18th day of December 2024
CC 435/22 filed on 03/10/22
Complainant : Nishanth K.S., Kundoly House, Ayyanthole P.O.,
Thrissur – 680 003.
(By Adv. A.D. Benny, Thrissur)
Opposite Party : Subscribers Chits Pvt. Ltd.,
Rep. by Managing Director, 38/2157, 2nd Floor,
Presidency Shopping Complex, Parayil Lane,
M.G. Road, Poothole P.O., Thrissur – 680 004.
(Ex-parte )
O R D E R
By Sri. C.T. Sabu, President :
1. The facts of the case in brief, are as follows:
The complainant subscribed to the "Fourth Day PoovalKuri" under Chit No. 1 with Ticket No. 207 from the opposite party company, commencing on November 4, 2005. The total sala of the chit was ₹1,50,000/- (Rupees One lakh fifty thousand only). On March 14, 2011, the complainant auctioned the chit for ₹60,000/- (Rupees Sixty thousand only) and deposited the auctioned amount with the opposite party company. The complainant opted to pay the chit instalments using the interest accrued on the deposit. However, the opposite party failed to provide a receipt for the deposited amount.
Upon completion of the chit on March 4, 2022, the complainant approached the opposite party to withdraw the deposit amount. Despite repeated requests, the opposite party neither refunded the deposited amount nor provided a statement detailing the financial transactions related to the chit. The complainant also issued a legal notice, but no resolution was achieved.
The actions of the opposite party constitute a deficiency in service and unfair trade practices. Therefore, the complainant prays the Commission to direct the opposite party to:
- Refund the original deposit of ₹60,000/- along with 12% interest from March 1, 2022, until the date of payment.
- Pay ₹25,000/- as compensation for mental agony and inconvenience caused.
- Reimburse the cost of this complaint.
2. On receiving the complaint, proper notice was sent to the opposite party. The opposite party appeared before the Commission through counsel but failed to file a version. Hence, the opposite party was set as ex-parte, and the case was posted for the complainant's evidence.
3. When the case came for evidence, the complainant filed a proof affidavit in which he affirmed and explained all the averments in tune with the complaint. The complainant produced four documents marked as Exts. A1 to A4. Ext. A1 is the 4th Day Pooval Kuri Navami Chit Pass Book (Original), Ticket No.207 issued by the opposite party to the complainant. Ext. A2 is the Kuri Collection Receipt No. 5206 dtd. 14/03/2011, instalment No.17 of Rs.1758/- issued by the opposite party. Ext. A3 is the copy of lawyer notice dtd. 22/07/22 sent by the complainant to the opposite party. Ext. A4 is the Postal Acknowledgment card.
4. The complainant has substantiated their diligent payment of instalments up to the auction by producing the Kuri passbooks (Ext. A2). These records unequivocally establish the complainant's adherence to the scheme's payment schedule, demonstrating their commitment to fulfilling the financial obligations of the chit. Further, Ext. A1 evidences the auction, which the complainant deposited with the opposite party. The complainant's intention to use the interest on the deposit to pay subsequent instalments is logical and reflects a proactive approach to managing their financial obligations under the scheme. However, the opposite party failed to provide a receipt for the ₹60,000/- deposit at the time of the auction. Additionally, the Opposite Party's failure to return the deposit amount or furnish a statement detailing the financial transactions related to the chit reflects negligence and a lack of transparency, violating the principles of good faith and fair dealing expected in financial transactions.
Further, the opposite party had not cared to enter an appearance or file the written version before the Commission even after receiving the Commission's notice. The opposite party's conscious failure to submit their written version amounts to an admission of allegations levelled against them by the complainant. The Hon'ble National Commission expressed the same view in its order dtd. 09/10/2014 in RP 579/2017 |2017 (4) CPR 590]. The complainant undoubtedly deserve the amount paid by them.
The Opposite Party's actions amount to a clear deficiency in service and unfair trade practices. Failing to issue a receipt for the deposit, withholding financial statements, and refunding the deposit amount constitutes a breach of trust and deception, causing financial and mental distress to the complainant. In the absence of evidence to the contrary, the Commission finds merit in the complainant’s claims.
5. In the result, the complaint is allowed. The opposite party is directed to pay the complainant:
- refund of the deposit amount of ₹60,000/- (Rupees Sixty thousand only) along with 9% interest per annum from March 1, 2022, until realisation,
- a sum of ₹15,000/- (Rupees Fifteen thousand only) as compensation for mental agony and inconvenience caused, and
- a sum of ₹5,000/- (Rupees Five thousand only) towards cost.
The order shall be complied within one month of receiving the copy of this order, failing which, the complainant is entitled to 9% interest per annum for the entire amount till realisation from the date of the order.
Dictated to the Confidential Assistant, transcribed by her, corrected by me and pronounced in the open Commission this the 18th day of December 2024.
Sd/- Sd/- Sd/-
Sreeja S. Ram Mohan R C. T. Sabu
Member Member President
Appendix
Complainant’s Exhibits :
Ext. A1 4th Day Pooval Kuri Navami Chit Pass Book (Original), Ticket No.207
issued by the opposite party to the complainant.
Ext. A2 Kuri Collection Receipt No. 5206 dtd. 14/03/2011, instalment No.17 of
Rs.1758/- issued by the opposite party.
Ext. A3 copy of lawyer notice dtd. 22/07/22 sent by the complainant to the
opposite party.
Ext. A4 Postal Acknowledgment card.
Id/-
President
