BRANCH MANAGER, SHRIRAM CHITS PVT. LIMITED Vs. MANDA RAJESWARA RAO

JUDGEMENT

(1.) Having heard the learned counsel for the appellant and having perused the material on record, we are of the opinion that the matter can be disposed of at the stage of admission.

(2.) The appeal is preferred by opposite parties 1 and 2 against the order of the District Forum directing to refund the amount together with compensation and costs. It is the case of the complainant that he joined as a Member in the chit of the appellant for Rs.1,00,000/- commencing from October, 2007. He paid the monthly instalments regularly as per the intimations. While so on 8-3-2008, he participated in the auction and was declared as highest bidder to forego Rs.32,000/. He submitted two sureties. However, the opposite party insisted three sureties as per their bye-laws and accordingly he furnished three sureties with requisite salary certificates for payment of the prized amount of Rs.68,800/-. However, the opposite party returned one of the certificate of the surety on the ground that he had got 4 years service and directed him to furnish a fresh surety. He furnished another surety with salary certificate and demanded the opposite party to pay the amount but the opposite party in order to avoid payment demanded another surety and also informed that it would deduct Rs.5,000/- and pay the remaining amount, however, no amount was paid. Therefore the complaint filed the complaint claiming Rs.68,800/- with subsequent interest at 24% p.a. from 8-3-2008 till the date of payment together with compensation of Rs.5,000/- and costs.

(3.) The opposite parties resisted the case. While admitting that the complainant had joined as a Member in the chit group and participated in the auction and became a successful bidder and agreed to forego Rs.32,000/-, they however, alleged that one of the sureties by name Pydithally expressed his unwillingness to stand as surety and therefore they requested the complainant to furnish sureties to release the prized money. Since he did not do so, they could not pay the amount and even now they are ready and willing to release the prize money to the complainant if he furnishes sufficient and solvent sureties to the satisfaction of the foreman subject to deduction of arrears and prayed for dismissal of the complaint with costs.