VASTAVA CHIT FUNDS PVT LTD Vs. MADALA BENARJEE

JUDGEMENT

(1.) Aggrieved of the docket order dated 8-12-1999 passed by the learned Junior Civil Judge, Vijayawada, returning the plaint to the petitioner, herein, as time barred, and to enable him to confine the suit claim in respect of the instalments due from 33rd to 30th (sic. 40th) instalments.

(2.) Few facts that are necessary for the disposal of this revision petition are that the petitioner-plaintiff is a Company Registered under the Companies Act, 1956 and has been doing chit fund business; with its Registered Office at Sainagar, Vijayawada. The first defendant joined as member of the plaintiff company agreeing to abide by the Rules and Regulations of the Company and he was allotted Ticket No.20 in LT2BR Series, for a total chit value of Rs.2.00 lakhs at the rate of Rs.5,000/- per month for 40 months and signed an agreement on 12-5-1995. Under the terms and conditions, the subscribers get dividends so long as they pay the instalments regularly; and the prized subscribers will lose the dividends from the time of default, besides the fact that on such default, he is liable to pay the entire balance of future instalments in lumpsum together with interest at 12% p.a. While so, on 28-5-1995, the first respondent herein was declared as the successful bidder, having agreed to forego Rs.78,530/- and it was confirmed by the plaintiff company. The first respondent herein paid Rs.80,000/- by way of 16 instalments, leaving future liability to the tune of Rs.1,20,000/-. The first respondent herein furnished the respondents 2 to 4 as the guarantors and also executed agreement of guarantee jointly on 23-6-1995 in favour of the petitioner company. All the respondents herein have jointly executed promissory note on 23-6-1995. Therefore, on the guarantee of the defendants and in view of the documents executed by the defendants, the petitioner company disbursed the prized amount. Subsequently, the first respondent paid a sum of Rs.1,40,000/- in all upto 28th instalment and committed defaults from 29th instalment i.e. from 15-6-1996 and in spite of the demands, including legal notice dated 5-7-1999, made by the company, the first respondent did not pay the amount. Therefore, the company filed suit for recovery of Rs.83,700/-.

(3.) On presentation of the plaint before the court below and on scrutiny, it returned the plaint as time barred, by the impugned order, which reads as under: