F.A.No.813 OF 2008 AGAINST C.C.NO.150 OF 2006 DISTRICT CONSUMER FORUM KURNOOL

Between

1. The Manager,
M/s Kapil Chit Funds Pvt. Ltd.,
Kurnool Branch, Opp Zilla Parishad,
Kurnool

2. The Assitant General Manager,
M/s Kapil Chit Funds Pvt., Ltd.,
Kurnool Branch, Opp. Zilla Parishad
Kurnool

3. The Managing Director,
M/s Kapil Chit Funds Pvt. Ltd.,
Plot No.84, P&T Colony
Gunrock Enclave, Secunderabad

Appellants/opposite parties Nos.1 to 3

A N D
1. Mr.G.Sharat Babu S/o G.Krishna Murthy
R/o Door No.26, 348, Peta, Kurnool
Respondent/ complainant

2. The Manager,
E.S.I. Corporation, Opp. Balaji Hotel
Bellary Road, Kurnool

Respondent/opposite partyno.4



Counsel for the Appellants Sri N.Amarnath
Counsel for the respondent No.1 Sri M.Venkata Ramana Reddy
Counsel for the Respondents No.2 Sri S.Prabhakar Reddy

F.A.No.859 OF 2008 AGAINST C.C.NO.150 OF 2006
Between

1. The Manager,
E.S.I. Corporation, Opp. Balaji Hotel
Bellary Road, Kurnool rep. by its Asst.
Director of Regional Office Mr.G.S.N.Moorthy
S/o G.V.Road, aged about 55 yrs, Occ: Employee
5-9-23, Hill Fort Road, Hyderabad

Appellants/opposite parties No.4

A N D



1. Mr.G.Sharat Babu S/o G.Krishna Murthy
R/o Door No.26, 348, Peta, Kurnool

Respondent/ complainant

2. The Manager,
M/s Kapil Chit Funds Pvt. Ltd.,
Kurnool Branch, Opp Zilla Parishad,
Kurnool



3. The Assitant General Manager,
M/s Kapil Chit Funds Pvt., Ltd.,
Kurnool Branch, Opp. Zilla ParishadKurnool


4. The Managing Director,
M/s Kapil Chit Funds Pvt. Ltd.,
Plot No.84, P&T Colony
Gunrock Enclave, Secunderabad



Respondents/opposite parties no.1 to 3

Counsel for the Appellant Sri S.Prabhakar Reddy
Counsel for the respondent No.1 Sri M.Venkata Ramana Reddy

Counsel for the Respondents No.2 to 4 Sri N.Amarnath



F.A.No.903 OF 2008 AGAINST C.C.NO.150 OF 2006



Between

Mr.G.Sharat Babu S/o G.Krishna Murthy
R/o Door No.26, 348, Peta, Kurnool

Appellant/complainant

A N D

1. The Manager,
M/s Kapil Chit Funds Pvt. Ltd.,
Kurnool Branch, Opp Zilla Parishad,
Kurnool

2. The Assitant General Manager,
M/s Kapil Chit Funds Pvt., Ltd.,
Kurnool Branch, Opp. Zilla Parishad
Kurnool



3. The Managing Director,
M/s Kapil Chit Funds Pvt. Ltd.,
Plot No.84, P&T Colony
Gunrock Enclave, Secunderabad

4. The Manager,
E.S.I. Corporation, Opp. Balaji Hotel
Bellary Road, Kurnool

Respondents/opposite parties

Counsel for the Appellants Sri M.Venkata Ramana Reddy

Counsel for the Respondents No.1 to 3 Sri N.Amarnath
Counsel for the respondent No.4 Sri S.Prabhakar Reddy

QUORUM:
THE HON’BLE SRI JUSTICE D.APPA RAO, PRESIDENT

&

SRI R.LAKSHMINARSIMHA RAO, MEMBER

MONDAY THE THIRTIETH DAY OF NOVEMBER

TWO THOUSAND NINE


Oral Order ( As per R.Lakshminarsimha Rao, Member)
***


The three appeals arise out of the same order passed by the District Forum Kurnool in C.C.No.150 of 2006.

Briefly stated the facts of the case are that:

The complainant is an employee of the opposite parties no.1 to 3. The opposite parties no.1 to 3 deducted an amount of Rs.68/- per month from out of the salary of the complainant and remitted the same to the opposite partyno.4. The complainant met with an accident on 23.7.2005 whereby he sustained burn injuries. The complainant was shifted to opposite partyno.4 hospital where he was denied treatment on the ground that the opposite parties no.1 to 3 did not remit contribution. The complainant had taken treatment in Viswa Bharathi Hospital Kurnool. He had incurred an amount of Rs.one lakh for his treatment. The complainant has to incur Rs.2,000/- per month towards medical expenditure. The complainant has to undergo plastic surgery for his ear which requires an amount of Rs.2 lakhs. The complainant after discharge from Viswabharathi Hospital where he was treated for 11 days, approached the opposite parties no.1 to 3 and informed them about the opposite party no.4 refusing to provide treatment as also reimbursement of the amount he had incurred towards medical expenditure. The opposite parties no.1 to 3 as also the opposite partyno.4 had rendered deficient service to the complainant.

Opposite parties’ no.1 to 3 filed counter contending that it is not their duty to furnish ESI card to the complainant. It is the duty of the opposite party no.4 to issue the ESI Card to the complainant. The legal notice as also the reply notice had no mention of any role of the opposite parties no.1 to 3 in regard to their duty of issuing the ESI Card to the complainant.

