T V SEETHARAMAYYAR Vs. MUNISAMI MUDALIAR

JUDGEMENT

(1.) The case has been very fully argued by the two learned Vakils who appeared for the petitioner and the counter-petitioners. I shall, therefore, proceed to give judgment at once.

(2.) The suit is for instalments due in respect of a Chit fund. The plaintiff calls himself the agent and proprietor of the fund. The 1st defendant was a subscriber in it. He obtained the prize in the reffle and received the full amount. Thereupon Exhibit A was executed by him and his surety to the plaintiff. One sentence in it which has given rise to much comment is this: We shall severally or jointly without setting up proportionate liability pay in lump on demand the balance due with interest at one per cent, per mensem from the date of default." After the execution of the bond, the 1st defendant paid sums of money although he did not pay them on the due dates according to the rules of the fund The present suit was brought for the balance.

(3.) It is admitted that, if the claim is made for the subscription and not based on the bond, subject to other defences if any, the suit will be in time. The District Munsif has held that the suit was barred by limitation.