Before the State Consumer Disputes Redressal Commission (constituted under the Consumer Protection Act, 2019)

of Telangana, Eruvaka Building, Khairathabad at Hyderabad FA NO.299O F2 017 AGAINSTC C NO.133O F2 016 ON THE FILE OF DISTRICTC OMMISSION-IH, YDERABAD Between:

1) M/s Subhanjali Chit Fund Private Limited, Represented by its Managing Director T.Hanumantha Rao, D.No.8-3-320/1/3/4, Sai Pariwar, Sai Sarathi Nagar, Behind Sarathi Studio, Yellareddyguda, Hyderabad - 500 073, Telangana State 2 T.Hanumantha Rao S/o Veeraiah, aged about 48 years, Occ: Chit Fund Business, D.No.8-3-320/1/3/4, Sai Pariwar, Sai Sarathi Nagar, Behind Sarathi Studio, Yellareddyguda, Hyderabad - 500 072.

Telangana State.

Appellants/Opposite parties And M.Bhuvaneswar S/o late Purnachander, aged about 37 years, Occupation: Business, R/o Plot No.873A, D.No.8-2-293/82/A/873/A, Road No.45, Jubilee Hills, Hyderabad - Telangana State.

..Respondent/Complainant Counsel for the Appellants M/s G.Dhananjai Counsel for the Respondent Sri T.Narender cORAM:

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Hon'ble Sri Justice MSK Jaiswal President Smt Meena Ramanathan Member and Sri K.Ranga Rao Member Wednesday, the Twenty Eighth day of September Two Thousand Twenty Two ***

Oral order This is an appeal preferred by the Opposite parties aggrieved by the orders dated 04.07.2017 passed by the District Consumer Forum-1I, Hyderabad in CC No.133/2016 in allowing the complaint and directing the Opposite parties to pay the chit amount of Rs.4,61,000/- together with interest @ 12% per annum from April 2014 and Rs.1,00,000/- as compensation towards mental agony and costs of Rs.2,000/-

2) For the sake of convenience, the parties are referred to as arrayea in the complaint.

3) It is the case of Complainant that himself and Opposite party No.2 are known to each other and out of said acquaintance, he joined as subscriber of chit bearing No.ST4M-6 for the value of Rs.5,00,000/- with monthly subscription of Rs.20,000/- with duration of 25 months in the Opposite party No.1 of which Opposite party No.2 is its Managing Director. Complainant paid the instalments regularly amounting to 24 months. Even after termination of chit, the Opposite parties failed to pay Rs.4,86,000/-.

4) Added to it, Opposite party No.2 came to his office on 15.11.2015 and took away all the original receipts on the premise of paying the chit amount but failed to make payment. Hence, the Complainant got issued notice on 05.01.2016. Complaining deficiency of service on the part of the Opposite parties, filed the present complaint with a prayer to direct the Opposite parties to pay Rs.4,86,000/- together with interest @ 24% per annum from March 2014 and also to pay compensation of Rs.1,00,000/-.

5) Opposite parties filed their written version contending that the present dispute do not fall within the ambit of the Consumer Protection Act. Having ^understood the terms and conditions of chit, Complainant joined in 4 chit groups bearing No.ST2M-4, ST2M-5, ST2M-6 and ST2M- 24 for the value of Rs.5,00,000/- each with monthly subscription of Rs.20,000/-, for a duration of 25 months. Towards chit No.ST2M-6 and ST2M-4, Complainant paid 17 months continuously and thereafter committed default. He also committed default for Chit number ST2M-24 from 18th instalment onwards. Complainant became successful bidder of all the four chits. When the Opposite parties demanded to pay the arrears, he requested to adjust the same from the prized chits.

5) Towards chit bearing Nos.ST2M-6 and ST2M-24, Complainant paid 11 instalments and failed to pay 12th instalment which was adjusted. He pad 13th instalment and committed default for 14th, 15th and lo th th nstalment which were adjusted from the prized chit. Again, from 16 mstalment onwards, Complainant committed default. Chit No.ST2M-24 was knocked down for Rs.3,50,000/- in favour of Complainant on

16.12.2012. Likewise, chit No.ST2M-6 for Rs.3,50,000/- on 20.01.2013, chit No.ST2M-4 for Rs.3,75,000/- on 19.05.2013 and chit No.ST2M-5 for Rs.4,00,000/