JOHN TRADERS, SAROJA SUNDARSINGH AND J SUNDARSINGH Vs. SECRETARY, (COMMERCIAL TAX (G) DEPARTMENT), DISTRICT REGISTRAR, (DEPUTY CHIT REGISTRAR), PALAI MATHA CHIT FUNDS (P) LTD AND A GNANAVEL

JUDGEMENT

(1.) The Petitioner has prayed for issuance of a Writ in the nature of Certiorari, for quashing the order passed by the Chit Fund Arbitrator and that of the appellate authority,dismissing the appeal.

(2.) The admitted facts are that one Thiru. Gnanavel joined as subscriber of Palai Matha Chit Fund as subscriber No. 19, for a value of Rs. 3,00,000/- (Rupees three lakhs only). Thiru.Gnanavel was required to pay at the rate of Rs. 15,000/- p.m.(Rupees fifteen thousand only) for a period of 20 months. He participated in the auction held on 01.08.1997. Being successful bidder was paid the price money of Rs. 2,10,000/- Rupees two lakhs and ten thousand only) on 30.08.1997. The price money was paid to Petitioner. It executed a promissory note through Thiru.Gnanavel along with one surety, namely, Thiru.Sundarsingh, for a sum of Rs. 2,25,000/- (Rupees two lakhs and twenty five thousand only) to secure the future instalments i.e., 7th to 20th instalments. The Petitioner failed to pay the instalments. Consequently, the Chit Fund Company referred the matter for arbitration. The Chit Arbitrator passed an award dated 27.08.2001, directing the Petitioner and surety to pay the principal sum of Rs. 1,95,160/- (Rupees one lakh ninety five thousand one hundred and sixty only) along with interest of Rs. 1,203/- (Rupees one thousand two hundred and three only) and expenses of Rs. 1,000/- (Rupees one thousand only). The total award passed against the Petitioner was Rs. 1,97,363/- (Rupees one lakh ninety seven thousand three hundred and sixty three only).

(3.) The award was passed against the Petitioner and Surety Sundarsingh, who did not file any appeal. The appeal filed by the Petitioner was initially dismissed as barred by limitation. This Court allowed W.P. No. 23094 of 2002 by condoning the delay, remitted back the appeal to the appellate authority, for deciding it on merits.