Karnataka

Chitradurga

CC/24/2019

Mr.Jitendra N, S/o Nijalingappa B.T, - Complainant(s)

Versus

The Managing , Srirama Chits Karnataka Pvt.Ltd - Opp.Party(s)

Sri.Thippeswamy.N

31 May 2023

ORDER

COMPLAINT FILED ON:07/01/2019

DISPOSED ON:31/05/2023

 

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, CHITRADURGA.

 

C.C.NO:24/2019

 

DATED: 31^st  May 2023

 

PRESENT: Kum. H.N. MEENA, B.A., LL.B., PRESIDENT

                  Smt. B.H. YASHODA, B.A., LL.B., LADY MEMBER                       

                  Sri. H.JANARDHAN, B.A.L., LL.B., MEMBER

COMPLAINANT	1. Mr.Jitendra N      S/o Nijalingappa B.T., Aged about 33 years, Social Service and Business, R/o Karuvinakatte Circle, Chitradurga.    (Rep by Thippeswamy N, Advocate)
V/S
OPPOSITE PARTIES	The Managing Srirama Chits Karnataka Pvt, Ltd., Basaveshwar Talkies Road, Chitradurga, Represented by it's, The Manager, Sri Yallappa.   (Rep by N.S.Shamsundar, Advocate)   The Divisional Office The Divisional Manager, Sri Ram Chits Karnataka Pvt, Ltd., Akshodaya # 259/31,   Willson garden,

 

 

 

 

 

:: ORDER ::

 

 

By Smt. B.H.YASHODA, B.A., LL.B., LADY MEMBER.

 

 

        The above complaint has been filed by the complainant Under Section 12 of Consumer Protection Act 1986 for seeking the relief/s to direct the opponents to make payment of Rs.4,18,725/- with interest 12 % Per Annum from the date of purchase till the date of payment and to pay compensation including agony within 30 days of the receipt of the order passed by The Hon'ble Forum and such other relief/s deemed fit to grant in the circumstances of the case in the interest of justice.

 

 

2. The brief facts of the complaint is as follows:

 

That the complainant submitted that he being a businessman, he intended to construct a new house in his sister name by Kavitha in Chitradurga city in the month of April 2016 and obtained bank loan for the said purpose and started and continue the construction work till may 2016, when he facing the financial problem he search the financial routes by stopping the construction work by leaving the materials like cement, iron, wooden pieces in open area, at that time the opponents have pressurized and assured the complainant that, if the complainant has join as member of the chit member the complainant has got lot of earning by bidding the said chit and the amount will paid within a month from the date of auction date through the agent of opponents.  In this regard the complainant join as a member of chit group and ticket No.67007/48 conducted by the opponents for value of chit of Rs.5,00,000/-.  As per the terms and conditions of the opponents the complainant has paid the amount of Rs.10,000/- the first installment amount to the opponents.  The said chit commence from 06/06/2016, the period of total 50 months.  Hence, the complainant is the consumer of the opponents.

 

