BEFORE THE DISTRICT FORUM: KURNOOL

Present: Sri. T.Sundara Ramaiah , B.Com B.L., President

And

         Smt. S.Nazeerunnisa, B.A., B.L., Lady Member

    And

Sri. M.Krishna  Reddy, M.Sc., M.Phil., Male Member

Wednesday the 16^th day of March, 2011

C.C.No 75/10

 Between :-

V.M.Kiran Kumar,  S/o. V.R.Madhava Rao,

R/o.H.No.65-29, Kota Street,  Kurnool 518 001.                                  

        …Complainant

                                                 -Vs-

1. The Manager, M/s. Shriram Chits Private Limited,

    D.No.40-384, Plot No.28 to 36,IInd Floor, U-Con Plaza, Park Road,

    Kurnool - 518 001.

2. The Registrar of Chits, A.P.Housing Board Commercial Complex,

    4^th Zone, Kallur Village and Mandal, Kurnool District - 518 002.                    

…Opposite Parties

­­­­­­­­­­­­­­­      This complaint is coming on this day for orders in the presence of Sri. D.Narendra Reddy, Advocate for complainant,                          Sri B.V.Ramana Reddy, Advocate for opposite party No.1, and             Smt. D.S.Saileela, Government Pleader for opposite party No.2 and upon perusing the material papers on record, the Forum made the following.

            ORDER

(As per Sri. T.Sundara Ramaiah, President)

        C.C.No.75/10 

1.     This complaint is filed under section 11 and 12 of C. P. Act, 1986 praying:-

1. To direct the opposite parties to pay compensation of Rs.1,00,000/-,

1. To pay damages of Rs.20,000/-,

1. To repay Rs.4,600/- along with an interest of 36% per annum,

And

1. To costs of the complaint to the complainant jointly and severally,

 (e)   To grant any other relief or reliefs which the Hon’ble Forum deems fit and proper in the circumstance of the case.

2.     The case of the complainant in brief is as under:- The complainant joined as subscriber of chit No.L.L.B.21/22 of the opposite party No.1 for value of  Rs.2,00,000/-.  The chit period is 50 months.  The complainant paid Rs.4,600/- to the opposite party No.1 on                20-11-2009.  From that date on towards opposite party No.1 postponed the bidding of the said chit on one pretext or other.   Opposite party No.1 has cheated the complainant through unfair trade practice. The complainant is running real estate business and incurred loss of Rs.1,00,000/- due to the illegal trade activities of opposite party No.1.  On 10-02-2010 the complainant issued a legal notice to opposite party No.1 demanding to pay Rs.1,00,000/- as compensation and also to repay Rs.4,600/- paid by him.  After receiving the said notice opposite party No.1 sent a letter on 13-02-2010 stating that the first auction will be held on 15-02-2010 and subsequent auctions will be held on 15^th of every month.  The Assistant Registrar of Chits, Kurnool held a Panchayath on 24-02-2010 in the presence of Branch Manager of opposite party No.1.  In the said panchayath opposite party No.1admitted its wrong.  Opposite party No.1 sent reply notice dated 22-02-2010 to the complainant with false allegations.  Hence the complaint.    

3.     The opposite party No.1 filed counter stating that the complaint is not maintainable.  It is admitted that the complainant joined as a member in a chit group L.L.B.21/22.  It is also admitted that the complainant paid a sum of Rs.4,600/- as admission fees and first installment charges.  There is no unfair trade practice on the part of opposite party No.1.   Opposite party No.1 never cheated the chit members.  Opposite party No.1 is doing business as per law.  As per normal practice the chit fund company will commence the business of a group after getting full subscribers.  In the present case opposite party No.1 after getting full members commenced the chit on 15-02-2010 under intimation to all the members.  Before commencement of the chit the complainant approached opposite party No.1 to allot him the chit in the first auction.  Opposite party No.1 denied for the same.  The complainant not paid further installments.  Notice was issued to him on 15-05-2010 stating that his membership will be removed as he committed default in payment of monthly installments.  The complainant has no right to claim any amount.  The complaint is liable to be dismissed.

Opposite party No.2 filed written version stating that the Government of Andhra Pradesh in G.O.No.1474 dated 10-12-2008 empowered the Assistant Registrar of Chit to accord sanction to commence or conduct the chit.  Accordingly the Assistant Registrar of chit Kurnool has issued certificate of commencement of the chit to opposite party No.1.   The complainant paid a sum of Rs.4,600/- as advance fee and first installment charges.  Opposite party No.1 is running chit fund business in Kurnool District.   Opposite party No.1 was issued sanction on 30-01-2010 to conduct chit.  On 09-02-2010 opposite party No.1 approached the Assistant Registrar of chits Kurnool for Registration of chit agreement.  After Registration of chit opposite party No.1 applied for commenced certificate on 09-02-2010.  The said certificate was accordingly issued on 09-02-2010.  Opposite party No.1 has conducted 5 chits.  The Assistant Registrar of chits not held any Panchayath on 24-12-2010.   The complaint is bad for non joinder of proper party.  The complaint is liable to be dismissed. 

