Hi-Line Kuries Pvt Ltd vs Sukheesh on 7 April, 2022

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Kerala High Court

Hi-Line Kuries Pvt Ltd vs Sukheesh on 7 April, 2022

The above original petitions and civil revision petitions are listed before the Division Bench based on an order of reference dated 18.08.2020 made by a learned Single Judge. The common question referred for consideration of the Division Bench is as to whether the forum prescribed under sub-section (1) of Section 64 of the Chit Funds Act, 1982, must be the forum from the date of commencement of the said Act in Kerala, i.e., 30.04.2012, for filing of cases relating to chits, including the chits started prior to the commencement of the said Act in Kerala and whether the rigour of sub-sections (1) and (3) of Sections 64 is mitigated by the provisions of clause

(a) of Section 85 of the Act or not.

2. Heard the learned counsel for the petitioners and also the learned counsel for the respondents in the respective original petitions/civil revision petitions.

3. The Kerala Chitties Act, 1975, was enacted by the O.P(C).No.3330 of 2018, etc. -2- State Legislature to define, amend and consolidate the law relating to chitties in the State of Kerala, which came into force with effect from 25.08.1975. Clause (2) of Section 2 of the Act defines 'chitty' to mean a transaction, whether called chitty or kuri, by which one or more persons, hereinafter called the 'foreman' or 'foremen', enter into an agreement with a number of persons that every one of the contracting parties shall subscribe a certain amount of money or quantity of grain or other commodity by periodical instalments for a certain definite period and that each in his turn, as determined by lot or by auction or by both, shall be entitled to the prize amount, whether payable in cash, kind or any other article of value or in such other manner as may be provided for in the agreement. Section 70 of the Act deals with application of the Act to certain existing chitties. As per Section 70, the provisions of this Act, save those contained in Sections 3, 4, 8, 9 and 15 shall, so far as may be, apply to chitties started before the commencement of this Act in the Malabar district referred to in sub-section (2) of Section 5 of the States Reorganisation Act, 1956.

4. The Kerala Chitties Act, 1975, was enacted to bring forth a uniform law relating to chitties applicable to the whole O.P(C).No.3330 of 2018, etc. -3- State of Kerala, in the place of the Travancore Chitties Act, 1120, the Cochin Kuries Act, 1107 and the Cochin Starting of Kuries (Restriction) Act, 1120. There is no law on the subject, in the Malabar area. As per Section 4 of the Travancore Chitties Act, 1120, as amended by Act X of 1964, transactions partaking of the nature of a chitty but not falling within the definition in clause (2) of Section 3 are void. As per Section 5 of the said Act, any person who conducts or is responsible for the conduct of any transaction of the nature of those declared void by Section 4 shall be punishable with imprisonment of either description for a term which may extend to six months or with fine or with both. As per sub-section (1) of Section 6 of the said Act, no chitty shall, after the commencement of the Act, be conducted unless it is registered in accordance with the provisions of the Act. As per sub-section (2) of Section 6, any person contravening the provisions of sub-section (1) of Section 6 shall be liable to a fine which may extend to five hundred rupees. Similarly, as per Section 4 of the Cochin Kuries Act, 1107, transactions partaking of the nature of a kuri but not falling within the definition in sub-section (1) of Section 3 are void. As per Section 5 of the said Act, every kuri shall be O.P(C).No.3330 of 2018, etc. -4- registered in accordance with the provisions of the Act, and if not so registered, it shall be void and the foreman shall be liable to a fine not exceeding five hundred rupees.

5. In A.N. Nadarajan v. K.G. Nadarajan and another [1999 (2) KLT 512] this Court noticed that, even though the Kerala Chitties Act, 1975, was enacted to bring forth a uniform law relating to chitties applicable to the whole State of Kerala, in the place of the Travancore Chitties Act, 1120, the Cochin Kuries Act, 1107 and the Cochin Starting of Kuries (Restriction) Act, 1120 and the said enactments are repealed under Section 72 of the Kerala Chitties Act, no provision is incorporated in the Kerala Chitties Act to the effect that the chitties started and conducted after the commencement of the Kerala Chitties Act, in contravention of the provisions of the said Act are void, even though there were provisions in the Travancore Chitties Act and the Cochin Kuries Act declaring such the transactions as void. The Kerala Chitties Act only prohibited the starting and conduct of kuries after the commencement of the said Act without the previous sanction from the Government or the authorised officer and without registering the same under the provisions of the Act and O.P(C).No.3330 of 2018, etc. -5- provides penalty to whoever contravenes the provisions of sub- section (1) of Section 3 of the Act. No provision is incorporated in the Kerala Chitties Act making such kuries started after the commencement of the Act, in contravention of the provisions of the said Act, as void, illegal or unlawful. Sub-section (1) of Section 3 imposing the penalty is enacted in the Kerala Chitties Act only for the purpose of protecting the revenue. If the Legislature intended to declare as void the chitty transaction conducted without the permission of the Government or the authorised officer or without registration under the said Act, it would have provided a similar provision as is found in Section 5 of the Travancore Chitties Act or Section 5 of the Cochin Kuries Act.