The opposite party no.4 had contended that it has no role in making medical treatment or payment of reimbursement towards medical treatment or payment of reimbursement towards medical treatment of insured persons and their family. The opposite parties no.1 to 3 had submitted declaration form for issue of identity card only after the complainant left the service. Therefore, the opposite partyno.4 is not responsible for discharging medical benefits, ambulance services etc., to the insured persons though he may be entitled as per eligibility. The declaration form was made on 17.4.2006. The return of contributions was submitted n 10.10.2006 to the opposite party no.4. The complainant was injured in an accident on 23.12.2005. He was admitted to a private nursing home for 11 days. He was bed ridden and under treatment for two months. The complainant and the opposite parties no.1 to 3 are jointly and severally liable for the delay in submission of the declaration. Hence, the opposite partyno.4 is not liable to pay any amount to the complainant.

The District Forum has allowed the complaint holding the opposite parties no.1 to 4 jointly and severally liable to reimburse the complainant to an extent of Rs.3 lakhs towards medical expenditure, Rs.20,000/- as compensation as also Rs.3,000/- towards costs.

Being aggrieved by the order of the District forum, the opposite parties no.1 to 3 filed F.A.No.813 of 2008 and the opposite partyno.4 filed F.A.No.859 of 2008 contending that they are not liable to pay any amount much less the amount awarded. The complainant has preferred appeal F.A.No.903 of 2008 claiming enhancement of the amount from Rs.3 lakhs to Rs.13 lakhs.

The point for consideration is whether there was deficiency in service on the part of the opposite parties

The complainant is an employee working under the opposite partyno.1. opposite parties no.2 and 3 are the Asst. General Manager and Managing Director of Kapil Chit Fund Company Limited. Opposite party no.4 is the Manager of ESI Kurnool. Opposite parties no.1 to 3 said to have received contribution from the complainant through the opposite parties no.1 to 3. Basic salary of the complainant was fixed at Rs.2909/-. His gross salary was Rs.3885/-. An amount of Rs.68/- used to be deducted every month from out of the salary of the complainant by the opposite parties no.1 to 3 towards the employees contribution to the opposite partyno.4. On 23.7.2005 the complainant met with a sudden fire accident at his house resulting in severe burn injuries to him. The complainants suffered burn injuries to his left ear as also the other parts of his body. The complainant believing to be eligible for treatment in the opposite epartyno.4 hospital, approached it where he was appraised of the fact that he was not eligible for free treatment under ESI scheme as no contribution was paid by his employers, the opposite parties no.1 to 3. Subsequently the complainant was treated in some private hospital, Viswa Bharathi Hospital, Kurnool. The complainant incurred an amount of Rs.one lakh for his treatment.

The complainant stated to have been confined to bed for a period of two months during the period of treatment. The complainant was paid half of his monthly salary during the period of treatment. The ear problem of the complainant was not cured. The complainant states that he would incur a sum of Rs.2000/- per month towards medical expenses. The complainant informed the opposite parties no.1 to 3 about the refusal by the opposite party no.4 to pay the expenditure incurred by him for his treatment. The complainant submitted that opposite parties’ no.1 and 2 informed him that they paid their share of contribution to the opposite party no.4 regularly. The opposite party no.4 denied in receipt of contribution said to have been made by the opposite parties no.1 to 3. Ultimately, the complainant was compelled to approach the District Forum.

It is not in dispute that the complainant being an employee of the opposite parties no.1 to 3 and is entitled to get free treatment in the opposite party no.4. hospital provided the employment contribution is made by the opposite parties no.1 to 3 to the opposite party no.4. Though the opposite parties no.1 to 3 stated that they had credited the amount towards contribution of the complainant to the opposite party no.4, there is no evidence to that effect. Opposite parties no.1 to 3 disown their duty to furnish ESI card to the complainant. It is their contention that it is the duty of the opposite partyno.4. Regulation No.17 of Employees State Insurance Regulation 1980 casts duty on the opposite partyno.4 who receives the declaration of the employee through his employer. Ex.B1 was submitted by opposite partyno.1 to the oppospartyno.4. Hence the duty is cast on opposite partyno.4 to issue necessary identity card to the employee i.e., complainant of the opposite parties no.1 to 3.

The dispute in regard to the issuing of ESI identity card is only a subsequent incident that follows the issue whether the employee contribution was credited by the opposite parties no.1 to 3 to the opposite party no.4. It is manifest on the face of the records particularly in the light of Ex.A6, copy of legal notice dated 6.7.2006 got issued on behalf of the complainant and reply thereto under Ex.A7 that the opposite parties no.1 to 3 did not credit the contribution of the complainant to the opposite party no.4 resulting in the humiliation suffered by the complainant in the hands of the opposite party no.4 whom he approached with the fond hope that he would be treated free of charge basing on the contribution made by his employer i.e., opposite parties no.1 to 3 to the opposite party no.4. Therefore, we have no hesitation in holding the opposite parties no.1 to 3 deficient in service in regard to their failure to credit the contribution to the opposite party no.4. It is pertinent to note that the opposite parties no.1 to 3 have not complied the regulation no.14 of Employees State Insurance (General) Regulations, 1980 which contemplates submission of declaration of the employee by the employer on the date of the employee joining his employment. The opposite parties no.1 to 3 are also required to submit along with the declaration, Form No.3 within 10 days therefrom. An amount of Rs.68/- p.m. was deducted from the salary of the complainant by the opposite party no.1 who however failed to credit the said amount along with their contribution to the opposite party no.4.

The Employees State Insurance Act, 1975 provides benefits to the employees in case of sickness, maternity and employment injury and for certain other matter in relation thereto. The sickness mentioned in Sec.2(20) of ESI Act, 1948 is any condition which requires medical treatment, abstains from work on medical grounds. Ex.A2 case sheet shows that the complainant required medical attendance and treatment for the injuries sustained in the accident. He was paid half pay salary during the period of his treatment. Therefore, the requirement envisaged by Sec.2(20) of ESI Act, 1948 in regard to medical attendance and treatment in case of sickness has been satisfied for the purpose of extending the insurance benefit under the ESI Act.

