C.C.NO: 86/2012.

Between:

Sri Thirumala Reddi Srinivas Rao, S/o Venkata Rao,

38 years, Residing at C/o Gayanedi, D.No.20-8-4/5,

Bhoga Rao, Anandha Peta, Lanka Veedhi, Vizianagaram.                                                                                                                             ……Complainant

And

1. Shriram Life Insurance Company Ltd.,

Rep.,by its Divisional Manager, D.No.1/8327/1,

Double Road, M.V.Colony, Viskhapatnam.

1. Shriram Chits Pvt.Ltd., Vizianagaram I Branch,

Rep.,by its Branch Manager, Sapthagiri Plaza,

Near Daba Gardens, 1^st Floor, M.G.Road, Vizianagaram.

……Opposite parties

          This complaint is coming on for final hearing before us in the presence of Sri P.Hara Gopal, Advocate for the complainant and O.P.1 called absent, Sri P.V. Ganesh Advocate for opposite party No.2 and having stood over for consideration, the Forum made the following:-

O   R   D   E   R

 This is a complainant filed under Section 12 of Consumer Protection Act seeking the relief to direct the 2^nd O.P. to pay a sum of Rs.29,653/- with subsequent interest @ Rs.24% p.a., and to direct the 1^st O.P. to cancel the policy and to return back the amount remitted for issuance of policy and to direct the O.Ps. to pay costs and damages.   The complainant is the subscriber of a chit in the 2^nd O.P. for a sum of Rs.2,50,000/- and agreed to pay at the rate of Rs.5,000/- p.m., for a period of 50 months vide chit YNL-2 Group 02002.  Ticket No.41 in Branch 3389.  The complainant was regularly paying the monthly installments and when the chit auction was going to be held on the 14^th month the agent of 2^nd O.P. by name D.Srinivasa Rao telephoned to him and asked him to appear before the 2^nd O.P. by saying that he can participate in the auction as it is going to be  closed for lesser amount.  The complainant appeared before the Branch Manager of 2^nd O.P. upon which the Manager through his agent insisted him to enhance the auction amount.  The complainant had no interest to participate in the auction but the Manager of 2^nd O.P. declared him to be the successful bidder and forego the amount of Rs.80,500/-.  The complainant furnished necessary papers and sufficient sureties to get the prize amount.  The 2^nd O.P. asked the complainant to deposit a sum of Rs.35,000/- in their company or in the alternative to take the policy from the 1^st O.P. Company for which the complainant did not agree.  The 2^nd O.P. and his agents obtained the signatures of the complainant on some printed and blank papers and cheques.  The 2^nd O.P. sent a message to the complainant stating that the prize amount was deposited to his account after deducting an amount of Rs.12,000/- towards the Life Insurance Policy to be given by the 1^st O.P. Company against his will.  The complainant had no interest to take insurance policy and did not consent for remitting any amount towards the premium of the policy. 

The complainant received a letter from 1^st O.P. stating that the company is not able to complete the processing of proposal for want of certain requirements and asked him to send the necessary information and documents and in case the same were not sent, the proposal will be treated as cancelled and they would refund the deposit amount to the complainant.  The complainant sent a reply calling upon the 1^st O.P. to refund the amount immediately as he was not interested to take insurance policy.  The complainant waited for a month with a hope that he would receive the premium amount but of no avail.  The complainant sent a reminder notice to the 1^st O.P. dt.6-8-2012 demanding them to refund the amount but to no effect. 

Since there was a delay of one month in paying the chit amount to the complainant he is entitled to get interest on the amount due and as the 1^st O.P. did not return back the premium amount as agreed, he filed the complaint for the above said reliefs. 

The 2^nd O.P. filed counter traversing the material allegations made in the complaint and has averred that they are running chit fund business and as per the chit fund rules the prized subscriber before drawing chit amount must furnish suitable, and necessary sureties to the satisfaction of foreman for payment of future installments and the foreman reserves his right to accept or reject any or all the sureties and as per clause No.VII (12) surety once offered and accepted will not be entertained again as surety for another chit holder till the liability of the previous chit holder is cleared. 

