SIRI CHIT FUND PVT LTD Vs. NAFEESUNNHIS BEGUM

JUDGEMENT

(1.) THIS Second Appeal is being heard by us, on a reference made by the learned single Judge, who heard it at the stage of admission.

(2.) BRIEFLY stated the facts are that the appellant, a Chit Fund Company, filed O.S.No.340 of 2006 in the Court of Principal Senior Civil Judge, Warangal, against the prized subscriber and the sureties, i.e. respondents 1 to 6 herein. One of the defences taken by the respondents was that the suit is barred by limitation. The trial Court decreed the suit through judgment dated 30 -07 -2013. The 1st respondent i.e. the prized subscriber filed A.S.No.6 of 2002 before the Court of Principal District Judge, Warangal. The appeal was allowed through judgment dated 12 -08 -2013 and the decree passed by the trial Court was set aside. Hence, the plaintiff in the suit filed this Second Appeal.

(3.) NOTICE was ordered at the stage of admission itself and after the respondents entered appearance, the matter was heard at length. In the course of hearing of the Second appeal, the learned single Judge felt that the judgment of this Court in Vastava Chit Funds (Private) Ltd., Vijayawada v. Medala Benarjee, 2005 3 ALT 405 (rendered by another learned single Judge), wherein it was held that Article 37 of the Schedule to the Limitation Act applies to the suits filed by the Chit Fund Companies for recovery of remaining installments from a prized subscriber; requires re -consideration. The judgments of the Madras High Court in C. Dhanam v. A.M. Srinivasan, 2006 AIR(Mad) 210 (Full Bench) and in Tuticorin Trading and Credit Corporation Pvt. Ltd. V. J.S. Sundararaj, 1999 AIR(Mad) 186 were taken note of. Accordingly the reference was made to this Court.