1 Appeal No.351/2018

Date of Filing : 03.03.2018

Date of Disposal : 20.08.2021

BEFORE THE KARNATAKA STATE CONSUMER DISPUTES

REDRESSAL COMMISSION, BENGALURU (PRINCIPAL BENCH)

DATED THIS THE 20^th DAY OF AUGUST-2021

PRESENT

Mr. K.B.SANGANNANAVAR : JUDICIAL MEMBER

Mrs M.DIVYASHREE : LADY MEMBER

APPEAL NO.351/2018

M/s Margadarsi Chits (K)

Pvt. Ltd., Being Rep/by

Its Foreman/Manager,

No.1^st Floor, Hermain

Complex, BTM 2^nd

Bangalore-560 076.

Rep/by its Deputy Manager/

Foreman Sri.D.Raghuramaiah. … Appellant

(By Sri/Smt. P.P.Jayakumar, Advocate)

-Versus-

Mohamad Musthafa

S/o Pyarejan,

Aged about 65 Years,

R/at Mubarak Traders,

Tippusulthan Road,

Kolara City, Kolar. ..Respondent

(By Sri/Smt. N.R.G, Advocate)

O R D E R

Mr. K.B.SANGANNANAVAR : JUDICIAL MEMBER

1. This is an Appeal filed u/s 15 of the Consumer Protection

Act, 1986 by OP, having been aggrieved by the order dated

2 Appeal No.351/2018

16.02.2018 passed by Kolar District Consumer Disputes

Redressal Forum/Commission, in CC-05/2017 (for short

District Forum/Commission and the parties as arrayed in the

complaint).

2.

The Brief facts of the case of the complainant before the

District Commission is that a Consumer Complaint was raised

u/s 12 of C.P Act, 1986 with a prayer to direct OP to pay

Rs.10,00,000/- along with interest @ 24% p.a and Rs.10,000/-

towards damages and litigation costs. The complainant has

stated that, he is a subscriber to the chit with Opposite party

No.1, which was commenced on September-2012, its duration is

50 months

with

chit

reference

No.LT008X

BT/18,

P.S.O.No.32/2012-13 and value of the said chit after completion

is sum of Rs.10,00,000/-. The monthly subscription is

Rs.20,000/- and the date of auction is of every 3^rd Sunday.

Opposite partyNo.2 is an Agent of OP.No.1 used to visit Kolar on

every 3^rd Sunday to collect monthly subscription of the chit.

However, even after completion of the said chit Opposite

partyNo.1 did not paid the chit amount. In this regard, he

caused a legal notice dated 19.12.2016, yet Opposite partyNo.1

instead of complying the said notice, repudiated the claim, on

3 Appeal No.351/2018

the ground that, he had stood as a Guarantor to one

P.N.Srinivasappa. The dispute against him for recovery of

amount is still pending, without clearance of the said due, the

chit amount will not be payable and still deduct the due amount

of Mr.P.N.Srinivasappa from the chit amount of complainant. It

is submitted that at the commencement of the chit, no such

contract arrived in between complainant and the OPs and he is

in no way concerned to the dues of Mr.P.N.Srinivasappa and he

is entitled for the relief as sought in the complaint.

3. OP.No.1 resisted the complaint and submits, complainant

had become successful bidder through lot member in the last

instalment and entitled for a price amount of Rs.9,50,000/- and

would submit that, he is not a consumer as defined u/s 2(1)(g)

of C.P Act, 1986. He has stood as a Guarantor to the suit filed

chit vide No.TT00IV MH-04 at one of their sister concern

Marathahalli Branch vide dispute No.55/2016-17 on the file

Deputy Registrar of Chits, which is still pending adjudication.

This was notified to complainant under Chit Fund Act, 1982

and as per the terms and conditions of the chit agreement and

agreement of Guarantee, OP.No.1 has right to exercise lien over

4 Appeal No.3

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