TMI Blog1996 (3) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... s. On each instalment two tickets were prized, one by lot and the other by auction. In case of prize by lot ₹ 5,000/- will be deducted as fixed discount and ₹ 45,000/- will be paid to the prized subscriber. Out of the fixed discount of ₹ 5,000/-, ₹ 2,500/- would go as commission for the foreman and balance ₹ 2,5000/- would be divided among the subscribers in proportion to their share. In case of auction, the subscriber who bids for the maximum reduced amount would be prized and he would get an amount of ₹ 45,000/- less the auction deduction. The auction discount of all the divisions will be pooled together and would be divided among the subscribers. This auction discount is paid to those subscribers who pay the subscriptions promptly. A prized subscriber loses the share of the discount on default of payment of even one instalment. A non-prized subscriber would lose the share of auction discount if he defaults three or more instalments consecutively. The conduct of kuries is governed by the Cochin kuries Act VII of 1107 (hereinafter referred to as the Act ). The plaintiff was a subscriber to Division A and Division B of the ticket and paid all th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onclusion that the plaintiff was entitled to ₹ 41,247.40. With this conclusion the suit having been decreed, defendant no. 2 preferred an appeal to the High Court of Kerala. The Division Bench which initially heard the appeal being of the opinion that it raises a substantial question of law, referred the matter to a Full Bench. The question formulated by the Division Bench for being answered by the Full Bench was Whether the discount forfeited by the nonprized subscribers is liable to be distributed among the prompt and regular subscribers? The Full Bench having considered the different provisions of the Act as well as the Vaimpu and taking into account the fact that the foreman has no right to retain any amount other than the commission or remuneration fixed under the Act and the Vaimpu, came to hold that the caution discount forfeited by the non-prized subscribers also will have to be distributed after the termination of the kuri in proportion to the share of the ticket. to the subscribers who have remitted regularly the installment amounts till that date. With the aforesaid finding the appeal having been dismissed and the judgment and decree of the Principal Subo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 3(2) of the Act. thus : Vaimpu is a document containing the terms of agreement between the foreman and the subscribers relating to the Kuri. Kuri amount has been defined in Section 3(3) of the Act, thus : Kuri amount means the sum total of the contributions payable by the subscribers for any instalment without any deduction for discount as defined in clause (4). Discount has been defined in Section 3(4) of the Act, thus: Discount means the amount of money or quality of grain which a prize-winner has, under the terms of the vaimpu, to forego for the payment of Veethapalisa, foreman s commission and other expenses. Prize amount has been defined in Section 3(6) of the Act, thus: Prize amount means the Kuri amount less the discount; it includes in the case of the fraction of a ticket the difference between the proportionate Kuri amount and the discount on the particular fraction of the ticket. Foreman has been defined in Section 3(7) of the Act, thus: Foreman is the person who under the Vaimpu is responsible for the conduct of the Kuri. Veethapalisa has been defined in Section 3(9) of the Act, thus. Ve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the dividend from the first instalment and it is sufficient if they pay only the balance amount after such deduction (dividend). (c) Auction discount will be distributed to all subscribers in proportion to their ticket share, irrespective of whether prized, non prized, auctioned or non auctioned. But prized and auctioned subscribers will not be eligible for the auction discount if they do not pay the instalments within the due date. The auction discount, so forfeited by the prized and auctioned subscribers will be distributed after the termination of the Kuri, in proportion to the share of the ticket. To the subscribers who have remitted regularly the instalment amount till that date. (d) Those subscribers who are eligible for the dividend as above stated, need remit at each instalment only the amount after deduction of dividend, as their share. But if the dividend amount exceeds the instalment amount, such exceeds the instalment amount, such excess will be paid in cash to the subscribers. 11(b) If the non prized and non auctioned subscribers do not remit the instalment amount within ten days of the due date, they can pay the said amount together with 12% interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not able to come forward to offer a high discount at the auction. One of these benami members is Shown to get the prize thereby depriving the real members of the opportunity, (ii) Similarly, it is possible to exploit needy non-prized member or a new member so that he gets the prize only at the maximum discount. (iii) The prized member is supposed to get the amount soon after the draw or auction is over of course on furnishing the security. But the foreman adopts tactics which delay the actual payment for a considerable time, meanwhile he uses the money interest-free. If he succeeds in delaying the payment till the succeeding draw, the earlier prize winner is given the prize out of the collections of the succeeding draw. Thus, one instalment is perpetually in the hands of the foreman to be utilized in any way he likes. The above are only examples to illustrate the way in which some foremen minimize their profits. They do not take into account the cases where the foreman and his associates disappear from the scene and are untraceable. The police have many such cases on their record. During 1962-66, as many as 255 chitties collapsed in several districts of Kerala on acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
