Andhra Pradesh

Anantapur

CC/10/119

K.Sai Sridhar - Complainant(s)

Versus

The Manager, Shriram Chits Pvt.Ltd.,,Anantapur - Opp.Party(s)

Sri K.Gundu Rao & Sri P.Vivekananda

30 Nov 2010

ORDER

District Counsumer Forum
District Court Complax
Anantapur
 
Complaint Case No. CC/10/119
 
1. K.Sai Sridhar
K.Sai Sridhar, S/o K/Muralidhar, D.No.9/65 & 9/66, Gulzarpet, Anantapur
ANDHRA PRADESH
...........Complainant(s)
Versus
1. The Manager, Shriram Chits Pvt.Ltd.,,Anantapur
The Manager, Shriram Chits Pvt.Ltd.,Ist Branch, Near Tower Clock, Subash Road,Anantapur
ANANTAPUR
ANDHRA PRADESH
2. 2.The Managing Director,M/s Shriram Chits Pvt.Ltd., Hyderabad
The Managing Director, M/s Shriram Chits Pvt.Ltd., 3/6/478, Liberty Road, Opp. to Indian Bank, Himayat Nagar, Hyderabad
ANANTAPUR
ANDHRA PRADESH
............Opp.Party(s)
 
BEFORE: 
 HON'ABLE MR. JUSTICE Sri S.Niranjan Babu PRESIDENT
 HONORABLE S.Sri Latha Member
 
For the Complainant:Sri K.Gundu Rao & Sri P.Vivekananda, Advocate
For the Opp. Party: Y.Rameswara Reddy and Sri B.Venkatasiva Reddy 1 & 2 , Advocate
ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, ANANTAPUR.

PRESENT: - Sri C.Thyagaraja Naidu, B.Sc., B.L., President

Smt.S.Lalitha, Member, M.A., M.L.,                    

Sri S.Niranjan Babu, B.A., B.L., Male Member

Tuesday, the 30th day of November, 2010

C.C.NO.119/2010

 

Between:

 

                     K.Sai Sridhar

                     S/o K.Muralidhar

                     D.No.9/65 & 9/66

                     Gulzarpet

                     Anantapur.                                            …                                  Complainant.

 

               

                 Vs.

 

      1.  Shriram Chits Pvt. Ltd.,

           Branch-I, Near Tower Clock

           Subash Road, Anantapur

           rep. by its Branch Manager.

 

      2.  The Managing Director,

           Shriram Chits Pvt. Ltd.,

           3/6/478, Liberty Road

           Opp. to Indian Bank

           Himayathnagar

           Hyderabad – 500 029.                          …                                Opposite Parties.

 

This case coming on this day for final hearing before us in the presence of                       Sri K.Gundu Rao and Sri P.Vivekananda, advocates for the complainant and Sri Y.Rameswara Reddy and Sri B.Venkatasiva Reddy, advocates for the opposite parties 1 & 2 and after perusing the material papers on record and after hearing the arguments of both sides, the Forum delivered the following:

O R D E R

 

Sri C.Thyagaraja Naidu, President: - This complaint has been filed by the complainant under section 12 of Consumer Protection Act, 1986 against the opposite parties 1 & 2 to direct them to pay a sum of Rs.4, 24,135/-, which includes prize money of Rs.2, 09,000/-, interest for 29 days          @ 18% of Rs.3,135/-, for mental agony of Rs.2,09,000/- and costs of Rs.3,000/-.