6. The Parliament enacted the Chit Funds Act, 1982 to provide for the regulation of chit funds and for matters connected therewith. As per sub-section (2) of Section 1, it extends to the whole of India except the State of Jammu and Kashmir. As per sub-section (3) of Section 1, it shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different States. The Chit Funds Act, O.P(C).No.3330 of 2018, etc. -6- 1982 came into force in the State of Kerala with effect from 30.04.2012, vide notification published in the Gazette of India Extra Ordinary Part II Section 3(ii) dated 30.04.2012.

7. Clause (b) of Section 2 of the Act defines 'chit' to mean a transaction whether called chit, chit fund, chitty, kuri or by any other name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money (or a certain quantity of grain instead) by way of periodical instalments over a definite period and that each such subscriber shall, in his turn, as determined by lot or by auction of by tender or in such other manner as may be specified in the chit agreement, be entitled to the prize amount. Clause (e) of Section 2 of the Act defines 'chit business' to mean the business of conducting the chit. Clause (j) of Section 2 defines 'foreman' as the person who under the chit agreement is responsible for the conduct of the chit and includes any person discharging the functions of the foreman under Section 39.

8. Section 3 of the Act provides that Act to override other laws, memorandum, articles, etc. As per Section 3, save as otherwise expressly provided in this Act, (a) the provisions O.P(C).No.3330 of 2018, etc. -7- of this Act shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force or in the memorandum or articles of association or bye-laws, or in any agreement or resolution whether the same be registered, executed or passed, as the case may be, before or after the commencement of this Act; and (b) any provision contained in the memorandum, articles, bye-laws, agreement or resolution aforesaid, shall, to the extent to which it is repugnant to the provisions of this Act, become or be void, as the case may be.

9. Section 4 of the Act deals with prohibition of chits not sanctioned or registered under the Act. As per sub-section (1) of Section 4, no chit shall be commenced or conducted without obtaining the previous sanction of the State Government within whose jurisdiction the chit is to be commenced or conducted or of such officer as may be empowered by that Government in this behalf, and unless the chit is registered in that State in accordance with the provisions of this Act. As per the proviso to sub-section (1) of Section 4, a sanction obtained under this sub-section shall lapse if the chit is not registered within twelve months from the date of such O.P(C).No.3330 of 2018, etc. -8- sanction or within such further period or periods not exceeding six months in the aggregate as the State Government may, on application made to it in this behalf, allow. Section 5 of the Act deals with prohibition of invitation for subscriptions except under certain conditions. As per Section 5, no person shall issue or cause to be issued any notice, circular, prospectus, proposal or other document inviting the public to subscribe for tickets in any chit unless such notice, circular, prospectus, proposal or document contains a statement that the previous sanction required under Section 4 has been obtained and the particulars of such sanction. Section 20 of the Act deals with security to be given by foreman, before applying for a previous sanction under Section 4.

10. Chapter XII of the Chit Funds Act deals with disputes and arbitration. Section 64 of the Act deals with disputes relating to chit business, which reads thus:

"64. Disputes relating to chit business.--(1) Notwithstanding anything contained in any other law for the time being in force, any dispute touching the management of a chit business shall be referred by any of the parties to the dispute, to the Registrar for arbitration if each party thereto is one or the other of the following, namely:--

O.P(C).No.3330 of 2018, etc. -9-

(a) a foreman, a prized subscriber or a non-prized subscriber, including a defaulting subscriber, past subscriber or a person claiming through a subscriber, or a deceased subscriber to a chit;

(b) a surety of a subscriber, past subscriber, or a deceased subscriber.

