Sri. M.C. Shivanandaswamy,
S/o. Channaveerappa, Aged about 43 years,
Editor, Yuvaloka Patrike, Secretary,
The Estate Staffs Union of South India,
R/o. Lakshmeesha Nagara Main Road,
M/s. Shriram Chits Private Ltd.,
Malnad Tyres Building,
Opp: Syndicate Bank, I.G. Road,
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1. The complainant has filed this complaint u/s 12 of the Consumer Protection Act against the opponent for the deficiency of service in removing him from the chit group and prays for the repayment of 29 paid installments with interest at 21% P.A. and also with a compensation of Rs.50,000/- along with court costs as detailed in the complaint.
2. The facts of the case in brief are as follows:-
The complainant is one of the member to the chit group run by the opponent company and his Ticket Number is 1380/17009/10 and he is regular in paying the chit installments and he has paid 29 installments upto 24.06.2008. Such being the case, on 10.06.2008 the opponent issued removal notice from chit group for which the complainant issued a letter dtd.19.09.2008 along with a cheque bearing No.215336 dtd.19.09.2008 for Rs.2,000/-. But the opponent returned the cheque back to the complainant along with a letter dtd.20.09.2008 stating that he has been removed from the chit group. But the opponent has not mentioned any reason for the removal from the chit.
Thereafter, he issued a legal notice to the opponent dtd.05.11.2008 enquiring about the removal of the complainant from the chit group and calling upon the opponent to accept the cheque issued towards the installments or in alternative to return the entire 29 installments paid by him with 21% P.A. interest. But after the receipt of the notice also, the opponent has neither taken back the complainant to the chit group nor returned the installment amounts paid by the complainant, but have issued a reply notice untenably. Therefore, the opponent is at deficiency of service in removing the complainant from the chit without any reason and the opponent made the complainant to suffer mentally and physically. As such, he prays for the compensation of Rs.50,000/- along with the prayer as referred above.
3. After the service of the notice, the opponent has appeared through their counsel and filed version wherein they have contended that it is false to say that they have removed the complainant from the chit group without any reason. The opponent has followed the procedure as per the agreement. The complainant has not approached this Forum with clean hands.
The complainant is the consecutive defaulter for three months and thereby they have removed him from the membership of the chit as per the chit agreement entered by the complainant with the opponent and further they are ready to repay the installment amounts as per the agreement. But the complainant is not entitled to get any interest to the said amount and he is also not entitled to continue in the chit group. Thus, they have not rendered any deficiency of service and they have acted according to the agreement and pray for the dismissal of the complaint.
4. The complainant has filed his affidavit evidence as PW.1 along with the documents and the same have been marked as Exs.P1 to P16.
5. The opponent has also filed his affidavit evidence as RW.1 along with the documents and the same have been marked as Exs.R1 & R2.
6. We have heard the arguments advanced by both the parties’ counsels.
7. Now, the points that arise for consideration of this Forum are as follows:-
i) Whether there is any deficiency in service on the part of the opponent?
ii) If so, whether the complainant is entitled to the reliefs as sought?
iii) What Order?
8. Our findings on the above points are as follows:-
i) Point No.1: In the Negative
ii) Point No.2: In the Negative
iii) Point No.3: See, as per order below
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9. Point Nos.1 & 2: The case of the complainant is that inspite of regular payments towards the chit, the opponent has removed him from the membership without any reason and after notice of due he has issued a cheque towards the installments. Even inspite of issuance of the said cheque, the opponent has not continued him as a member, instead of that they have returned the cheque. Thus, they are at deficiency of service in removing the complainant from the membership of the chit.
10. On contrary, the opponent has taken a contention that the complainant is consecutive defaulter in paying the monthly installments of chit. Thus, they have acted according to the agreement and removed the complainant from the membership and they are not denying to pay the installment amounts paid by the complainant as per the agreement. Thus, they are not at deficiency of service and submits for dismissal of the complaint.
11. The complainant has produced original cheque dtd.19.09.2008 issued in favour of the opponent, which is marked at Ex.P5 and also produced as much as eight cash paid receipts towards the payment of installments to the chit, which are marked at Exs.P8 and P9. On perusal of these documents, we came to know that the complainant is not regular in paying the installments every month and we have noted that as per the Exs.P8 to P16 he has paid once in 3 months or once in 5 months towards the payment on monthly installments. This clearly shows that the complainant is not regular in paying the monthly installments to the opponent as alleged by the opponent. The same was admitted by the complainant and it is pertinent to note that as per the agreement, which is marked at Ex.R1, we noticed that the complainant has agreed all the conditions, which were shown in Ex.R1, wherein, we observed that in case of default for consecutive 3 months, the opponent has power to remove the member from the chit group.
Thus, we are of the opinion that removing the complainant from the chit for the reason of consecutive default in paying the monthly installments will not amounts to deficiency of service and it is pertinent to note that the cheque-Ex.P5 was issued after the removal of the complainant from the chit group and we found no error in refusing the cheque on the part of the opponent and it is also pertinent to note that the complainant has failed to prove that he is regular in paying the monthly installments. Anyhow, the opponent has undertaken in their affidavit that they are ready to return the amount paid by the complainant as per the terms and conditions of the agreement.
Therefore, the complainant is under liability to accept the amount as per the agreement i.e., Ex.R1 and we noticed that in Ex.R1, the complainant has agreed to pay the foremen commission. Thus, paying the amount by deducting the foremen commission to the complainant also not amounts to deficiency of service. As such, we are of the opinion that the complainant is at liberty to approach the opponent to take back his amount paid towards the installments of the chit as per the agreement. Accordingly, the complaint filed by the complainant is liable to be dismissed. Under these circumstances, we answer the point Nos.1 and 2 in the negative.
12. Point No.3: In view of our findings on above points the complaint filed by the complainant has to be dismissed. In the result we pass the following order.
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1. The complaint filed by the complainant against the opponent is hereby dismissed.
2. Having regard to the facts and circumstances of the case there is no order as to costs.
3. Send the copies of this order to the parties.