3. Further, the complainant submits that on 10/01/2017, the complainant has participated in the said chit auction and bid the chit for Rs.1,50,000/-for the purpose of continue the construction of a new house pending for the financial problem of the complainant.  As per terms and conditions the opponents have must paid the remaining amount of Rs.3,50,000/- within a month to the complainant after bid the chit.  After the auction of the said chit the opponents have received the several documents, blank signed cheques and take the signature of the complainant and signature of three sureties to the empty booklet.  Further, the opponents assured the complainant that, the next month issued cheque of Rs.3,50,000/- without fail.  As per the assurance of the opponents complainant waiting for the said amount for continue the construction work, but the opponents have not paid the amount as per terms and conditions of the agreement held between them.  When the opponents have not paid the said amount the complainant has demanded the bid amount to opponents several time, but they have not paid the bid amount of Rs.3,50,000/- finally the complainant approached and requested the opponent No.1 to pay the amount of Rs.3,50,000/- the said amount is urgent and very necessary for the construction of house.  In this regard, the opponent No.1 has illegally demanded the commission amount of Rs.20,000/- for issuance of cheque and further he obtained the signature of blank papers and received the blank cheques of the complainant.  It is submitted that when the opponents have not paid the amount the complainant has much suffered loss and mental agony for not to continue the construction work of house upto 5 months from the date of auction of the said chit.  It is submitted by the complainant that after lapse of five months i.e., on 08/06/2018, the opponents have issued a account payee cheque in favour of the complainant only for Rs.2,91,275/- at that time the complainant has requested the opponent No.1 to pay the remaining amount of Rs.58,725/- as per bid amount but the opponents have stated that amount of Rs. 58,725/- merged the future and pending installments.  In this regard the complainant has stated as per the condition of the opponents he has ready to pay the installments through cash by way of installments but the opponents have not hearing the words of complainant, there is no alternative way to the complainant and the amount is very urgent for construction of a house, he received the said cheque and further the complainant has demanded the remaining amount of Rs.58,725/- and interest for the said period i.e., 10/01/2017 to 08/06/2018 for the amount of Rs.3,50,000/-Since the opponents have utilized the amount Rs.3,50,000/- belongs to the complainant for a period of five months, but the opponents have not hearing the words of the complainant and issued a cheque only Rs.2,91,275/-. As per the agreement, the opponents failed to pay the bid amount within a month from the date of auction as per terms, conditions and assurance given by them.  It is submitted that, illegally the opponents have utilized the Rs.3,50,000/- belongs to the complainant for a period of 5 months and not paid any interest to the said amount and not paid the entire bid amount of Rs.3,50,000/-.  In this regard the complainant has suffered the huge loss for period of 5 months.

 

        4. It is further submitted that without any alternative the complainant has received the said amount.  In the meanwhile, the opponents have filed a case Before Deputy Registrar for Co-Operative Societies and chits at Chitradurga in DRD chits Suit No.6/2018-19 by claiming the amount of Rs.3,85,000/- since the complainant has paid Rs.1,20,000/- to the opponents the opponents have claimed illegally excess amount by the complainant.  The opponents have claimed excess money by the complainant before said court, the said act is clearly shows that, the above opponents are made deficiency in service and untrade practice towards complainant.  The complainant had suffered much loss and mental agony for the illegal act of the above opponents and the said act is highly illegal, untrade practice deficiency in service towards the complainant.  The opponents have not paid remaining bid amount of Rs. 58,725/- and interest for the staid period i.e., 10/01/2017 to 08/06/2018 for the amount of Rs.3,50,000.  It is submitted that when the opponents have not paid the amount the complainant has much suffered loss and mental agony for not to continue the construction work of house upto 5 months from the for not to continue the construction work of house upto 5 months from the date of auction of the said chit and the opponents have utilize the amount of Rs.3,50,000 belongs to the complainant for a period of 5 months.  Due to the act of the opponents, the complainant has suffered from loss and mental agony so, the complainant has filed this complaint Before This Hon'ble Commission for seeking the following reliefs.

 

 

A	Remaining bid amount	Rs.	58,725	=00
B	Interest  @ 3 % for Rs.3,50,000/- from 10/01/2017 to 08/06/2018	Rs.	60,000	=00
C	Mental agony	Rs.	1,00,000	=00
D	Deficiency in service	Rs.	50,000	=00
E	For loss of Meterials	Rs.	50,000	=00
F	For loss of Reputation	Rs.	50,000	=00
G	Expenditure	Rs.	50,000	=00
Total		Rs.	4,18,725	=00

 

       

