Karnataka

Chitradurga

CC/61/2014

H.N.Ramachandrappa S/o. Nagappa - Complainant(s)

Versus

The Forman, Shriram Chits Karnataka Pvt.Ltd., - Opp.Party(s)

Shri.T.Shivakumar

09 Sep 2015

ORDER

COMPLAINT FILED ON : 04/12/2014

     DISPOSED ON: 09/09/2015

 

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHITRADURGA

 

 

CC. NO. 61/2014 DATED:  9th September 2015

 

PRESENT :-     SRI. T.N. SREENIVASAIAH      PRESIDENT                                      B.A., LL.B.,

                        SRI.H.RAMASWAMY,               MEMBER

                                         B.Com., LL.B.,(Spl.)

SMT.G.E.SOWBHAGYALAKSHMI,       

                                         B.A., LL.B.,                   MEMBER

 

                               

COMPLAINANT	H.N. Ramachandrappa, S/o Nagappa, R/o Mahalakshmi Krupa, 6th Main, 6th Cross, IUDP Layout, Chitradurga.   (Rep by Sri. T. Shivakumar,  Advocate )
OPPOSITE PARTIES	1.  Forman,      Sriram Chits Karnataka      Pvt. Ltd., Akshodaya,      No.259/31, I Floor,      10th Cross, Wilson Garden      Bangalore-560027.   2.  The Manager,      Sriram Chits Karnataka      Pvt. Ltd.,      Amogha Complex, I Floor,      Chitradurga.        (Rep by Sri. N.S. Shamasundar,  Advocate)

 

SMT.G.E.SOWBHAGYALAKSHMI, MEMBER.

ORDER

 

The above said complaint has been filed by the complainant U/s 12 of C.P. Act 1986 for the relief  against the opposite parties (here in called OPs) for repayment of the chit fund amount along with interest to the complainant and direct the OPs to pay the damages, mental agony and court cost etc., and to grant such other reliefs.

 2.    Brief facts of the complaint is that, the complainant had obtained the chit fund from the office of OP 2 and the complainant nominee of the chit fund belongs to the OP 2 under group No.141069004 ticket No. 16 dated 26.09.2012, the complainant paid 1^st installment chit fund of Rs.12,500/- + 750/- bearing Receipt No.7618212 total sum chit amount of Rs.5,00,000/- to pay by the complainant in regular forty monthly installments.  The complainant had paid 1^st chit fund of sum of Rs.12,500/- dated 26.09.2012.  The OP 1 is the head office of the Shriram Chits Karnataka Pvt. Ltd., and OP 2 is the Branch office of the OP 1 and OPs running their business at Karnataka State and also various places at all over India.  Complainant further stated that he was unable to pay the chit fund amount due to great financial crisis, loss of earnings and thereby he was unable to pay the chit fund amount to OP 2 regularly, non-payment of the chit amount to OP well in time is not intentional and it is bonafide mistake.  The complainant got issued legal notice to OPs dated 26.05.2014.  OPs have issued the evasive reply notice.  OPs have not settled the amount till today.  Hence, this complaint. 

 

3.     Complainant has suffered mental agony for act of the OPs for non-payment of the chit fund amount paid by the complainant thereby OPs have committed deficiency of service and unfair trade practice.  The cause of action for this complaint arose on 26.09.2012 when the complainant became nominee of the chit fund belongs to OPs and when the complainant issued legal notice to the OPs on 26.05.2014 through his advocate.  It is submitted that, the complainant got issued the legal notice to the OPs on 26.05.2014 that to repay the chit fund amount of Rs.12,500/- + 750 = Rs.13,250/-, for that the OPs had issued the evasive reply notice only with the intention to cause trouble, inconvenience, hardship, irreparable loss to the complainant, till today the OPs not settled the amount.  OPs have committed deficiency of service and prayed for allow the complaint with cost.

