Mr. Justice E.J. Bellie, President—The opposite party against whom a decree has been passed by the District Forum, is the Appellant. The transaction alleged by the complainant in respect of which according to him the opposite party has committed deficiency in service is a chit transaction. The complainant was a subscriber to a chit conducted by the opposite party. According to him, he had paid the entire subscription and at the end of the chit he was entitled to Rs. 40,000/- and when he demanded payment of this amount the opposite party evaded. On these grounds the complaint has been filed for payment of Rs. 40,000/- and compensation.

2. The opposite party contended that the complainant had obtained a loan of Rs. 80,000/- from him, and the chit amount of Rs. 40,000/- has been adjusted towards this loan amount as per the letter written by the complainant, and there is still a balance of Rs. 10,000/- due from the complainant to the opposite party, and therefore there is no deficiency in service on its part as alleged by the complainant.

3. The District Forum rejected the case of the opposite party and, holding that there was deficiency in service on the part of the opposite party,