4.     On behalf of the complainant Ex.A1 to A12 are marked and sworn affidavit of the complainant is filed.  On behalf of the opposite parties Ex.B1to B3 are marked and sworn affidavits of opposite parties 1 and 2 are filed.

5.     Both sides filed written arguments.

6.      The points that arise for consideration are:

1. Whether there is deficiency of service on the part of the Opposite Parties?

1. Whether the complainant is entitled to the reliefs as prayed for?

    (c)        To what relief?

7. POINT No.1 & 2:-   Admittedly the first opposite party is doing chit business.  The complainant joined as a member in chit group bearing No. L.L.B.21/22 started by opposite party No.1.  The complainant paid an amount of Rs.4,600/- as admission fees and first installment charges on 20-11-2009 and obtained Ex.A1 receipt from opposite party No.1.  It is the case of the complainant  that opposite party No.1 postponed the bidding of the chit from time to time and that he incurred loss of Rs.1,00,000/-.  It is the case of the opposite party No.1 that the chit fund company starts business after getting full subscribers in a particular group.  It is the case of the opposite party No.1 that after getting full members in chit group No.L.L.B.21/22 it started business on 15-02-2010and the same was intimated to all the members.  Admittedly the complainant issued legal notice to opposite parties on 10-02-2010 demanding opposite party No.1 to pay compensation of Rs.1,00,000/- and to repay Rs.4,600/- paid by him with interest.  Admittedly subsequent to the receipt of the said legal notice opposite party No.1 held auction on 15-02-2010 by issuing notices to all the members of chit group.  In Ex.A6 and A7 notices issued by opposite party No.1 it is clearly stated that the first auctions would be held on 15-02-2010.  It is not the case of the complaint that auction was not held by opposite party No.1 on 15-02-2010.  Merely because the complainant paid first installment on 20-11-2009, he cannot demand opposite party No.1 to conduct auction immediately.  Opposite party No.1 has to admit full members in a particular group. There is no abnormal delay in conducting the first auction by opposite party No.1.  Opposite party No.1 is no why connected to the alleged loss sustained by the complainant in real estate business.   As seen from the affidavit evidence of opposite party No.2 it is very clear that opposite party No.1 started chit business after obtaining the permission from the registrar of chits.  Admittedly the complainant not paid the subsequent installments and he committed breach of contract.  As the complainant committed breach of contract in paying the installments, opposite party No.1 issued Ex.B2 removal notices to the complainant.  The complainant received the said notice dated               15-05-2010 and filed the present complaint on 25-05-2010.  No deficiency of service is found on the part of the opposite party No.1. On the other hand it is the complainant who committed default in payment of the installments to opposite party No.1.  One who seeks justice must come with clean hands.  There is no justification in filing the present complaint by the complainant.  The complainant failed to establish that opposite parties adopted unfair trade practice while admitting the complainant as a member in chit No.L.L.B.21/22.  The complainant is not entitled to the reliefs as prayed for.  

8.     In result, the complaint is dismissed directing the complainant to pay cost of Rs.1,000/- each to the opposite parties.  

             Dictated to the stenographer, transcribed by her, corrected and pronounced by us in the open bench on this the 16^th day of March, 2011.

         Sd/-                                                Sd/-                                     Sd/-

MALE MEMBER                      PRESIDENT             LADY MEMBER

                   APPENDIX OF EVIDENCE

     Witnesses Examined

For the complainant: Nil                    For the opposite parties: Nill

List of exhibits marked for the complainant:-

Ex.A1                Receipt No.048323 dated 20-11-2009 for Rs.4,600/-.

Ex.A2                Pass Book of V.M.Kiran Kumar, issued by

Opposite party No.1.

Ex.A3                Office copy of legal notice dated 10-02-2010.

Ex.A4                Postal receipts and acknowledgements.

Ex.A5                Reply notice dated 22-02-2010 along with cover.

Ex.A6                Auction intimation letter dated 15-02-2010.    

Ex.A7                Photo copy of Auction intimation letter dated 15-02-2010.

Ex.A8                Video CD/DVD compact.

Ex.A9                Letter dated 22-02-2010 along with Postal receipt

and postal order (Xerox).

Ex.A10       Photo copy of application filed under R.T.I. Act.

Dated 22-02-2010.

Ex.A11       Photo copy of endorsement of registration Form-III

dated 09-02-2010.

Ex.A12       Photo copy of endorsement of registration Form-VI

dated 09-02-2010.

List of exhibits marked for the opposite parties:- 

Ex.B1                Agreement of Shriram Chits (P) Ltd., Kurnool.

Ex.B2                Removal notice dated 15-05-2010.

Ex.B3                Postal acknowledgement.

             Sd/-                                             Sd/-                                     Sd/-

MALE MEMBER                    PRESIDENT                    LADY MEMBER                      

// Certified free copy communicated under Rule 4 (10) of the

A.P.S.C.D.R.C. Rules, 1987//

Copy to:-

Complainant and Opposite parties

Copy was made ready on  :

Copy was dispatched on   :