MANAGING DIRECTOR, M/S. SREE PUJITHA CHIT FUND (P) LTD. vs K.KANAKA LAKSHMI

WE heard the learned Counsel on both sides. The opposite parties in CD No. 14/1998 on the file of Visakhapatnam District Forum had preferred this appeal questioning its order dated 15.5.1999 directing them to pay to the complainant Rs. 58,750/- together with interest @ 24% per annum from September, 1997 till the date of payment and also Rs. 3,000/- as compensation together with interest @ 15% per annum if it was not paid within two months and costs of Rs. 1,000/-. The complainant in the CD is the respondent before us.

THE main facts are not in dispute. THE complainant joined chit group SPLP 7/30 of the appellant. THE chit amount was Rs. 2,00,000/- to be paid in 40 monthly instalments of Rs. 5,000/- per month and the group was started in April, 1994. THE complainant paid 17 instalments. THE amount paid by her was Rs. 58,750/-. She committed default thereafter. She claimed repayment of the said sum after the chit period was over i.e. some time in August, 1997. As the appellants did not pay her the amount, she got issued notice dated 23.9.1997 through her Advocate to the appellants, but the appellant did not send any reply. THEreafter she approached the Visakhapatnam District Forum by way of the present complaint on 9.12.1997. THE appellants received notice and filed their counter dated 11.8.1998 admitting that the complainant paid 17 instalments and that the amount was not returned to her because she executed her letter of lien agreeing not to withdraw the amount from her account till Sri T.G.S. Gupta, who became the successful bidder in an auction, paid all his dues and that as that T.G.S. Gupta did not pay the amounts and still had dues the amount was not returned to the complainant. THE date of the letter of lien was not mentioned in the counter. Though the letter was mentioned in the counter, the appellants did not file the same before the District Forum. THE District Forum considered all aspects of the matter and allowed the complaint as already indicated earlier. The appellants seek to file a letter dated 17.8.1994 now before us for receiving the same in evidence. We do not find any good reason to receive the said letter at this late stage in the appeal because there is no satisfactory explanation whatsoever for not filing the same before the District Forum either along with the counter or at any time prior to 15.5.1999 when the District Forum pronounced its order. No satisfactory explanation is given by the appellants for not filing the said letter before the District Forum and for not producing any material to prove and establish the same. No affidavit evidence was also filed by the appellants before the District Forum.

The learned Counsel for the appellants submits that the interest awarded by the District Forum @ 24% per annum is on the high and that in view of Section 61 of the A.P. Chit Funds Act, 1971 simple interest higher than 12% per annum cannot be awarded. Section 61 provides that no Court shall award interest on claim arising under this Act at more than twelve per cent per annum simple interest." But the complaint filed by the complainant is not under the A.P. Chit Funds Act, 1971. It is filed by the consumer under the Consumer Protection Act, 1986 and the relief is being granted to the complainant on the basis that there was deficiency in service on the part of the appellants. Therefore, the Tribunals under the Consumer Protection Act, 1986 are not bound by Section 61 of the A.P. Chit Funds Act, 1971 because the complaints are not under that Act though they may take that provision into consideration in awarding interest. In the present case the amount of Rs. 58,750/- was retained by the appellants without any justification whatsoever and, therefore, the complainant would have to be awarded a reasonable interest. We find that 24% interest is on the high and we reduce it to 15%. In view of the fact that interest is already awarded, we find that a further sum of Rs. 3,000/- towards damages, on the facts of the present case, need not be awarded.

IN the result, we modify the order of the District Forum only to the extent of reducing the interest awarded by the District Forum of 24% per annum to 15% per annum and deleting the direction to the appellants to pay Rs. 3,000/- towards compensation. IN other respects the order of the District Forum shall stand. The appeal is accordingly partly allowed. No costs.

PURSUANT to our order dated 11.8.1999 in FA. IA. No. 699/1999 the appellants deposited before this Commission Rs. 58,750/- together with interest @ 15% per annum thereon from 1.9.1997 till the date of deposit and Rs. 1,000/- towards costs, i.e. in all Rs. 77,375/- by way of cheque dated 16.8.1999 calculating interest upto 1.9.1999. The respondent/complainant is entitled to interest upto the date of withdrawal of the sum. That date we fix as 1.12.1999. In the circumstances, the additional sum of Rs. 2,205/- shall be paid by the appellants to the respondent towards interest on Rs. 58,750/- from 2.9.1999 to 1.12.1999. The said sum shall be paid within four weeks from today i.e. by 30.12.1999 to the respondent/complainant. The respondent/ complainant shall be permitted to withdraw the sum of Rs. 77,375/- deposited in this Commission by way of cheque petition. Appeal partly allowed.