Insofar as the liability of the opposite party no.4 is concerned, a reference to Sec.39(5)(a) of the ESI Act is essential to cull down the liability of the opposite party no.4 which in fact the District Forum had made on par with the liability of the opposite parties no.1 to 3. Sec.39(5)(a) of ESI Act lays down that if any contribution payable under the ESI Act is not paid by the employer on the date on which such contribution has become due he shall be liable to pay simple interest @ 12% per annum or such rate as may be specified in the regulation till the date of actual payment. Therefore, the role of the opposite party no.4 commences from the date of receipt of declaration along with Form No.3 pertaining to the complainant sent by the opposite parties no.1 to 3. Evidently, the opposite parties no.1 to 3 had not remitted the contribution to the opposite party no.4. Therefore, the opposite party no.4 cannot be held deficient in rendering its service to the complainant.

The complainant has claimed an amount of Rs.10 lakhs towards compensation and Rs.3 lakhs towards medical expenditure. However, the complainant had not placed any evidence on record to hold him entitled to the compensation and damages. The only evidence on record is that of PW1 Dr.Sudershan, a plastic surgeon and consultant to Viswabarathi hospital where the complainant was treated for his burn injuries. The doctor had given an estimate of expenditure of Rs.one lakh for plastic surgery in regard to the operation of ear of the complainant. The amount said to have been incurred by the complainant under Exs.A4 (2 bills), Ex.A5(bunch of 41 bills) has not been disputed by the opposite parties. The total amount under Exs.A3 to A5 comes to Rs.3,55,530.60 rounded of to 3,55,531/-. The claim under ESI Act can be entertained to the extent of Rs.3 lakhs only. Therefore, reimbursement of reasonable expenses can only be awarded. Hence, the complainant is held entitled to a sum of Rs.3 lakhs but not the amount of Rs.8 lakhs as claimed by him. Accordingly the appeals are disposed of.

In the result F.A.No.813 of 2008 filed by the opposite parties no.1 to 3 and F.A.No.903 of 2008 filed by the complainant dismissed. The appeal F.A.No.859 of 2008 is allowed setting aside the impugned order to the extent of liability of opposite partyno.4. No costs.

CC.No.6 of 2008

BETWEEN:

G. Chandra Sekhara Rao,

S/o Joseph,

R/o D.No.14-170, Main Road,

Phirangipuram village & Mandal,

Guntur district. … Complainant

and

1. Kapil Chit Fund Private Limited,

Rep. by its Branch Manager,

D.No.22-4-96, Beside Chandana Brothers,

Zinna Tower Centre, Guntur-1.

2. Kapil Chit Funds Private Limited,

Central Office,

Rep. by its Managing Director,

Plot No.9, 1st floor,

Krishnapuri Colony, West Maredpalli,

Secunderabad. …Opposite Parties





This complaint is coming up before us for hearing on 24.11.2009 in the presence of Sri B.M.S. Kumar, advocate for complainant and of Sri K. Venkata Reddy, Advocate for 1st opposite party, 2nd opposite party remained absent and set exparte, upon perusing the material on record and after hearing both sides, having stood over till this day for consideration this Forum made the following:-

O R D E R

Per Sri M.V.L. Radhakrishna Murthy, Member::- The complaint is filed U/S 12 of Consumer Protection Act, 1986 by the complainant praying to pass an award for Rs.4,00,000/- against the opposite parties with costs of the complaint.

The averments of complaint in brief are as follows: The complainant joined as a subscriber on 24-08-07 for the chit value of Rs.2,00,000/- and paid Rs.5,000/- towards monthly subscription. The period of chit is for 40 months. OP1 stipulated time for auction on 25th of every month and issued a passbook in the name of complainant. Inspite of complainant’s repeated requests regarding auction, OP1 did not answer the complainant. The complainant sent some mediators to OP1 to know about the auction of the chit but the OP1 did not answer them. As per the rules and norms, on 25th of every month opposite party shall conduct auction. For 4 months from the date of joining by complainant the OP1 did not conduct any auction. Due to the act of OP1 complainant incurred loss of Rs.4,00,000/-. Hence, the complainant issued a registered notice dated 12-12-07 to opposite parties. The opposite parties acknowledged the same and did not reply. Hence, the complaint.

Counter filed on behalf of OP1 and the averments of the same in brief are as follows: It is true that complainant joined in chit in the month of August, 2007 for chit value of Rs.2,00,000/- payable in 40 instalments at Rs.5,000/- pm. OP1 informed the complainant that the chit auction will be commenced in the month of December, 2007 and voluntarily the complainant joined. The 1st auction date was fixed as 26-12-07 and all the subscribers are intimated through cards. The 1st auction intimation card was also sent to the complainant. Unless all subscribers in the chit group are filled up, no first auction will be conducted. OP1 conducted 1st auction on 26-12-08. Most of the subscribers were present and participated in the said auction. Complainant did not approach OP1 every month regarding the chit auction and he did not send any mediators to the OP1 to know about the date of auction. Every subscriber in the auction shall have right to participate in the auction. Complainant did not issue legal notice to opposite parties on 12-12-07 and the same was not acknowledged by the opposite parties. Hence, there is no question of reply by opposite parties. Hence, the complaint may be dismissed with costs.

Complainant filed affidavit in support of his version reiterating the same. Eventhough sufficient time was granted to opposite party for filing affidavit the OP1 did not file affidavit, hence affidavit of OP1 is forfeited.

