F.A. No. 225 of 2013. Case: Rakshit M. Shah Vs Mahavir Chit Funds and Finance and Ors.. Andhra Pradesh State Consumer Disputes Redressal Commission

Case NumberF.A. No. 225 of 2013
Party NameRakshit M. Shah Vs Mahavir Chit Funds and Finance and Ors.
CounselFor Appellant: Shireen Sethna Baria, Advocate
JudgesR. Lakshminarasimha Rao and Thota Ashok Kumar, Members
IssueIndian Evidence Act, 1872 - Section 58
Judgement DateFebruary 05, 2014
CourtAndhra Pradesh State Consumer Disputes Redressal Commission

Order:

R. Lakshminarasimha Rao, Member

  1. The unsuccessful complainant is the appellant. The appellant filed complaint claiming the amount of Rs. 1,30,917 with interest @ 24% p.a. and a sum of Rs. 50,000 towards compensation for suffering mental agony and costs. The appellant joined in the chit group with the respondents for the chit value of Rs. 1,00,000 and the monthly subscription payable for the chit is Rs. 5,000 in duration of 20 months. The chit terminated in February, 2007 and the appellant paid all the 20 instalments and received the chit amount of Rs. 95,000 from the respondents. The appellant had joined another chit in the month of May 2007 for the chit value of Rs. 1,00,000 and the monthly subscription payable for the chit is Rs. 5,000. The chit was commenced on 24.4.2007 and would be terminated in the month of November 2008. The appellant had stated that he paid all the 20 instalments for an amount of Rs. 95,000. The respondents even after completion of the total subscription amount failed to pay the chit amount The appellant got issued notice dated 6.5.2010 to the respondents claiming the amount of Rs. 1,30,917 with interest, compensation and costs.

  2. The respondent No. 3 filed counter which was adopted by the respondent Nos. 1 and 2 and contended that the appellant had not paid the instalments in time and the respondent Nos. 1 and 2 are no way concerned with the chit transaction of the appellant. The respondent No. 3 suffered heavy financial loss and as such demanded for the payment with regard to the subscription amount from the appellant. The appellant is not a consumer and the complaint is not maintainable.

  3. The appellant filed his affidavit and the documents, Exs. A1 to A7 and the respondent No. 3 filed his affidavit and they did not chose to file any documents.

  4. The District Forum dismissed the complaint on the premise that the appellant failed to prove that he is subscriber of the chit conducted by the respondent No. 1 chit fund company and the District Forum observed that mere deducting amounts from the savings bank account of the appellants not sufficient to hold that the appellant is subscriber of the chit.

  5. Feeling aggrieved by the order of the District Forum the complainant has filed appeal contending that the District Forum decided two issues out of three issues in his favour and erroneously held that he is not subscriber despite the admission of the respondents thereof. It is contended that the District...

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