Complaint filed on: 16-11-2016 Disposed on: 19-04-2017
BEFORE THE DISTRICT CONSUMER DISPUTES
REDRESSAL FORUM
OLD DC OFFICE COMPOUND, TUMAKURU-572 101
CC.No.145/2016
DATED THIS THE 19th DAY OF APRIL 2017
PRESENT
SMT.PRATHIBHA. R.K. BAL, LLM, PRESIDENT
SMT.GIRIJA, B.A., LADY MEMBER
Complainant: -
T.Dasappa
S/o. Thimmadasappa,
Major, R/o. Belegumba,
Tumakuru City
(By Advocate Sri.B.K.Prabhuswamy)
V/s
Opposite party:-
The Branch Manager,
Sri Ram Chits Pvt. Ltd,
MG Road, Tumakuru city
(By Advocate Sri.S.Prabhudeva)
ORDER
SMT.PRATHIBHA. R.K. PRESIDENT
This complaint is filed by the complainant against the OP, under Section 12 of the Consumer Protection Act. The complainant prays to direct the OP to pay the chit amount of Rs.5,00,000=00 together with interest @ 18% p.a. from the date of closure of the chit fund and to pay a sum of Rs.20,000=00 towards general damages for mental shock and agony suffered, in the interest of justice and equity.
2. The brief facts of the complaint is as under.
The OP is running a chit fund and the complainant is one of the subscribers of the OP’s Chit fund group No.870/67/0002/49 and the chit amount is Rs.5,00,000=00. The complainant has paid all the chit premiums to the OP’s chit fund and the above chit fund closed in the year 2011. The complainant was not at all a defaulter to the said chit transaction. After closure of the chit transaction, the complainant has furnished all required documents in the month of Nov.2011. But the OP had not issued a cheque for the above amount of Rs.5,00,000=00.
The complainant further submitted that, the complainant has demanded and requested the OP to pay the chit amount, but the OP had failed to pay the said amount to the complainant. Hence, the OP has shown deficiency in service and the OP is not giving any endorsement or reasons for withholding the chit amount. Thus the OP is liable to pay interest on the above said amount together with Rs.20,000=00 towards general damages.
The complainant further submitted that, on 6-9-2016 the complainant got issued a legal notice to the OP and the said notice was duly served on the OP. Instead of paying the chit amount, the OP had issued an evasive reply. Hence, the complainant has come up with the present complaint.
3. In response to the notice, the OP has appeared through his counsel and filed objection contending interalia as under:
The complaint is not maintainable either in law or on facts and it is liable to be dismissed in limine. The complainant has filed this false and frivolous complaint just to harass the OP. The OP has denied the complaint each and every para and the word by word as false.
The OP further submitted that, the complainant is the subscriber in the OP Company in group ticket no.1870/67002/49. Thereafter, the complainant has defaulted to pay the installment amount from 2012. Thereafter the OP demanded the complainant to pay the installment amount, but the complainant had failed to pay the installment amount. Hence, the OP had removed the complainant from the chit fund on 5-8-2013 as per the Rules of Chits.
The OP further submitted that, after completion of the chit fund, the OP is refundable amount of Rs.3,96,368=00, after deduction of Forman Commission of Rs.25,000=00. But the complainant never visited the OP Company to receive the amount Rs.3,71,368=00.
The OP further submitted that, the complainant filed this false complaint to obtain wrongful gain and unnecessary made the OP as a party to the said proceedings. The OP is ready to pay the amount after deduction of Forman Commission of Rs.25,000=00 remaining amount of Rs.3,71,368=00 payable to complainant. Hence, it is prayed to dismiss the complaint with costs.
4. So as to prove the case, the complainant has filed his affidavit by way of evidence and produced documents along with complaint and memo dated 14-2-2017 which were marked as Ex-C1 to Ex-C36. The OP has not filed his affidavit evidence and produced any documents. We have heard the arguments of both parties and we have gone through the oral and documentary evidence of both sides scrupulously and posted the case for orders.
5. Based on the above materials, the following points will arise for our consideration.
1. Whether there was deficiency in service on the part of the OP as alleged by the complainant?
2. What Order?
6. Our findings on the above points are;
Point no.1: In the affirmative
Point no.2: As per the final order below.
