Present : Sri. C.T. Sabu, President
Smt. Sreeja. S., Member
Sri. Ram Mohan R., Member
24th day of February 2023
CC 10/20 filed on 01/01/20
Complainant : Anu George, Kannampuzha House,
Puthoor P.O., Thrissur – 680 014
(By Adv. A.P. Vasavan, Thrissur)
Opposite Parties : 1) Thathwamasy Chits (P) Ltd., Reg. Office,
AthmajaBhavan, CherayiThrissur.
Rep. by Managing Director, Kishor T.A.,
Thaikkoottathil House, Cherayi P.O., Pallippuram,
Thrissur – 683 514.
2) Thathwamasy Chits (P) Ltd., Reg. Office,
AthmajaBhavan, Cherayi, Thrissur.
Rep. by Managing Director, Kishor T.A.,
Thaikkoottathil House, Cherayi P.O., Pallippuram,
Thrissur – 683 514.
3) Thathwamasy Chits (P) Ltd., Reg. Office,
AthmajaBhavan, Cherayi, Thrissur.
Rep. by Director, BhagyalakshmiKishor,
W/o Kishor T.A., Thaikkoottathil House,
Cherayi P.O., Pallippuram, Thrissur – 683 514.
4) Thathwamasy Chits (P) Ltd., Reg. Office,
AthmajaBhavan, Cherayi, Thrissur. Rep. by Director,
Shaji, T.P., S/o Athmajan, Thaikkoottathil House,
Cherayi P.O., Pallippuram, Thrissur – 683 514.
(OP 1,2,3& 4 Ex-parte)
F I N A L O R D E R
By Sri. Ram Mohan R, Member :
- 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. 10/07/16, subscribed to two Chits/Kuries, numbered 9 & 16, with the 1st opposite party company. The 2nd opposite party is the Managing Director of the 1st opposite party company whereas, the 3rd& the 4th opposite parties are the other Directors of the 1st opposite party company. The monthly installment of each kuri was Rs.5,000/-. The complainant affirms to have promptly remitted 14installments each in both the said kuries, paying the 1st opposite party company a total sum of Rs.1,40,000/- (Rs.5,000/- X 14 installments X 2 kuries). Upon trying to remit the subsequent installments, the 2nd, the 3rd&the 4th opposite parties allegedly declined to receive the payment. Consequently, when the complainant requested refund of the paid installments, the opposite parties refused to refund the same and also told that they were going to shut down the company. On her subsequent visits and enquiries, the complainant found the 1st opposite party company to have ceased to operate. Hence the complaint.The complainant prays for an order directing the opposite parties to refund the paid amount in the Chits/Kuries, 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”. As per proceeding dtd. 02/03/20, the opposite parties are seen 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 parties being set 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 Chit No.16 issued by the 1st opposite party company in favour of the complainant. Ext. A2 is the Pass Book in respect of Chit No.9 issued by the 1st opposite party in favour of the complainant.
5) Points to be deliberated :
(i) Whether the acts of the opposite parties are 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 the refund of the sums she
paid ? Also whether the complainant is entitled to any
compensation from the opposite parties ? If so its quantum ?
(iii) Cost of proceedings ?
6) Point No.(i)
The complainant claims to have correctly paid 14installmentseach in respect of both the kuries, numbered 9 & 16. The entries seen in Ext. A1 passbook are self-explanatory to prove the payment of 14 installments of Rs.5,000/- each made by the complainant under kuri No.16. Likewise, those in Ext. A2 pass book are revelatory of the complainant’s payment of 14 installments of Rs.5,000/- each under kuri No. 9. A subscriber who had correctly paid 14 installments 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 1st opposite party company and further unveils the opposite parties’ malafide intention to deliberately deceive their subscribers. Being the directors of the 1st opposite party company,the 2nd, the 3rdand the 4thopposite parties are apparently the persons responsible for the conduct of business of the 1stopposite party company. The opposite parties’ intent to defraud their subscribers by fleeing with the hard earned money of the investors is evident. 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 deceitful acts of the opposite parties are, undoubtedly, tantamount to unfair trade practice which at the same time results in deficiency in service on their part, as well. 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 1st opposite party company, 2 X 14 installments of Rs.5,000/- each in respect of both the kuries Numbered 9 & 16, subscribed by the complainant. The complainant is therefore undeniably entitled to receive back from the opposite parties the installmentsshe paid, i.e. Rs.5,000/- X 14 X 2 = Rs. 1,40,000/-.
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.20,000/- (Rupees Twenty 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
- a sum of Rs.1,40,000/- (Rupees One lakh forty thousand only) towards the refund of the chit installmentsshe paid,
- a sum of Rs.20,000/- (Rupees Twenty 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 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 24th 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 Chit No.16 issued by the 1st opposite party
company in favour of the complainant.
Ext. A2 Pass Book in respect of Chit No.9 issued by the 1st opposite party in
favour of the complainant.
Opposite Parties’Exhibits :
Nil
Id/-
Member
