BEFORE THE TELANGANA STATE CONSUMER DISPUTES REDRESSAL COMMISSION: HYDERABAD.

F.A. No.542/2022 AGAINST ORDERS IN CC.No.239/2017 ON THE FILE OF DISTRICT CONSUMER COMMISSION, RANGAREDDY Between:

S.K. Mahabub Subhani, S/o. Unddand Saheb, Aged about: 58 years, Occ: Govt. Teacher, R/o. H.NO.1-6-141/29/6/D1, Sriram Nagar Colony, Suryapet Town and District.

….Appellant/Complainant And The Manager, Sai Kanchi Chit Funds (P) Ltd., Regd. Office #3-6-189/1, 1^st Floor, S.B.H. Colony, Opp: Indian Overseas Bank, L.B. Nagar, Hyderabad. …Respondent/Opposite Party Counsel for the Appellant/Complainant : Mr. I. Rajamallaiah Counsel for the Respondent/Opposite Party : Mr. K. Vijayender Reddy QUORUM: HON’BLE SMT JUSTICE DR.G.RADHA RANI, PRESIDENT &

HON’BLE SMT R.S. RAJESHREE- MEMBER (NON-JUDICIAL)

FRIDAY, THE SIXTEENTH DAY OF JANUARY, TWO THOUSAND TWENTY SIX ORDER: (PERHON’BLE SMT. R.S. RAJESHREE, MEMBER, NON-JUDICIAL)

1. This appeal is filed U/s.41 of the Consumer Protection Act, 2019, by Complainant being aggrieved by the dismissal of his complaint by the District Consumer Commission, Rangareddy, vide order 29.04.2022 in CC No.239/2017.

2. For the sake of convenience, the parties are described as complainant and opposite party as arrayed in the complaint.

The Case of the Complainant is that he joined as a subscriber in the chit run by Opposite Party vide chit series No.SKLTO 2P-2 for the value of chit as Rs.10,00,000/- and duration of the chit was 50 months with the monthly subscription of Rs.20,000/-. Which had commenced on 16.02.2015, that he had participated in the auction conducted by Opposite Party in the month of December, 2015 and agreed to forego Rs.4,00,000/-. That the complainant has furnished the required sureties of the Government employees. The Opposite Party being satisfied by the sureties had paid an amount of Rs.3,86,219/- on

15.03.2016, but however retained an amount of Rs.2,13,781/-.

Similarly, the complainant also joined another chit series bearing No.SKLTO 2J-39, the value of the chit is Rs.5,00,000/- with a duration of 50 months and monthly subscription of Rs.10,000/-. The Complainant participated in the auction held in the month of September, 2016 and being the bidder agreed to forego Rs.2,00,000/-, that the Opposite Party had paid only Rs.1,41,265/- on 24.01.2017 and retained an amount of Rs.1,58,735/-. The total amount retained by the Opposite Party from both the chits comes to Rs.3,72,516/-. Despite the complainant furnishing the sureties, the Opposite Party without any reason had retained a sum of Rs.3,72,516/-. At the time of releasing the chit amounts, the Opposite Party had forcefully collected 3 blank cheques from the complainant. They stated that the same are collected as collateral security and that the same will never be used for any discharge of legally enforceable debt. Despite several requests to the Opposite Party to pay the balance chit amount, the Opposite Party did not choose to pay the same, as such he got issued a legal notice on 16.09.2017. The Opposite Party though received the legal notice did not choose to respond. As such, the complaint was filed before the District Commission for refund of the balance chit amount.

3. Written version of Opposite Party:- The Opposite Party filed its written version while admitting that the Complainant was a chit member to the chits bearing No.SKLTO 2P-2 and No.SKLTO 2J-39 and also that he was a successful bidder for both the chits, however opposed the complaint on the ground that the complainant had filed the complaint suppressing the material facts pertaining to chit subscriptions, payments made by him and default committed by him and filed the complaint on false and frivolous grounds. The Opposite Party further pleads that for chit No.SKLTP 2P-2 it had paid Rs.3,86,250/- after deducting commission and adjusting amount against arrears amounting to Rs.2,13,750/-. Similarly, for chit No.SKLTO 2J-39 the Opposite Party paid Rs.1,41,265/- after deducting commission and adjusting