M/s.Shriram Chits (P) Ltd., Jammikunta v. Smt.Pallerla Padma and 3 others

The Civil Revision Petition is filed against the order dated

10.07.2012 in an unnumbered suit in C.F.No.52/2012 on the file of the Principal Junior Civil Judge, Huzurabad, Karimnagar District, returning the plaint. The suit was filed by the plaintiff for recovery of a sum of Rs.97,872/- being the amount due under the chit transaction. The Court below has noticed that the date of chit agreement is subsequent to the Central Act, which has made applicable w.e.f.15.09.2008, therefore, the learned Junior Civil Judge found that the suit being filed after the enforcement of the Central Act, the proper Forum is the Registrar of Chits and the Civil Court has no jurisdiction under Sec.85 of the Chit Funds Act, 1982. The facts in this case are not in dispute. The date of commencement of the chit was 25.05.2009 as per the Certificate issued by the Registrar, by which date the Central Act came into force. Sec.9 of the Central Act clearly indicates as to when a chit agreement is said to have commenced, and it was only after the Foreman files a declaration to that effect with the Registrar. In the present case, the commencement of the chit is after the Central Act. There is a saving provision under Sec.90 of the Central Act to the effect that the amended Act will not apply to the chit transactions which are in operation on the date of the commencement of the Central Act. Therefore, evidently, when the commencement of the chit was after the Central Act, the saving provision under Sec.90 has no application. In view of the above circumstances, the order of the Court below cannot be faulted and the revision petitioner/plaintiff has to approach the Registrar. The revision petitioner/plaintiff will be entitled to refund of the Court fee paid on the suit. The period of pendency of the proceedings in the Court below and in this Court shall be excluded under Sec.14 of the Limitation Act. The Civil Revision Petition is accordingly disposed of. No order as to costs. Dated: 08.08.2012 Dsr ____________________________ N.R.L.NAGESWARA RAO,J