DISTRICT CONSUMER DISPUTES REDRESSAL FORUM PALAKKAD

Dated this the 16^th  day of  July 2012

Present : Smt.Seena H, President

            : Smt. Preetha.G. Nair, Member

            : Smt. Bhanumathi.A.K, Member              Date of filing: 08/03/2012

(C.C.No.45/2012)

1.Sriraj,

   S/o.Govindankutty,

  “Panchami”,

   Punchappadam,

   Palakkad – 678 642

2.Govindankutty,

  “Panchami”,

  Punchappadam,

  Palakkad – 678 642                                        -        Complainants

(By Adv.Shine Francis)

V/s

The Manager,

K.S.F.E. Ltd., 

Shoranur Branch

(By Adv.C.Ramadas)                                     -        Opposite party

O R D E R

By Smt.PREETHA G NAIR, MEMBER

The 1^st complainant has joined Chitty No.1/06 in chittal numbers 8,9 & 10 conducted by the opposite party. 2^nd complainant  is the father of 1^st complainant and he paid the chitty amount.  The 1^st complainant has auctioned  the 64^th kuri on 14/3/11 as chital no.10 and also he paid the installment amount of chitty upto date. The 1^st complainant had decided to auction the chitty for the  purpose of his  sister’s marriage. Also he ready to deposit  the security for future amount. The wedding of 1^st complainant’s sister was on 8/5/11. The complainant had auctioned the chittal No.8 and 9 before the auction of 10^th chittal number. At that time also the opposite party had raised objection. On 28/4/11 the complainant submitted a letter stating that the future amount will be deposited as FD and to pay the balance price amount. Also the opposite party had received FD in more than one from one person. The termination date of 10^th Kuri is 14/4/14. The 1^st complainant informed the opposite party that  he is ready to deposit Rs.800/- per month upto 14/4/14 and also ready to deposit the future installment amount on 28/4/11. But the opposite party has not accepted the demands of complainant. Moreover the opposite party has not given reply to the letter dated 28/4/11. The complainant have joined the chitty for the purpose of receiving a lump sum and a small amount will be paid on chitty  installments.   The 1^st complainant stated that Rs.1,000/- is decided as the installment amount in a month. But the opposite party has deducted the dividend in each month and the installment amount will come around of Rs.800/-. The complainant informed the opposite party to deposit the amount in FD. But the opposite party has not given the chitty amount.  The complainant could not used the chitty amount for his sister’s marriage. The opposite party has not paid the prize amount before the marriage. So the complainants took money with huge interest for marriage. Then the complainants have sustained loss of Rs.50,000/- The 1^st complainant had deposited Rs.1,05,000/- as security for the 3 kuries. But the opposite party allowed to deposit the future installment in each month, only Rs.90,000/- was deposited by the complainant. So the complainant has sustained a loss of Rs.15,000/-  in kuries.

Thereafter the 1^st complainant sent a notice to demand Rs.50,000/- as compensation from the opposite party. But the opposite party sent a reply stating false allegations. The 1^st complainant has not filed any complaint before the AGM. The  engagement of his sister was on 5/5/11 and the complainant denied that he informed  the opposite party to come on 5/5/11. The act of opposite party amounts to deficiency in service. Hence the complainants seeking an order directing the opposite party to

1.    Pay Rs.50,000/- as compensation for loss  of non payment of the chitty amount and

2.    Pay Rs.15,000/- as compensation to deposit the future amount as FD and  

3.    Pay the cost of the proceedings.

Opposite party filed version stating the following contentions. The opposite party has admitted that the 1^st complainant has joined the chitty 1/06 on the  chital Nos. 8,9 & 10.  The sala of chitty is Rs.1,00,000/- and the monthly installment is Rs.1,000/- commenced on 27/1/06. The 1^st complainant had auctioned  the 64^th installment on 14/3/11 as the chittal number 10 for an amount of Rs.86,900/-. As per chitty  variola the complainant should give security for the balance 36 installments amount and file application within 30 days. The complainant had submitted the application on 28/4/11 and requested to give the price money on that day itself. Then the opposite party informed to verify so many other details with regard to dues of other chitties if any. Further opposite party informed the 1^st complainant to wait  2 hours for verification. But the complainants not ready to wait and they informed the opposite party to come on 5/5/11. But they did not come on 5/5/11. Thereafter the 1^st complainant came on 7/7/11 and deposited the future amount on SSA scheme. The opposite party has sent reply notice before 7/7/11. Thereafter  complainant has not demanded to deposit Rs.1,000/- as FD on each month. Moreover the opposite party has no power to deposit Rs.1,000/- FD on each month. The opposite party has acted as per the terms of the Kerala Chitty’s Act and Rules. As per clause 15 of Variola at the time of receiving the price money the complainant should give security. As per clause 17 of variola the opposite party has the discretionary power to give the security. As per the Chitty Act the future amount shall deposit in one FD. In the earlier two chitties the 1^st complainant had deposited the future amount as FD. There was no deficiency in service and unfair trade practice on the part of opposite party. The 1^st complainant has not informed  the opposite party to spend the chitty amount for the marriage of  sister. The complainant shall submit the application as earlier, if any urgency. Hence the opposite party prayed that dismiss the complaint with cost.