Explanation.--For the purposes of this sub-section, a dispute touching the management of a chit business shall include--

(i) a claim by or against a foreman for any debt or demand due to him from a subscriber, or due from him to a subscriber, past subscriber or the nominee, heir or legal representative of a deceased subscriber whether such debt or demand is admitted or not;

(ii) a claim by a surety for any sum or demand due to him from the principal borrower in respect of a loan by a foreman and recovered from the surety owing to the default of the principal borrower, whether such sum or demand is admitted or not; and

(iii) a refusal or failure by a subscriber, past subscriber or the nominee, heir or legal representative of a deceased subscriber to deliver possession to a foreman of land or any other asset resumed by him for breach of conditions of the assignment.

(2) Where any question arises as to whether any matter referred to for the award of the Registrar is a dispute or not for the purposes of sub-section (1), the same shall be decided by the Registrar whose decision thereon shall be final.

O.P(C).No.3330 of 2018, etc. -10- (3) No Civil Court shall have jurisdiction to entertain any suit or other proceedings in respect of any dispute referred to in sub-section (1)."

11. As per sub-section (1) of Section 64, notwithstanding anything contained in any other law for the time being in force, any dispute touching the management of a chit business shall be referred by any of the parties to the dispute, to the Registrar for arbitration if each party thereto is one or the other of the following, namely, (a) a foreman, a prized subscriber or a non-prized subscriber, including a defaulting subscriber, past subscriber or a person claiming through a subscriber, or a deceased subscriber to a chit; (b) a surety of a subscriber, past subscriber, or a deceased subscriber. As per the Explanation to sub-section (1) of Section 64, a dispute touching the management of a chit business shall include those enumerated in clauses (i) to (iii). As per sub- section (2) of Section 64, where any question arises as to whether any matter referred to for the award of the Registrar is a dispute or not for the purposes of sub-section (1), the same shall be decided by the Registrar whose decision thereon shall be final. As per sub-section (3) of Section 64, no civil court shall have jurisdiction to entertain any suit or other O.P(C).No.3330 of 2018, etc. -11- proceedings in respect of any dispute referred to in sub-section (1).

12. Chapter XIII of the Chit Funds Act contains miscellaneous provisions. Section 85 of the Act provides that Act not to apply certain chits. As per Section 85, nothing in this Act shall apply in respect of (a) any chit started before the commencement of this Act; or (b) any chit the amount of which, or where two or more chits were started or conducted simultaneously by the same foreman, the aggregate amount of which does not exceed one hundred rupees.

13. Section 90 of the Act deals with repeal and saving. As per sub-section (1) of Section 90, the Andhra Pradesh Chit Funds Act, 1971, the Kerala Chitties Act, 1975, the Maharashtra Chit Funds Act, 1974, the Tamil Nadu Chit Funds Act, 1961, as in force in the State of Tamil Nadu and in the Union territories of Chandigarh and Delhi, the Uttar Pradesh Chit Funds Act, 1975, the Goa, Daman and Diu Chit Funds Act, 1973 and the Pondicherry Chit Funds Act, 1966, are hereby repealed and the provisions of Section 6 of the General Clauses Act, 1897, shall apply to such repeal as if each such Act so repealed were a Central Act. As per sub-section (2) of Section O.P(C).No.3330 of 2018, etc. -12- 90, notwithstanding such repeal, the Acts mentioned in sub- section (1) shall continue to apply to chits in operation on the commencement of this Act, in the same manner as they applied to such chits before such commencement.

14. Section 6 of the General Clauses Act, 1897 deals with effect of repeal. As per Section 6 of the Act, where this Act, or any Central Act or Regulation made after the commencement of this Act, repeals any enactment hitherto made or hereafter to be made, then, unless a different intention appears, the repeal shall not (a) revive anything not in force or existing at the time at which the repeal takes effect; or (b) affect the previous operation of any enactment so repealed or anything duly done or suffered thereunder; or (c) affect any right, privilege, obligation or liability acquired, accrued or incurred under any enactment so repealed; or (d) affect any penalty, forfeiture or punishment incurred in respect of any offence committed against any enactment so repealed; or (e) affect any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid; any such investigation, legal proceeding or remedy may be instituted, continued or O.P(C).No.3330 of 2018, etc. -13- enforced, and any such penalty, forfeiture, liability or punishment may be imposed as if the repealing Act or Regulation had not been passed.

