O R D E R

(Delivered by Hon’ble President (FAC) Smt N. Tripura Sundari)

This complaint is filed under Section 12 of the Consumer Protection Act, 1986.

            The averments of the complaint are in brief:

1.         The complainant joined as a member in a chit conducted by opposite party company for Rs.1,00,000/- monthly instalments at the rate of Rs.2,500/- per month for 40 months.  The chit was commenced in March, 2011.  The complainant paid all instalments upto June, 2014 without fail.  Subsequently the opposite party company was closed as the opposite party incurred huge loss in the said business.  Hence the complainant is filed this complaint praying the Forum to direct the opposite party to pay chit amount of Rs.95,000/- paid by her, after deduction of commission at the rate of 5%, compensation of Rs.95,000/- and to pay awarded amount with interest at the rate of 12% per annum from the date of filing the complaint till payment and to pay costs.

2.         Notice was issued to opposite party, through Forum and by way of paper publication.  But he remained ex-parte.

3.         On behalf of the complainant she gave her affidavit and got marked Ex.A.1 to Ex.A.8

4.         Heard and perused.

5.         Now the points that arise for consideration in this complaint are:

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

                towards the complainant in not refunding the chit amount paid by her?

            2. If so is the complainant entitled for any relief?

            3. To what relief the complainant is entitled?

POINTS 1 AND 2:-

6.         On perusing the documents on hand the complainant joined in the chit conducted by the opposite party for an amount of Rs.1,00,000/- at the subscription of Rs.2,500/- per month for 40 months commenced from March, 2011.  As per Ex.A.1 pass book issued by the opposite party to the complainant she paid 37 monthly instalments Rs.92,500/- upto 8.3.2014 and she came to know that the opposite party closed its business as they sustained huge loss in the said business.  When the opposite party company was closed the complainant got issued a legal notice Ex.A.4 dated 8.7.2014 demanding the opposite party to refund the amount of Rs.95,000/- paid by her. The said legal notice was returned unserved under Ex.A.5.  As the chit fund company of the opposite party is closed, criminal complaint was given by one senagala Venkateswaramma who suffered by the opposite party under Ex.A.7 dated 30.6.2014 to the police authorities and the police authorities made investigation and submitted remand report to the Hon’ble 2^nd Additional Chief Metropolitan Magistrate under Ex.A.8.  On perusal of record discloses that, the notice sent to the opposite party returned unserved and no response for paper publication by the opposite party.  The allegations made by complainant against opposite party remained unchallenged and hence this Forum has no option except to drawn an adverse inference that the opposite party has no defense and committed deficiency in service.  As such we hold deficiency in service on the part of opposite party and the opposite party is liable to pay the chit amount to the complainant with interest.  So the complainant is entitled to receive the chit amount with interest.

POINT No.3:-

7.         In the result, the complaint is allowed in part and the opposite party is directed to pay an amount of Rs.87,500/- (after deduction of 5% commission) with interest at the rate of 9% per annum from the date of last payment i.e., 8.3.2014 till the date of filing of the complaint and further to pay interest at the rate of 12% per annum from the date of order till realization and to pay costs of Rs.2,000/- to the complainant.  Time for compliance one month.  Rest of the claims of the complainant are dismissed.

Dictated to the Stenographer K.Sivaram Prasad, transcribed by him, corrected by me and pronounced by us in the open Forum, this the 16^th day of February, 2015.

PRESIDENT(FAC)                                                                           MEMBER

Appendix of evidence

Witnesses examined

For the complainant:                                                                     For the opposite party:-

P.W.1 Smt K.Srimahalakshmi                                                                   None.                                                Complainant,                                                                       

(by affidavit)                                                             

                                                        Documents marked

On behalf of the complainant:

Ex.A.1                            .    .              Photocopy of pass book.

Ex.A.2            01.07.2009    Photocopy of receipt issued by the opposite party.

Ex.A.3            01.07.2009    Photocopy of receipt issued by the opposite party.

Ex.A.4            08.07.2014    Office copy of legal notice.

Ex.A.5                .    .              Photocopy of returned cover.

Ex.A.6                .    .              Photocopy of postal acknowledgement.

Ex.A.7            30.06.2014    Photocopy of FIR along with three remand reports.

Ex.A.8            01.07.2014    Photocopy of FIR along with three remand reports.

On behalf of the opposite party:

                        Nil.

PRESIDENT(FAC)