It is averred that the complainant furnished 3 sureties by name G.Lakshmi, K.Appala Raju and Deepika and out of them Appalaraju stood as guarantor of Ch.Venkatoramana upon which the O.P. requested the complainant to furnish another sureties in the place of Appala Raju.  The O.P. has filed a suit in O.S.192/2010 against Ch.Venkataramana and his sureties including Appala Raju and as such Appala Raju who was furnished as surety on behalf of complainant was not accepted.  Hence, the O.P. requested the complainant to furnish sufficient surety to get the prize amount and as he expressed his inability to furnish another surety and has voluntarily agreed to take policy from 1^st O.P., the 2^nd O.P. deducted an amount of Rs.12,000/- from the prize amount and sent the same to the account of 1^st O.P. and after completion of all formalities the 2^nd O.P. released the prize money by way of cheque and deposited the cheque amount in the account of complainant.          

It is averred as there is no deficiency of service on the part of the O.Ps. and as there are no bonafieds in the complaint the same merits no consideration and is therefore liable to be dismissed. 

In furtherance of complainant’s case the complainant filed his evidence affidavit and got marked Ex.A.1 to A.7, in support of 2^nd O.P. they filed the evidence affidavit of R.W.1 and got marked Ex.B.1 to Ex.B.3.
          Now the point for consideration is whether the complainant is entitled to get the reliefs as prayed for. 

It is the specific contention of the complainant that there is delay of one month in paying the chit amount and though the 1^st O.P. agreed to return back the premium amount they too did not repay the same and as such he is entitled to get interest @ 24%p.a., on the prize amount paid to him and is also entitled to get the premium amount and as the O.Ps. did not respond to his request there is any amount of deficiency of service on their part and as such he is entitled to get the amounts prayed for.

Besides the oral evidence which is in the form of evidence affidavit the complainant got marked the letter addressed by 1^st O.P. to him as Ex.A.1 and the reply given by him as Ex.A.2, Postal acknowledgement as Ex.A.3, reminder notice sent to 1^st O.P. by him as Ex.A.4, Postal acknowledgement as Ex.A.5, office  copy of legal notice sent to 2^nd O.P. as Ex.A.6 and Postal acknowledgement as Ex.A.7.

As seen from the above said documents it is manifest that there was correspondence in between the parties with regard to the demand for payment of chit amount as well as premium amount deducted towards Insurance Policy. In the counter of 2^nd O.P. it is specifically averred that prized subscriber before drawing chit amount must furnish suitable and sufficient sureties to the satisfaction of foreman for the payment of future instalments and as per clause No.VII (4) of chit agreement the foreman reserves his right to accept or reject any or all the sureties and as per clause No.VII (12) surety once offered and accepted will not be entertained again as surety for another chit holder till the liability of the previous chit holder is cleared.

It is their further contention that the petitioner/complainant has furnished 3 sureties and out of them K.Appala Raju stood as guarantor of Ch.V.Ramana against whom a suit in O.S.192/2010 was filed for realization of amount due by them.  The complainant herein did not deny about the rule position and about the filing of suit in O.S.192/2010 against CH.V.Ramana and his surety Appala Raju.  When the complainant herein furnished Appala Raju as a surety against whom the 2^nd O.P. filed O.S.192/2010 it can safely be held that Appala Raju is not a suitable surety for the complainant and the foreman had every right to reject the surety and to insist upon the complainant to furnish a fresh surety in place of Appala Raju.  As per contents of the counter the complainant expressed his inability to furnish another surety and suggested that he will assign his insurance policy in the place of his surety and has voluntarily agreed to take policy of 1^st O.P. and has given an affidavit for prize money conversion on 8-9-2012 and basing on his affidavit they deducted an amount of Rs.12,000/- from the prize money and sent the same to O.P.1 and after completion of all formalities the 2^nd O.P. released the prize money by way of cheque.  In the complaint the complainant has taken a plea that his signatures were obtained by O.P.2 on some printed blank papers and obtained some blank cheques for future installments.   When such a plea is taken burden is heavily rests on the complainant to prove the said fact.  In normal circumstances when the complainant was not convinced about the high handed behavior of the officials of 2^nd O.P. in obtaining his signature on blank printed papers he would have given a complaint to the higher officials of the person who obtained his signatures on blank printed forms.  Similarly he should have given a notice to the person concerned not to use such printed blank papers containing his signatures.   But he did not do so. 

