VARALA SANGAM Vs. DUBALA RAJAIAH

JUDGEMENT

(1.) This is an appeal preferred by the opposite party in O. P. No.341 /1997 questioning the order of the Karimnagar District Forum in that O. P. dated 26.8.1998. The complainant in that O. P. is the respondent in this appeal. We have the record of the District Forum before us and heard the Counsels on both sides. Going through the order of the District Forum we find that the District Forum misapplied itself and did not correctly appreciate the facts of the case. The complaint filed by the complainant itself is very vague and does not give the facts in an understandable way. It consists of only two paragraphs and a prayer. It is as follows : "1. That the complainant has joined in the Chit conducted by the respondent. The complainant has paid the subscription amount i. e. , Chit amount alongwith fine since he could not pay the Chit amount in time. The complainant has paid the Chit amount and interest in total an amount of Rs.2,064/- for the entire period of Chit, on 28.2.1997 and the respondent issued receipt.2. That the Chit was started in the year October, 1996 and its duration is upto September, 1997. After the period of the Chit is over, the complainant has several times requested the respondent to pay the amount due to him. But the respondent has not paid it on one pretext or the other. The complainant suffered mental tension due to the attitude of the respondent. " The prayer described the amounts claimed by the complainant as follows : " (i) Amount paid by complainant rs.2,064-00 (ii) Costs of the complaint rs.200-00 (iii) Mental Tension rs.1,000-00 total rs.3,264-00" In support of his case the complainant no doubt relied on Ex. Al receipt dated 28.2.1997 on the letterhead of the appellant. It is in Telugu and translated it reads as follows : "on 28.2.1997 Dubala Rajaiah paid Rs.2,064/- due from him to the Sangham. Details : rs.1000-00 principal 89-00 interest 25-00 fine 950-00 fine' 2,064-00 amount received. "

(2.) The complainant gave his affidavit stating that he was a member of the appellant Society and that the appellant started the Chit in the year October, 1996 and that he joined the Chit. He then stated as follows : "that as per the terms and conditions of the Chit, I and other members who joined the said Chit have to pay the amount called as Chit amount, every month. But due to financial troubles I could not pay the Chit amount by every month and was found due. Therefore, the respondent had imposed fine on me which I had paid alongwith the Chit amount. The receipt issued by the respondent on 28.2.1997 acknowledging the Chit amount and fine, is filed herewith. After the period of the said Chit, I reminded the respondent several times to pay the amount due to me. The Chit was started in the year October, 1996 and its duration was upto the month September, 1997. . . . I pray the Hon'ble Forum to direct the respondent to pay Rs.3,264/- on all accounts. " apart from his own affidavit, a third party affidavit of one Dubala Ramaswamy, who also claimed to be a member of the appellant, was filed. Apart from merely stating that the amount of Rs.2,064/- was paid by the complainant to the opposite party on 28.2.1997 towards the Chit amount alongwith fine and that he also signed the receipt alongwith certain others on behalf of the Sangham, there was nothing more stated by him to elucidate the nature of the transaction described as Chit by the complainant. He also stated that "fine and interest was imposed on complainant since the complainant has failed to pay the Chit amount in time".

(3.) The appellant received notice in the O. P. engaged Counsel, but failed to file the counter. As per what was noted by the District Forum in its order dated 26.8.1998, when the matter was called on 1.4.1998 there was no representation on behalf of the appellant and therefore it was set ex parte. The District Forum considered Rs.1,000/- paid by the complainant as Chit amount and partly allowed the complaint by directing the appellant to pay to the complainant Rs.1,000/- together with interest at 18% thereon and also Rs.100/- towards costs, reasoning as follows : "the affidavit of the complainant when read with Ex. Al makes it clear that the respondent failed to pay any amount to complainant when he requested for payment after the duration of the Chit was completed. Having received by the entire Chit amount of Rs.1,000/- together with interest and fine on 28.2.1997 as evidenced by Ex. Al, the respondent was under obligation to pay at least the principal amount of Rs.1,000/- together with interest at reasonable rate. He failed to pay even the principal amount of Rs.1,000/- and interest thereon. The complainant is not justified in claiming the amount of fine of Rs.975/ because he paid it to the respondent due to delayed payment of instalments of Chit. So far as the request of the complainant for payment of Rs.1,000/- together with interest thereon is concerned it has to be said that it is reasonable and as the respondent failed to pay the same, there was deficiency in service on his part. We, therefore, hold that the complainant is entitled to be paid Rs.1,000/- together with interest at 18% thereon from 1.10.1997, the date following the date of completion of the duration of the Chit. "