C.C.No.168 OF 2009.
Date of filing: 24.08.2009.
Between :

K. Lakshmi, W/o. K.V.V.Nageswara Rao, Business and Properties, residing at Door No.31-13-5, Pothinenivari Street, Machavaram, Vijayawada – 520 004.

….. Complainant.

And
1. M/s. Gudivada Finance & Chit Fund (P) Limited, represented by its Foreman & Managing Director, Surapaneni Venkata Narayana Prasad, registered office at Door No.27-1-53, Eluru Road, Vijayawada – 2. Krishna District.

2. Sri Surapaneni Venkata Narayana Prasad, Managing Director, M/s. Gudivada Finance & Chit Fund (P) Limited, registered office at Door No.27-1-53, Eluru Road, Vijayawada – 2, Krishna District.

3. Sri S.Raghavendra Rao, Director, M/s. Gudivada Finance & Chit Fund (P) Limited, registered office at Door No.27-1-53, Eluru Road, Vijayawada - 2, Krishna District.

….. Opposite Parties.

This complaint is coming before us for final hearing on 06.01.2010 in the presence of Sri Somu Krishna Murthy, Advocate for complainant and Sri G.Rama Chandra Rao, Advocate for opposite parties 1, 2 and 3 and having stood over for consideration till this day, the Forum doth order the following:

ORDER

This complaint is under section 12 of the Consumer Protection Act, 1986.
1. The averments of the complaint in nut shell are as follows:

That the complainant joined as one of the subscribers of Chit Group BSD 15 with Ticket No.3 maintained by the opposite parties. The value of the chit was Rs.5,00,000/- and monthly instalment was Rs.20,000/-, period 25 months. The complainant paid 24 monthly isntalments regularly but she did not participate in any auction. After 24 months the opposite parties approached the complainant and promised her that they would pay the chit amount deducting the 25th instalment. Believing the words of the opposite parties the complainant waited and waited but of no avail, so she approached the opposite parties many a time but of no avail, so the complainant got issued legal notice to the opposite parties on 10.07.2009, though received, the opposite parties kept mum. Hence the complaint.

2. The 1st opposite party filed version which was adopted by the opposite parties 2 and 3, they interalia admitted the averments of the complainant but contended that some deposits are lying with Chit Registrar and that the company (opposite parties) are not in a position to pay the chit amount to the complainant because the subscribers who participated in the bid failed to pay the instalments and that the opposite parties are intending to file a petition before the Hon’ble High Court for liquidation and that the same is known to the complainant yet, the complainant filed this complaint unnecessarily and prayed to dismiss the complaint with costs.

3. On behalf of the complainant the complainant herself filed an affidavit and got marked Exhibits A1 to A7. On behalf of the opposite parties Sri Surapaneni Venkata Narayana Prasad filed an affidavit and no documents are marked.

4. Heard the counsel for all.

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

i) Whether there was deficiency in service on the part of the opposite parties?

ii) To what relief the complainant is entitled?

6. Point No.1: Before adverting to the rival contentions it is better to analise the material on hand. As far as the plea of the complainant is concerned, there is no doubt and dispute that she joined as one of the members in the chit group BSD 15-03 maintained by the opposite parties and that a pass book was also given to the complainant wherein the monthly payment, value of the chit, duration etc., was noted (Exhibit A1) and that the complainant paid 24 instalments and Exhibit A7 is clear to that effect. In fact the opposite parties have not denied the payment of instalments by the complainant and that the complainant approached the opposite parties but her attempts and efforts in recovering of the chit amount became futile, so she got issued legal notice (original of Exhibit A3) and that the opposite parties received vide Exhibits A4 to A6 but they failed to reply and also failed to comply the demand of the complainant. The only defense or plea of the opposite parties is that the company (opposite parties) are not in a position to pay the chit amount to the complainant because the opposite parties failed to collect the chit arrears etc., which is not at all a ground to be accepted or to be considered. That apart it is the first and foremost duty of the opposite parties is to fulfill their obligation by paying the chit amount to all the subscribers and to collect the arrears if any from the members of the chit by legal means etc., but here in this case the plea of the opposite parties is that they are lacking money and that they intend to approach the Hon’ble High Court for liquidation etc., is not at all a ground to be accepted. But as per the material on hand, it clearly show that the complainant paid 24 monthly instalments and so she is entitled for the relief claimed and that the acts of the opposite parties clearly falls within the purview of deficiency in service as they failed to pay the chit amount to the complainant in spite of several approaches that to after completion of chit period and also failed to reply and comply to the legal notice got issued by the complainant, so no need to discuss further and so this point is answered in favour of the complainant and against the opposite parties.



7. Point No.2: In the result the complaint is allowed and the opposite parties 1 to 3 (jointly and severally) were directed to pay an amount of Rs.6,85,420/- (Rupees Six Lakhs Eighty Five Thousand Four Hundred and Twenty) only to the complainant and do pay Rs.2,000/- (Rupees Two Thousand) only towards costs. Rest of the claims if any claimed by the complainant are rejected. Time for compliance one month. If the opposite parties fails to comply the order of this Forum within the stipulated period the awarded amount carries interest @ 12% per annum from the date of the order till the date of payment.