D.V.SATYANARAYANA Vs. MANAGING DIRECTOR SRI RAMPRIYA CHIT FUND P LTD

JUDGEMENT

(1.) These two appeals arise out of the order passed by the District Forum-I, Visakhapatnam in C.C. No.603 of 2003 whereof the appellant in F.A.No.1468 of 2008 is the opposite party and the appellant in F.A.No.1219 of 2008 is the complainant before the District forum.

(2.) F.A.No.1469 of 2008 is taken as the lead case wherein the facts as represented by the parties are that the 1st opposite party is a company registered under the Companies Act, dealing in Chit Fund Business and the opposite parties no.2 and 3 are the branch offices of opposite party no.1. The complainant joined as a member in the chit group namely 1) RVL D3 B/7 for a sum of Rs.2 lakhs and 2) RVL F3 B/32 for a sum of Rs.5 lakhs. The complainant became a successful bidder in the auction held by the opposite party no.2 in respect the chit RVL D3 B/7 and he agreed to forego an amount of Rs.65,000/-. The complainant is entitled to receive Rs.1,35,000/- which was not paid to the complainant in spite of producing sufficient sureties to the opposite party no.2.

(3.) The opposite party no.2 adjusted the amount of Rs.1,35,000/- to the credit of the chit RVL F B/32 of Rs.5 lakhs. The opposite party no.2 neither informed nor issued any certificate to the complainant. The chit bearing No.RVL F3 B/32 is still in force. The complainant remitted installments through the opposite party no.3. In spite of legal notice got issued by the complainant the opposite parties did not pay the amount. Hence, the complaint sought direction to the opposite parties to pay Rs.1,35,000/- pertaining to Chit Series RVL D3 B/7 and to return the sum of Rs.74,109/- being the subscription of the complainant towards the chit RVL F3 B/32 with interest, dividends, compensation and costs.