5. After registering the complaint, the commission has issued the notice to the OPs and the same has been served and OP No.1 has appeared through their counsel and not filed their version / objections within stipulated period and this commission has considered that the version of OP No.1 as nil on 01/08/2019 and on 30/01/2020 the OP No.1 has filed an application Under Section 151 of CPC seeking the permission to file the version / objection and on that day, that application has been allowed, accordingly, the OP No.1 has filed the version by denying all the complaint allegations i.e., it is false that the complainant doing the businessman and intended to construct a new house in his sister name by Kavitha in Chitradurga city in the month of April 2016 and obtain bank loan, the other allegations made in the para 2 of the complaint regarding construction work stopped are false and conducted for the purpose of the complaint.  It is true that the opponent is doing chit fund business.  It is false that the opponent induced the complainant by giving false assurance to join the chit commenced by the complainant.  It is true that the complainant is the member of group and Ticket No.67007/48.  It is false that the complainant has paid Rs.10,000/- as first installments.  The averments made in para 3, 4, 5 of the complainant are false concocted for the purpose of the case.  It is false that at the 30^th installment the complainant approached the opposite threatened that after the 40^th installment the complainant has left 15,000/- to the company.  Any the allegations made in para 7 to 9 are false concocted for the purpose of case.  The complainant is barred by time and the complainant has not come to the court with clean hands.  The complainant has suppressed the material facts.  In act  the contract between the parties is cannot be decide before the Forum.  The complainant is not a registered consumer.   There is no relationship in between complainant and opposite party.  The said transaction is commercial transaction and this court is no jurisdiction to try the suit.  The proper forum is Deputy Registrar of Co-Operative Societies since the said dispute comes within the section 70 of Karnataka Co-Operative Societies Act.  This District Registrar is proper person.  The opposite party is already filed dispute regarding the transaction the complainant has to work out his remedy before the Deputy Registrar of Co-Operative Societies not before this Forum. 

 

        6. The complainant invested the amount to get benefits.  The members who are in dire need of money and participate in early monthly auctioning and ticket prize money instead of interest on saving chit investment will provide auction dividend every month.  Subscribers who pay monthly installments properly every months as required Under Section 27 of the chit fund act will get maximum dividend of chit saving.  The complainant is not paid subscription amount properly.  He has paid the subscription amount installments on till 28/10/2017 respectively.  Thereafter he has stopped the payment to the company.  He has caused loss to the company.  If he is unable to pay the installments regularly he could not joined the group somebody will join, then he will be get benefit.  The act of the complainant the company has sustained loss.  In fact, the act of the complainant is negligence in his part to pay the installments.  One who seeks equity he must do equality.  The complainant is not done so hence is not entitled to any of the relief.  The complainant is big defaulter in paying subscription amount.  It is depict from the account extract.

 

        7. As per the terms of agreement (13 a) and chit fund Act the foreman has got right to deduct the total value of 5% can be deduct his commission.  If there is any excess of amount is available the complainant is entitled after conclusion of chit is entitle.  The said condition is clearly stated in the item No.7 of the agreement clause.  The complainant is practicing advocate and he is known the pros and cons of law and he has read over and signed the agreement when such being in the case the question of cheating and deficiency of service doesn't arise when the complainant is failed to pay the installments regularly he can be replaced by the foremen by substitution of the new member, as per the terms and condition of agreement No.11, the member failed to pay the installment the foreman has right to impose penalty.  Further, the condition No.17 is not complied by the complainant.  In case the subscriber is due for future installment the member has to provide surety to the satisfaction of the foreman as per section 31 of the chit fund Act.  The complainant is failed to pay the future liability to the opposite party till today.

 

        8. As per Section 64 of chit fund Act, it is clear that any dispute arose he has to approach before the Deputy Registrar sub-clause 2 is very clear that where any question arises to the where after any matter referred to for the award of the registrar.  is a dispute or not for the pursue of sub-Section 1 the same shall be decided by the Registrar whose decision there on shall be final.  Hence, the complainant is barred by law and it is liable to be rejected.

9. Accordingly, notice has been served to OP No.2, but, kept absent and placed ex-parte on: 01/08/2019.

 

10. The complainant has examined as PW-1 filed his affidavit evidence and produced documents and not marked documents and closed his side evidence.

