CITY CHIT FUNDS PVT LTD Vs. R KANNAN

JUDGEMENT

(1.) The opposite party the City Chit Funds Pvt. Ltd. , against which an award has been passed is the ppellant.

(2.) The complainant was a subscriber to 3 chits, each of Rs.30,000/-, conducted by the opposite party, commencing from 4.2.1982. The date of termination of the chits was 4.5-1990. One chit was prized in favour of the complainant for a sum of Rs.21,000/- on 4.4.1985 and another chit was prized in his favour for a similar sum of Rs.21,000/- on 4.12.1987. Towards the 3rd chit, he had paid a total subscription of Rs.16,500/-. The case of the complainant is that the opposite party did not pay the prized amounts. After several demands, the complainant received a sum of Rs.5.000/- on 20.6.1990 and another sum of Rs.19,637.50 on 18.1.1992, and no other amount was paid. After giving credit to the said amounts received, the opposite party is liable to pay a balance sum of Rs.68,792.20 for the three chits. Alleging deficiency in service on the part of the opposite party, the complaint was filed for payment of the said sum of Rs.68,792.20 and damages of Rs.10,000/-.

(3.) The opposite party contended in its written version that one Mr. Pushparajan was the Managing Director of the opposite-party Company, and as such and as the Foreman of the chits, he mismanaged the affairs of the Company. He was suspended from the office and a suit has been filed against him. It was unanimously agreed in a meeting of shareholders convened by the Board of Directors that by liquidating the assets of the Company, the Company would be able to pay only 50% of the money remitted by the shareholders. The complainant/claimant also agreed to receive 50% of the money paid by him. Pursuant to that, a sum of Rs.5,000/- was paid to him on 20.6.1990 and another sum of Rs.19,637.50 was paid on 18.1.1992 by way of cheques. For these amounts the complainant did not send receipts. Having agreed to receive 50% of the money paid by him, he had come forward with the present vexatious claim. The opposite party is not liable to pay any amount to the complainant. The complaint is barred by limitation.