BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION AT BANGALORE (URBAN)

DATED 22^ND DAY OF JULY 2024

ORDER

SMT.M.SHOBHA, PRESIDENT

1. The complaint has been filed under Section 35 of C.P.Act (hereinafter referred as an Act) against the opposite party for the following reliefs against the opposite party:-

1. Direct the opposite party to pay a sum of Rs.8,50,000/- together with interest at 18% further direct the OP to pay compensation of Rs.50,000/- along with advocate fees in the interest of justice.
2. Pass any appropriate orders as this Commission deems fit in the interest of justice and equity.

2. The case set up by the complainant in brief is as under:-

The opposite party is running a chit fund business and the opposite party company published by add, on the basis of the add and some known peoples have told to the complainant, under the circumstances complainant invested the amount and open the membership with opposite party vide bearing group name RMC-13 and Ticket No.16, chit amount Rs.10,00,000/- every month Rs.25,000/- for 40 months from 05.08.2019.  The complainant has paid the monthly subscription from 05.08.2019 to 21.09.2022 regularly.  Subsequently the opposite party has not come forward to collect the monthly subscriptions for two months. As such the complainant visited the office of the opposite party and noticed that office of the opposite party was closed several months ago.

3. Complainant further submits that she has paid Rs.8,50,000/- to the opposite party and upon enquiry the opposite party had shut its office. Hence complainant got issued legal notice dated 16.05.2023 to the opposite party demanding for repayment of the aforesaid sum of Rs.8,50,000/-.  Inspite of service of notice, opposite party has not come forward to clear the chit amount nor has replied to the notice.  Hence complainant has filed this complaint. 
4. In response to the notice, opposite party has not appeared before this commission, hence opposite party placed exparte.  After passing the order opposite party has appeared and submitted their version. Since the opposite party has filed version after lapse of 45 days, it cannot be accepted. Hence version of opposite party is taken as nil. 
5. The complainant has filed his affidavit evidence and relies on 03 documents.  Heard the arguments of the complainant.  Inspite of given sufficient opportunity, opposite party has not adduced any evidence and nor submitted their arguments. Hence opposite party evidence and arguments are taken as nil.
6. The following points arise for our consideration:-

1. Whether the complainant proves deficiency of service on the part of opposite party?
2. Whether the complainant is entitled to relief mentioned in the complaint?
3. What order?

7. Our answers to the above points are as under:

       Point No.1:  Affirmative

      Point No.2 : Affirmative in part

      Point No.3 : As per final orders

REASONS

8. Point No.1 AND 2: These two points are inter related and hence they have taken for common discussion.  We have perused the allegations made in the complaint, affidavit evidence of the complainant and documents filed by the complainant. Inspite of issue of notice opposite party neither challenged the allegations made in the complaint and also documents and they remained unchallenged.
9.  It is undisputed fact that the opposite party is a registered company and running the chit business in Bangalore and they are in the business of promoting and conducting the chits as per the provisions of Chit fund act.
10. The complainant in support of her contention has filed her affidavit evidence and produced Ex.P1 to P3.  The complainant has reiterated all the allegations made in the complaint. Ex.P1 is the copy of the pass book extract, Ex.P2 is the copy of the legal notice, Ex.P3 is the postal receipt and postal track consignment sheet.
11. The complainant joined the company as a subscriber to pay the monthly installments.  The complainant subscribed for chit group No.RMC-13 and Ticket No.16, Chit amount of Rs.10,00,000/- every month Rs.25,000/-.  Complainant has joined the chit and paid Rs.25,000/- every month from 05.08.2019 to 21.09.2022. After that the opposite party has not appeared to collect the monthly subscriptions for two months.  Hence complainant visited the office of the opposite party and noticed that the office of the opposite party was closed several months ago.
12. Hence complainant got issued legal notice to the opposite party dated 16.05.2023 as per Ex.P2 demanding for refund of Rs.8,50,000/- with accrued benefits, but the opposite party has not come forward to clear the chit amount nor has given any reply to the notice.
13. Even though the opposite party has appeared before this Commission through their counsel had failed to file their version within 45 days and to lead their evidence. When the opposite party has not at all adduced their evidence, there is no reason to disbelieve the evidence of PW1 and Ex.P1 to P3.  All these documents and evidence clearly discloses that the complainant has paid chit amount regularly from the day it was started on 05.08.2019 till 21.09.2022 as per Ex.P1, the pass book extract produced by the complainant. After that the complainant has stopped paying the chit amount since the opposite party has not come to collect the monthly subscription for two months.
14. When the opposite party has not come to collect the subscription the complainant himself has went to the office of the opposite party at that time the complainant noticed that the opposite party office was closed several months ago. It is pertinent to note here that during the pendency of this case the opposite party has made attempt to settle the matter and also filed joint memo agreeing to pay the amount in monthly installments and has also paid an amount of Rs.50,000/- by way of DD on 22.02.2024.  After that the opposite party has not made any payments and remained absent. Hence this commission proceed to pass orders after hearing the arguments of the complainant.
15. The complainant has invested her hard earned money, which resulted in heavy financial loss, hardship and mental agony to the complainant.  Hence complainant has filed this complaint seeking for refund of the amount invested by him. Opposite party has not taken any steps to refund the amount paid by this complainant and thereby the opposite party has cheated this complainant. 
16. Under these circumstances, the complainant is entitled for the relief claimed in the complaint.  The opposite party has committed unfair trade practice and also deficiency in service and also played fraud on the complainant.  Hence the complainant is entitled for the relief claimed. Hence, we answer the above point No.1 in the Affirmative and Point No.2 Partly in the Affirmative.
17. POINT NO.3: Having regard to the discussion made, we are of the opinion that complaint requires to be allowed in part.  The opposite party is directed to pay Rs.8,50,000/- along with interest at the rate of  10% per annum from the date of complaint till realization, pay Rs.50,000/- as compensation and Rs.10,000/- as cost of litigation expenses to the complainant. Hence, we proceed to pass the following;

ORDER

         The complaint is allowed in part.

         The opposite party is directed to pay Rs.8,50,000/- (Rupees Eight Lakh Fifty Thousand only) along with interest at the rate of 10% per annum from the date of complaint till realization to the complainant.

         The opposite party is also directed to pay Rs.50,000/- (Rupees Fifty Thousand only) towards compensation and Rs.10,000/- (Rupees Ten Thousand only) towards cost of litigation expenses to the complainant. 

         The opposite party shall comply this order within 60 days from this date, failing which the opposite party shall pay interest at 12% p.a. after expiry of 60 days on Rs.8,50,000/- till final payment.

         Furnish the copy of this order and return the extra pleadings and documents to the parties.

 (Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Open Commission on this 22^ND day of JULY, 2024)

Documents produced by the Complainant-P.W.1 are as follows:

Documents produced by the representative of opposite party – R.W.1;

NIL