KAPIL CHIT FUND (P) LTD Vs. MAHMOOD KHAN

JUDGEMENT

(1.) THE opposite party -chit fund company is the appellant. The respondent filed compliant seeking direction to the respondent -chit fund company to return an amount of Rs. 62,755/ - with interest @ 24% p.a. and Rs. 50,000/ - towards compensation.

(2.) THE appellant joined in the chit group bearing reference no. VL03J -27 with the respondent -chit fund company for the chit value of Rs. 5 lakh and the monthly subscription payable is Rs. 12,500/ - in duration of 40 months. The appellant joined the chit group on 28.07.2008 and he participated in the auction conducted on 27.02.2009 as also he was declared successful bidder having agreed to forego Rs. 1,75,000/ - out of chit value of Rs. 5,00,000/ -. The respondent stated to have furnished 6 sureties as required by the appellant -chit fund company.

(3.) THE respondent submitted that his name was removed from membership list on the premise of irregular payment of installments and the appellant informed him about the removal of his name from the membership list on 30.09.2009. The respondent submitted that the name of non -prized subscriber only can be removed from the membership list and not that of a prized subscriber and that in case of removal of non -prized subscriber, after deducting 5% of the chit value, the appellant has to pay an amount of Rs. 62,755/ - which the appellant failed to do and non -payment of amount constitutes deficiency in service on the part of the appellant -chit fund company.