OOMMEN PANICKER Vs. MUTHOOT MINI CHIT FUND

JUDGEMENT

(1.) Defendants are the appellants. Plaintiff filed the suit for realisation of the amount due to the firm Muthoottu Mini Chitty Fund from the defendants (appellants) towards defaulted subscriptions in four chitties conducted by its Bangalore Branch Office in Karnataka State. Overruling the various contentions raised by the defendants, the suit was decreed for Rs. 3,93,000/- with interest at 12% per annum on the principal amount of Rs. 3,10,000/- from the date of suit till realisation and costs from them.

(2.) Plaintiff is a partnership firm registered under the Indian Partnership Act. It has its branch office at Bangalore. Chitties are conducted by its Bangalore branch office. First defendant was a subscriber in four chitties conducted by the said branch office. Defendants 1 to 3 had jointly executed promissory notes in favour of the plaintiff-firm on 6-9-1979 for Rs.70,000/- and on 12-4-1980 for Rs.92,500/-. As defendants despite repeated demands and registered notice did not care to close the transaction, the suit was filed.

(3.) Defendants 1 to 3 in their joint written statement contended inter alia that the entire transaction being illegal as it has violated the provisions of the Kerala Chitties Act the plaintiff-firm is not entitled to recover any amount from them and as such the suit is liable to be dismissed.