Court : Chennai
Reported in : AIR2002Mad273
..... end by feb. or march, 1986. hence the courts below were not correct in dismissing the suit for non compliance of section 33(1) of the chit funds act. 7. none appeared for the respondents. 8. to appreciate the contention of the learned counsel for the appellant, it is worthwhile to look into the ..... appellant is not entitled to recover the amount, as they failed to issue the notice demanding the arrears, as contemplated under section 33(1) of the chit funds act, which is a condition precedent to file the suit, and ultimately dismissed the appeal by its judgment and decree dated 20-6-1989. hence the present ..... suit. 2. the respondent disputed the claim of the appellant on the ground that the suit is not maintainable in view of section 4 of the chit funds act, 1982. further the appellant did not issue any notice demanding the money and hence the suit is liable to be dismissed. 3. the trial court, ..... for the above reasons, i hold that the necessity of issuing notice under section 33(1) of the chit funds act arise only when the chit is a subsisting one. on the other hand, if the chit is terminated by efflux of period, then there is no condition precedent of issuing any notice on the fore- ..... 14-10-1988 dismissed the suit, finding that the appellant failed to comply with the statutory provision of section 33(1) of the chit funds act which requires previous notice to the subscriber demanding the arrears. as the appellant failed to sent the notices, as contemplated under section 33(1) of .....Tag this Judgment!
Court : Andhra Pradesh
Reported in : 57CompCas602(AP)
..... because it is not on the pronote that the decree could be passed as it has been already held that the proviso to s. 25(2) of the a.p. chit funds act, 1971, forbids any such decree being passed, but the decree made in nevertheless valid and legal. 6. in the circumstances, i hold that the suit is not barred by limitation ..... be passed on the promissory not executed by the subscriber if it is not mentioned therein that the loan was with reference to the chit amount, within the meaning of s 25(2) of the andhra pradesh chit funds act, 1971. second is : when the cause of action for the purpose of limitation arises in respect of the bid amount in which the subscriber ..... . it is quite manifest from the promissory note, ex. a-2, that there is absolutely no reference whatsoever towards payment of subscription towards chit, as postulated under s. 25(2) of the a.p. chit funds act, 1971, and, therefore, i have no hesitation whatsoever to hold that no decree can be passed on the basis of ex. a-2 (promissory note). 4. regarding ..... express mention that the amount due under the promissory note is towards the payment of subscriptions due in respect of the chit. before adjudication of the issue, the relevant provisions enacred i.e. s. 25(2) of the a.p. chit funds act, 1971, may be read which is as under : '25.(2) if in a suit by foreman for consolidated payment of future .....Tag this Judgment!
Court : Andhra Pradesh
Reported in : 58CompCas80(AP)
..... and it is clear from the said document that mr. rahim is the regional manager authorised to file suits, sing and verify the plaints. section 25 of the a.p. chit funds act, 1971, enables a foreman to demand future subscriptions by written notice and also file suits in that regard. the 'foremen' is defined in s. 2(10) as a person who ..... courts by way of filing suits. it is further contended by sri ramarao that under s. 26 of the a.p. chit funds act, 1971, the general power of attorney has to be treated as invalid. section 26 of the a.p. chit funds act provides that no transfer of the rights of a foreman to receive subscriptions from prized subscribers shall be made without the ..... said e. a. rahim is the regional manager of the respondent company. it is contended that the said rahim is not authorised to act as a foreman of the respondent company. under s. 25 of the a.p. chit funds act, 1971, only a foreman is entitled to demand and file the suit. the second ground urged by the petitioner in the said i ..... subscriber is entitled has got a definite connotation which is mentioned in the explanation to the definition of 'conventional chit' in s. 2(a) itself. further, s. 2(15) of the a.p. chit funds act, 1971, also defines 'prize amount' as the difference between the chit amount and the discount and in the case of a fraction of ticket, means the difference between the .....Tag this Judgment!
