BEFORE THE DISTRICT FORUM (UNDER CONSUMER PROTECTION ACT, 1986) MEDAK AT SANGAREDDY
Present : Smt Meena Ramanathan, B.Com., Senior Member/Lady Member
Sri G.Sreenivas Rao,M.Sc.,B.Ed.,LL.B., PGADR (NALSAR) Male Member
Wednesday, the 18th day of January 2012
C.D. 26 of 2011
Between:
S. Rajeshwar S/o Balram, Age: 40 years,
Occ: Electrition, R/o Ramnagar Colony, Medak. ……Complainant
And
The Chief Manager,
Kapil Chit Funds Private Limited,
H.No. 1-8-104, Opp: Municipality, Medak. …….Opposite party
This case came up for final hearing before us on 06.01.2012 in the presence of Sri M/s K. Subhash Chandra Goud, Advocate for complainant Sri K. Krishna Rao, Advocate for the Opposite party, upon hearing arguments of both sides, on perusing the record and having stood over for consideration till this day, this Forum delivered the following:
O R D E R
(Per Se Meena Ramanathan, Lady Member)
This complaint is filed under section 12 of C.P. Act, 1986 by the Complainant with a prayer to direct the opposite party to pay total amount of Rs. 16,025/- to the complainant and pay to costs, interests, penalty and loss to the complainant.
The brief facts of the case:
1. The complainant submits that he is professionally an electrician. He is doing house wiring for living with small income. And he was approached by the respondent company’s agent to become a member of the Kapil Chit Funds.
He was allotted the chit No. FMKT-07G-38 and was to pay Rs. 4,000/- for 50 months. He paid four installments amounting to Rs. 16,025/-/- but was unable to pay three installments. Later he approached the opposite parties with Rs. 7,000/- but refused to take the amount.
He approached opposite party to return his money of amounting to Rs. 16,025/- but was refused and they further stated that Rs. 10,000/- will be deducted from that. Hence he issued them a legal notice directing the return of the full amount.
He has enclosed an article approved in News paper that the Hon’ble State Commission where in it is held that if any subscriber in removed and the ticket is allotted to another person the chit fund company should not deduct the commission and should pay the subscriber the full amount.
Hence he requests the Hon’ble Forum to direct the opposite party to return Rs. 16,025/- along with interest, costs and impose penalty as deemed fit.
2. The opposite party filed their counter stating that this complaint is not maintainable either in law or on the facts of the case. They agree that the subscriber is an electrician by profession and was allotted chit number FMKT 07G-38 for a value of Rs. 2,00,000/- - to be subscribed @ Rs. 4,000/- for 50 months. And they state that the complainant was served copies of the rules and regulations pertaining to the chit. They do not agree with the complainants contention that he paid four installments by way of daily collections. He never approached them with Rs. 7,000/- and he was definitely not regular with the monthly installments.
Accordingly to their rules & regulations if a subscriber defaults for those collective installments then his subscription is terminated and he is liable to pay 5% of the chit value as damages. They conveyed this to him through a notice dated 12.11.2009, and since he failed to respond they issued his termination notice through a registered letter dated 15.12.2009. They claim the complainant’s story is fabricated. They follow the chit funds Act of 1982 and going by the available record. There is no deficiency of service on their part.
They are willing to pay him a sum of Rs. 5,525/- and have intimated this to him but he is insisting for the refund of the entire amount. Though he defaulted in September 2009, they informed him of his removed in December 2009, the complainant kept quiet and filed this complaint in January 2011 only to harass them.
The Chit Fund Act clearly states that any disputes arising out of chit transactions should be decided by the arbitrator/Registrar appointed by the court.
Hence they pray that the complaint may be dismissed with exemplary costs in the interest of justice.
3.. In order to prove the averments in the pleadings the complainant has filed her evidence affidavit and also filed written arguments. Exs. A1 to A4 are marked on behalf of the complainant. Exs. B1 to B5 documents are marked for the opposite parties and also filed written argument. Oral arguments both sides heard. Perused the record.
4. The fact that the complainant S. Rajeshwar is an electrician and was allotted chit reference No. FMKT 07 G-38 and paid an amount of Rs. 16,025/- is not in dispute.
5. The point for consideration is whether the amount to be refunded to the complainant should be reduced by Rs. 10,150/- (i.e. 5% of the chit value) or not. And 2). What relief is he entitled to?
There is no dispute that the complainant is a subscriber of the chit and paid four installments amounting to Rs. 16,025/-. The complainant filed the pass book wherein he has made regular payments in the beginning. He has also filed Ex. A3 – 4 receipts for the payment made on the following dates: 25.08.2009, 26.06.2009, 30.05.2009 and 25.07.2009 all payments from the start were made late and duly accepted. In their chit agreement Ex. B2 due date of payment of installments is before 10th of each calendar month. At the very beginning, when payments were late, the rules and regulations were neither adhered to or strictly followed and not impressed upon the subscriber. Why take six/seven months to terminate a defaulting subscriber.
The opposite party - chit fund company filed their exhibits B3 and B5 to prove their point about notices being sent to see petitioner regarding his removal. Ex. B3 is accompanied by a acknowledgement but the date is not clear and Ex. B5 the second letter informing him about his termination is not accompanied by any acknowledgment was it served on the petitioner? Is in doubt.
In Ex. B1 dealing with their rules and regulations – Sec Xi – Mode of payment of each installment and/or. Penalty for BELATED PAYMENTS, was the fine print explained to the subscriber. The belated payments were accepted, then when he offered to pay again the foreman refused to accept the money.
The Consumer Protection Act is in addition to and not in derogation of the Chit Fund Act. The fine print has been subject discussion of since long – both in Indian as well as in English counts. If they are not communicated to him until after the contract how can be penalised? The conditions in the standard form document should have been need by the person receiving it, or he should have been made subjectively aware of their import and effect.
When a chit fund company enrolls the subscriber, do they find out, their monthly income and whether he is a position to pay Rs. 4,000/- every year month for 4 years? Without verifying the capacity of the subscriber how does the opposite party join persons like Rajeshwar? In Ex. B2 only one witness signature is there. The other place in empty showing foremen’s negligence. In view of the aforementioned discussions, we answer the point No. 1 is answered in favour of the complainant and against the opposite party.
In the result we allow the complaint and direct the opposite party to pay Rs. 16,025/- (Rupees Sixteen thousand and twenty five only). No costs. One month time is granted for compliance.
Typed to dictation, corrected and pronounced by us in the open forum this 18th day of January, 2012.
Sd/- Sd/-
SENIOR MEMBER/LADY MEMBER MALE MEMBER
Copy to
1) The Complainant
2) The Opposite party
3) Spare copy Copy delivered to the Complainant/
Opp.Party on __________
Dis.No. /2012, dt.
