MARGADARSI CHIT FUND LTD Vs. H. RAJA GOPALA RAO

JUDGEMENT

(1.) These appeals are arising out of separate impugned orders dated 14.5.2007 passed in CD 54/2002 and C.D. 724/2003 by the District Forum II, Visakhapatnam pertaining to two chit bearing nos. LT04TU33 and LT04TU40 of the same chit group, wherein, the appellants/opposite parties were directed to pay interest on the prize amount of Rs.2,75,000/- with interest at 12% pa from 05.05.99 till the prize amount was kept in the bank and also to pay dividend of Rs.60,856/- with interest thereon at 12% pa from 13.10.2002 till the closure of the chit bearing No.LT04TU33 along with compensation of Rs.6000/- and costs of Rs.1500/-.

(2.) The parties in both the C.Ds are common and also the dispute involved in respect of the two complaints which is in respect of payment of the interest on the chits and as well dividends. Both the cases are interlinked with each other. So we propose to dispose of the same by common order.

(3.) The facts as stated in CD 997/2007 are as hereunder: The first opposite party is a company has been dealing with chit fund business, the second opposite party is the Branch Manager and the third opposite party is their agent who enrolls the subscribers. The opposite parties 1 and 2 have floated the chit bearing No. LT04TU33 and on the inducement of OP. 3, the complainant joined as a member and he had taken two tickets of the same chit group. He was assured that he would be permitted to bid for the first three occasions and on the said assurance he joined in the chit by taking two tickets of the same group bearing no. LT04TU 33 and LT04TU40. In the auction held on 14.02.99, the complainant was declared as a successful bidder for entitlement of the prize amount. The opposite parties 1 and 2 changed their version and informed that he was declared as highest bidder in the auction held on 11.04.99. The complainant submitted sureties but the opposite parties rejected the same and dragged on for disbursement of the amount till August, 99 withholding of the prize amount which amounts to deficiency in service. The complainant had paid 29 instalments of the chit bearing No. LT04TU 40 he could not pay the remaining 21 instalments. He had suffered financial loss on account of delay in payment of the prize amount. The complainant is entitled for claiming interest on the amount of Rs.2,75,000/- right from February, 99 to August, 99 , so also, to claim for compensation of Rs. 2 lakhs with costs.