2.         The brief facts of the complaint are that: -The complainant is resident of Anantapur Town.  The opposite party-company, which is a Chit Fund Company running a branch doing business of chit fund at Anantapur Town.   The complainant became a member of chit reference No.50007/15 with a value of Rs.3,00,000/- with monthly subjection of Rs.6,000/- extending to a period of 50 months. He joined the chit on 23-12-2009 paying first month subscription of Rs.6,000/- commencing from January, 2010. The monthly subscriptions are paid regularly.   The complainant participated in chief auction in the month of July, 2010 on 22-07-2010 and he was declared as the highest auction bidder of the chit Rs.3,00,000/- for Rs.91,000/- and according to terms and conditions he should be paid the balance of Rs.2,09,000/- after due documentation. The complainant completed all the formalities of execution of documents providing three independent sureties as required by the opposite party-company. All the formalities of documentation was completed and submitted by 02-08-2010 but the opposite party-company has not paid the prize amount of Rs.2,09,000/-  till now. Thereby caused inconvenience and mental agony to the complainant. The complainant demanded repeatedly for the prize amount but the opposite parties are evading payment even after taking all documents and sureties. The 2nd opposite party, who is the Head Office of the 1st opposite party was also addressed two letters dt.23-08-2010 and 24-08-2010 by the complainant’s father on the default of payment of prized amount.  But to no avail and the prized amount of Rs.2,09,000/- is detained by the opposite parties.  Hence, the complainant having no other go has filed this complaint against the opposite parties to direct them to pay the amount as claimed in the complaint.

3.         The 1st opposite party filed counter and contended that this opposite party has asked the complainant to produce one more surety, apart from the 3 sureties which were produced by him as the net salaries of two sureties that were produced below Rs.12,000/-, which is below the amount mentioned in chit agreement and terms and conditions.  As such the complainant sought time to produce sufficient security to the satisfaction of this opposite party which delayed the matters for which the complainant alone is responsible and ultimately he failed to produce one more surety as promised by him. In spite of the same, this opposite party decided to release the prized money to the complainant basing on the assurances made by him of his prompt repayment.  In fact, this opposite party also made ready the cheque as long back as on 08-09-2010 itself but the complainant did not turn up to receive his prized money in spite of reminders made by this opposite party.  Thus, there is no delay on the part of this opposite party.  As per the agreement of chit, the prized amount will be paid within one month of furnishing sufficient security to the satisfaction of the Foreman and as such the delay if any caused it was only due to the latches on the part of the complainant in not producing sufficient security/surety within the stipulated time. It is contended that Cheque bearing No.159739 of ING Vysya Bank for a sum of Rs.2,09,000/- paid to the complainant by this opposite party towards his prized money though made ready by this opposite party on 08-09-2010 the complainant deliberately delayed and received the same on 14-09-2010 and encashed the same on               15-09-2010 and the complainant alone is responsible for the said delay as he could not produce sufficient sureties to the satisfaction of this opposite party. Thus there is no deficiency of service on the part of this opposite party and there is no cause of action to file this complaint and that therefore, the complaint filed by the complainant is liable to be dismissed with costs.

4.         The 2nd opposite party filed a memo adopting the counter filed by the 1st opposite party.

5.         Basing on the above pleadings, the points that arise for consideration are:

            1. Whether there is deficiency of service on the part of the opposite parties 1 & 2? If

                so whether the complainant is entitled in respect of the amount claimed in the

                complaint as prayed for from the opposite parties 1 & 2?

 

           2. To what relief?

 

6.         To prove the case of the complainant, the evidence on affidavit of the complainant has been filed and marked Exs.A1 to A11 documents.  On behalf of the opposite parties 1 & 2 the evidence on affidavit of the 1st opposite party has been filed and marked Exs.B1 to B5 documents.

7.         Heard both sides.

8.         POINT NO.1: - It is an admitted fact that the complainant joined as chit member of the opposite parties in respect of Chit Reference No.50007/15 chit value of Rs.3,00,000/- with monthly subscription of Rs.6,000/- for a period of 50 months.  It is also an admitted fact that the complainant participated in the chit auction on 22-07-2010 and he was declared as the highest bidder of the chit of Rs.3,00,000/- for Rs.91,000/- and as per the terms and conditions of the chit agreement between the complainant and the opposite parties, the opposite parties should pay the balance amount of Rs.2,09,000/- after deducting the said amount of Rs.91,000/- after due execution of the documentation.

9.         The evidence on affidavit of the complainant is that he has completed all formalities of execution of documents by providing three independent sureties, all employees functioning in the Department of Posts, Government of India and personal securities as required by the opposite parties and all the formalities of documentation was completed and submitted by him to the opposite parties on 02-08-2010. The opposite parties in spite of fulfilling the said formalities, they failed to pay the chit amount.  It is further stated that his father addressed two letters dt.23-08-2010 and 24-08-2010 to the 2nd opposite party on default payment of the prize amount, in spite of it the opposite parties failed to pay the amount.  Thus there is deficiency of service on the part of the opposite party and prayed to direct the opposite parties to pay the amount as claimed in the complaint.