On behalf of complainant Exs.A-1 to A-5 and on behalf of OP1 Exs.B-1 and B-2 are marked.

Ex.A-1 is the passbook issued to the complainant by OP showing that the complainant joined for the chit value of Rs.2,00,000/-. Ex.A-2 is the cash receipt for Rs.5,125/- dated 24-08-07. Ex.A-3 is the copy of registered notice with postal receipt got issued by the complainant to opposite parties 1 and 2. Ex.A-4 is the postal acknowledgement of OP1. Ex.A-5 is the cash receipt for Rs.100/- issued by OP1 towards stamp duty.

Ex.B-1 is the copy of chit agreement. Ex.B-2 is the copy of certificate of commencement of chit business in Form 3 along with bye laws and Form V.

Now the points for consideration is that,

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

2. To what relief, the complainant is entitled to?

Point No.1:- It is not in dispute that the complainant joined as subscriber in the chit value of Rs.2,00,000/- of opposite parties on 24-08-07 and paid an amount of Rs.5,000/- towards subscription and that OP1 conducted the 1st auction on 26-12-08. Admittedly, OP1 has not conducted auction every month after complainant joined as subscriber. The auction was conducted after 4 months from the date of joining of complainant as subscriber. It is the case of the complainant inspite of his repeated demands, the OP1 has not intimated the date of commencement of auction and thereby he suffered loss of Rs.4,00,000/- in his business.

It is the case of the opposite party that unless all the subscribers in the chit group are filled up, the 1st auction cannot be conducted. Complainant issued a registered notice under Ex.A-3/12-12-07 to the opposite parties which was acknowledged by OP1 under Ex.A-4 but the opposite party did not choose to give reply to the complainant. Moreover, it was contended by OP1 that the complainant has not given any registered notice and hence giving reply notice there of does not arise.

As seen from Ex.A-3 copy of registered notice it clearly shows that OP1 has not intimated the date of commencement of auction of the chit inspite of demands made by him and thereby the complainant suffered mental agony. Even though the complainant had joined in the chit in the month of August, 2007 the 1st auction was not conducted for a period of 4 months, it clearly shows that there is deficiency of service on the part of opposite parties and due to the said act of opposite parties the complainant suffered mental agony. Accordingly, this issue is answered in favour of complainant.

POINT No.2:- In the result, the complaint is allowed in part in terms as indicated below:

1. The opposite parties are hereby directed to refund Rs.5,000/- paid by the complainant towards subscription with interest @9% p.a., from 24-08-07 till the date of realization.
2. The opposite parties are further directed to pay Rs.1000/- towards compensation and Rs.500/- towards legal expenses to complainant.
3. The amounts ordered above shall be paid within a period six weeks from the date of receipt of copy of the order, failing which the amounts ordered in Item No.2 shall carry interest @ 9% p.a. till the date of realization.


Dictated to steno typist, transcribed by her, corrected by me and pronounced in the open Forum dated this the 27th day of November, 2009.

CC.No.6 of 2008
BETWEEN:
G. Chandra Sekhara Rao,

S/o Joseph,

R/o D.No.14-170, Main Road,

Phirangipuram village & Mandal,

Guntur district. … Complainant

and

1. Kapil Chit Fund Private Limited,

Rep. by its Branch Manager,

D.No.22-4-96, Beside Chandana Brothers,

Zinna Tower Centre, Guntur-1.

2. Kapil Chit Funds Private Limited,

Central Office,

Rep. by its Managing Director,

Plot No.9, 1st floor,

Krishnapuri Colony, West Maredpalli,

Secunderabad. …Opposite Parties


This complaint is coming up before us for hearing on 24.11.2009 in the presence of Sri B.M.S. Kumar, advocate for complainant and of Sri K. Venkata Reddy, Advocate for 1st opposite party, 2nd opposite party remained absent and set exparte, upon perusing the material on record and after hearing both sides, having stood over till this day for consideration this Forum made the following:-


O R D E R

Per Sri M.V.L. Radhakrishna Murthy, Member::- The complaint is filed U/S 12 of Consumer Protection Act, 1986 by the complainant praying to pass an award for Rs.4,00,000/- against the opposite parties with costs of the complaint.

The averments of complaint in brief are as follows: The complainant joined as a subscriber on 24-08-07 for the chit value of Rs.2,00,000/- and paid Rs.5,000/- towards monthly subscription. The period of chit is for 40 months. OP1 stipulated time for auction on 25th of every month and issued a passbook in the name of complainant. Inspite of complainant’s repeated requests regarding auction, OP1 did not answer the complainant. The complainant sent some mediators to OP1 to know about the auction of the chit but the OP1 did not answer them. As per the rules and norms, on 25th of every month opposite party shall conduct auction. For 4 months from the date of joining by complainant the OP1 did not conduct any auction. Due to the act of OP1 complainant incurred loss of Rs.4,00,000/-. Hence, the complainant issued a registered notice dated 12-12-07 to opposite parties. The opposite parties acknowledged the same and did not reply. Hence, the complaint.

Counter filed on behalf of OP1 and the averments of the same in brief are as follows: It is true that complainant joined in chit in the month of August, 2007 for chit value of Rs.2,00,000/- payable in 40 instalments at Rs.5,000/- pm. OP1 informed the complainant that the chit auction will be commenced in the month of December, 2007 and voluntarily the complainant joined. The 1st auction date was fixed as 26-12-07 and all the subscribers are intimated through cards. The 1st auction intimation card was also sent to the complainant. Unless all subscribers in the chit group are filled up, no first auction will be conducted. OP1 conducted 1st auction on 26-12-08. Most of the subscribers were present and participated in the said auction. Complainant did not approach OP1 every month regarding the chit auction and he did not send any mediators to the OP1 to know about the date of auction. Every subscriber in the auction shall have right to participate in the auction. Complainant did not issue legal notice to opposite parties on 12-12-07 and the same was not acknowledged by the opposite parties. Hence, there is no question of reply by opposite parties. Hence, the complaint may be dismissed with costs.

