KOLLI ANJANEYULU Vs. KAPIL CHIT FUNDS PVT.LTD

JUDGEMENT

(1.) The unsuccessful complainant in CC 30/2008 before the District Forum, Ranga Reddy District filed this appeal questioning the legality and propriety of the order in dismissing the complaint filed or recovery of the Chit fund subscriptions paid to the opposite parties.

(2.) The facts of the case are that the opposite party is a company registered under the Companies Act and running chit und business in the name of the M/s. Kapil Chit Funds Pvt. Ltd, the 2nd opposite party is the Managing Director, 3rd and 4th opposite parties are Zonal and Branch Managers of the Chit fund company. That one Kastala Mohan Rao joined as a Member of the Chit series bearing No. HKT 01J for a chit value of Rs. 5 lakhs. The said member paid 13 instalments @ Rs.10,000/- per month without default. He continued the chit. So on 05.09.2005 he along with the complainant approached the 4th opposite party for getting the chit transferred in the name of the complainant. 4th opposite party had agreed and obtained signatures on chit transfer form and other documents by transferring the chit in the name of the complainant. The complainant had paid Rs.91,500/- to the said Mohan Rao. 4th opposite party received 14th instalment of the chit i.e., Rs.6,500/- by way of cheque and issued pass book entering all the payments in the pass book. That on 25.10.2005, the Asst. Manager of the 4th opposite party went to Nandigama and collected another sum of Rs.6,500/- by way of cheque towards 15th instalment and issued a receipt for it and also made an entry in the pass book on 1.12.2005. The complainant approached the fourth opposite party for payment of 16th instalment but the office staff refused to receive the payment stating that the chit was not transferred in his name and that the payment has to be made only in the name of Sri K. Mohan Ro. That on 3.12.2005 the complainant has addressed a letter to the Executive Director of Opposite party no.1, so also, a registered letter to the 4th opposite party enclosing a cheque for Rs.65,00/- but the same was returned without giving any reasons. Again another registered letter enclosing a cheque for Rs.13,530/- was sent pertaining to16th and 17th instalments which was also returned. A legal notice dated 24.04.2006 was addressed to the opposite parties demanding to receive the instalments due. Even after receiving the legal notice there was no response. The act or omission on the part of the opposite parties amounts to deficiency in service and the complainant is entitled for refund of Rs.1,04,500/- with interest and also compensation of Rs.50,000/- and costs.

(3.) The fourth opposite party filed its version and it was adopted by Opposite parties 1 to 3. The allegations made in the complaint are denied. It is stated that one K. Mohan Rao became a Member of the chit in question but it is denied that the complainant and the said Member approached the first opposite party requesting for transfer of chit in favour of the complainant which was duly transferred by issuing a pass book, so also, payment of instalments made by the complainant. It is further stated that that original subscriber Mohan Rao was defaulter. So the company filed Civil Suit for recovery of Rs.65,551/- before the Principal, Jr. Civil Judge, Ranga Reddy District which is pending. The Khammam branch also filed a suit in respect of another cit in respect of K. Mohan Rao for recovery for Rs..27,147/-. The fourth opposite party got a lien over the rights in respect of non priced chit amounts of K. Mohan Rao. Hence prayed to dismiss the claim. During enquiry, the complainant filed documents Ex.A-1 to A-14 but evidence affidavit was not filed. The opposite parties have filed Ex. B-1 to B-7 along with evidence affidavit.