15. In Gosri Chit Funds Pvt. Ltd. v. K.N. Dharmapalan and others [2009 (4) KHC 604] this Court noticed that, Section 9 of the Code of Civil Procedure, 1908 confers jurisdiction on the courts subject to provisions contained in that code to try all suits of civil nature excepting suits of which cognizance is either expressly or impliedly barred. Exclusion of jurisdiction of civil court is not to be readily inferred. It is trite law that a provision of law ousting jurisdiction of civil court has to be construed strictly. No doubt sub-section (3) of Section 64 of the Chit Funds Act, 1982 expressly oust the jurisdiction of civil court, but that provision can apply only to a place where the Act itself is made applicable. When the chit amount was paid and the surety agreement was executed at Ernakulam, the Chit Funds Act, 1982 was not in force in Kerala. In such circumstances, the suit is maintainable.

16. In Employees Kuries Ltd. v. O.J. Claramma and others [2009 (4) KHC 608] this Court held that, since the O.P(C).No.3330 of 2018, etc. -14- Chit Funds Act, 1982 has not been extended to Kerala, any transaction that has taken place in Kerala is not affected by the provisions of that Act. The legal principles settled by this Court in the earlier decisions would go to show that the provisions of the Chit Funds Act, 1982 which includes sub-section (3) of Section 64 of the Act which expressly ousted the jurisdiction of the Civil Court, can apply only to a place where the Act itself is made applicable. Therefore, the contention that the civil court has no jurisdiction to try the suit in view of sub-section (3) of Section 64 of the Chit Funds Act cannot be sustained. By no stretch of imagination, it can be said that sub-section (3) of Section 64 of the Act can have application to the suits instituted before the courts situated at a place where the Chit Funds Act, 1982 is not in force or extended.

17. In State of Kerala v. Mar Appraem Kuri Co. Ltd. [(2012) 7 SCC 106] a Five-Judge Bench of the Apex Court held that the Kerala Chitties Act, 1975 became void on the making of the Chit Funds Act, 1982 on 19.08.1982, [when it received the assent of the President and got published in the Official Gazette] as the Chit Funds Act, 1982 is intended to cover the entire field with regard to the conduct of the chits O.P(C).No.3330 of 2018, etc. -15- and further that, the State Finance Act 7 of 2002, introducing clause (a) of sub-section (1) of Section 4 into the Kerala Chitties Act, 1975 was void as the State Legislature was denuded of its authority to enact the said Finance Act 7 of 2002, except under Article 254(2), after the Chit Funds Act, 1982 occupied the entire field as envisaged in Article 254(1) of the Constitution. Thus, repugnancy arises on the making and not commencement of the Chit Funds Act, 1982. On 19.08.1982, the Kerala Chitties Act, 1975 ceased to operate except to the extent of Section 6 of the General Clauses Act, 1897.

18. In Mar Appraem Kuri Co. Ltd. (supra), the Apex Court noticed that, when a State law is repealed expressly or by implication by a Union law, Section 6 of the General Clauses Act, 1897 applies as to things done under the State law which are so repealed, so that transactions under the State law before the repeal are saved as also any rights and liabilities arising under the State Act, prior to the enactment of the Central Act. Repeal of an enactment is a matter of substance. It depends on the intention of the legislature. If by reason of the subsequent enactment, the legislature intended to abrogate O.P(C).No.3330 of 2018, etc. -16- or wipe off the former enactment, wholly or in part, then, it would be a case of pro tanto repeal. In the present case, repugnancy is established by both the tests. On comparison of the provisions of the Kerala Chitties Act, 1975, being the State Act, and the Chit Funds Act, 1982, being the Central Act, inconsistencies actually exist directly. Further, the intention of Parliament in enacting the Central Act is to cover the entire field relating to or with respect to chits. Hence, on both counts the two Acts cannot stand together. In consequence of this repugnancy the Kerala Chitties Act, 1975 became void under Article 254(1) on the enactment of the (Central) Chit Funds Act, 1982 on 19.08.1982 and the Kerala Chitties Act, 1975 thus stood impliedly repealed. By reason of Article 367 of the Constitution, the General Clauses Act, however, applies to the said repeal. Under clause (b) and clause (c) of Section 6 of the General Clauses Act the previous operation of the Kerala Chitties Act, 1975 is not affected nor any right, privilege, obligation or liability acquired or incurred under the said repealed Kerala Act. This is the constitutional position which would prevail if sub-section (1) of Section 90 of the Chit Funds Act, 1982 would not have been there. In other words, sub- O.P(C).No.3330 of 2018, etc. -17- section (1) Section 90 of the Chit Funds Act, 1982 is stated out of abundant caution. Thus, after 19.08.1982 the Kerala Chitties Act, 1975 stood repealed except for the limited purposes of Section 6 of the General Clauses Act. Likewise, the other existing six State laws on chits, referred to in Section 90 of the Chit Funds Act, 1982, existing on 19.08.1982 also stood repealed subject to the saving under Section 6 of the General Clauses Act.