Complainant filed affidavit in support of his version reiterating the same. Eventhough sufficient time was granted to opposite party for filing affidavit the OP1 did not file affidavit, hence affidavit of OP1 is forfeited.

On behalf of complainant Exs.A-1 to A-5 and on behalf of OP1 Exs.B-1 and B-2 are marked.

Ex.A-1 is the passbook issued to the complainant by OP showing that the complainant joined for the chit value of Rs.2,00,000/-. Ex.A-2 is the cash receipt for Rs.5,125/- dated 24-08-07. Ex.A-3 is the copy of registered notice with postal receipt got issued by the complainant to opposite parties 1 and 2. Ex.A-4 is the postal acknowledgement of OP1. Ex.A-5 is the cash receipt for Rs.100/- issued by OP1 towards stamp duty.

Ex.B-1 is the copy of chit agreement. Ex.B-2 is the copy of certificate of commencement of chit business in Form 3 along with bye laws and Form V.

Now the points for consideration is that,

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

2. To what relief, the complainant is entitled to?

Point No.1:- It is not in dispute that the complainant joined as subscriber in the chit value of Rs.2,00,000/- of opposite parties on 24-08-07 and paid an amount of Rs.5,000/- towards subscription and that OP1 conducted the 1st auction on 26-12-08. Admittedly, OP1 has not conducted auction every month after complainant joined as subscriber. The auction was conducted after 4 months from the date of joining of complainant as subscriber. It is the case of the complainant inspite of his repeated demands, the OP1 has not intimated the date of commencement of auction and thereby he suffered loss of Rs.4,00,000/- in his business.

It is the case of the opposite party that unless all the subscribers in the chit group are filled up, the 1st auction cannot be conducted. Complainant issued a registered notice under Ex.A-3/12-12-07 to the opposite parties which was acknowledged by OP1 under Ex.A-4 but the opposite party did not choose to give reply to the complainant. Moreover, it was contended by OP1 that the complainant has not given any registered notice and hence giving reply notice there of does not arise.

As seen from Ex.A-3 copy of registered notice it clearly shows that OP1 has not intimated the date of commencement of auction of the chit inspite of demands made by him and thereby the complainant suffered mental agony. Even though the complainant had joined in the chit in the month of August, 2007 the 1st auction was not conducted for a period of 4 months, it clearly shows that there is deficiency of service on the part of opposite parties and due to the said act of opposite parties the complainant suffered mental agony. Accordingly, this issue is answered in favour of complainant.


POINT No.2:- In the result, the complaint is allowed in part in terms as indicated below:

1. The opposite parties are hereby directed to refund Rs.5,000/- paid by the complainant towards subscription with interest @9% p.a., from 24-08-07 till the date of realization.
2. The opposite parties are further directed to pay Rs.1000/- towards compensation and Rs.500/- towards legal expenses to complainant.
3. The amounts ordered above shall be paid within a period six weeks from the date of receipt of copy of the order, failing which the amounts ordered in Item No.2 shall carry interest @ 9% p.a. till the date of realization.

Dictated to steno typist, transcribed by her, corrected by me and pronounced in the open Forum dated this the 27th day of November, 2009.

CC.No.6 of 2008

BETWEEN:

G. Chandra Sekhara Rao,

S/o Joseph,

R/o D.No.14-170, Main Road,

Phirangipuram village & Mandal,

Guntur district. … Complainant

and



1. Kapil Chit Fund Private Limited,

Rep. by its Branch Manager,

D.No.22-4-96, Beside Chandana Brothers,

Zinna Tower Centre, Guntur-1.

2. Kapil Chit Funds Private Limited,

Central Office,

Rep. by its Managing Director,

Plot No.9, 1st floor,

Krishnapuri Colony, West Maredpalli,

Secunderabad. …Opposite Parties





This complaint is coming up before us for hearing on 24.11.2009 in the presence of Sri B.M.S. Kumar, advocate for complainant and of Sri K. Venkata Reddy, Advocate for 1st opposite party, 2nd opposite party remained absent and set exparte, upon perusing the material on record and after hearing both sides, having stood over till this day for consideration this Forum made the following:-



O R D E R



Per Sri M.V.L. Radhakrishna Murthy, Member::- The complaint is filed U/S 12 of Consumer Protection Act, 1986 by the complainant praying to pass an award for Rs.4,00,000/- against the opposite parties with costs of the complaint.

The averments of complaint in brief are as follows: The complainant joined as a subscriber on 24-08-07 for the chit value of Rs.2,00,000/- and paid Rs.5,000/- towards monthly subscription. The period of chit is for 40 months. OP1 stipulated time for auction on 25th of every month and issued a passbook in the name of complainant. Inspite of complainant’s repeated requests regarding auction, OP1 did not answer the complainant. The complainant sent some mediators to OP1 to know about the auction of the chit but the OP1 did not answer them. As per the rules and norms, on 25th of every month opposite party shall conduct auction. For 4 months from the date of joining by complainant the OP1 did not conduct any auction. Due to the act of OP1 complainant incurred loss of Rs.4,00,000/-. Hence, the complainant issued a registered notice dated 12-12-07 to opposite parties. The opposite parties acknowledged the same and did not reply. Hence, the complaint.