 

4.     On the service of notice OPs have appeared through their counsel and filed version and denied the allegations made in the complaint in para 3 to 7.  While admitting, the complainant is the member of Group  and ticket No.1410/69004/15 dated 26.09.2012 conducted by the OP 2 and further admits that the complainant has paid Rs.12,500/- + 750/- to the OP and he is the member of chit value of Rs.5,00,000/-.  OP 2 has further taken contention that, the complainant is a practicing advocate and he clearly understood the terms of the agreements.  The complainant is a member of Group and ticket No.69004/15 for a value of Rs.5,00,000/- with 40 installments and installment amount of Rs.12,500/- per month.  The complainant has also pay Rs.750/- as registration charges and other incidental charges.  The member has to pay the first 2 subscription amount of Rs.25,000/- and remaining installments will be paid in 38 installments as per the condition No.4(a) of the agreement.  As per the terms and conditions of the agreement No.8 (e) and 13(a), the Forman has got every right to take 5 percent of value of the chit amount.  In the present case on hand the complainant is the member of the Chit Group and ticket No.69004/15 for the value of Rs.5,00,000/- with 40 installments.  The 5^% of the total value of the chit is works out at Rs.25,000/-, the complainant has not paid Rs.25,000/- to the OPs.  Moreover the complainant has breached condition No.4(a) and he is failed to pay Rs.25,000/-.  As per the terms and conditions of the agreement No.11, the complainant is due for the subsequent installments, the forman has got power to exercise his right.  If the complainant is really not interested some other persons will join the chit and he will be beneficiated.  Non continue the chit loss is cause to the OPs.  The complainant is also having other chits in the OPs institution.  The negligent act of the complainant the OPs have sustained heavy loss.  There is no deficiency of service on the part of the OPs.  The complainant is not entitled to any of the relief claimed in the complaint and prayed for dismissal of the complaint with cost. 

 

5. Complainant himself examined as Pw-1 by filing the affidavit evidence and filed documents, the same was got marked as Ex A-1 to A-6.

 

        6. On behalf of OPs one Shri. Vinay R.P S/o R.H. Prakash, Forman, Shriram Chits, Karnataka Pvt. Ltd., Chitradurga i.e., OP 2, examined as DW-1 by filing affidavit evidence and filed one Xerox copy of the document.

 

7.     Heard the arguments.

 

8.     Now the Points arise for our consideration for the decision of the complaint are that:-

 

Point No.1:- Whether the complainant proves that he had obtained the chit fund from the OP No.2 and he is the member of Group and ticket No.1410/69004/15 dated 26.09.2012 and the complainant paid Rs. 12,500/- + 750/- bearing Receipt No.7618212 to the OP No. 2 and the complainant facing very hard days due to heavy loss of income from his agricultural lands and also from his occupation he was unable to pay regularly chit fund amount to OP No.2 and he has requested the OPs to settle the chit fund amount of Rs.12,500/- + 750/- in total Rs.13,250/- paid by the complainant and OPs have not settled the amount thereby OPs have committed deficiency in service and entitled for the reliefs?

  

 

Point No.2:- What order?

       

9. Our findings on the above points are as below.

 

        Point No.1:- Partly Affirmative.

        Point No.2:- As per the final order.

 

                                ::REASONS::

 

       10. Point No. 1:-  It is not in dispute that, the complainant is the member of chit fund Group and ticket No. 1410/69004/16 dated 26.09.2012 conducted by the OP No.2.  It is not in dispute that, the complainant has paid Rs.12,500/- + 750/- to the OP No.2 and he is the member of chit fund value of Rs.5,00,000/-.  It is only in dispute that the complainant requested the OPs to settle the chit amount but, the OPs have not settled the chit fund amount paid by the complainant on 26.09.2012 to OP No. 2. 

 

