complainant had cleared said due amount and demanded to return debenture certificate but OPs are not willing to return the said certificate. Hence the complaint.<br /> <br /> <br /> 3. On appearance, OP filed version admitting that the complainant became a subscriber of the chit for 50 months and monthly instalment of Rs.10,000/- including dividend. It is contended that up to the date of bid total 48 instalment was total sum of Rs.4,02,750/- along with dividend. The complainant was due 2 instalment in future for 11-07-2009 and 11-08-2009. Hence she had given consent to deduct the said instalment amount of Rs.20,000/- in the chit amount. <br /> <br /> It is denied that OPs are liable to pay amount of Rs.4,55,000/- to the complainant and further it is denied that OP company had confirmed the bid amount and taken the signature on blank document and certificates. It is denied that the complainant is suffering from old age sick. It is also denied that the complainant visited the office of the OPs and OPs were giving evasive replies. It is denied that the complainant suffered financial loss interest and dividend and incurred medical expenses as claimed. Further OPs denied their liability to pay Rs.5,96,500/- with interest at 36% p.a. Further it is denied that OP promised to refund the money after a week from 11-06-2009 and that OP-1 misguided the complainant that they are ready to pay interest at 40% p.a. for auctioned amount. <br /> <br /> It is stated that the complainant bid the chit in the auction on 11-06-2009 by leaving minimum bid amount, as such OPs have to pay chit auctioned amount by deducting dues and the complainant has to comply all the requirement and procedure of the company. In the said chit transaction the complainant’s auction amount was Rs.4,75,000/- by leaving a minimum amount of Rs.25,000/-. In the said auctioned amount OPs are to deduct future 2 instalment due of Rs.20,000/- and service tax of Rs.2,575/-. After deducting all this the OPs have to pay Rs.4,52,425/- to the complainant within one month from the date of auction of the chit. During that stipulated period of one month the complainant never turned up to OPs office inspite of phone calls. Further the complainant has to give latter for deducting the future liabilities or else the complainant has to give a future amount dues. OPs requested the complainant through phone for consent letter. The complainant never turned up within stipulated period. The complainant kept quite for stipulated period, and after that approached OPs for repayment. After duly instructed by the OPs, complainant has given consent latter for deduction of future instalment dues. After receiving the said letter OP-1 sent the file to head office for permission to release amount. After due requirement was completed; cheque was ready on 01-12-2009 and immediately intimation was given through phone to collect the cheque but the complainants never turned up as such the finally OPs have cancelled the cheque. For paying of the amount there were no delay from the OPs, the complainant has not approached within the stipulated period of the chit agreement. OPs are not liable to pay damages or expenses; Debenture certificates is already returned and the said transaction is separate chit transaction OPs are ready to pay the nominal interest on the amount of Rs.4,52,425/-; they are not liable to pay any damages, expenses. Hence it is prayed to dismiss the complaint with exemplary costs. <br /> <br /> 4. In order to substantiate the complaint averments the complainant filed her affidavit evidence and produced documents with list marked as P-1 toP-12. The legal officer and GPA holder of OPs filed affidavit evidence in support of defence version and produced documents with list marked as D-1 toD11. <br /> <br /> 5. Arguments on both sides heard. Points that arise for our consideration are:-<br /> <br /> Point No. 1 :- Whether the complainant has Proved <br /> the deficiency in service on the part of <br /> the OPs?<br /> <br /> Point No. 2 :- If so, whether the complainant is <br /> entitled for the relief’s now claimed?<br /> <br /> Point No. 3 :- To what Order?<br /> <br /> <br /> 6. We record our findings on the above points :-<br /> <br /> Point No.1:- Affirmative<br /> Point No.2:- Affirmative in part<br /> Point No.3:- As per final Order.<br /> <br /> R E A S O N S<br /> <br /> 7. It is not in dispute that the complainant became subscriber in the OP-1 Branch for the chit value of Rs.5,00,000/- on 25-07-2005 for 50 months and monthly subscription was of Rs.10,000/- including dividend. The complainant bid her chit on the 48th instalment on 11-06-2009 leaving the minimum amount of Rs.25,000/- in the total chit amount of Rs.5,00,000/- i.e., Rs.4,75,00,00/-. The complainant was due two future instalments i.e., 11-07-2009 and 11-08-2009 each for Rs.10,000/- totally Rs.20,000/-. OP-1 was liable to pay the bid amount of Rs.4,55,000/-. <br /> <br /> Clause 6-1 to 6-8 of the hand bill marked as Annexure-A information to subscribers provides the terms and conditions of release of prize money, clause 6-1 provides that prize money will be paid to the successful subscriber on the next auction date if adequate security is furnished to cover the future liability of the chit. The complainant claims that OP-1 had confirmed the bid amount and had taken all the documents from her and also taken her signatures on the blank and some other documents but the amount was not released within the prescribed period. OPs were liable to pay the chit amount on or before 11-07-2009. OPs without any reason with held the amount; as a result she is suffering a lot. She is old aged women of 72 years, suffering from Cardiac problems. She had taken medical treatment for the same and has produced the document at Annexure-E in support of the same.