BEFORE THE DISTRICT CONSUMER FORUM AT NALGONDA
PRESENT: SRI D.SINGARA CHARY, B.A., LL.B.,
PRESIDENT.
SRI K.VINODH REDDY, B.Sc.,
MEMBER.
. . .
WEDNESDAY THE TWENTY SEVENTH DAY OF JULY, 2011
CONSUMER COMPLAINT No. 22 OF 2011
Date of filing: 07-04-2011
Date of Disposal:27-07-2011
Between:
Mohammad Yasin Ali S/o Hasan Ali, Age: 42 years, Occ: RTC
Employee, R/o H.No.3-118/D, Narayanapuram Road,
Near: Church, Narkatpally, Nalgonda District.
…Complainant.
AND
The Kapil Chits (Kosta) Private Limited, H.No.3-464, Opposite to
Police Station, Choutuppal, Nalgonda District. Represented by
its Manager.
…Opposite Party.
This complaint coming on before us for final hearing on 11-07-2011, in the presence of Sri G.Prakash, Advocate for the Complainant, and Sri V.Surendar Reddy, Advocate for the Opposite Party, and on perusing the material papers on record, and having stood over for consideration till this day, the Forum passed the following:
ORDER OF THE FORUM DELIVERED
BY SRI K.VINODH REDDY,MEMBER
1. The Complainant filed this complaint Under Section 12 of Consumer Protection Act 1986 to direct the Opposite Party to pay a sum of Rs.19,962/- with interest from the date of deposit, a sum of Rs.5,000/- towards compensation, a sum of Rs.5,000/- for mental agony along with costs.
Contd…2
- 2 -
2. The facts of the case as stated in the complaint are that the Complainant joined as a subscriber in Opposite Party chit fund company, at Choutuppal Branch in Series No.FCUT 10F1-42 with ticket No.42 under by-law No.597/2008-09 on 2-12-2008. The chit value was of Rs.1,50,000/- which is to be paid in 50 installments @ Rs.3,000/- per month.
In first month he paid a sum of Rs.3,000/- along with miscellaneous charges Rs.1,000/-, totally Rs.4,000/-. As he was bed ridden with illness, he could not pay the installments regularly. After recovery he approached the Opposite Party to regularize his chit and paid a sum of Rs.15,702/- and Rs.260/- vacant charges totally Rs.15,962/- on 25-12-2009 as required by the Opposite Party who issued receipt No.1251/2009.
He participated in the chit auction held on 27-12-2009 agreeing to forego Rs.60,000/- from chit value and the Opposite Party declared him as prized winner. Subsequently he furnished four sureties along with their pay-slips and ID Cards. However, the Opposite Party sent a bid cancellation letter on 3-3-2010 asking the Complainant to furnish fresh sureties if not the auction will be cancelled. A legal notice was served on the Opposite Party on 12-04-2010 and a reply was received with false allegations. Again on 28-04-2010 the Opposite Party issued a notice to the Complainant stating that his name was removed from the chit. As per chit Fund Act, the Opposite Party should issue notice to the subscriber 14 days prior to the removal. This was not done by
Contd…3
- 3 -
the Opposite Party. In the same notice the Opposite Party mentioned that the Complainant should forego a sum of Rs.7,650/- towards bid loss and the remaining is payable to him. The above acts of the Opposite Party clearly establish that there was deficiency in services on the part of the Opposite Party. Hence the complaint.
3. The Opposite Party in its written version admits that the Complainant had joined as chit subscriber in their Choutuppal branch and paid Rs.4,000/- in first month and Rs.15,962/- on 25-12-2009 after recovery from his illness towards due installments. On 27-12-2009 he was declared as a chit winner and submitted four sureties. The same were found to be not correct on enquiry at workplace of the alleged sureties. This was informed to the Complainant, but he did not respond. For that on 3-3-2010 the Opposite Party had issued a notice stating that if the Complainant did not furnish fresh sureties the chit will be cancelled. On 28-4-2010 they again sent a demand notice to the Complainant to pay the arrears towards chit installments and on his failure the membership will be cancelled. As there was no response from the complainant, on 28-06-2010 the Opposite Party had sent a removal letter to the Complainant informing him that he is entitled to receive a sum of Rs.11,700/- only by foregoing a sum of Rs.7,650/- towards damages from the total amount he paid to the Opposite Party. As and when required the Opposite Party informed the Complainant about the developments, but the Complainant did not respond. Hence there was no deficiency in services on the part of the Opposite Party and ultimately prayed for the dismissal of the complaint.
Contd…4
- 4 -
4. Both the parties filed their respective proof affidavits. The Complainant marked Exs.A-1 to A-16 and the Opposite Party marked Exs.B-1 to B-4.
5. Now the points arise for consideration are:
1) Whether there was deficiency in services on the part
of the Opposite Party?
2) Whether the Complainant is entitled for the claim he
made in his complaint?
3) To what relief the Complainant is entitled?
