SHRIRAM CHITS AND INV P LTD Vs. N VALLIAMMAI

JUDGEMENT

(1.) This appeal is by the opposite party Shriram Chits and Investments Pvt. Ltd. , against which an award has been passed by the District Forum, Madras (North ).

(2.) The first complainant N. Valliammai had joined the Chit Group of the opposite party Company in series FXL 3, and became a successful bidder in the auction held on 11.4.1993 and received a sum of Rs.48,900/-. For due payment of the future instalments she executed a Promissory Note alongwith 2nd and 3rd complainants as sureties. According to the complainants, the 1st complainant had paid the monthly instalments regularly and there was no instalment amount due. But after receipt of the full instalments, on 30.6.1995 the opposite party deliberately sent a legal notice dated 24.6.1995, which has been despatched only on 5.7.1995 and received by the complainant on 6.7.1995, stating that there were arrears. Further the opposite party failed to return the promissory note executed by the complainants and the guarantee bond executed by the 3rd complainant. The complainants called upon the opposite party to return the said documents but the opposite party failed to do so. On these grounds alleging deficiency in service on the part of the opposite party the complaint has been filed praying for return of the documents and for compensation.

(3.) The opposite party contended inter alia that the complaint is not maintainable in view of Sec.64 of the Chit Funds Act, 1982 and there was no deficiency in service on their part.