GURUDEV SINGH PURI AND SUDARSHAN CHITS INDIA LIMITEDAND M V VELAYUDHAN DIRECTOR OF SUDARSHAN CHITS INDIA LIMITEDAND D C MISRA THE FORMER DIR Vs. NARI TEKCHAND ANANDANI

JUDGEMENT

(1.) Sometimes on June 30, 1975 there were unexpected visitors at the door of one Shri Nari Anadani, who is the complainant in these proceedings and who dealt in the manufacture of plastic articles with the industry located at Ulhasnagar. That is a proprietory concerned. The said three visitors including accused No. 1, one S. Vijaykumar, who claimed to be the Manager of M/s. Sudarsan Chits (India) Limited, which is claimed to be a corporate body with its registered office at Calicut (shortly stated as the said company) and another by name Arjun Lulla, contacted the complainant and the accused No. 1 and said Vijaykumar were introduced by the said Shri Lulla as being the official and manager of the said company. During the course of talk the said official tried to impress upon the mind of the complainant about the credentials of their company and lucrative prospects of investing in the said concern and for that purpose communicated to the complainant that the office bearers, agents and the managers were all respectable persons with repute and that big companies are being financed and they have also lot of fixed investment in several sister concerns and they are also doing the business of chit fund. It was also made known to the complainant that the said company has several branches all over India. Thereafter, the functioning of the chit funds was explained to the complaint and it is at the point of time that they actually came to the crus of the matter. They had especially accused No. 1 and the said manager told the complainant that they had recently started a group S C L B S C 10 where the requirement was of 80 persons and they were short of 5 members and, therefore, on account of this deficiency in reaching target vis-a-vis the number of persons their group could not function effectively. It is thereafter, that the complainant was informed that he should become the member of the five shares against which they will advance money immediately as and when the complainant needed the said amount and in any circumstances the money would be refunded after 50 months with divide and interest and also consolation prizes. This claim is put obviously to luring the complainants as in addition to the principle amount he was promised to get dividend, interest and to have further impression, it was also made known to him, that he would also be entitled to get the prizes.

(2.) Initially the complainant could not accede to the said request and was obviously reluctant. However, the said persons showed more patience on account of which the patience of the complainant was exhausted and he was completely lured and came under the grip of their assurance and it is thereafter, as both of them insisted and actually persuaded the complainant to accept the proposal. It was also impressed on the complainants mind that the said Lulla had also joined the said group and once the said shortage of 5 members is made good, then the group could function smoothly by paying Rs. 500/- per month deducting the dividend for 15 months. The complainant was thus lured into these assurance and appearance of bright prospects and thereafter he took five shares in the said group numbering 42 to 46 of Rs. 500/- per month for 50 months commencing from July 3, 1975.

(3.) The complainant started making regular payment without any default since July 1975 and paid all the share amount till 44th instalment and the interception came not on account of the default on the part of the complaint, but because at that time no one was present to receive the payment and the branch Manager who is one of the accused persons, had informed the complainant that the balance payment should be deferred as there were no member bidders as share holders to receive the payment. It was also made known to him that he need not make further payment as the series are being completed by August 1979. The complainant thus made payments of all the four shares bearing serial Nos. 42 to 46 up to February 20, 1979 and their is thus credit of Rs. 22,000/- each out of the five shares, as one share at serial No. 46 which the complainant had taken in advance in bid and consequently an amount of Rs. 88,000/- being the balance of said four shares, plus interest and other consolation prizes were due from the company in favour of the complainant.