SHRIRAM CHITS P LTD Vs. N. SIVA BHASKAR REDDY

JUDGEMENT

(1.) The opposite parties are the appellants. The appeal is challenge to the order passed by the District Forum which passed the award against the appellants for refund of a sum of Rs. 2,10,000/- along with interest.

(2.) The facts of the case are that the complainant is the subscriber of the opposite parties chit fund company under chit series No.JLC6-35 and JLC6-45 for the chit value of Rs.5 lakhs each for 50 months and monthly subscription for Rs.10,000/- each. In the month of October 2004 the complainant participated in auction. He was successful bidder in the chit No.35 and he fulfilled all the formalities and produced the sureties to the satisfaction of the opposite party no.1 but the opposite parties instead of disbursing the chit amount deposited the same vide FDR Nos.HZC-5563132 to 5563135 of Rs.50,000/- each totaling to Rs.2 lakhs in sister concern company of opposite parties firm i.e., Shriram City Union Finance Ltd., and the remaining balance amount adjusted to the future instalments in another chit No.JLC6-45 without obtaining the consent of the complainant. It is the duty of the opposite parties is to kept the prized amount in any nationalized bank.

(3.) The complainant was also successful bidder in Chit No.JLC6-45 in auction held on 20.3.2005. After foregoing an amount of Rs.1,12,000/- the complainant was entitled to the prize amount of Rs.3,80,000/-. Even after fulfilling all the formalities the opposite parties failed to pay the prize amount to the complainant. After several visits to the opposite parties, they informed that the complainants name was removed from the chit No.45 and the chit was transferred to some third person on 26.8.2005. The opposite parties adjusted the amount in chit no.45 upto June 2005. Till June 2005 the complainant subscribed a total amount of Rs.1,54,000/-Thus the complainant is eligible to total sum of Rs.2,10,000/- with interest. The opposite parties acted against the public interest and against the provisions of chit fund Act and Rules.