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1 Appeal No.1169/2019
Date of Filing : 03.08.2019
Date of Disposal : 06.08.2021
BEFORE THE KARNATAKA STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, BENGALURU (PRINCIPAL BENCH)
DATED THIS THE 06th DAY OF AUGUST 2021
PRESENT
Mr. KRISHNAMURTHY.B.SANGANNANAVAR : JUDICIAL MEMBER
Mrs M.DIVYASHREE : LADY MEMBER
APPEAL NO.1169/2019
M/s.Kapil Chits (Karnataka) Pvt., Ltd.,
Office No.405, 1st Floor,
2nd Main, Kirloskar Layout,
Sidedahalli, Hesaraghatta
Main Road, Bengaluru-73.
Rep. by its Managing Director
..Appellant/s
(By Sri.Shaikbabu.S, Advocate)
Vs
Sri.C.Ravendra
Aged about 42 years
No.418, 1st Block,
6th Stage, Divyajyothi School,
BTM Layout, Bengaluru-76. ..Respondent/s
(By Sri.S.Basavaraja, Advocate)
O R D E R
Mr. KRISHNAMURTHY.B.SANGANNANAVAR : JUDICIAL MEMBER
1. This is an Appeal filed U/s 15 of Consumer Protection Act, 1986
by the Opposite Party No.1/Appellant herein aggrieved by the
2 Appeal No.1169/2019
impugned order dated 18.09.2018 passed by 3rd Addl., District
Consumer Disputes Redressal Forum in C.C.No.2372/2017 (for
short District Forum, Bengaluru and the parties as arrayed in
the consumer complaint).
2. The brief facts of the case of the Complainant before the District
Forum, that OP is a Pvt., Ltd., company doing business in chit
fund under the name and style of Kapil Chits. The Complainant
has started a chit in 2009 May for Rs.10 lakhs under Chit
Group No.BJO1P-, paid all in the instalments regularly. He had
opened one more chit for Rs.10 lakhs in the year 2012. Chit’s
payments have been paid regularly. The chit was auctioned for
Rs.8,60,000/-, however he received the sum of Rs.5,91,300/-
on 03.03.2014 and the balance was adjusted for one more chit
of Rs.8 lakhs. The OP had problems with the staffs and their
staffs were not coming for collections and misused the funds
too. The OP converted Rs.8 lakhs chit payments of the
Complainant to new two chits of Rs.5 lakhs each due to their
internal problems. In March 2017 the Complainant has
auctioned his chit and the chit prized for Rs.4,75,000/- of one
ticket No.14 and in the month of June 2017 another chit prized
for Rs.4,75,000/- for ticket No.13. However, OP has failed to pay
the chit amount in-spite of repeated reminders, requests and
3 Appeal No.1169/2019
legal notice. Chit auction was done on 27.03.2017. In spite of
lapse of 5 months and issuance of 3 notices OP did not respond
to comply with the request and notices, thereby raised
consumer complaint U/s.12 of CP Act, 1986. Although OP put
appearance failed to submit version. District Forum held
enquiry
by
receiving
affidavit
evidence
of
Mr.C.Ravendra/Complainant and documents C1 to C3 and
thereby held OP is deficient in service to be rendered to the
Complainant, allowed the complaint with a direction to refund
Rs.9,50,000/- along with interest at 18% p.a. from March 2017
till realization and to pay Rs.1 lakh towards compensation for
causing mental agony and do pay Rs.5,000/- as cost of
litigation within 30 days from the date of order which is now
impugned in this appeal contending that Clause 5 of Chit
Agreement clearly states that chit subscriber has to furnish all
the documents to the satisfaction of the Foreman of the
company for release of prize amount. During the pendency of
the complaint before District Forum the Complainant received
the prize amount from the OP is not at all brought to the notice
of the District Forum. The Complainant had received a sum of
Rs.4,75,000/- before passing of the order by District Forum and
after passing of the or