Court : Andhra Pradesh
Reported in : 60CompCas462(AP)
..... decreed the suit. on appeal, it was reversed holding that though the claim is supported by consideration, still since the non-compliance of the provisions of the andhra pradesh chit funds act, 1971 ('the act', for short) was not in dispute, it was fatal to the very maintenance of the suit and was also opposed to the provisions enacted in section 23 of the ..... addressed and considered. the question is whether in the instant circumstances, the subscribers could be allowed to claim refund of the subscriptions from the chit fund organisation, though the organisation did not comply with the provisions of the act. an important decision in this behalf of a full bench of the madras high court in sesha ayyar v. krishna ayyar, air 1936 mad ..... playing fraud on the public monies as there was no statutory control over such bodies. so, the state legislature brought out act ix of 1971 in march, 1971. 8. the objects and reasons of the said act are : of late chit fund companies are promoted or conducted without any safeguards in respect of the monies invested. in order to have proper control by the ..... which the legislature so avowedly intended. the dominant object is to deter the chit fund organisations from embarking upon transactions of that nature without complying with the mandatory provisions of the act, meant to safeguard the members of the public at large with whose funds gathered by way of contributions the chit fund bodies would otherwise play ducks and drakes, but for the controlled measures .....Tag this Judgment!
Court : Andhra Pradesh
Reported in : 2001(1)ALD322; 2001(1)ALT541
..... out of contracts only. they are not money lending business. applying the ratio laiddown in the case of srinivasa enterprises : 1scr801 (supra) it has to be held that the chit funds act, in pith and substance, deals with the special contract and consequently fails within entry 7 of list iii of the third scheduled. it must, therefore, be held that the ..... chit funds act is within the legislative competence of the parliament.'10. from a reading of the aforesaid provision and the terms under the contract, it is clear that apart from statutory coverage, ..... a subscriber who is a surety for the earlier transaction. incidentally, the question also takes in the extent of lien of the chit fund company over the amounts in a chit transaction. 6. section 23 of the a.p. chit funds act, 1971 reads as follows : '23. prized subscriber to give security:-before receiving the prize amount without deducting all future subscriptions, every prized subscriber shall ..... not that of a creditor and debtor but arise out of a contract, and the parties are bound by its terms. the chit fund company can exercise its lien and retain the amounts, the right of which is better placed than that of garnishee. therefore the relief as now sought under order 38, rule .....Tag this Judgment!
Court : Chennai
Reported in : 95CompCas589(Mad)
..... first respondent is not exercising the power of a court. 21. the principle of section 12 has to be necessarily applied even though there is no statutory provision in the chit funds act or the rules made thereunder prescribing that the time taken for obtaining certified copy of the judgment or award has to be excluded. without a certified copy of the award ..... evidence, state precisely the relief which the appellant claims and give the date of the order appealed against. 15. it is to be pointed out that section 67 of the chit funds act, 1982, provides that the registrar, while hearing the dispute under section 66, shall in addition to the powers conferred on him under the section, have the same powers as are ..... appeal under section 70 and any decision made under section 70 by the appellate authority is final and binding on the arties to the dispute. 12. section 70 of the chit funds act, 1982, provides for appeal by the aggrieved party against any order passed by the registrar or the award of the registrar passed under section 69 and such appeals have to ..... and award and the same will be furnished by the registrar on payment of prescribed fees. 18. section 65 of the chit funds act, 1982, provides that notwithstanding anything contained in the limitation act, 1963, but subject to the specific provision contained in the chit funds act, the period of limitation to raise the dispute referred to the registrar under section 64 shall be three years. sub .....Tag this Judgment!
Court : Chennai
Reported in : IV(2008)BC198
..... court is of the view that there is no error in the finding of the trial court holding that the suit was not maintainable in view of section 12 of chit funds act, 1982 and answer the first point for determination against the appellant.16. it is seen that p.w. 1 has admitted in his cross-examination that the originals of exhibits ..... . as contended by the learned counsel for the respondent, according to the appellant, the suit is not based on chit transaction. there is a bar under section 12 of chit funds act, 1982, or a company carrying on chit to do any other business, without the general or special permission from the state government.15. as per the case of the appellant, the suit transaction ..... three years by such further period or periods not exceeding two years in the aggregate.as per section 12 of chit funds act, 1982, it is clear that except with the general or special permission of the state government, no company carrying on chit business shall conduct any other business. in the instant case, admittedly the plaintiff is a private limited company carrying on ..... of his evidence, he has stated that both are different branches of the same company and no separate company was registered to perform finance business independently.12. section 12 of chit funds act, 1982 reads thus:prohibition of transacting business other than chit business by a company-(1) except with the general or special permission of the state government, no company carrying on .....Tag this Judgment!
