Present :      Sri. C.T. Sabu, President

                                                Smt. Sreeja. S., Member

                                                Sri. Ram Mohan R., Member

24^th day of February 2023

CC 108/19 filed on 01/03/19

Complainant         :         Dr. M.S. Rathnamma, Homeopathic Medical Centre,

                                      Puthoor P.O., Thrissur. Residing at Chirappattu House

                                      Thiruvonam’, Kolangattukara,

                                      Kuttoor P.O., Thrissur – 13.

                                      (By Adv. K.B. Vinodkumar, Thrissur)

Opposite Parties    :1)     Thathwamasy Chits & Investments Pvt. Ltd.,

                                      Reg. No.09-09360/65, Head Office :AthmajaBhavan

                                      Cherayi.Rep. by Managing Director,

                                 2)  Thathwamasy Chits & Investments Pvt. Ltd.,

                                      Nellikkunnu Branch, Thrissur – 680 005,

                                      Subsidiary Branch of Thathwamasy Chits &

                                      Investments Pvt. Ltd., Reg. No.09-09360/95,

                                      Head Office :AthmajaBhavan, Cherayi.

                                      Rep. by Managing Director.

                                 3)  Kishore, Managing Director,

                                      Thathwamasy Chits & Investments Pvt. Ltd.,

                                      RKG Building, KMK Jn., North Paravoor,

                                      Ernakulam – 683 513. Residing at 598(18/319)

                                      Thaikkoottathil House, 6, Pallippuram,

                                      Ernakulam – 683 515.

                                  4) Shaji, Director, Thathwamasy Chits & Investments

                                      Pvt. Ltd., R.K.G. Building, KMK Junction,

                                      North Paravoor, Ernakulam – 683513.

                                      Residing at 598(18/319), Thaikkoottathil House, 6,

                                      Pallippuram, Ernakulam – 683 515

                                 5)  Bhagyalakshmi, Director, 

                                      Thathwamasy Chits & Investments Pvt.Ltd.,

                                      R.K.G. Building, KMK Junction, North Paravoor,

                                      Ernakulam – 683513. Residing at 598(18/319),

                                      Thaikkoottathil House, 6, Pallippuram,

                                      Ernakulam – 683 515

                                      (OP 1,2,3, 4& 5 Ex-parte)

F I N A L  O R D E R

By Sri.Ram Mohan R, Member :

1. Summary of the complaint, as averred :

          The complaint is filed under section 12(1) of the Consumer Protection Act, 1986. The complainant w.e.f.21/04/13, subscribed to a Chit/Kuri, with statement No.5 of Chit No.15/2013, with the 1^st opposite party company through its 2^nd opposite party Branch.The 3^rdopposite party is the Managing Director of the 1^st opposite party company whereas, the 4^th&the 5^th opposite parties are the other Directors of the 1^st opposite party company. The monthly installment of the kuri was Rs.5,000/-. The complainant affirms to have promptly remitted 53installments.The 53^rd instalment was statedly remitted on 19/08/2017 and thereafter the opposite party company’s agent allegedly failed to approach the complainant for collecting the remaining instalments. Upon further enquiries, the complainant reportedly got reliable information to the effect that the 1^st opposite party company has ceased to operate properly and transparently. The 3^rd to the 5^th opposite parties allegedly made the complainant believe that her investment would be disbursed at the termination of the chit, but the opposite parties failed to do so. Hence the complaint.The complainant prays for an order directing the opposite parties to refund the paid amount in the Chit/Kuri, along with other reliefs of compensation and costs.

2) NOTICE :

          Commission issued notices to all the opposite parties and were returned with the postal department’s endorsement of “Addressee left the place”. Substituted service of notice through newspaper publication also elicited no result. Hence proceedingsagainst all the opposite parties set ex-parte.

          3) Evidence :

          The complainant produced documentary evidence that had been marked Ext. A1& A2, apart from affidavit and notes of argument. The proceedings against the opposite partiesbeing ex-parte, no documents produced on their part.

          4) Deliberation of evidence and facts :

          The Commission had very carefully examined the facts and evidence of the case. Ext. A1 is the Passbook in respect of statement No.5 of Chit No.15/2013 issued by the 1^st opposite party company in favour of the complainant. Ext. A2 is the daily collection card issued by the 1^st opposite party company in favour of the complainant.

          5) Points to be deliberated :

          (i)      Whether the acts of the opposite partiesare tantamount to unfair

                   trade  practice or whether there is any deficiency in service on the

                   part of the    opposite parties ?