 

        11. The op no.1 examined DW-1through chief affidavit and produced three document, marked as Exhibit.B-1 to B-3 and closed their side evidence.  And the OP No.2 placed ex-parte, So there is no version or affidavit, documents on their side.

 

12. The complainant and OP No.1 have filed their written arguments and heard the arguments.

 

13. After perusal of the complainant and evidence and all documents, produced by the both the parties.

 

14. The points that arise for our consideration for decision  

       of above complainant are that.

 

 

1. Whether the complainant proves that he is the consumer of OPs?

 

2. Whether the complainant entitled to receive Rs.4,18,725/- with interest 12% per annum from the date of purchase till the date of payment and receive compensation including mental agony within 30 days of the receipt of the order passed by this Hon'ble Forum?

 

 

3. What Order?

 

      15. Our findings on the above points are as follows:

 

        1) Affirmative

        2) Partly in Affirmative

        3) As per final order

 

 

:: REASONS ::

 

        16. Point No.1:- The complainant examined as PW-1 and produced documents but not marked documents.  The OP No.1 has examined as DW-1 and the documents marked as Exhibit B-1 to B-3 on perusal of documents produced by the OP No.1 as per his averments, the complainant is the consumer of the OP company, as member since 06/06/2016 vide ticket No.67007/48, Hence, the point No.1 has been considered as affirmative. 

 

 

         17. Point No.2:- That the complainant has joined as member of the chit member vide ticket No.67007/48 conducted by the opponents for value of chit Rs.5,00,000/-.  As per the terms and conditions of the opponents, the complainant has paid the amount of Rs.10,000/- the first installment amount to the opponent.  The said chit will commence from 06/06/2016, the period of total 50 months.  That on 10/01/2017, the complainant has participated in the said chit auction and bid the chit for Rs.1,50,000/-for the purpose of continue the construction of new house pending for the financial problem of the complainant.  As per the terms and conditions the opponents have must paid the remaining amount of Rs.3,50,000/- within a month to the complainant after bid the chit, as per the Ex.B-3 after the auction of the said chit, the opponents have received the several documents, blank signed cheques and take the signature of the complainant and assured the complainant that the next month issue cheque of Rs.3,50,000/-without fail, but, the opponent issued cheque for Rs.2,91,375/-after lapse of five months i.e., on 08/06/2018, at that time, the complainant has requested the OP No.1 to pay the remaining amount of Rs.58,725/- as per bid amount, but the opponents have stated that remaining amount of Rs.58,725/- merged the future and pending installments.  In the version of OP No.1 as per the terms of agreement (13 a) and chit fund Act the foreman has got right to deduct the total value of 5% can be deduct his commission as per Exhibit B-1.  If there is any excess of amount is available the complainant is entitled after conclusion of chit is entitle.  The complainant has also agreed for the above terms and conditions and signed in the Exhibit B-1.  It shows that as per the terms and conditions of OP No.1 has issued cheque for Rs.2,91,375/- to the complainant, this fact was also admitted by the complainant.

 

 

        18. The complainant has to pay monthly installments properly every month as required Under Section 27 of the chit fund Act will get maximum dividend of chit saving.  But, the complainant has not paid subscription amount properly.  He has paid the subscription amount installments on till 28/10/2017 respectively.  Thereafter he has stopped the payment to the company.  In this regard, the opponents have filed case Before Deputy Registrar for Co-Operative Societies and chits at Chitradurga in DRD chits Suit No.6/2018-19 by claiming the amount of Rs.3,85,000/- since the complainant has paid Rs.1,24,000/- only to the opponents.  It shows that the complainant is big defaulter in paying subscription amount, which is depict from the account extract.  So, the opponent filed the case Before the Deputy Registrar of Co-Operative Societies and chits at Chitradurga is sustainable under Co-Operative Societies Act 1982 Section 64. But in this case, the OP No.1 has not paid the bid amount within one month as per the terms and conditions, as such, the complainant has not paid the balance installment amount to the opponent.

