JANAPRIYA CHIT FUND (P) LTD. vs M.SUBASH REDDY

M/s. Janapriya Chit Fund Private Limited, Khairathabad branch at Hyderabad, the opposite party in O.P. No. 1213/1997 on the file of the Hyderabad District Forum-I preferred this appeal questioning the order dated 22.10.1998 passed therein directing it to pay to the complainant a sum of Rs. 68,026/- with interest @ 12% per annum from 1.2.1997 till the date of payment together with costs of Rs. 2,000/-.

THE case of the respondent herein who is the complainant before the District Forum is that he joined as a subscriber in the chit series No. JLT B-13 floated by the opposite party (appellant) for a sum of Rs. 2 lakhs spread over for a period of 50 months at the rate of Rs. 4,000/- per month with effect from the month of October, 1994, that when he intended to participate in the auction of the chit the opposite party did not permit him to participate, that surprisingly the opposite party issued a notice stating that his membership was cancelled, that he is entitled to the refund of a sum of Rs. 71,596/- as mentioned in the notice issued by the opposite party and that he is also entitled to compensation of Rs. 50,000/- and costs. He therefore filed the complaint O.P. No. 1213/1997 before the Hyderabad District Forum- I requesting for a direction to the opposite party to pay a sum of Rs. 71,596/- together with interest @ 18% per annum from January, 1997 till the date of payment and compensation of Rs. 50,000/- and costs. Though notice of the complaint was served on it on 18.6.1998 the opposite party has not chosen to contest the matter.

At the time of enquiry the complainant has filed his affidavit reiterating the facts mentioned in his complaint, and also filed documents marked as Exs. A1 to A-5.

AFTER considering the material on record the District Forum found that a total amount of Rs. 71,596/- as mentioned in the notice issued by the opposite party was contributed by the complainant towards the chit amount and that because the Foreman of the opposite party is entitled to deduct commission at the rate of 5% on the said amount which comes to Rs. 3,570/- the complainant is entitled to get back the sum of Rs. 68,026/- with interest @ 12% per annum from 1.2.1997 and also costs of Rs. 2,000/-. We have gone through the material on record and heard the Counsel for the appellant and the respondent who is present in person. There is no dispute by the opposite parry that a total amount of Rs. 71,596/- was contributed by the complainant as mentioned in Ex. A-5 notice issued by it to the complainant. The learned Counsel for the appellant submits that as per the chit agreement the Foreman of the appellant is entitled to deduct 5% commission on the chit value and not on the total contribution made by the complainant, that the interest is payable only from the date of the expiry of the chit period and that since the chit expired in November, 1998 the interest is payable only from 1st December, 1998 and not from 1.2.1997 as directed by the District Forum.

IT may be seen that condition No. 3 of the terms and conditions of the chit agreement, a xerox copy of which is filed along with the memorandum of appeal only mentions that the Foreman is entitled to deduct commission of 5% of the chit value in case of payment to prized subscriber and it does not mention anything about the deduction of Foreman''s commission in case of non-prized subscriber. Admittedly the complainant is a non-prized subscriber. Therefore we do not find any force in the contention of the appellant that Foreman''s commission of 5% on the chit value has to be deducted. However as there is no appeal filed by the complainant we are not inclined to interfere with the finding of the District Forum that the opposite party is entitled to Foreman''s commission of 5% on the actual contribution amount paid by the subscriber totalling to a sum of Rs. 3,570/-. As the chit period expired in November, 1998 we hold that the District Forum is not right in directing payment of interest from 1.2.1997. In the result, the appeal is allowed in part and the order of the District Forum is modified and the opposite party is directed to pay to the complainant a sum of Rs. 68,026/- with interest @ 12% per annum from 1.12.1998 instead of 1.2.1997 till the date of realisation. In other respects the order of the District Forum is confirmed. There shall be no order as to costs in this appeal. Pursuant to our order dated 22.12.1998 in F.A. I.A. No. 1384/1998 the appellant deposited a sum of Rs. 61,546/- with interest @ 12% per annum from 4.1.1998 till the date of deposit i.e., Rs. 63,000/-. The appellant/opposite party is directed to pay the balance amount after due calculation as directed above within four weeks from today i.e., by 28.7.1999 to the respondent/ complainant. The respondent/complainant is permitted to withdraw the sum deposited in this Commission by filing a proper application. Appeal partly allowed. ________________