Madras High Court
Margadarsi Chit Private Limited vs V.Kumar on 30 November, 2021
CRP.NPD.No.810/2019
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 30.11.2021
CORAM:
THE HONOURABLE MR.JUSTICE S.S.SUNDAR
CRP.NPD.No.810/2019 & CMP.No.5321/2019
[Video Conferencing]
Margadarsi Chit Private Limited
represented by its Foreman
No.1015, Coimbatore Road
Karur-639 002. .. Petitioner /
Decree Holder
Vs.
V.Kumar .. Respondent
Prayer:- Civil Revision Petition filed under Section 115 CPC against the
fair and decreetal order dated 09.10.2018 in REP.No.48/2013 on the file of
the learned Subordinate Judge, Tiruchengode in ARC.No.02/2009 on the
file of the Sub Registrar of Chits, Karur.
For Petitioner : Mr.D.Shivakumaran
For Respondent : Mr.R.Marudhachalamurthy
https://www.mhc.tn.gov.in/judis 1
CRP.NPD.No.810/2019
ORDER
(1) The petitioner in the Civil Revision Petition is the decree holder
who obtained an Award against the respondent in ARC.No.2/2009
under the Chit Funds Act.
(2) As per the proceedings in ARC.No.2/2009, the decree holder is
entitled to recover a sum of Rs.4,09,911/- along with interest at
24% and cost. To execute the Award, a petition was filed by the
petitioner herein in REP.No.48/2013. The said petition was
contested by the respondent on the ground that the decree is totally
void and cannot be executed before a Court of law. The respondent
raised a ground that the petition is not maintainable and the plea of
limitation was not raised by the respondent.
(3) However, in the additional counter filed by the respondent, one of
the plead was that the petition is barred by limitation as
contemplated under Section 71 of the Chit Funds Act. Accepting
the submission of the respondent,the Executing Court dismissed the
petition for executing the Award in REP.No.48/2013. As against
the same, the present Revision is filed by the decree holder.
CRP.NPD.No.810/2019
(4) The learned counsel for the petitioner/decree holder submitted that
the period of limitation was limited to three years only in respect of
the second mode to execute the decree by resorting to Revenue
Recovery Act. It is further stated that the proviso to Section 71 is
not applicable when the Certificate issued by the Registrar under
the Chit Funds Act is sought to be executed as a decree of a Civil
Court in terms of Section 71[a] of the Act.
(5) Section 71 of the Chit Funds Act, 1982, reads as follows:-
71.Money how recovered:- Every order
passed by the Registrar or the nominee under section
68 or section 69 and every order passed by the State
Government in appeal under section 70 for payment
of any money shall, if not carried out,--
(a) on a certificate issued by the Registrar, be
deemed to be a decree of a Civil Court, and shall be
executed in the same manner as a decree of such
Court, or
(b) be executed in accordance with the
provisions of any law for the time being in force for
the recovery of amounts as arrears of land revenue:
CRP.NPD.No.810/2019
Provided that no application for execution
under clause (b) shall be made after the expiry of
three years from the date fixed in the order, and if no
such date is fixed, from the date of the order.
(6) From the reading of the entire section, it is seen that the decree
holder, after getting an order passed by the Registrar for payment
of money, can approach the Civil Court to execute the Certificate
issued by the Registrar which should be deemed to be a decree of
the Civil Court. The decree holder can also resort to Revenue
Recovery Act to recover the amount as arrears on land revenue.
Only when the decree holder approaches the Revenue Court or any
Court which is competent to recover the arrears of amount as land
revenue, the proviso is applicable and the period of limitation will
be three years from the date fixed in the order or if no date is fixed,
from the date of the order.
(7) In the present case, the petitioner/decree holder has filed a petition
to execute the decree before the Civil Court by treating the Award
of the Sub Registrar of Chits in ARC.No.2/2009 as a decree of Civil
CRP.NPD.No.810/2019
Court. When the petitioner approaches the Civil Court to execute
the decree, the limitation will be 12 years and the proviso is not
applicable.
(8) The same issue was considered by this Court earlier in the case of
Ramesh Babu and Others Vs. Margadarsi Chit Private Limited,
Kumaran Buildings, Chennai reported in 2012 [0] Supreme
[Mad] 2344, wherein the judgment debtor has raised similar
objection stating that the petition filed beyond the period of three
years is not maintainable in view of Section 71 of the Chit Funds
Act.
(9) After referring to the provision, a learned Single Judge of this
Court, in the decision cited supra, has held as follows:-
''7.There are two clauses [a] and [b] in it, which are
alternative ones. The proviso appended to Section
71 of the Act, would unambiguously and
unequivocally highlight, spotlight and shed light on
the point that three years' limitation period is
contemplated for executing the Award by resorting to
procedure contemplated under clause [b] and not
under clause [a].''
CRP.NPD.No.810/2019
(10) In view of the conclusion of this Court and the decision cited supra
to the effect that the period of limitation will be 12 years in case the
Civil Court has to execute the Award as a decree of the Civil Court,
the order of the Executing Court in REP.No.48/2013 in
ARC.No.2/2009 is liable to be set aside.
(11) Accordingly, the Civil Revision Petition is allowed and the order
dated 09.10.2018 in REP.No.48/2013 in ARC.No.02/2009 on the
file of the learned Subordinate Judge, Tiruchengode, is set aside.
(12) The Executing Court, viz., the learned Subordinate Judge,
Tiruchengode, shall restore Rep.No.48/2013 on file and dispose of
the same on merits and in accordance with law within a period of
three months from the date of receipt of a copy of this order. No
costs. Consequently, connected miscellaneous petition is closed.
30.11.2021
AP
Internet : Yes
CRP.NPD.No.810/2019
To
1.The Subordinate Judge
Tiruchengode.
2.The Sub Registrar of Chits
Karur.
CRP.NPD.No.810/2019
S.S.SUNDAR, J.,
AP
CRP.NPD.No.810/2019
30.11.2021
https://www.mhc.tn.gov.in/judis 8