11.  To prove the case of the complainant, complainant himself examined as PW-1 by filing affidavit evidence in which he reiterated the contents of the complaint and filed 6 documents like original pass book bearing No.69004/16, cash receipt dated 26.09.2012, legal notice dated 26.05.2014 issued by the complainant through his counsel to OPs.  Postal Acknowledgements, RPAD receipts, Removal notice dated 23.10.2013 issued by the OP No. 2, the same was got marked as Ex.A-1 to A-6.  On perusal of the Ex.A-1 original pass book bearing No.69004/16 issued by the OP No. 2, shows the complainant name, chit Ref: 69004/16, Branch Chitradurga, chit amount Rs.5,00,000/-, Ticket No.16.  It is further shows Group and Ticket No.69004/16, dated 26.09.2012, installment No.1, Receipt No.14107618212, cash/cheque adjustment cash, place of payment CTA, collection amount Rs.12,500/- total collection Rs.12,500/- cum collection Rs.12,500/- initials shows Cashier of OP No.2.  It is clearly shows that the complainant is member of OPs chit fund Group and paid Rs.12,500/- 1^st installment at Chitradurga Branch.  The chit total amount of Rs.5,00,000/-.  Ex.A-2 cash receipt shows on 26.09.2012 OP No. 2 Cashier received from Sri. Ramachandrappa H.N i.e., complainant to the credit of the above Group regd., by cash Rupees in words thirteen thousand two fifty only.  Subscription current Rs.12,500/-, admission charges of Rs.750/-, total Rs. 13,250/-.   The payment of amount of Rs.13,250/- by the complainant to OPs not in dispute.  Ex.A-3 legal notice dated 26.05.2014 issued by the complainant through his counsel to OPs.   It shows the complainant called upon the OPs to repay the chit fund amount of Rs.12,500/- + 750/- paid by him to the OP No.2 along with accrued interest within 15 days from the date of receipt of this legal notice.  Ex.A-4 postal acknowledgement.  It shows the legal notice issued by the complainant through his advocate to OPs duly served.  Ex.A-5 RPAD postal receipts.  Ex.A-6 Removal notice dated 23.10.2013 issued by the OP No.1 to complainant, it shows the complainant has defaulted in payment of monthly installment (subscription) balance of Rs.1,15,625/- interest as on 30.09.2013 at our Chitradurga Branch.  If the arrears are not cleared within 7 days from the date of this notice, we will be constrained to remove your name from the chit group as per Sec.28(1) of chit fund Act, 1982.  On perusal of the Ex.A-6 Removal notice dated 23.10.2013 issued by the OP No.1 it reveals that the OPs will be constrained to remove the name of the complainant from the chit group due to non-payment of arrears within 7 days from the date of the notice.  OPs have removed the complainant name in the chit group not in dispute.  It is only in dispute that OPs have not settle the chit amount paid by the complainant on 26.09.2012 to OP No. 2 till today.   Complainant Advocate much argued that the complainant called upon the OPs to settle the chit amount of Rs.13,250/- as per Ex.A-3.  OPs have not settled the chit amount paid by the complainant till today.  Thereby OPs have committed deficiency in service and unfair trade practice and prayed for allow the complaint with cost and accrued interest. 

12.  On the other hand, on behalf of the OPs Vinay R.P, Forman of OP No.2, examined as DW-1 by filing affidavit evidence, he reiterated the contents of version.  On his side documents not marked.   OPs have taken contention that, the complainant has violated the terms and conditions of the agreement and breach of the contract.  In fact the chit is not  completed and the same is completed on February 2016.  The member has to pay the first two subscription amount of Rs.25,000/- and remaining installments will be paid in 38 installments as per the condition No.4(a) of the agreement.  OPs further taken contention that as per the terms and conditions of the agreement No.8 (e) and 13(a) the forman has got every right to take 5 percent of value of the chit amount.  The complainant is the member of the chit Group and ticket No.69004/15 and chit value is Rs.5,00,000/- with 40 installments.  The 5% of the total value of the chit is works out at Rs.25,000/-, the complainant has not paid Rs.25,000/- to the OPs.  As per the terms and conditions of the agreement No.11 the complainant is due for the subsequent installments, the forman has got power to exercise his right.  The negligent act of the complainant, the OPs have sustained heavy loss.  The complaint is pre-mature one since all the chit installments are not yet concluded.  The chit will be concluded on 29.02.2016.  Hence, he is no locus-standie to ask any amount.    There is no deficiency of service on the part of OPs.  The complainant is not entitled to any of the relief claimed in the complaint and prayed for dismissal of the complaint with cost. 

13.  On perusal of the version, evidence and documents filed by the OPs.  To prove his case, OPs have not filed the documents and on their side documents not marked.  On perusal of the Xerox copy of the document filed by the OPs, agreement condition No.8(ÀH) reveals that,