Counter filed on behalf of OP1 and the averments of the same in brief are as follows: It is true that complainant joined in chit in the month of August, 2007 for chit value of Rs.2,00,000/- payable in 40 instalments at Rs.5,000/- pm. OP1 informed the complainant that the chit auction will be commenced in the month of December, 2007 and voluntarily the complainant joined. The 1st auction date was fixed as 26-12-07 and all the subscribers are intimated through cards. The 1st auction intimation card was also sent to the complainant. Unless all subscribers in the chit group are filled up, no first auction will be conducted. OP1 conducted 1st auction on 26-12-08. Most of the subscribers were present and participated in the said auction. Complainant did not approach OP1 every month regarding the chit auction and he did not send any mediators to the OP1 to know about the date of auction. Every subscriber in the auction shall have right to participate in the auction. Complainant did not issue legal notice to opposite parties on 12-12-07 and the same was not acknowledged by the opposite parties. Hence, there is no question of reply by opposite parties. Hence, the complaint may be dismissed with costs.

Complainant filed affidavit in support of his version reiterating the same. Eventhough sufficient time was granted to opposite party for filing affidavit the OP1 did not file affidavit, hence affidavit of OP1 is forfeited.

On behalf of complainant Exs.A-1 to A-5 and on behalf of OP1 Exs.B-1 and B-2 are marked.

Ex.A-1 is the passbook issued to the complainant by OP showing that the complainant joined for the chit value of Rs.2,00,000/-. Ex.A-2 is the cash receipt for Rs.5,125/- dated 24-08-07. Ex.A-3 is the copy of registered notice with postal receipt got issued by the complainant to opposite parties 1 and 2. Ex.A-4 is the postal acknowledgement of OP1. Ex.A-5 is the cash receipt for Rs.100/- issued by OP1 towards stamp duty.

Ex.B-1 is the copy of chit agreement. Ex.B-2 is the copy of certificate of commencement of chit business in Form 3 along with bye laws and Form V.

Now the points for consideration is that,

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

2. To what relief, the complainant is entitled to?


Point No.1:- It is not in dispute that the complainant joined as subscriber in the chit value of Rs.2,00,000/- of opposite parties on 24-08-07 and paid an amount of Rs.5,000/- towards subscription and that OP1 conducted the 1st auction on 26-12-08. Admittedly, OP1 has not conducted auction every month after complainant joined as subscriber. The auction was conducted after 4 months from the date of joining of complainant as subscriber. It is the case of the complainant inspite of his repeated demands, the OP1 has not intimated the date of commencement of auction and thereby he suffered loss of Rs.4,00,000/- in his business.

It is the case of the opposite party that unless all the subscribers in the chit group are filled up, the 1st auction cannot be conducted. Complainant issued a registered notice under Ex.A-3/12-12-07 to the opposite parties which was acknowledged by OP1 under Ex.A-4 but the opposite party did not choose to give reply to the complainant. Moreover, it was contended by OP1 that the complainant has not given any registered notice and hence giving reply notice there of does not arise.

As seen from Ex.A-3 copy of registered notice it clearly shows that OP1 has not intimated the date of commencement of auction of the chit inspite of demands made by him and thereby the complainant suffered mental agony. Even though the complainant had joined in the chit in the month of August, 2007 the 1st auction was not conducted for a period of 4 months, it clearly shows that there is deficiency of service on the part of opposite parties and due to the said act of opposite parties the complainant suffered mental agony. Accordingly, this issue is answered in favour of complainant.

POINT No.2:- In the result, the complaint is allowed in part in terms as indicated below:

1. The opposite parties are hereby directed to refund Rs.5,000/- paid by the complainant towards subscription with interest @9% p.a., from 24-08-07 till the date of realization.
2. The opposite parties are further directed to pay Rs.1000/- towards compensation and Rs.500/- towards legal expenses to complainant.
3. The amounts ordered above shall be paid within a period six weeks from the date of receipt of copy of the order, failing which the amounts ordered in Item No.2 shall carry interest @ 9% p.a. till the date of realization.

Dictated to steno typist, transcribed by her, corrected by me and pronounced in the open Forum dated this the 27th day of November, 2009.

thank you so much for the suggestion.really valuable information!

C.C.No.78/2009

Between

Chirutanuru Muni Prasad,

S/o. C. Ramachandra Pillai,

Hindu, aged about 39 years

Residing at D.No.12/94, Bhadurpet,

Srikalahasti, Presently residing at D.No.16/227,

Shanawaz Street, Subash Road,

Madanapalli, Chitoor District. … Complainant

And

Kapil Chit Funds Private Limited,

Rep. by its Branch Manager,

Holding place of business at D.No.4-31, Car Street,

Srikalahasti, Chittoor District. … Opposite party

This complaint coming on before us for final hearing on 08.01.2010 and upon perusing the complaint, written version and other relevant material papers on record and on hearing Sri N. Hari Babu, counsel for the complainant and Sri. K. Ramesh Babu, counsel for the opposite party and having stood over till this day for consideration, the Forum made the following:-

ORDER

DELIVERED BY SRI. G.V. RAGHAVULU, PRESIDENT

ON BEHALF OF THE BENCH



This complaint is filed under Sections12 and 14 of Consumer Protection Act, 1986 to pass an order directing the opposite party to furnish the fixed deposit particulars for a sum of Rs.10,000/- or to pay an amount of Rs.10,000/- with interest at 12 per annum from November, 2007 till the date of payment, to pay Rs.25,000/- towards damages / compensation for the mental agony and suffering, to furnish the statement of account of the complainant’s chit group and to pay the costs of Rs.1,000/- to the complainant.

