HI-LINE KURIES PVT LTD Vs. SUKHEESH

JUDGEMENT

(1.) The above original petitions and civil revision petitions are listed before the Division Bench based on an order of reference dtd. 18/8/2020 made by a learned Single Judge. The common question referred for consideration of the Division Bench is as to whether the forum prescribed under sub-sec. (1) of Sec. 64 of the Chit Funds Act, 1982, must be the forum from the date of commencement of the said Act in Kerala, i.e., 30/4/2012, for filing of cases relating to chits, including the chits started prior to the commencement of the said Act in Kerala and whether the rigour of sub-sec. s (1) and (3) of Ss. 64 is mitigated by the provisions of clause (a) of Sec. 85 of the Act or not.

(2.) Heard the learned counsel for the petitioners and also the learned counsel for the respondents in the respective original petitions/civil revision petitions.

(3.) The Kerala Chitties Act, 1975, was enacted by the State Legislature to define, amend and consolidate the law relating to chitties in the State of Kerala, which came into force with effect from 25/8/1975. Clause (2) of Sec. 2 of the Act defines 'chitty' to mean a transaction, whether called chitty or kuri, by which one or more persons, hereinafter called the 'foreman' or foremen', enter into an agreement with a number of persons that every one of the contracting parties shall subscribe a certain amount of money or quantity of grain or other commodity by periodical instalments for a certain definite period and that each in his turn, as determined by lot or by auction or by both, shall be entitled to the prize amount, whether payable in cash, kind or any other article of value or in such other manner as may be provided for in the agreement. Sec. 70 of the Act deals with application of the Act to certain existing chitties. As per Sec. 70, the provisions of this Act, save those contained in Ss. 3, 4, 8, 9 and 15 shall, so far as may be, apply to chitties started before the commencement of this Act in the Malabar district referred to in sub-sec. (2) of Sec. 5 of the States Reorganisation Act, 1956.