T VENKATESWARLU NAIDU Vs. SHRIRAM CHITS P LTD

JUDGEMENT

(1.) This civil revision petition arises out of an order dated 27-2-1998 passed by the Additional Senior Civil Judge, Ongole in Small Cause Suit No.4 of 1995 whereby and whereunder the suit filed by the plaintiff-opposite party is decreed.

(2.) The fact of the matter is as follows. The plaintiff is a chit fund company. The first defendant (first petitioner herein) joined the chit company as one of the subscribers for the Chit OTS-3 for Rs.30,000/-. Subsequently, the first defendant participated in the auction and became the prized bidder and an amount of Rs. 15,350/- was paid to him by the chit fund company vide voucher dated 14-7-1992. As on the date of auction, the first defendant was due a sum of Rs.28,000/-. While receiving the bid amount, the first defendant executed a promissory note for Rs.28,000/- in favour of the plaintiff for which defendants 2 to 4 stood as guarantors. After receiving the bid amount, the first defendant paid 24 monthly instalments and thereafter committed default. Thus, the first defendant is due a sum of Rs.6,000/- to the plaintiff together with interest and costs. On the other hand, the first defendant made a counter claim stating that he was a member of the chit of Rs. 1,00,000/- with Chit No.OKL 1 at a monthly subscription of Rs.2,000/-, that he paid five instalments amounting to Rs. 10,000/-, that he could not prosecute the chit and discontinued and that he gave a notice to the plaintiff to return the said amount of Rs. 10,000/-.

(3.) Having regard to the pleadings of the parties, the learned Court below formulated three questions for its consideration. On point No.l, it was held that the defendant No.l has admitted the suit transaction and he having not been able to prove the counter claim, the suit of the plaintiff is entitled to be decreed.