¨ÁQzÁgÀgÀ ¸ÁÜ£ÀzÀ°è ¨ÉÃgÉAiÀÄ ªÀAwUÉzÁgÀgÀ£ÀÄß ºÁPÀĪÀ ºÀPÀÄÌ ªÀÄvÀÄÛ EªÀjAzÀ §rØ ªÀ¸ÀÆ° ªÀiÁqÀĪÀ ºÀPÀÄÌ ¥ÉÆÃgïªÀÄ£ïUÉ EzÉ.  Condition No.11 ªÀAwUÉzÁgÀ£ÀÄ AiÀiÁªÀÅzÉà MAzÀÄ wAUÀ¼ÀÄ ªÀAwUÉ ºÀt ¤ÃqÀ¢zÀÝgÉ CªÀgÀ£ÀÄß ªÀAwUÉzÁgÀgÀ ¥ÀnÖ¬ÄAzÀ vÉUÉAiÀįÁUÀĪÀÅzÀÄ.  CAvÀºÀ ¨ÁQ ªÀAwUÉzÁgÀgÀ ¸ÁÜ£ÀzÀ°è ¨ÉÃgÉ ªÀAwUÉzÁgÀgÀ£ÀÄß ¸ÉÃj¹PÉƼÀî®Ä ¥ÉÆÃgïªÀÄ£ïUÉ D¢üPÁgÀ EzÉ CAvÀºÀ nPÉÃl£ÀÄß aÃnAiÀÄ PÀgÁj£À ¥ÀæPÁgÀ «¯ÉêÁj ªÀiÁqÀ¯ÁUÀĪÀÅzÀÄ.  " Condition No.13  (J) " §ºÀªÀiÁ£À §gÉzÀ ªÀÄvÀÄÛ ¨ÁQ EgÀĪÀ aÃnzÁgÀgÀÄ CªÀgÀ ªÁ¸ÀÛªÀªÁV ¤ÃrzÀ ºÀtªÀ£ÀÄß ªÀÄgÀ½ ¥ÀqÉAiÀÄĪÀgÀÄ.  EzÀgÀ°è ¯Á¨sÁA±À (r«qÉAqï) ¸ÉÃjgÀĪÀÅ¢®è. 

          

    So, as per the agreement Condition No.13(a) Ops have return the amount of Rs.12,500/- to the complainant and the Forman in the above said amount has right to deduct the 5% commission.

 

14.  On perusal of the version, affidavit evidence of the OP No.2 Forman, Vinay R.P, and written arguments of OP side it shows the complainant has membership, Group and Ticket No.69004/15.  As per the complaint, complainant's membership and Group is 1414/69004 Ticket No.16.  Document Ex.A-2 receipt issued by the OP No.2 shows the Group No.141069004 and Ticket No.16.  OPs have admits in his version and affidavit evidence.  The complainant is also having other chits in our institution. 

 

15.  On perusal of the entire case papers, evidence and documents OPs have not clearly discloses that they have removed the complainant name in the chit Group and they have not stated that in his version or affidavit evidence they have taken other member in the place of chit group.  If the OPs have taken another name in the place of complainant.  It is the duty of the OPs to return the chit amount paid by the complainant and OPs have deducted the 5% commission i.e., Rs.625/- in the amount i.e., on  Rs.12,500/- on the chit amount paid by the complainant and admission fee of Rs.750/- is the registration fee.  So, the complainant is not entitled the admission fee i.e., Registration Fee of membership in the chit Group.  Therefore, OPs have not escaped from their liability.  It is clearly shows that the OPs have committed deficiency in their service and unfair trade practice.  OPs are liable to pay the amount of Rs.11,875/- to the complainant with 9% interest p.a from the date of removal notice i.e., 23.10.2013.  Till today OPs have not settled the chit amount to the complainant.   Accordingly, we answer the Point No.1 held as affirmative.     

 

16.   Point No.2:- As discussed on the above point and for the reasons stated therein, we pass the following.

 

ORDER

  

The complaint filed by the complainant U/sec.12 of C.P. Act, 1986 is partly allowed. 

It is further ordered that OPs are directed to pay Rs.11,875/- to the complainant with interest at 9% p.a from the date of removal notice i.e., 23.10.2013 till the payment. 

It is further ordered that the OPs are directed to pay the above said amount within two months from the date of this order. 

It is further ordered that the OPs are directed to pay Rs.2,000/- towards mental agony and Rs.1,000/- towards cost of this proceedings. 

Accordingly complaint is partly allowed.   

 

        (This order is made with the consent of President and Member after the correction of the draft on 09/09/2015 and it is pronounced in the open Court after our signatures.)

 

 

MEMBER                 MEMBER                         PRESIDENT

 

 

ANNEXURES:

Complainant by filing  affidavit evidence taken as PW-1.

Witness examined on behalf of complainant:

                                                -Nil-

On behalf of OPs R.H. Prakash. Forman examined as DW-1 by filing affidavit

 

evidence Witnesses examined on behalf of OPs:

-Nil-

Documents marked on behalf of complainant:

01	Ex-A-1:-	Original pass book
02	Ex-A-2:-	Receipt No.7618212
03	Ex-A-3:-	Legal Notice dated 26.05.2014
04	Ex-A-4:-	Postal acknowledgements
05	Ex-A-5:-	Postal receipts
06	Ex-A-6:-	Removal Notice dated 23.10.2013.

 

Documents marked on behalf of Opponent:

-Nil-

 

MEMBER               MEMBER           PRESIDENT

Rhr***