          (ii)     Whether the complainant is entitled to get refund of the money she

                   paid ? Also whether the complainant is entitled to any

                   compensationfrom theopposite parties ?  If so itsquantum ?

          (iii)    Cost of proceedings ?

          6) Point No.(i)

          The complainant claims to have correctly paid 53installments in respect of Statement No. 5 of Chit No.15/2013. On perusal of Ext. A1 Passbook, it is seen that there is endorsement in respect of payment of only 52installments, each of Rs.5,000/-.But Ext. A2 daily collection card bears endorsement relating to the complainant’s payment of one instalment on 19/08/2017, as pleaded by the complainant. The said entries are self-explanatory to prove the payment of 53installments of Rs.5,000/- each made by the complainant. A subscriber who had correctly paid 53installments of a kuri/chit can only reasonably be presumed to have desisted from making further payments,only for a genuine reason as claimed by the complainant. Moreover the endorsement of “the addressee left the place” made by the postal department on the notices returned to the Commission, reinforces the complainant’s contention relating to the undue closure of the 1^st opposite party company. The failure of the opposite parties to contest the case, despite newspaper publication of Commission’s Notice further unveils the opposite parties’malafide intent to deliberatelydefraud and deceive their subscribers by fleeing with their hard earned money. It is plain and unambiguous that activities relating to Chit funds fall well within the definition of “service” under Section 2(1)(o) of the Consumer Protection Act, 1986 and that chit funds cases fall within the ambit of Consumer Commissions. This fact is unequivocally pronounced by the Hon’ble National Consumer Disputes Redressal Commission by judgement dtd. 30/11/03 in Kovilakam Chits and Financial …….VsK.L.Benny[III (2003) CPJ 87 NC]. The opposite parties’ undue closure of the 1^st opposite party company as well as their failure to return to the complainant the sums she paid, constitutes an unfair trade practice which at the same results in deficiency in service on their part. Point No.(i) is thus proved in favour of the complainant.

          7) Point No.(ii)& (iii)

          As elaborated supra, it is explicitly clear that the complainant had paid to the 1^st opposite party company,53installments of Rs.5,000/- each in respect of statement No.5 of chit No.15/2013 subscribed by her. The complainant is therefore undeniably entitled to receive back from the opposite parties the instalments she paid,i.e. Rs.5,000/- X 53 = Rs. 2,65,000/-.

          One who subscribes to a Chit/Kuri commonly intends to save money with a view to materialising one’s long cherished dreams/plans. Such fraudulent acts on the part of the opposite parties as plying with the funds/investments of investors/subscribers will certainly present the subscribers with several sleepless nights. In the instant case, as claimed by the complainant, the acts of the opposite parties inflicted on her agony, hardship and loss. The opposite parties have necessarily to compensate the complainant. We are of the considered view that the complainant is entitled to receive from the opposite parties a sum of Rs.25,000/- (Rupees Twenty five thousand only) towards compensation for the agony, hardship and loss inflicted on her and a sum of Rs.5,000/- (Rupees Five thousand only) towards costs.

          In the result, the complaint is allowed and the opposite parties are jointly and severally directed to pay to the complainant

1. a sum of Rs.2,65,000/- (Rupees Two lakh sixty fivethousand only) towards the refund of the chit installmentsshe paid,
2. a sum of Rs.25,000/- (Rupees Twenty five thousand only) towards compensation for the agony, hardship and loss inflicted on her and
3. a sum of Rs.5,000/- (Rupees Five thousand only) towards cost of litigation,

all with 9% interest p.a. from the date of filing of the complaint till the date of realisation. The opposite parties shall comply with the above direction within 30 days of receipt of a copy of this order.

          Dictated to the Confidential Assistant, transcribed by her, corrected by me and pronounced in the open Commission this the 24^th day of February 2023.

   Sd/-                                                      Sd/-                                         Sd/-

Sreeja S.                                   Ram Mohan R                         C. T. Sabu

Member                                  Member                                   President

Appendix

Complainant’s Exhibits :

Ext. A1 Passbook in respect of statement No.5 of Chit No.15/2013 issued by the

          1^st opposite party company in favour of the complainant.

Ext. A2 daily collection card issued by the 1^st opposite party company in favour

          of the complainant.

Opposite Parties’Exhibits :

Nil

                                                                                                   Id/-                                                                                                            Member