Ex.B.2 is attested copy of affidavit given by the complainant and as seen from its contents the complainant asked the 2^nd O.P. to deduct insurance a sum of Rs.12,000/- out of the bid amount payable to him towards premium of Insurance Policy.  As per Ex.A.1 the 1^st O.P. called upon the complainant to comply certain requirements as early as possible but not later than 10 days from the date of receipt of this letter failing which the proposal would be treated as cancelled and they would refund the deposit amount.  To the above said notice the complainant gave Ex.A.2 reply but did not initiate any action against the 2^nd O.P. for deducting Rs.12,000/- towards the 1^st premium amount of the policy to be issued by the 1^st O.P.   The 1^st O.P. had no necessity to accept the 1^st premium and to issue Ex.B.2 letter to the complainant calling upon him to perform the other formalities.  The complainant did not furnish the sureties as required by the 2^nd O.P. for payment of prize amount and though he furnished Appala Raju to act as surety, the 2^nd O.P. did not accept his surety as he already stood as a surety for Ch.Venkata Ramana against whom O.S.192/2010 was filed.  As per 2^nd O.P. the complainant himself has agreed to take policy from 1^st O.P. and give Ex.B.2 affidavit to deduct an amount of Rs.12,000/- from the prize money and after completion of formalities the prize money was paid to the complainant.  The delay in making payment of prize money was not due to the deliberate acts of 2^nd O.P. but it was occurred for not furnishing sufficient surety by the complainant. 

Hence, in the above said facts and circumstances we are of the considered opinion that the 2^nd O.P. is not deficient in rendering service to the complainant.  The 1^st O.P. in this case has agreed to refund the amount deducted towards 1^st premium from the prize amount of complainant subject to deduction of processing expenses and as the complainant did not perform the formalities the policy was not issued and as such he is entitled to get the above said amount minus processing expenses.

In the result the complaint is partly allowed directing the 1^st O.P. to refund the deposit amount of Rs.12,000/- minus the processing expenses to the complainant within one month from the date of this order.  The advocate fee is fixed at Rs.1000/- payable by the O.Ps.  

Dictated to the Typist, transcribed by her, corrected by me and pronounced by us in the open Forum, this the 18^th day of February, 2014.

Member                                                           President

CC. 86 of 2012

APPENDIX OF EVIDENCE

WITNESSES EXAMINED

     For P.W.1                                                                  For R.W.1

DOCUMENTS MARKED.

For complainant:-

1. Ex.A.1 letter by 1^st O.P. to the complainant dt.23-5-2012
2. Ex.A.2 Legal Notice dt.24-6-2012
3. Ex.A.3 Acknowledgement from 2^nd O.P. dt.27-6-2012
4. Ex.A.4 Reminder notice dt.6-8-2012
5. Ex.A.5 Postal Ack., dt.8-8-2012
6. Ex.A.6 Legal notice dt.20-9-2012
7. Ex.A.7 Postal Ack., dt.22-9-2012

For O.Ps: 

1. Ex.B.1 Agreement of chit
2. Ex.B.2 Declaration affidavit
3. Ex.B.3 Installment-wise payment details of Sriram Chits.

                                                                                                President.