Court Overturns Decree: Chit Fund Lawsuit Takes New Turn.
09 April 2024
Criminal Trial >> Criminal Law
In a recent judicial development of Manish Gupta Versus M/s. P. Singh Chit Fund Pvt. Ltd., a revision petition has resulted in the setting aside of a trial court’s decree in a suit brought by a Chit Fund Company against a defendant. The case, governed under Order XXXVII of the Code of Civil Procedure, 1908 (CPC), involved a claim for recovery amounting to Rs. 90,000/- along with interest calculated at 24% per annum from the date a cheque was dishonoured.
The initial ruling by the trial court decreed the suit for the principal amount but reduced the interest rate to 8% per annum, deeming the originally claimed rate as exorbitant.
Subsequently, the defendant sought relief through an application under Order IX Rule 13 CPC, arguing improper service of summons. This application was dismissed by the trial court, which found that the summons had been duly received by an individual named Satbir on behalf of the defendant.
Displeased with this decision, the defendant escalated the matter through a revision petition. The higher court, upon review, set aside the trial court’s dismissal of the application under Order IX Rule 13 CPC. As part of its ruling, the revision court directed the defendant to deposit a sum of Rs. 45,000/- by way of a Fixed Deposit Receipt (FDR) within one week. The FDR was further stipulated to be converted into 'Auto Renewal Mode'. Additionally, the execution proceedings pertaining to the decree were stayed pending further directives.
Furthermore, the defendant was instructed to file an appearance within 10 days in accordance with Order XXXVII Rule 3(2) CPC. The trial court was tasked with continuing the proceedings as per legal provisions, with a specific hearing scheduled for 01.06.2024.
In concluding the matter, the revision petition and any associated pending applications were fully disposed of by the court, ensuring adherence to procedural fairness and legal principles in the ongoing litigation.
This judicial decision underscores the importance of proper procedural compliance in civil matters, offering recourse to parties aggrieved by perceived irregularities in court processes.