VIJAYAPURAM CHIT FUND VIJAYAPURAM Vs. M M FAROOK

JUDGEMENT

(1.) The unsuccessful plaintiff in O.S. No. 137 of 1988 on the file of the District Munsif, Tiruvarur is the appellant herein. The appellant is running a chit company. The first respondent herein joined as a subscriber in the chit value of Rs. 10,000 and the monthly subscription is Rs. 1,000. The first respondent paid the first instalment of Rs. 1,000 and became the successful prized subscriber. He executed a pronote for the balance of Rs. 9,000 on 29.4.85. Thereafter till 11.9.1987 the first respondent paid a sum of Rs. 3,600 and failed to pay the subscription arrears subsequently. Hence the suit was laid for recovery of a sum of Rs. 5,400 with interest. The second respondent herein is the guarantor and as such he has been impleaded as defendant in the suit.

(2.) The respondent disputed the claim of the appellant on the ground that the suit is not maintainable in view of Section 64 of the Chit Funds Act, 1982. Further the appellant did not issue any notice demanding the money and hence the suit is liable to be dismissed.

(3.) The trial Court, after considering the evidence let in by both the parties, by its judgment and decree dated 14.10.88 dismissed the suit, finding that the appellant failed to comply with the statutory provision of Section 33(1) of the Chit Funds Act which requires previous notice to the subscriber demanding the arrears. As the appellant failed to send the notice, as contemplated under Section 33(1) of the said Act, the suit is liable to be dismissed. So far as the plea of the respondent that the suit is not maintainable pursuant to Section 64 of the Act is concerned, the trial Court held against the respondents.