CHUNDURI CHIT FUNDS PVT. LIMITED Vs. P.V.S.N.PRASAD

JUDGEMENT

(1.) Aggrieved by the order in C.D.No.160/2004 on the file of District Forum, Krishna-II, Vijaywada the opposite parties preferred this appeal.

(2.) The brief facts as set out in the complaint are that the complainant joined the opposite party chit group no.JV:2-36 which commenced in June ,2001 for a value of Rs.5 lakhs and monthly instalment being Rs.12,500/- for 40 months. The complainant was regular in payment of instalments and on 30.10.2003 participated in auction no.29 and stood as a highest bidder agreeing to forego Rs.1,18,000/- out of Rs.5 lakhs and hence she was to be paid Rs.3,82,000/-. The complainant completed all the formalities to release the chit prize amount but the opposite parties failed to pay the prize amount of Rs.3,82,000/- except payment of Rs.1,00,000/- and not paid the balance amount of Rs.2,82,000/-. The complainant issued legal notice to the opposite parties and also gave complaint to the Registrar of Chits on 15.6.2004 but there was no response. Hence the complaint seeking direction to the opposite parties to pay the balance prize amount which is due together with interest, compensation and costs

(3.) Opposite parties 2 and 3 filed counter stating that the complainant agreed for the deduction of the amount due to the opposite parties as on the date of auction and therefore he was allowed to participate in the auction conducted on 30.9.2003 and he stood as a highest bidder in 29th auction and agreed to forego an amount of Rs.1,18,000/- out of Rs.5 lakhs i.e. Rs.3,82,000/-. Accordingly the complainant furnished guarantors and all legal formalities were completed for payment of amount. A cash voucher was also prepared after the complainant furnished sureties and execution of promissory note on 17.1.2004 and the complainant signed on the cash voucher on 19.1.2004 and at the request of the complainant an amount of Rs.1 lakh was paid to him vide cheque dt. 4.2.2004. The complainant never approached the opposite parties till they received legal notice dt.18.5.2004 and hence there is no deficiency in service on their behalf and therefore seek dismissal of the complaint with costs.