Court : Delhi
Reported in : 88CompCas62(Delhi); 1996RLR461
..... short question relating to limitation is involved. it is ; when does limitation start in case of failure to pay the installment of chit fund under madras chit fund act (2) the plaintiff started a chit regd. no. 7 of 1974-75 known as class c series 74 with 30 subscribers running for 30 months. each subscriber was ..... have heard learned counsel for the parties and gone through the record. (7) the chit in question is governed by madras chit fund act, 1961 which has been extended to delhi. the relevant sections are 24 and 25(1) of the act. they read: '24. prized subscriber to pay the subscription regularly every prized subscriber shall ..... pay his subscriptions regularly at the time and place and on the date mentioned in the chit agreement ..... could possibly be by 10th november 1978. but there are two reasons not to accept this conteption. firstly, as the date of termination of the chit is october 1976, the last installment could be paid only by 10th october 1976. secondly, from ex. p. 5 it is apparent that the first ..... the date of installment falling due. it is notable that notice in this case is dated 13.7.79 and the date of termination of the chit was october, 1976. consequently, on the date of notice 'no payment in respect of any future subscription' was to be made. as such, notice .....Tag this Judgment!
Court : Chennai
Reported in : AIR2000Mad78; 1999(1)CTC238
..... case, on facts, the original authority namely the registrar was satisfied that there has been a sufficient cause falling with themeaning of section 64(3) of the chit funds act. it is proper to refer to the recent pronouncement of the apex court reported in balakrishnan, n. v. m. krishnamurthy, : 2008(228)elt162(sc ..... it is relevant to refer to the provisions of the chit funds act, 1982 with respect to disputes and the arbitration. chapter xii relates to disputes and arbitration. in terms of section 64 notwithstanding anything contained in any ..... in the gazette on 13th april, 1984. in the interregnum, the foreman had filed the suit and consequent to the coming into force of the chit funds act, 1982, the suit had been returned as not maintainable before the civil court. thereafter on 22.7.1991, the arbitration petition was presented.13. ..... 7.1991.12. it is to be pointed out that the chit funds act; 1982 (central act 40 of 1982) by which the tamil nadu chit funds act, 1961 which was in force in the state was repealed. the rules under section 89 of the chit funds act 1982 was framed by the state government on 12th april, ..... cause for not raising the dispute within the period prescribed.15. the learned counsel for the appellant points out that the chit funds act came to be repealed by the central act 40 of 1982 and no rules have been framed for two years and no authority has been constituted for a considerable .....Tag this Judgment!
Court : Chennai
Reported in : AIR1989Mad53; (1988)IMLJ467
..... future instalments in one lump sum. the assignment by uma investments was also held to have been effected in contravention of section 26 of the tamil nadu chit funds act, 1961 (hereinafter referred to as the act). holding that the assignment of the promissory note was made with a view to defeat the right of the respondent to claim adjustment in respect of the ..... down that by the endorsement the endorsee obtained the right under the promissory note to recover whatever money, was due by the promisor to the foreman. in durgachalam v. jannet chit funds p. ltd. 90 mad lw 565 : 1977 tlr 2238, a division bench held agreeing with the decision in chellaperumal chetti v. jayarathnam chettiar, : air1960mad314 that the promissory note represented the ..... that too after anassignment, as against amounts stated to have been paid in respect of other chits. learned counsel for the respondent, however, pointed out that under rule 34 of the tamil nadu chit fund rules 1964, a subscriber is entitled to the benefit of a set off when amounts are due from the foreman to a subscriber and also from the subscriber ..... becomes a prized subscriber and the transaction is nothing but the grant of a loan to him from out of the common fund in the hands of the foreman. the relationshipbetween the foreman and the subscribers in a chit is of such a nature that there is need and justification for making strict provisions for the protection of the interests of the .....Tag this Judgment!