REASONS
7. On perusal of the pleadings of the complaint, affidavit evidence of complainant, objections of the OP, it is an admitted fact that, the complainant had subscribed the OP’s chit fund in the group No.870/670002/49 for a sum of Rs.5,00,000=00 and the chit fund was closed in the year 2011.
8. Further contention of the complainant is that, after closure of the chit fund, the complainant had approached the OP Chit Fund Company several times, but the OP Company had not paid the chit amount of Rs.5,00,000=00 to the complainant. In this regard, on 6-9-2016, the complainant had issued a legal notice to the OP company, but the OP had failed to pay the chit amount to the complainant.
9. On the other hand, the OP submitted that, the complainant is a defaulter and he had not paid the installments from 2012. On repeated demands, the complainant had not paid the installments. Hence, the OP had removed the complainant on 5-8-2013 as per the Rule of Chits.
10. The OP further submitted that, after completion of chit fund, the OP is ready to refund the chit amount of Rs.3,96,368=00 after deducting Forman Commission amount of Rs.25,000=00 that comes to Rs.3,71,368=00. But the complainant had never visited the OP Company to receive the chit fund amount of Rs.3,71,368=00.
11. On perusal of the documents produced by the complainant, it is seen that, the complainant had paid the chit amount of Rs.4,00,548=00 to the OP Chit Fund Company as per Ex-C9 to Ex-C31. On perusal of the letter dated 26-3-2011 issued by the complainant to the OP Company seeking for the chit amount of Rs.5,00,000=00. Further on perusal of the letter dated 19-2-2016, the complainant wrote a letter to the District Registrar, Tumakuru District, Tumakuru seeking for payment of chit fund. In this regard, the District Registrar of Chit Fund, Tumakuru had issued a letter dated 3-3-2016 and had given direction to the OP Company to release the chit fund amount to the complainant as per Ex-C8. But thereafter, the OP Company had not released the chit fund amount to the complainant. Hence, the complainant had issued a legal notice dated 6-9-2016 to the OP. In this regard, the OP Company had replied to the said legal notice stating that, the complainant had availed a loan of Rs.15,40,008=00 with M/s. Shriram City Union Finance Ltd. a sister concern of Shriram Group of Companies and he has executed an agreement bearing no.NRTFTMK09E00002 on 24-12-2009, but the complainant had not paid the EMIs amount. Hence, the OP approached the Arbitration and an award has passed on 11-1-2014 holding that, the complainant is liable to pay an amount of Rs.12,54,862=00. In this regard, an Execution Petition No.59/2015 had filed before the Court of Principal District and Sessions Judge at Tumakuru. In those proceedings, an application is moved for an order of attachment of chit amount of the complainant in respect of group/ticket no.67002/49. The above Execution Petition is pending before the Principal District and Sessions Judge at Tumakuru. Hence, the OP Company had kept pending to release the amount.
12. However, the OP Company had not produced any documentary evidence before the Forum to show that, the application is moved for attachment of chit fund amount of the complainant and the same is pending before the Principal District and Sessions Judge at Tumakuru. Hence, in the absence documentary evidence, the contention of the OP Company cannot be accepted. However, the OP had taken different view in the version stating that, the OP had ready to pay an amount of Rs.3,71,368=00, but the complainant had not come forward receive the chit fund amount. Hence, it is just and proper to direct the OP Company to release the chit fund amount of Rs.3,71,368=00 to the complainant along with 12% interest per annum on the said amount from the date filing of this complaint. Further the OP is directed to pay compensation of Rs.10,000=00 and Rs.3,000=00 towards cost of this proceedings. Accordingly we answer this point in the affirmative. In the result, for the foregoing reasons, we proceed to pass the following order.
ORDER
The complaint is allowed in part.
The OP is directed to release the chit fund amount of Rs.3,71,368=00 to the complainant along with 12% interest per annum from date of filing of this complaint till the date of realization.
The OP is further directed to pay compensation of Rs.10,000=00 and Rs.3,000=00 towards litigation cost to the complainant respectively.
This order is to be complied by the OP within 30 days from the date of this order.
Supply free copy of this order to both parties.
(Dictated to the Stenographer, transcribed and typed by him, corrected and then pronounced by us in the Open Forum on this, the 19th day of April 2017)
LADY MEMBER PRESIDENT