10.       The evidence on affidavit of the 1st opposite party is that among 3 sureties that were produced by the complainant, the net salaries of the two sureties were below Rs.12,000/-, which is below the amount stipulated in the Chit Agreement and the terms and conditions related thereto.  Hence, asked the complainant to produce sufficient security but the complainant could not produce the same which delayed the matter.  It is further stated that despite the short-falls and short-comings of the complainant in complying the conditions of sufficient security to get release of his prized money, they paid the prized money to the complainant basing on his assurance of prompt payment of monthly subscription dues. It is further stated that they made the cheque ready on 08-09-2010 itself but the complainant did not turn up promptly to receive his prized money in spite of several reminders made by them through the staff and the delay if any caused, it is only due to the complainant.

11.       Thus, in view of the evidence on affidavit of the 1st opposite party, it clearly goes to show that the 1st opposite party has paid the amount of Rs.2,09,000/- to the complainant by way of cheque.  The 1st opposite party marked Ex.B4 Statement of Account relating to the 1st opposite party issued by ING Vysya Bank Ltd., and as seen from Ex.B4, it goes to show that on                     15-09-2010 the complainant’s cheque for Rs.2,09,000/- was paid from the account of the                   1st opposite party.  The counsel for the complainant did not dispute the said fact but contended that the said cheque was only issued on 14-09-2010 after filing this complaint on 02-09-2010.  The said fact was not denied by the counsel for the opposite parties.

12.       The 1st opposite party in his evidence on affidavit has stated that the cheque was made ready on 08-09-2010 and informed the complainant through their staff to receive the same but the complainant failed to turn up to receive the cheque can not be accepted . Except the said oral evidence on affidavit of the 1st opposite party, he has not placed any documentary proof to show that the cheque was prepared on 08-09-2010 and informed the complainant to receive the same.

13.       As per the terms of the agreement filed by the opposite party i.e. Ex.B2 condition No.VII deals with Procedure for receiving the prize amount by a prized subscriber. Clause 1 says the prize amount will be paid to the prized subscriber at the Foreman’s office during the office hours on working days by way of Account payee crossed cheque. The prized amount will be paid within one month of his/her furnishing sufficient security to the satisfaction of the Foreman for the due payment of future installments.

14.       Thus, in view of the said condition, it is very clear that within one month from the date of furnishing of all the documents required by the opposite parties and on execution of the documents by the prized subscriber, the opposite parties have to pay the prized amount. The evidence on affidavit of the complainant clearly goes to prove the fact that he has completed all the formalities of all documentation and submitted all the documents on 02-08-2010. The said fact was not denied by the opposite party.  If really the complainant has not furnished sufficient sureties as per the agreement conditions stipulated in Ex.B2 agreement then he should have issued notice calling upon the complainant to comply with the conditions as stipulated in the agreement Ex.B2 but the 1st opposite party has not placed any documentary proof to show that the 1st opposite party has issued notice to the complainant calling upon him that the sureties furnished by him are not as pr Ex.B2 agreement terms and conditions and that he has to furnish fresh sureties as required under Ex.B2. Therefore, the said oral evidence on affidavit of the              1st opposite party can not be accepted.

15.       Admittedly, the 1st opposite party has issued cheque on 14-09-2010 to the complainant after filing this complaint but the 1st opposite party should have issue the cheque for Rs.2,09,000/-towards prized chit amount to the complainant by 02-09-2010 i.e. within one month from the date of submission of all the required documents by the complainant, which were submitted by the complainant on 02-08-2010. Thus there is delay of 12 days for payment of the prized amount to the complainant by the 1st opposite party.

16.       Therefore, on considering the said facts and circumstances, it clearly goes to show prove the fact that there is deficiency of service on the part of the opposite parties 1 & 2 for not paying the amount to the complainant within one month from the date of submitting required documents by the complainant to the opposite parties. Therefore, the opposite parties are liable to pay only interest @ 18% p.a. on Rs.2,09,000/- from 02-09-2010 to 14-09-2010 since the opposite parties paid the prized amount of Rs.2,09,000/- through chque on 14-09-2010 to the complainant. Further the opposite parties are also liable to pay Rs.1,000/- towards mental agony to the complainant. Accordingly, this point is answered.

