BEFORE THE DISTRICT FORUM CONSTITUTED UNDER THE CONSUMER PROTECTION ACT (ACT NO. 68 OF 86) AT SRIKAKULAM


P R E S E N T

01. Sri P.Gurunadha Rao,
President, District Consumer Forum,
Srikakulam
02.Smt. D.Raj Kumari, B.A.(Hons.), B.L.,
Lady Member.
03. Sri K.Siva Rama Krishna, B.L.,
Male Member.

Dated this the 30th day of March, 2009

C.D.No.22 / 2008


BETWEEN:

P.Suresh Kumar, S/o.Durga Rao, aged 25 years, Business, Veeragattam
Town and Mandal, Srikakulam District. ...Complainant.

AND:

01) Nischala Chit Fund Pvt.Ltd., represented by its Managing Director, Sri V.Nagesh Babu,
S/o.not known, aged about 40 years, Head Officer, Gandhi Chowk Tenali.
02) Nischala Chit Fund Pvt.Ltd., represented by the Branch Manager, Sri L.Appalanaidu,
S/o. not known, aged about 38 years, GR complex, Kota Junction, Vizianagaram,
Vizianagaram District.
03) District Registrar –Chits, Department of Registration of A.P.State, Vizianagaram. …opposite parties.

This complaint coming on 20-02-2009 for final hearing before us in the presence of Sri S.Ramesh and G.Visalakshi, Advocates for complainant and Sri G.S.K.Prasad, Advocate for opposite party No.1 and Sri J.Appalanaidu, Advocate for opposite party No. 2 and Sri A.Murali Mohana Rao, Government Pleader for opposite party No.3 and having stood over to this day for consideration, this Forum made the following:
O R D E R
This is a complaint filed under Section 12 of the Consumer Protection Act, 1986 and facts of the case briefly are as follows:
Complainant is a resident of Veeragattam in Srikakulam district. Opposite party Nos.1 and 2 are doing chit fund business. Their Agent came down to Veeragattam and induced the complainant to subscribe for the chit launched by opposite party Nos.1 and 2. Complainant had paid 38 installments out of 40 installments and he could not pay the remaining two installments because the agent of the opposite parties did not turn up to collect the installments from the complainant. The chit came to an end by July, 2007. It is revealed that the opposite parties closed their office and cheated the complainant. Hence complaint is filed for a direction to the opposite parties to pay an amount of Rs.95,000/- with interest at the rate of 24% per annum and compensation of Rs.25,000/- and costs of Rs.10,000/-.
2) Opposite party Nos.1 and 2 filed counter stating that the complainant was irregular and defaulter in paying installments. It is further stated that the complainant had failed to pay the last two installments.
3) No relief is claimed against opposite party No.3. Opposite party No.3 filed counter stating that the security amount deposited by the Foreman of the chit will not be released until all the claims of the subscribers are completely satisfied.


4) Both parties filed affidavits. Exs.A1 to A15 are marked on behalf of the complainant. No documents are marked on behalf of the opposite parties.
Heard both parties.
Point for consideration is:
Whether there is deficiency in service on the part of opposite party Nos.1 and 2.
5) Point:
Opposite party Nos.1 and 2 have admitted in their counter that the complainant had paid all the installments except the last two installments. According to the complainant, the chit came to an end by July, 2007. Complainant is claiming the installments amount he paid i.e, Rs.95,000/- only, but not dividends or bonus. There may not be any objection for the opposite parties to pay the amount paid by the complainant i.e, Rs.95,000/- to the complainant, but the opposite parties had not paid the same to the complainant immediately after the chit came to end in July, 2007. We therefore hold that there is deficiency in service on the part of opposite party Nos.1 and 2. Hence we answer the point accordingly.
In the result, complaint is allowed. Opposite parties 1 and 2 are directed to pay Rs.95,000/- (Rupees ninety five thousand only) to the complainant with interest at the rate of 12% per annum from the date of filing the complaint i.e., 16-2-2008 till the date of payment and costs of Rs.1,000/- (Rupees one thousand only). Advocate’s fee is fixed at Rs.1,000/- (Rupees one thousand only).
Dictated to the Shorthand Writer, transcribed by him, corrected and pronounced by us in open Forum on this the 30th day of March, 2009.