2. The averments of the complaint in brief are: The complainant at the request of the agent of the opposite party agreed to subscribe in chit bearing No. SHLO IF/34 for chit value of Rs.1,00,000/-. The opposite party collected Rs.2,500/- from the complainant towards first installment on 13.09.2006. From the date of commencement of the chit, the complainant has been paying the installments regularly. In the month of October, 2007, the opposite party called the complainant and told him that he was the bidder for the month of October, 2007 by way of lottery system, though he did not participate in the auction. The complainant was told that out of Rs.1,00,000/-, he has to forego Rs.40,000/- and after deduction of the commission, the complainant will receive Rs.57,900/- out of Rs.60,000/- At the time of commencement of the chit, the opposite party represented that the complainant will have to forego 35% maximum discount including 5% commission in the chit value but the opposite party deducted 40% commission. The opposite party did not even pay the said amount of Rs.57,900/- but paid only Rs.47,900/- by way of cheque after the complainant furnished independent guarantors for due payment of future installments. The opposite party represented that the remaining amount of Rs.10,000/- will be kept in fixed deposit in Indian Bank in the name of the complainant. In spite of repeated demands by the complainant, the opposite party did not furnish the particulars of the fixed deposit. The complainant came to know about the fraud played by the opposite party in representing that he became auction bidder and convinced to receive the chit amount though, one Purushotham became bidder in lucky dip in the month of October, 2007. In spite of payment of installments regularly, the agents of the opposite party used to telephone the complainant and his wife and harass them for the due installments. The opposite party was also sending due notices to the guarantors. Due to which not only the complainant but also guarantors suffered like anything. In the month of June, 2008, the complainant shifted his residence from Srikalahasthi to Madanpalle and at the request of respective Managers of the opposite party, he has been depositing the installment amounts in their account towards the chit. There is gross deficiency of service on the part of the opposite party towards the complainant. Hence, the complaint.

3. The opposite party resisted the complaint. In the objections filed on behalf of the opposite party, while denying the allegations made in the complaint, it is stated that the commencement of chit No. SHLO IF /34 was postponed from November, 2006 to January, 2007 as per the amendment for chit commencement issued by the Registrar of Chit. The lucky dip in favour of the complainant is to the knowledge of the complainant and he has also signed in the letter of acceptance and minutes duly intimating the proceedings dated 27.07.2007. The complainant is entitled to receive Rs.57,900/- out of Rs.1,00,000/- after foregoing a sum of Rs.40,000/- and deducting the chit commission to a sum of Rs.5,000/-, verification charges of Rs.225.- and adjustment of one installment amount of a sum of Rs.1,875/-. For the said amount of Rs.57,900/-, the opposite party issued cheque bearing No. IB836138 for Rs.47,900/- and another cheque bearing No. IB836139 for a sum of Rs.10,000/-. Evidencing the said payment, the complainant signed in the cash voucher. As he failed to furnish the requisite sureties, the complainant deposited the cheque for Rs.10,000/- with Silpa Shelters Ltd., for 24 months with a maturity date 22.11.2009 with accrued interest in his name. The complainant also accepted for the said proposal for by way of his letter. The complainant was not a regular customer. The complainant by way of letter submitted that he committed default and he became lucky bidder in the month of July, 2007. In the said letter, the complainant stated that he is depositing a sum of Rs.10,000/- and undertook to take back the said cheque after submitting third party post dated cheques. As he failed to furnish the sureties or post dated cheques as undertaken, the complainant has no other option except to keep the F.D. as security until the entire installments are paid as lein. Unless and until the complainant paid the entire chit installment as per the terms of the chit agreement in time, the original F.D. cannot be given to the complainant as the same was kept as security for repayment of future liability subject to installments. The endorsement of lien to the chit is also clearly mentioned in the F.D.R. As such, the complainant is not justified in coming up with the complaint for payment of the said amount of Rs.10,000/- without the installments being completed. There is no deficiency of service on the part of the opposite party. The claim for damages of Rs.25,000/- is not legal. The complainant is not entitled to the reliefs sought for. The complaint is liable to be dismissed with costs.

4. To prove his case, the complainant filed his affidavit evidence and got marked Exs.A1 to A6. Ex.A1 is pass book for chit bearing No. SHLO IF/34 issued by the opposite party in the name of the complainant. Ex.A2 is the Xerox copy of savings bank account of complainant in State Bank of India, Srikalahasthi branch. Ex.A3 is notice dated 08.07.2009 sent to the guarantor of the complainant by the opposite party. Ex.A4 is bunch of counter foils of pay in slips for the amounts deposited in State Bank of India and ING Vysya Bank, Madanapalle. Ex.A5 is office copy of legal notice dated 15.06.09 got issued by the complainant to the opposite party. Ex.A6 is the postal acknowledgement of opposite party for Ex.A5 notice.

5. In support of the case set up in the objections, the Branch Manager of opposite party filed his affidavit evidence and got marked Exs. B1 to B8. Ex.B1 is Xerox copy of Bye-laws of opposite party’s chit fund company. Ex.B2 is Xerox copy of agreement of chit dated 24.01.2007 entered between the complainant and Foreman of opposite party. Ex.B3 is Xerox copy of amendment of chit proceedings of bye-law No.128/2005-06. Ex.B4 is Xerox copy of payment details of prize money signed by the complainant. Ex.B5 is Xerox copy of minutes of proceedings of the chit bearing No. SLO IF /34. Ex.B6 is Xerox copy of two letters of complainant addressed to the opposite party. Ex.B7 is Xerox copy of Fixed Deposit particulars. Ex.B8 is computerized statement of account of complainant in respect of chit group ticket No. SHLO IF 34.

6. On behalf of both sides, written arguments were filed and we have heard the oral arguments of counsel of both sides.

7. On the basis of the pleadings of both sides, the points that arise for consideration are :

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

2. Whether the complainant is entitled to the reliefs as prayed, if so to

what extent ?