19. In Mar Appraem Kuri Co. Ltd. (supra) the Apex Court held that, to bring the Chit Funds Act, 1982 into operation in any State the Central Government has to issue a notification in the Official Gazette under sub-section (3) of Section 1. This has been done for some States but it has not been done for others like Kerala. It is for the Central Government to issue a notification bringing into force the Chit Funds Act, 1982 in Kerala when it deems appropriate as it has done in some States. Until such notification is issued neither the Kerala Chitties Act, 1975 prevails in the State of Kerala as it has become void and has been repealed under Article 254(1), nor the Chit Funds Act, 1982 as it is not notified till date. If and when the Central Government brings into force the Chit Funds O.P(C).No.3330 of 2018, etc. -18- Act, 1982 by a notification in the State of Kerala, under sub- section (3) of Section 1, sub-section (2) of Section 90 will come into play and thereby the Kerala Chitties Act, 1975 shall continue to apply only to chits in operation in the State of Kerala on the date of the commencement of the Chit Funds Act, 1982 in the same manner as the Kerala Chitties Act, 1975 applied to such chits before such commencement. Moreover, clause (a) of Section 85 and sub-section (2) of Section 90 of the Chit Funds Act, 1982 provide for continuance of the application of the provisions of the Kerala Chitties Act, 1975 till the commencement of the Chit Funds Act, 1982. Such commencement is dependent upon notification under sub- section (3) of Section 1. Thus, on such commencement of the Chit Funds Act, 1982, the transactions (chits) between 19.08.1982 and the date of commencement of the Central Act will stand protected under sub-section (2) of Section 90. Hence, there would be no legislative vacuum.

20. In Mar Appraem Kuri Co. Ltd. (supra) the Apex Court noticed that, clause (a) of sub-section (1) of Section 4 of the Act was inserted into Section 4, vide the Kerala Finance Act 7 of 2002. Under clause (a) of sub-section (1) of Section 4, in O.P(C).No.3330 of 2018, etc. -19- cases where a chitty is registered outside the State, say in Jammu and Kashmir, but having 20% or more of the subscribers normally residing in the State of Kerala, the Foreman (who has got registration outside the State of Kerala) has to open a branch in the State of Kerala and obtain registration under the Kerala Chitties Act, 1975. This sub- section was inserted to plug a loophole. In many cases, chitties were registered outside the State of Kerala even when large number of subscribers were residing in the State of Kerala. It is true that on the making of the Chit Funds Act, 1982, the State Legislature could not have enacted the Kerala Finance Act 7 of 2002 inserting clause (a) of sub-section (1) of Section 4 into the State Act as the entire field stood occupied by the Chit Funds Act, 1982 without the assent of the President, as envisaged under Article 254(2). However, sub-section (1) of Section 4 of the Chit Funds Act, 1982 is much wider and more stringent than clause (c) of sub-section (1) of Section 4 of the Kerala Chitties Act, 1975, as amended by the Kerala Finance Act 7 of 2002, inasmuch as under sub-section (1) of Section 4 of the Chit Funds Act, 1982, no chit shall be commenced or conducted without obtaining sanction of the State Government O.P(C).No.3330 of 2018, etc. -20- within whose jurisdiction the chit is to be commenced or conducted and unless such chit is registered in that State in accordance with the provisions of the Chit Funds Act, 1982.

21. In Mar Appraem Kuri Co. Ltd. (supra) the Apex Court concluded as follows;

"97. To sum up, our conclusions are as follows:

97.1. On timing, we hold that repugnancy arises on the making and not commencement of the law, as correctly held in the judgment of this Court in Pt. Rishikesh v. Salma Begum [(1995) 4 SCC 718].