17.  POINT NO.2: – In the result, the complaint is allowed and the opposite parties 1 & 2 jointly and severally liable to pay to the complainant only interest @ 18% p.a. on Rs.2,09,000/- from                02-09-2010 till14-09-2010 and also Rs.1,000/- towards mental agony with costs of Rs.2,000/-. The said amount shall be payable by the opposite parties 1 & 2 to the complainant within one month from the date of this order.

Dictated to the Steno, transcribed by him, corrected and pronounced by us in open Forum this the 30th day of November, 2010.

 

 

 

              MALE MEMBER                                 LADY MEMBER                               PRESIDENT

DISTRICT CONSUMER FORUM   DISTRICT CONSUMER FORUM    DISTRICT CONSUMER FORUM

               ANANTAPUR                                  ANANTAPUR                                 ANANTAPUR.   

                

 

APPENDIX OF EVIDENCE

 

WITNESSES EXAMINED

 

ON BEHALF OF THE COMPLAINANT:                            ON BEHALF OF THE OPPOISITE PARTIES:

 

                    -NIL-                                                                                  - NIL-

 

EXHIBITS MARKED ON BEHALF OF THE COMPLAINANT

 

Ex.A1 – Original Chit Pass Book relating to the complainant issued by the opposite party-

              company.

 

Ex.A2 -  Photo copy of details of monthly subscriptions made by the complainant to the

             opposite party-company.

 

Ex.A3 – Photo copy of Surety/Security Form submitted by the complainant to the opposite party-

             Company.

 

Ex.A4 -  Photo copy of  letter dt.23-08-2010 issued by Sri K.Muralidhar, Addl.Superintendent of

             Police to the 2nd opposite party.

 

Ex.A5 – Photo copy of letter dt.24-08-2010 issued by Sri K.Muralidhar, Addl.Superintendent of

             Police to the 2nd opposite party.

 

Ex.A6 -  Photo copy of  letter dt.28-08-2010 issued by Sri K.Muralidhar, Anantapur to the 2nd

             opposite party.

 

 

Ex.A7 - Photo copy of letter dt.04-09-2010 issued by Sri K.Muralidhar, Anantapur to the 2nd

             opposite party.

 

Ex.A8 - Letter dt.06-09-2010 issued by Sri K.Muralidhar, Anantapur to the 2nd opposite party.

 

Ex.A9 - Letter dt.12-09-2010 issued by the complainant to the 2nd opposite party.

 

Ex.A10 - Letter dt.20-09-2010 issued by the 2nd opposite party to Sri K.Muralidhar, Anantapur.

 

Ex.A11 - Letter dt.21-09-2010 issued by Sri K.Muralidhar, Anantapur to the 2nd opposite party.

 

 

 

EXHIBITS MARKED ON BEHALF OF THE OPPOSITE PARTIES

 

Ex.B1 – Original Application form submitted by the complainant to the opposite parties

             dt.23-12-2009.

 

 

Ex.B2 – Chit agreement dt.16-01-2010 executed by the complainant in favour of the

              Opposite party-company.

 

Ex.B3 – Cash Voucher dt.15-09-2010 issued by 1st opposite party in favour of the

              Complainant.

 

Ex.B4 – Statement of Account dt.30-10-2010 issued by ING Vysya Bank Ltd., Aantnapur

Ex.B5 -  Salary Certificate dt.31-07-2010 relating to K.Raghavendra Prasad issued by the Post

              Master, Anantapur H.O.

 

 

 

              MALE MEMBER                                 LADY MEMBER                              PRESIDENT

DISTRICT CONSUMER FORUM   DISTRICT CONSUMER FORUM    DISTRICT CONSUMER FORUM

               ANANTAPUR                                  ANANTAPUR                                 ANANTAPUR.   

 

                       

Typed by JPNN

 

                                                                                                                              

 
 
[HON'ABLE MR. JUSTICE Sri S.Niranjan Babu]
PRESIDENT
 
[HONORABLE S.Sri Latha]
Member

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