<br /> <br /> 8. The version of the OPs is that the complainant failed to approach within prescribed period for receiving the chit amount as she has not given her consent for deducting future two instalments amount in the bid prize amount, inspite of their telephonic calls given as such they are not at fault; it is the complainant who has not complied the terms and conditions for payment. It is submitted that after the complainant complied all the terms and conditions of OP-1 Branch sought permission from OP-2 Head Office for making payment; after obtaining the permission; the cheque dated 09-12-2009 was prepared in favour of the complainant for an amount of Rs.4,52,425/- after deducting service charges and the complainant was informed to receive the said cheque but she has not turned up as such the amount was not paid to the complainant. Even now the OPs are ready to pay the said amount of Rs.4,52,425/- with nominal interest but OPs are not liable to pay compensation or cost of litigation.<br /> <br /> 9. After going through the documents produced by OPs we are unable to accept the contention that the complainant had not approached within prescribed period and furnished the required document and consent for deducting the future two instalments. The document 1 marked as Exhibit D-1 is dated 08-07-2009 the complainant had put her signatures on the same acknowledging the fact of cheque received in that document it is shown that the complainant had consented for deducting the future liability of amount of Rs.20,000/- and also the service tax of Rs.2,575/-; after deducting the said amounts the balance payable is shown as Rs.4,52,425/-. The Divisional Manager has approved the same and also the approving authority approved the same on 17-07-2009. Thus it becomes clear that within the prescribed period of one month after furnishing the required document and consent for deduction of future liability OPs have prepared the statement and got approval and even the signature of complainant is obtained as if she has received the bid chit amount. In case if the complainant had not furnished the documents and her consent. Exhibit D-1 could not have come into existence on 08-07-2009. Further Exhibit D-2 is a pronote obtained from the complainant without mentioning date for an amount of Rs.20,000/- with regard to the future liability with interest at 18% p.a.; the complainant has put her signatures in the same. Thus OPs have also obtained the pronote from the complainant. Further Exhibit D-3 is the payment voucher, for that also the signature of the complainant is obtained without putting any date. On the said document the date and voucher number, columns are left blank. The complainant got issued legal notice dated 23-10-2009 demanding the amount with interest and compensation. OPs have not replied for the said notice and have not complied with the demand. In case if the complainant has not approached them within the prescribed period nothing prevented them to reply for the said notice. The very fact of non-replying the said notice goes long way to hold that OPs have come up with an untenable version to save their skin only after the complainant filed this complaint. There is no reason for the OPs to with held the amount which was due to the complainant. With holding of the amount due to the complainant without any justified cause amounts to deficiency of service on the part of the OPs. <br /> <br /> 10. The complainant is an old aged women of 72 years; she is suffering from cardiac problem; taking medical treatment she was made to approach the Forum to claim her legimate amount. In the pronote Exhibit D-2 interest payable is shown as 18% on the future instalments. In the application and agreement form for enrollment marked as Annexure-D at clause 4-F provides that: interest at 36% p.a. will be charged for the belated payment of chit instalment, based on this the complainant claims interest at 36% on the amount wrongfully with held by the OPs. In our view taking into consideration of all the facts and circumstances it would meet the ends of justice by awarding interest on the chit prize amount at the rate of 18% p.a. from 12-07-2009 till the date of payment. The complainant has suffered mentally and physically in her old age; suffering with cardiac problem on account of OPs wrongfully with holding the amount. Therefore the complainant is entitled for compensation of Rs.25,000/-. Accordingly we answer Point No.1 in Affirmative and Point No.2 Affirmative in part and proceed to pass the following: <br /> <br /> O R D E R<br /> <br /> The complaint filed by the complainant is allowed in part. <br /> <br /> OPs are directed to pay an amount of Rs.4,52,425/- with interest at 18% p.a. from 12-07-2009 till the date of payment with compensation of Rs.25,000/- and litigation cost of Rs.3,000/- to the complainant. <br /> <br /> This order is to be complied within four weeks from the date of its communication. <br /> <br /> Send copy of this order to both the parties free of costs. <br /> <br /> (Dictated to the Stenographer and typed in the computer and transcribed by her verified and corrected, and then pronounced in the Open Court by us on this the 7th day of April 2010.) <br /> <br /> <br /> <br /> MEMBER MEMBER PRESIDENT<br /> <br /> <br /> NRS<br /> <br />