SRIRAM CHITS LTD. Vs. POKURI SHARAT REDDY

JUDGEMENT

(1.) THE appellants in this F.A. No. 169/2000 are the opposite parties in C.D. No. 150/99 on the file of District Forum, Nellore.

(2.) THE brief facts as set out in the complaint are that one P. Padmava -thamma, the mother of the complai -nants joined as a member of the chit of the opposite parties for a value of Rs. 2,00,000/ - commencing from 27 -5 -1996. According to this scheme every member has to pay Rs.4,000/ - per month and accordingly Padmavathamma paid the subscriptions regularly for an amount of Rs.66,940/ - and the opposite parties gave dividend of Rs.41,060/ - for 27 months and she died on 30 -12 -1998. Thereafter, the complainants being her sons requested the opposite parties to pay Rs. 1,08,000/ -, but received no response. Therefore, they approached the District Forum.

(3.) THE second opposite party filed a counter stating that one M. Venkata Reddy was appointed as a nominee, and therefore, the nominee alone is entitled to the amount and not the complainants, and that as per the Rules the opposite parties are entitled to deduct 5% of the chit value, as the subscriber was a defaulter, and this amount comes to Rs.10,000/ -, and therefore, the nominee is entitled to Rs.56,940/ -.