VISALAM CHIT FUNDS LIMITED Vs. S SUGUNA

JUDGEMENT

(1.) THE plaintiff has filed the Suit O. S. 1383/87 for recovery of money due to it on the basis of chit transaction. The case of the plaintiff is that the value of the chit is Rs. 50,000/- and it commenced on 9-12-1992. The defendants resisted the suit. On the basis of pleadings the trial Court has framed certain issues. Ultimately, the trial Court dismissed the suit holding that the trial Court has no jurisdiction to try the suit and the suit filed is also not maintainable as it is barred under Sec. 64 (3) of the Chit Funds Act, 1982 (for short 'the Act' ).

(2.) IN this appeal, the point that arises for consideration is :-

(3.) UNDER Order 2, Rule 2, CPC, no doubt, if a person is entitled to more than one relief on the same cause of action may sue for all or any of such reliefs; but if he omits; except with the leave of the Court to sue for all such reliefs, he shall not sue for the reliefs so omitted. If the money is borrowed by creating equitable mortgage, no doubt it is at the option of the creditor to sue for recovery of money by omitting the relief of recovery of money on the basis of mortgage or he may with the leave of the Court may reserve his right to sue on the basis of the mortgage by filing a simple suit for recovery of money. In the absence of obtaining the leave of the Court as required under Order 2, Rule 2, CPC, the creditor cannot file a second suit for recovery of money on the basis of mortgage that is to say the second suit in such cases is barred; but not the first suit. Therefore, the trial Court was not right in dismissing the suit on the ground of jurisdiction.