VISALAM CHIT FUND LTD Vs. A HUSSAIN

JUDGEMENT

(1.) THIS revision has been filed against the order dismissing E. P. No. 199 of 1997. Notice of motion was ordered on 04. 02. 2000 and it continues to be in the same state. Today the matter is listed for final disposal. The first respondent has been served and for the second respondent, it appears that he died as long as 1989 itself. The first respondent is the principal borrower and the second respondent is the guarantor, against whom the decree was passed for recovery of a sum of Rs. 5 ,704. 34 being the amount due from the chit conducted by the petitioner. In execution of the decree in O. S. No. 265/87, the petitioner filed execution petition in E. P. No. 199 of 1997 and prayed for attachment and the sale of the movables. The first judgment Debtor viz., first respondent herein appears to have made some payments when the execution petition was pending. Subsequently, he raised jurisdictional issue, which was found in favour to him by the Court below. The Execution Petition was therefore dismissed and the present revision has been filed.

(2.) THE chit transaction, which is the subject matter of the suit was registered and commenced from 6. 6. 1986 in the State of Pondicherry and at that point of time, it was governed by the provisions of Pondicherry Chit Funds Act, 1966. On 1. 11. 1986, the Pondicherry chit Funds Act was repealed and the Chit Funds Act of 1982 came into force with effect from that date. THE Petitioner filed the suit in O. S. No. 265 of 1987 before the District Munsif Court, pudukottai, after the commencement of the Chit Fund Act, 1982, which bars the jurisdiction of Civil Court. THE suit came to be filed in Pudukottai, because the defendants were residing and carrying on business within the jurisdiction of the District Munsif Court, Pudukottai. THE court below dismissed the Execution Petition on the ground that the Courts in the State of Tamil Nadu had no jurisdiction to entertain the suit after 13. 04. 1984, which is the date on which the Chit Funds Act, 1982 came into force in the State of Tamil Nadu. THE Court below held that if the decree is executed it would amount to nullifying the effect of Section 64 (3) of the Chit Funds act, 1982, since the Court which passed the decree lacks jurisdiction.

(3.) IMPUGNED order is therefore set aside and this civil revision petition is allowed. No costs. Consequently, connected C. M. P. is closed. .