97.2. Applying the above test, we hold that on the enactment of the Chit Funds Act, 1982, on 19.08.1982, which covered the entire field of 'chits' under Entry 7 of List III of the Constitution, the Kerala Chitties Act, 1975, on account of repugnancy as enshrined in Article 254(1), became void and stood impliedly repealed. That, on the occupation of the entire field of 'chits', the Kerala Legislature could not have enacted the State Finance Act 7 of 2002, inserting Section 4(1)(a) into the Kerala Chitties Act, 1975, particularly on the failure of the State in obtaining Presidential assent under Article 254(2). 97.3. That the Chit Funds Act, 1982 though not brought into force in the State of Kerala is still a law made, which is alive as an existing law. By reason of Article 367 of the Constitution, the General Clauses Act, 1897 applies to the repeal. Section 6 of the General Clauses Act, 1897 is, therefore, relevant, particularly Sections 6(b) and 6(c), and consequently, the previous operation of the Kerala O.P(C).No.3330 of 2018, etc. -21- Chitties Act, 1975 is not affected nor any right, privilege, obligation or liability acquired or incurred under that repealed State Act of 1975. Thus, after 19.08.1982, the Kerala Chitties Act, 1975 stands repealed except for the limited purposes of Section 6 of the General Clauses Act, 1897. If and when the Central Government brings into force the Chit Funds Act, 1982 by a notification in State of Kerala, under Section 1(3), Section 90(2) will come into play and thereby the Kerala Chitties Act, 1975 shall continue to apply only to chits in operation on the date of commencement of the Chit Funds Act, 1982 in the same manner as the Kerala Chitties Act, 1975 applied to chits before such commencement." (underline supplied)

22. As laid down by a Five-Judge Bench of the Apex Court in Mar Appraem Kuri Co. Ltd. [(2012) 7 SCC 106], after the enactment of the Chit Funds Act, 1982, i.e., after 19.08.1982, the Kerala Chitties Act, 1975 stands repealed except for the limited purposes of Section 6 of the General Clauses Act, 1897. In view of the provisions under clause (b) and clause (c) of Section 6 of the General Clauses Act, 1897, the previous operation of the Kerala Chitties Act, 1975 is not affected nor any right, privilege, obligation or liability acquired or incurred under the repealed Kerala Chitties Act, 1975. When the Central Government brings into force the Chit Funds Act, 1982, in State of Kerala, by a notification issued under sub- O.P(C).No.3330 of 2018, etc. -22- section (3) of Section 1 of the said Act, sub-section (2) of Section 90 of the Chit Funds Act, 1982 will come into play, thereby the Kerala Chitties Act, 1975 shall continue to apply only to chits in operation on the date of commencement of the Chit Funds Act, 1982 in the same manner as the Kerala Chitties Act, 1975 applied to such chits before such commencement.

23. In view of the provisions under clause (a) of Section 85 of the Chit Funds Act, 1982, nothing in the Chit Funds Act shall apply in respect of any chit started before the commencement of the said Act. The provisions under Chapter XII of the Chit Funds Act, 1982, which deals with disputes and arbitration, and the forum for disputes resolution provided under sub-section (1) of Section 64 of the said Act have no application to any chit started in the State of Kerala before the commencement of the Chit Funds Act, i.e., to any chit started before 30.04.2012. Therefore, the forum prescribed under sub- section (1) of Section 64 of the Chit Funds Act, 1982 shall have no jurisdiction to entertain any dispute in respect of any chit started before the commencement of the said Act. The civil court shall continue to have jurisdiction to entertain any suit or other proceedings in respect of any disputes in respect of any O.P(C).No.3330 of 2018, etc. -23- chit started before the commencement of the Chit Funds Act. Therefore, the bar contained in sub-section (3) of Section 64 of the Chit Funds Act has no application to any suit or other proceedings filed before the civil court, in respect of dispute relating to any chit started before the commencement of the said Act.

The question referred for consideration of the Division Bench is answered as above. Registry to list the original petitions and civil revision petitions before the Bench as per roaster.

sd/-

ANIL K. NARENDRAN, JUDGE sd/-

P.G. AJITHKUMAR, JUDGE bkn/-

07-04-2022 /True Copy/ Assistant Registrar

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