VISALAM CHIT FUND LTD Vs. VASUDEVA ACHARI

JUDGEMENT

(1.) The plaintiff is the appellant herein.

(2.) This appeal has arisen from the judgment and decree of the learned Subordinate Judge allowing the claim of the appellant/plaintiff in part in a suit filed by them for recovery of money.

(3.) The case of the plaintiff is as follows: The plaintiff is transacting chit business through its various branch offices. Their branch office at Bangalore commenced the Chit No.TNBZ.1/48 on 30.5.83. The first defendant joined as a member of the said chit. The duration of the chit is 25 months. The total value of the chit is Rs.30,000/-, which is payable in instalments of Rs.600/- in fortnight. The first defendant took the said chit in auction on 15.2.84 for Rs.20,450/- and received the same on 6.3.84 from Tindivanam office, and he passed on a receipt in favour of the plaintiff at Tindivanam. The second defendant executed a guarantee agreement in favour of the plaintiff on 6.3.84 at Tindivanam guaranteeing regular payment of remaining instalments by the first defendant. The first defendant joined as a member of another chit which was commenced on 24.8.83. The value of the said chit is Rs.50,000/-, and the duration is 50 months. He purchased the said chit in auction on 16.11.83 for Rs.25,000/-. He received the chit amount at Tindivanam branch on 9.12.1983 and passed on a receipt in favour of the plaintiff. The second defendant executed a guarantee agreement in favour of the plaintiff on 9.12.83 at Tindivanam guaranteeing regular payment of instalment amounts by the first defendant. Thus, the defendants are jointly and severally liable to pay both the chit balance amounts. Since the defendants have not paid the chit amounts despite demands, notices were issued on 13.3.83 for the first chit amount and on 21.9.84 for the second chit amount. The 2nd defendant created an equitable mortgage over her property by depositing title deeds with Cuddalore Branch of plaintiff on 10.12.1983. She wrote a letter on 7.3.84 acknowledging deposit of title deeds with the plaintiff as security for recovering the amounts. The plaintiff is entitled to enforce the equitable mortgage for realising the amounts due under the said chits. As the mortgagor and mortgagee are the same, the plaintiff is entitled to consolidate both the mortgages. The defendants are liable to pay Rs.52,006.50 with subsequent interest. Hence this suit.