Karnataka

Gadag

CC/30/2015

Praveen.D.Nelugal - Complainant(s)

Versus

The Managing Director, Shivasangama Chits(Pvt) Ltd - Opp.Party(s)

B.B.Magadi

23 Sep 2016

ORDER

ORDER DELIVERED BY

SMT.C.H.SAMIUNNISA ABRAR, PRESIDENT:

The complainant has filed this Complaint against the Opposite Parties (herein after referred in short as OPs) u/s 12 of Consumer Protection Act, 1986 alleging deficiency in service against OPs. 

 

2.    The brief fact of the case is that the Complainant entered into the Chits Scheme which was run by the Ops (Shivasangam Chit Pvt. Ltd.,) by looking pamphlet published by the Ops the Complainant entered into a Chit with a face value of Rs.5,00,000/-. On 18.04.2013 the Complainant enquired about the Chit with Ops, the Ops agreed to admit the Complainant in the chits which was already started by receiving the payment of Rs.50,000/- + Rs.300/- towards the admission fee in Group No.90005 and Ops issued a Receipt bearing No.44493 for the same.

 

3.      Further, the Complainant stated that there was a 25 monthly installments of Rs.15,000/- and the Complainant had paid all 25 installments, the amount of last two installments was received by OP No.4 and 6 and the Ops have received five blank cheques of Complainant at the time of admission to the chit for the security reason.

 

4.      After the completion of the period of the chits, the Complainant requested to pay the chit amount of Rs.5,00,000/-, but the OPs fail to pay the amount. Hence, the Complainant had prayed to order the Ops to pay the chit amount of Rs.5,00,000/- along with interest at 18% and returned the cheques received for the security and Rs.3,00,000/- towards mental agony and financial loss and other orders as Forum deems fit.

 

5.  The Forum received a Complaint and heard on admission. The notices were ordered as such OPs appeared through their advocate and filed Vakalat and Written Version.

 

Brief facts of the Written Version of OPs:

That the Ops have denied all the contents of the Complaint and said that the case is pending at JMFC Court just to harass the Ops the Complainant filed this Complaint. Further, OP had stated that the Complainant is not liable for any relief. Hence Ops have prayed to dismiss the Complaint.

 

          6.   On perusal of the Complaint, allegation and version, the documents on records the Complainant himself has been examined before this Forum as CW1 and got marked the documents as EX C1 to EX C25 are as follows:

EX C1 to C19 Cash Paid Receipt,

EX C20 Pamphlet,

EX C21 Complaint copy of JMFC Court,

EX C22 Deposition of OP

EX C23 Certified copy of the cheque,

EX C24 Objection of a complainant,

EX C25 Statement of Account issued by OP

 

     On the other hand, OPs filed a written version and not field any documents or not filed any Chief Affidavit.

 

          7.  On the pursuance of the above documents and arguments heard on both sides, the points arises before us for adjudication are as follows:          

1. Whether the OPs have practiced the unfair trade?

2. Whether the complainant is entitled for relief as sort?

3. What order?

Our findings to the above points are as under:

Point No.1: Affirmative,

Point No.2 : Partially Affirmative,

Point No.3 : as per the final Order

R E A S O N S

       8.  POINT NO.1 and 2:  Since Point No.1 and 2 are identical, to avoid the repetition of fact, we take two points together for consideration. On careful scanning of documents produced by both the parties, the Complainant entered into a chit scheme with the Ops, the Ops runs a Chit Fund Company in name and style SHIVASANGAM CHITS (PVT) LTD. at Gadag. On perusal of the documents on records marked as EX C1 to C19 clearly established that the complainant had paid monthly instalments of chits regularly. The OP No.2 is the Managing Director and OP No.3 to 6 are the Director of the Chit Company. All of them jointly published their Chit Schemes in a pamphlet and circulated it in the city by observing the same, complainant contacted the Ops and entered in a Chit Scheme, serially numbered as 11 in the pamphlet vide document marked as EX C20. The Ops run a registered chit company, on the notice of the Forum the counsel of the OP was present filed a Vakalath and their Written Version. At the same time, the complainant has filed an I.A. for production of documents, the Forum directed the Ops to produce the documents, Ops failed to produce the same and till date the Ops were not present for the proceeding even after granting sufficient time and opportunities. Ops are utterly failed to contest their case by misguiding the Forum stating that there was a case before the JMFC Court. After perusing the documents filed by the complainant as EX C21 to C24 it shows that there is a case before the JMFC Court against the complainant, but that the case is separate from this case. Such being the case, after perusing of the documents we are in a view that Ops have practiced unfair trade. Hence, the complainant is liable for partial relief since we answer to Point No.1 in affirmative and Point No.2 in partially affirmative.

         9. POINT NO.3: In view of our findings on the above points, the complaint filed by the complainant has to be is allowed in part. In the result, we proceed to pass the following:

//O R D E R//

1.   The Complaint is partially allowed.

2.  The Ops are directed to pay Rs.5,00,000/- (Rupees five lakh) towards face value of Chit Fund to the Complainant.

3. The Ops are directed to pay a compensation of Rs.30,000/- (Rupees thirty thousand) towards mental agony and loss and Rs.2,000/- (Rupees two thousand) towards litigation charges.

4.  The Ops are directed to comply this Order within a period of thirty days from the date of the order, fails to pay the said amount within thirty days, the complainant is entitled to get 12% interest p.a. from the date of filing of this Complaint, till realization.

5.    Send the copies of this order to the parties free of cost.

 (Dictated to the Stenographer, transcribed by him, corrected and then pronounced by me in the Open Court on this 23^rd day of September, 2016)

 

 

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