6. POINT No.1:
It is not in dispute that the Complainant had joined as a subscriber in the Opposite Party chit fund at Choutuppal branch as per Ex.A-1 by paying a sum of Rs.4,000/- for the first installment. He paid Rs.15,962/- vide Ex.A-2 after his recovery from illness as required by the Opposite Party towards due installments. He participated in chit auction on 27-12-2009 and agreed to forego a sum of Rs.60,000/- from the total chit amount of Rs.1,50,000/-. The Complainant furnished four sureties along with their ID Cards (Exs.A-5 to A-8) and Pay-Slips (Exs.A-9 to A-12) in the month of January, 2010 namely; 1) Sri John Moinuddin 2) Sri R.Venkateshwarlu, 3) Sri Shankar, 4) Sri B.Sathaiah. The above four sureties were working in APSRTC in Narkatpally Depot.
7. On 19-02-2010 the Opposite Party sent a guarantor search result reports to the Complainant, stating that the sureties furnished by him are not correct and required to furnish fresh sureties.
Contd…5
- 5 -
8. On 3-3-2010 the Opposite Party sent a bid cancellation letter Ex.A-13 stating that if the Complainant did not furnish sufficient fresh sureties within seven days the chit will be cancelled and losses will be recovered. The Opposite Party sent a removal letter Ex.A-16, dated 28-4-2010 to the Complainant showing that his membership was removed from the chit and also showing that he is liable to receive a sum of Rs.11,775/- after deducting the chit loss from the amounts he paid.
9. In the light of the above findings, it is noticed that the Complainant did not furnish fresh sureties as required by the Opposite Party. Therefore, it cannot be said that there was deficiency of services on the part of the Opposite Party.
10. POINTS No.2 & 3:
As the complainant did not furnish sufficient fresh sureties inspite of receiving chit cancellation letter dated 3-3-2010 from the Opposite Party, a sum of Rs.7,650/- was deducted from the actual amount under Ex.A-16, i.e. Rs.19,425/- paid by the Complainant, showing that Rs.11,775/- is to be paid to the Complainant. But, as per Exs.A-1 and A-2 the Complainant paid a total sum of Rs.19,962/-. From the said amount the Opposite Party can deduct a sum of Rs.7,650/- towards bid loss and the remaining balance of Rs.12,312/- is to be paid to the Complainant.
Contd…6
- 6 -
In the result, the complaint is allowed in part directing the Opposite Party to pay to the Complainant a sum of Rs.12,312/- (Rupees Twelve thousand three hundred and twelve only) with interest at the rate of 9% p.a. from the date of the complaint till realization with costs of Rs.2,000/- within one month from the date of communication of this Order.
Dictated to Steno-Typist, transcribed by him, corrected and pronounced by us in the open Forum on this 27th day of July, 2011.
MALE MEMBER PRESIDENT
APPENDIX OF EVIDENCE
WITNESSES EXAMINED
For Complainants: For Opposite Parties:
Affidavit of Complainant. None.
EXHIBITS MARKED
For Complainants:
Ex.A-1 Dt.24-112009 Original Receipt No.18017 for Rs.4,000/-.
Ex.A-2 Dt.25-12-2009 Original Chit Receipt for Rs.15,962/-.
Ex.A-3 Dt.30-11-2009 Original Pass-Book issued by Opp.Party.
Ex.A-4 Dt. Xerox copy of Identity Card of the
Complainant.
Ex.A-5 Dt. Xerox copy of Identity Card of
Md.Janimohinuddin.
Ex.A-6 Dt. Xerox copy of Identity Card of
P.Venkateshwarlu.
Ex.A-7 Dt. Xerox copy of Identity Card of K.Shankar.
Ex.A-8 Dt. Xerox copy of Identity Card of B.Sattaiah.
Ex.A-9 Dt. Original Pay-Slip for the month of
January, 2010 of Md.Jhon Mohinuddin.
Contd…7
- 7 -
Ex.A-10 Dt. Original Pay-Slip for the month of
December, 2009 of R.Venkateshwarlu.
Ex.A-11 Dt. Original Pay-Slip for the month of
January, 2010 of K.Shankar.
Ex.A-12 Dt. Original Pay-Slip for the month of
January, 2010 of B.Sathaiah.
Ex.A-13 Dt.03-03-2010 Bid Cancellation Letter.
Ex.A-14 Dt.12-04-2010 Office copy of legal notice issued by the
counsel for the Complainant to the
Opposite Party.
Ex.A-15 Dt.23-04-2010 Reply notice given by the Opposite Party
to the Complainant.
Ex.A-16 Dt.28-06-2010 Notice of Membership Removal and
Removal Letter, dated 28-04-2010.
For Opposite Party:
Ex.B-1 Dt.28-06-2010 Notice of Membership Removal.
Ex.B-2 Dt. Postal Acknowledgement.
Ex.B-3 Dt.28-04-2010 Removal Letter.
Ex.B-4 Dt. Postal Acknowledgement.
PRESIDENT
DISTRICT CONSUMER FORUM
NALGONDA
TO
1). Sri G.Prakash,
Advocate for the Complainant.
2). Sri V.Surendar Reddy,
Advocate for the Opposite Party.