3. To what result?

8. Point No.1 : The brief facts of the case are: The complainant joined as member of chit group bearing No. SHLO IF 34 for chit value of Rs.1,00,000/- payable in 40 monthly installments at the rate of Rs.2,500/- per month. The opposite party issued Ex.A1 pass book in the name of the complainant on 13.09.2006. However, the chit was commenced from January, 2007. The complainant and Foreman of opposite party entered into the original of Ex.B2, chit agreement on 24.01.2007. The complainant became lucky bidder in the month of October, 2007 in lucky dip agreeing to forego Rs.40,000/-. After deducting commission of Rs.5,000/-, verification charges of Rs.225/- and adjustments of one installment amount of Rs.1,875/-, totaling to Rs.42,100/-, the opposite party had to pay Rs.57,900/- to the complainant. The opposite party paid Rs.47,900/- by way of cheque and the remaining Rs.10,000/- was kept in fixed deposit with Silpa Shelters Limited on 20.11.2007. The complainant executed Ex.B6 letter stating that he could not pay two installments in time due to ill-health and hence he is depositing Rs.10,000/-. The opposite party sent Ex.A3 notice dated 08.07.2009 to the guarantor of the complainant informing that a total amount of Rs.6,861/- with penalty of Rs.431/- towards four installments is due and demanded to pay the said amount. The complainant shifted his residence from Srikalahasthi to Madanapalle. He deposited amount in State Bank of India and ING Vysya Bank, Madanapalle in the names of the managers of the opposite party towards the installment amounts. The complainant got issued Ex.A5 legal notice calling upon the opposite party to furnish the statement of account and fixed deposit particulars. The complainant filed complaint on 16.09.2009.

9. The main contention of the complainant is that out of the prize amount of Rs.57,900/-, the opposite party paid only Rs.47,900/- and the opposite party having promised to deposit the amount of Rs.10,000/- in fixed deposit in Indian Bank, failed to furnish the particulars of fixed deposit inspite of repeated demands. The opposite party filed Ex.B7 to show that the amount of Rs.10,000/- was kept in fixed deposit with Silpa Shelters Limited. Ex.B7 shows that the complainant himself filled the particulars and signed the same on 20.11.2007. Therefore, the plea of the complainant that the opposite party failed furnish the particulars of fixed deposit cannot be believed and accepted. The next contention of the complainant is that since the date of commencement of chit, he has been paying the installments regularly. The complainant with his own hand executed Ex.B6 letter admitting that due to ill health, he could not pay installments of two months in time. The opposite party sent Ex.A3 notice to the guarantor of the complainant informing that the total amount of Rs.6,861/- towards four installments is due. The opposite party filed Ex.B8 statement of account which shows that an amount of Rs.24,048/- is still due from the complainant. The complainant ought to have approached the opposite party and got the amounts deposited by him in the name of the Manager of the opposite party at Madanapalle entered in Ex.A1 pass book. The opposite party furnished the fixed deposit particulars and account copy. On perusing the evidence adduced by the both sides, we are of the view that there is absolutely no deficiency in service on the part of the opposite party towards the complainant. On the other hand, the documentary evidence adduced by the opposite party discloses that the complainant committed default in payment of installments and still an amount of Rs.24,048/- is due from him. For the above reasons, we find that there is not deficiency in service on the part of the opposite party towards the complainant. This point is accordingly answered against the complainant.

10. Point No.2:- In view of our finding on Point No.1, the complainant is not entitled to any relief. This point is accordingly answered.

11. Point No.3:- In the result, the complaint is dismissed, but without costs.

Typed to dictation by the stenographer, corrected by me and pronounced in the Open Forum this the 25th day of January, 2010.

sir,
it is to inform that kapil chit fund company ,AshokNagar branch,Hyderabad has deducted an amount of Rs 1500 towards kapil health club membership without my consent . These people are cheating the public in this way.
hence i request you to kindly give me a suggestion in this regard
thanks

CURRICULAM VITAE

KATAM.ANJALI  : +91-9059890271,
 : anjali.indra.katam@gmail.com


CAREER OBJECTIVE:

To serve a dynamic organization which enhance my commitment towards work where I can apply my knowledge and skills to pave a step ahead in the path of success of the company as well as for me.

EDUCATIONAL QUALIFICATIONS:

Qualification School/College Board/University Year of
Passing %
M.Com New Science Degree & PGCollege, Hanamakonda Kakatiya University 2008-10 65%
B.Com Vaagdevi Degree & PG College Kakatiya University 2005-08 54%
Intermediate M.R.Reddy JR College, Parkal, Warangal Board Of Intermediate Education 2003-05 50%
S.S.C Bharathi Ashrama High School, Lingala ‘X’ Road Board Of Secondary School 2002-03 76%



TECHNICAL SKILLS:

1. Accounting Packages : Tally 6.3 / 7.2 / 9.0 , Wings, Focus, Busy
2. Operating Systems : Windows XP, 98 , 2000.
3. Software Packages : MS Office.


STRENGTHS:

1. Smart work.
2. Positive attitude.
3. Self confidence.
4. Good communication Skills.
5. Can convince and motivate others.


INTERESTS & ACHIEVEMENTS:

1. Listening to music.
2. Strong desire to learn new things.

PERSONAL PROFILE:

Father’s Name : Mr. Raji Reddy
Date of Birth : 12th June 1988
Gender : Female
Marital Status : Married
Languages Known : English, Telugu
Nationality : Indian
Permanent Address : C/o Indrasena Reddy
Jublinagar(village),
Regonda(mandal),
Warangal(district),
Andhra Pradesh.


DECLARATION:
I hereby declare that all the above particulars furnished are correct and true to the best of my knowledge.



Date:
Place: (KATAM.ANJALI)