KAPIL CHIT FUNDS PVT. LTD Vs. B. RAMESH

JUDGEMENT

(1.) Aggrieved by the order in C.C.No.49/2006 on the file of District Forum, Ranga Reddy Dist., the opposite party preferred this appeal.

(2.) The brief facts as set out in the complaint are that the complainant joined as a subscriber on 31.8.2004 in opposite party Chit Fund Company through the agent of opposite party and paid six monthly instalments through him to the opposite party company. The agent of the opposite party paid 1 to 4 instalments and did not pay the 5th and 6th instalments and on enquiry the complainant came to know about the said fact and the opposite party stated that they are not responsible for agent omissions and commissions. The complainant submits that the agent of the opp.party company failed to collect further monthly instalments and due to the negligent act of the agent, the opposite party deleted the complainants name from the chit series without giving any notice or intimation to this effect. Opposite party did not even pay the amount paid by the complainant. Hence the complaint seeking direction to the opposite party to repay Rs.26,400/- paid by the complainant as monthly instalments and to pay compensation of Rs.20,000/- and to pay costs.

(3.) Opposite party filed counter denying the allegations made in the complaint and stating that they never appointed an agent and they have appointed a Development Officer to introduce the new subscribers to the company and they have no power and right to collect the instalments from the subscribers. Opposite party submits that the complainant has not stated the name of the agent and not made the agent of the company as party to this proceedings. Opposite party submits that as per page no.5 in para no.5 clause-a mentioned in bye-laws payment may be made by cash, money order, bank draft or cheque drawn in favour of Kapil Chit Funds Pvt. Ltd., Cash payments must be made only in the foremans office, as well as the recovery staff authorized by the foreman. Opposite party submits that the complainant did not pay the instalments from December,2004 to June ,2005 for about 7 months period and the opposite party requested the complainant several times to pay the defaulted chit amount but he never paid the said chit amount and hence they have removed the name of the complainant by following the procedure of Chit Fund Act. If a non prized subscriber fails to pay the subscription for three months consecutive instalments, he shall be liable to be removed from the list of subscribers. Further all the subscribers both prized and non-prized, shall pay their subscriptions for each instalment at the foreman office on or before the due dates mentioned in the chit agreement and get the payments acknowledged in their pass books and obtain separate receipts. Opp.party submits that on 12.3.2005 they have issued a removal notice to the complainant by registered post with acknowledgement due and the same was refused by the complainant and as per the Chit Fund Act A non prized subscriber who defaults in paying his monthly subscription in accordance with the terms of the chit agreement shall be to have his name removed from the list of subscribers and a written notice of such removal shall be given by the foreman to the defaulting subscriber within 14 days of the date of such removal.