 

 

        19. In this regard the complainant has relied upon the decision of National Consumer Disputes Redressal in Kovilakam chits and Financial V/s K.L.Benny in CPJ 2003 (III) N.C 87.  "Facts leading of filing of complaint was that the complainant was a subscriber to 'Kuri' for which under agreed arrangement he was paying his contribution on daily collection basis.  In a draw held on 27/12/1999 the complainant was the winner of prize amount of Rs.10 Lakhs, but was denied prize on the ground that the complainant has been a defaulter from 9^th installment, thus forfeiting his right to the prize.  It is in these circumstances that the complainant filed complaint before the State Commission, (Sic) ho after hearing the parties held the appellant deficient in rendering service and directing the appellants to pay the prize money”

 

       

        20. It is observed that the above case the appellant has not paid the prize money for the reason of the complainant / respondent is defaulter from 9^th installment, as such forfeiting the prize money.  In this case also, the OP No.1 has not paid the bid amount Rs.3,50,000/- within one month as per the terms and conditions of Agreement in Ex.B-1 and the same has been credited to the account of complainant as per Exhibit B-3 and the opponents have also stated that remaining amount of Rs.58,725/- merged the future and pending installments and as per the terms of agreement (13 a ) and Chit Fund Act the foreman has got right to deduct the total value of 5% can be deduct his commission.  This fact was admitted by the complainant.  But, the opponent not issued the bid amount to the complainant within one month, as such, the complainant has not paid the balance installment amount As such, the Authority is applicable in this case. 

 

       

21. After perusing of the complaint, version and written arguments and also documents, the opponents has paid the bid amount within the one month as per the terms and conditions of Exhibit B-1 and Exhibit B-3, it is evident that the opponent issued cheque on 08/06/2019 for Rs.2,91,375/- to the complainant it shows that the opponent has paid the bid amount after lapse of 5 months. So, there is deficiency in service on the part of opponent towards complainant. As such the Point No.2 has been taken into consideration as Affirmative.   

 

       22. Point No.3:- As discussed on the above points and for the reasons stated therein we pass the following.

 

 

::  ORDER  ::

 

        The present complaint filed by the complainant under section 12 of Consumer Protection Act 1986 against the opponents is partly allowed.

  

         It is ordered that the OPs are hereby directed to pay of remaining bid amount Rs.58,725/- to the complainant and interest 6% p.a. from the date of bid.

       

        It is ordered that the OPs are hereby directed to pay compensation of Rs.5,000/- towards mental shock and mental agony and cost of Rs.3,000/- to the complainant.

 

The OPs shall pay the above said award amount within 30 days from the date of this order.

 

         Send the free copies to both the parties.

 

(Dictated to the Stenographer, typed by him, the transcript corrected, revised and then pronounced in the open commission by us on 31^st May 2023.)

 

 

        

                 Sd/-                                Sd/-                                Sd/-

     LADY MEMBER              MEMBER                 PRESIDENT

 

 

 

 

 

-:ANNEXURES:-

 

Witness examined on behalf of Complainant:

 

PW-1: Mr.Jitendra N S/o Nijalingappa B.T, by way of affidavit evidence.

 

Documents marked on behalf of Complainant:-

Nil

Witness examined on behalf of Opponent No.1

 

DW-1: Maruthi S/o Mahantheshappa, by way of affidavit evidence.

 

Witness examined on behalf of Opponent No.2

 

Nil

 

 

Documents marked on behalf of opponent No.1

 

01	Ex.B-1	Sriram chits (Karnataka) Pvt. Ltd., Agreement dated: 28/05/2016.
02	Ex.B-2	Sriram chits (Karnataka) Pvt. Ltd., Payment Voucher Dated: 30/05/2017.
03	Ex.B-3	Sriram chits (Karnataka) Pvt. Ltd., Installment wise payment details list.

 

 

Documents marked on behalf of opponent No.2

 

Nil

                Sd/-                                Sd/-                                Sd/-

     LADY MEMBER              MEMBER                 PRESIDENT

 

 

 

 

**GM