Both parties filed their affidavit and documents. Ext.A1 and A2 marked on the side of complainant. Ext.B1 to B6 marked on the side of opposite party. Matter heard. Opposite party filed argument notes.

Issues to be considered are

1.    Whether there is any deficiency in service on the part of opposite party ?

2.    If so, what is the relief and cost ?

Issue No.1 & 2

Admittedly the 1^st complainant had auctioned the chittal number 10 in chitty number 1/06 on 14/3/2011. In Ext.B2 the 1^st complainant had informed the opposite party to deposit the future amount as FD. Further he mentioned in Ext.B2 that the  future amount of each 3 months shall deposit and to give the balance amount on the same day itself. In Ext.B2 the 1^st complainant has not requested the opposite party to remit the future amount by way of fixed deposit of Rs.1,000/- denomination. According to opposite party, they informed the complainants to wait two hours for verification of other chitties. But the complainants not waited and not came on 5/5/11. As per Ext.B2 the application to give the prize money submitted by the 1^st complainant on 28/4/11. Further steps  not taken by the opposite party. The opposite party has not produced evidence to show that they were ready to pay the prize amount on 5/5/11 or not deposit the future amount as 3 months FD.  As per Ext.B1 clause 17(a) the security can be taken by way of FD. But in Ext.B1 no where stated the period of FD. The opposite party has the discretionary power to decide the type of surety. Like wise the opposite party has  suffered no loss to choose the FD on 3 months. The opposite party has not produced evidence to show the loss sustained to them for depositing the FD amount on 3 months. The opposite party has not produced evidence to show that the 1^st complainant was defaulter.

According to the 1^st complainant, he had auctioned  the chitty for the purpose of the marriage expense of his sister . The opposite party has not paid the chitty amount before the marriage and thereby he has sustained a loss of Rs.50,000/-But the complainant has not produced evidence to show the loss. Normally the people auctioned the chitty after deducting a huge amount on urgency. In the present case also the complainant stated that the marriage of his sister was on 8/5/11 and he auctioned the chitty on 14/3/11. In Ext.A1 dated 20/6/11 the complainant sent a lawyer notice to demand the chitty amount. Then the opposite party has sent a reply notice dated 1/7/11 stating that they were ready to pay the chitty amount on 28/4/11 and the 1^st complainant has not waited for two hours to verify the other chitties. But the opposite party has not produced  evidence to show that they were ready to pay the chitty amount on 28/4/11.

The complainant has not produced evidence to show the loss of Rs.15,000/- for depositing Rs.1,05,000/- as FD on 3 kuries. So we cannot considered the 2^nd prayer of the complainants. The bounden duty of the opposite party to give the prize money as early as possible after receiving the security. In the present case the opposite party has not produced evidence to show that  they were ready to pay the prize money on 28/4/11 after verification.

In the above discussions we are of the view that there is deficiency in service on the part of opposite party. In the result   complaint partly allowed.

  We direct the opposite party to pay the complainant an amount of Rs.10,000/- (Rupees Ten thousand only) as compensation for deficiency in service and pay Rs.1,000/- (Rupees One thousand only) as cost of the proceedings.

Order shall be complied within one month from the date of receipt of order, failing which the complainant is entitled for 9% interest per annum for the whole amount from the date of order till realization. 

Pronounced in the open court on this the 16^th  day of July 2012.

   Sd/-

Seena H

President

   Sd/-

Preetha G Nair

Member

   Sd/-

Bhanumathi.A.K.

Member

APPENDIX

Exhibits marked on the side of the complainant

Ext.A1 –Copy of lawyer notice sent by complainant to the opposite party dated

            20/6/11

Ext.A2 – Reply to lawyer notice sent by opposite party to the complainant

             dated 1/7/11  

Exhibits marked on the side of the opposite party

Ext.B1 –  True copy of variola

Ext.B2 –  True copy of application submitted by the complainant for getting

              chitty amount

Ext.B3 -  True copy of application submitted by the complainant for depositing

             the balance chitty amount in SSA.

Ext.B4 –  True copy of agreement for paying the future chitty amount

Ext.B5 –  True copy of Ledger regarding the payment through SSA

Ext.B6 -  True copy of first page of SSA Pass Book in the name of complainant

Cost Allowed

Rs.1,000/- allowed as cost of proceedings.