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MEENA RAMANATHAN, K. RANGA RAO
Foreman, M/s Akshara Chit Fund Private Limited – Appellant
Versus
Ramreddy Sujatha Reddy – Respondent
ORDER :
K. Ranga Rao, Member – Judicial—The appeal is filed by the Appellant/Opposite Party u/s 41 of the Consumer Protection Act, 2019, against the order passed by the District Consumer Commission, Warangal, dated 31.05.2022 in CC No.56/2021, with a prayer to set aside the said order and consequently dismiss the complaint.
2. For the sake of convenient discussion, the parties are referred to as arrayed in the complaint. The Respondent was the complainant and the appellant herein was the opposite party in the said CC 56/2021.
3. The factual matrix of the complaint is that the complainant had joined as a Member in the opposite party Chit Fund Company vide Chit No. AKZT02S-30 and the chit value is Rs.25,00,000/- payable in 50 monthly installments @ Rs.50,000/- per month. The complainant submits that she had paid 38 installments to the opposite party and participated in the auction conducted on 24.08.2019 conducted by the opposite party and became the successful bidder by foregoing an amount of Rs.4,50,000/-. The opposite party requested the complainant to furnish the sureties, but the complainant instructed the opposite party to deduct the future installments and to pay the remaining
(1) Proof of Deductions – A Chit Fund Company cannot unilaterally deduct charges for “Surety Verification” or “GST” from a prized amount unless they provide concrete evidence or contractual justifica....
(1) Chit amount – having executed Exs. B2 & B5, the complainant is estopped from claiming the chit amount.(2) Documentary Evidence – When the opposite party has come up with such documentary evidence....
Power of National Commission to review under Section 21 of Consumer Protection Act, 1986 is limited to cases where some prima facie error appears in impugned order.
Consumer forums have jurisdiction in disputes involving chit fund operators, and failure to fulfill obligations pertains to deficiency of service under the Consumer Protection Act, 2019.
Cause of Action – Every complaint shall be filed within two years from the date of cause of action.
Onus to prove that service was obtained for a commercial purpose is on service provider – Negative burden cannot be placed on complainant to show that service available was not for a commercial purpo....
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