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Madras High Court

M/S. Attur Thuluva Vellalar Sangam Chit ... vs Gopal @ A.S.Sellamuthu on 20 December, 2021

Author: R.Subramanian

Bench: R.Subramanian

                                                                         CRP (PD) Nos. 322, 324 & 325 of 2021

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                    DATED: 20.12.2021

                                                        CORAM:

                                  THE HONOURABLE MR.JUSTICE R.SUBRAMANIAN

                                          CRP (PD) Nos. 322, 324 & 325 of 2021
                                                          and
                                          CMP Nos. 2820, 2812 & 2814 of 2021

                     C.R.P.(PD).No. 322 of 2021


                     M/s. Attur Thuluva Vellalar Sangam Chit Funds (Private) Limited.,
                     Represented by its Foreman
                     Selvakumar, S/o. Arjunan
                     No.101, Thayumanavar
                     Attur, Salem District.                ... Petitioner/Respondent

                                                            Vs

                     1.            Gopal @ A.S.Sellamuthu
                     2.            G.Selvamathi
                     3.            P.Arumugam
                     4.            A.Chinnapillai                ... Respondents/Petitioners


                     PRAYER: Civil Revision Petition filed under Article 227 of the Constitution
                     of India, directing the Principal District Court at Salem to pass the orders for
                     strike off the arbitration O.P.No. 48 of 2020 filed by the respondents.
                     C.R.P.(PD).No. 324 of 2021

                     1/6


https://www.mhc.tn.gov.in/judis
                                                                        CRP (PD) Nos. 322, 324 & 325 of 2021




                     M/s. Attur Thuluva Vellalar Sangam Chit Funds (Private) Limited.,
                     Represented by its Foreman
                     Selvakumar, S/o. Arjunan
                     No.101, Thayumanavar
                     Attur, Salem District.                ... Petitioner/Respondent

                                                           Vs

                     1.           G.Selvamathi
                     2.           Gopal @ A.S.Sellamuthu
                     3.           P.Arumugam
                     4.           A.Chinnapillai                ... Respondents/Petitioners


                     PRAYER: Civil Revision Petition filed under Article 227 of the Constitution
                     of India, directing the Principal District Court at Salem to pass the orders for
                     strike off the arbitration O.P.No. 46 of 2020 filed by the respondents.
                     C.R.P.(PD).No. 325 of 2021



                     M/s. Attur Thuluva Vellalar Sangam Chit Funds (Private) Limited.,
                     Represented by its Foreman
                     Selvakumar, S/o. Arjunan
                     No.101, Thayumanavar
                     Attur, Salem District.                ... Petitioner/Respondent

                                                           Vs

                     1.           Gopal @ A.S.Sellamuthu


                     2/6


https://www.mhc.tn.gov.in/judis
                                                                        CRP (PD) Nos. 322, 324 & 325 of 2021

                     2.           Selvamathi                    ... Respondents/Petitioners

                     PRAYER: Civil Revision Petition filed under Article 227 of the Constitution
                     of India, directing the Principal District Court at Salem to pass the orders for
                     strike off the arbitration O.P.No. 47 of 2020 filed by the respondents.
                                                      ***
                                            For Petitioner in
                                            all Cr.P.Nos.       : Mr. Eswar Kumar


                                                COMMON ORDER




On service of notice, the respondents had appeared through M/s. D.Ravichander and P.Dinesh Kumar. Susequently, it appears that the said counsels withdrew their vakalat and informed the Court that one Mr. R.Raja Rajan had entered appearance. Upon verification, Registry has reported that no counsel has filed vakalat.

2. The petitioner in these Revision Petitions is a Chit Fund Company, which obtained an award from the Deputy Registrar of Chits, 3/6 https://www.mhc.tn.gov.in/judis CRP (PD) Nos. 322, 324 & 325 of 2021 Salem East, under the provisions of the Chit Fund Act.

3. The Chit Fund Court is a special enactment and the proceedings before the Registrar are called as arbitration proceedings and the order passed by the Registrar is termed as an award. Under the said Act, as against the award passed by the Deputy Registrar, an appeal is lodged to the Registrar or his nominee under Section 70 of the said Act. A limitation is also provided for filing an appeal.

4. Section 64 of the Chit Funds Act which provides for disputes and arbitration starts with a non obstante clause and as such any dispute arising out of a chit transaction is governed only by the provisions of the Chit Fund Act and the proceedings will have to be taken only under the provisions of the said Act. A party to a chit transaction cannot invoke the provisions of a general enactment, namely, the Arbitration and Conciliation Act 1996.

5. In view of the above, these Civil Revision Petitions are allowed 4/6 https://www.mhc.tn.gov.in/judis CRP (PD) Nos. 322, 324 & 325 of 2021 and Arbitration O.P.Nos. 48, 46 & 47 of 2020 will stand rejected. Consequently, connected Miscellaneous Petitions are closed. No costs.

20.12.2021 vsg Index: Yes/No Speaking order / Non speaking order To:

1. Principal District Court, Salem.
2.The Section Officer, VR Section, Madras High Court, Chennai.
5/6

https://www.mhc.tn.gov.in/judis CRP (PD) Nos. 322, 324 & 325 of 2021 R.SUBRAMANIAN, J.

Vsg CRP (PD) Nos. 322, 324 & 325 of 2021 and CMP Nos. 2820, 2812 & 2814 of 2021 20.12.2021 6/6 https://www.mhc.tn.gov.in/judis