Delhi District Court
Amvi Chit Fund Pvt Ltd vs Raghav Chhabra on 23 March, 2026
IN THE COURT OF SH.SHAILENDER MALIK,
DISTRICT JUDGE (COMMERCIAL COURT)-02, NORTH
DISTRICT, ROHINI COURTS, DELHI
CS (COMM.) 6795/2024
CNR No.DLNT010146452024
M/s AMVI Chit Fund Pvt. Ltd.
Through its AR
Sh.Abhishek Bhargava
At: 504, 5th Floor, KLJ Tower,
North Netaji Subhash Place,
Pitampura, Delhi-110034. ...Plaintiff
Versus
Sh.Raghav Chhabra
Proprietor of M/s Hindustan Chemical Co.
At: 2125, Tilak Bazar,
Delhi-110006.
Also at: 796, Shahbad Daulat Pur,
Delhi-110042. ...Defendant
Date of Institution : 04.10.2024
Date of judgment reserved : 23.03.2026
Date of judgment : 23.03.2026
JUDGMENT
1. The present suit is for recovery of Rs.44,86,858/- along with pendente lite and future interest. It is stated in the plaint that the plaintiff is a private limited company registered under the Companies Act, engaged in the business of chit funds and registered with the Office of The Registrar Chit Fund Department. It is stated that the defendant approached the plaintiff for availing chit fund services and accordingly Digitally subscribed to Chit No. AA-02. Reying upon the representations signed by SHELENDER SHELENDER MALIK MALIK Date:
2026.03.23 _____________________________________________________________ 16:15:37 +0530 Page No.1 and the assurances made by the defendant, the plaintiff issued Ticket Nos. 3 and 5 in favour of the defendant and maintained a running ledger account reflecting all transactions between the parties. In the 2nd and 4th month auctions of the said chit, the defendant was declared the prized subscriber and received sums of Rs.20,25,000/- through cheque no.448594 dated 26.10.2020 and a sum of Rs.20,73,600/- paid on 31.12.2020 through cheque no.448608. However, after receiving the prize amounts, the defendant defaulted in making regular installment payments as per the chit agreement, thereby breaching the terms and conditions governing the transaction. The plaintiff continued to maintain the account of the defendant, reflecting the outstanding dues arising from such defaults.
2. Due to persistent non-payment, a sum of Rs.34,25,088/- became due from January 2022 till August 2024, along with interest calculated at 1% p.m amounting to Rs. 10,61,770/- aggregating to Rs. 44,86,858/-. Despite repeated demands, the defendant failed to clear the outstanding liability, compelling the plaintiff to initiate the present proceedings for recovery of the said amount along with pendente lite and future interest.
3. After filing of the suit, defendant was duly served with the summons and put appearance on 07.04.2025 but thereafter when defendant stopped appearing, he was proceeded exparte by order dated 19.07.2025.
4. In an exparte e4vidence plaintiff company has Digitally examined PW1 Abhishek Bhargava who is stated to be signed by SHELENDER SHELENDER MALIK MALIK Date:
_____________________________________________________________ 2026.03.23 16:15:44 +0530 Page No.2 Authorized Representative of the plaintiff company. PW1 stated all those facts as are mentioned in the plaint and referred to documents i.e. certificate of incorporation issued by Ministry of Corporate Affairs Ex.P1, registration certificate dated 22.01.2028 Ex.P2, certificate of commencement of chit dated 10.09.2020 Ex.P3, original chit agreement with subscriber Ex.P4, minutes of chit filed with the Registrar of Chit Fund Ex.P5, copy of voucher dated 26.10.2020 for receipt of payment by subscriber Mark A, copy of voucher dated 31.12.2020 for receipt of payment by subscriber Mark B, original ledger of chit subscriber Ex.P7, original bank certificate Ex.P8, board resolution dated 09.09.2024 Ex.P9 and certificate u/s 63 of BSA Ex.P10.
5. Having examined the evidence, at the outset it be noted that plaintiff company claims to be registered with Registrar, Chit Funds Department and registration certificate is Ex.P2. As such the plaintiff company is subject to the provisions of the Chit Funds Act, 1982. Section 64(3) of the Chit Funds Act provides that no civil court shall have jurisdiction to entertain any suit or other proceedings in respect of any dispute referred to in Section 64(1) of the Chit Funds Act, 1982. As per sub-section (1) and (2) of Section 64 of the Act, a dispute with regard to defaulting subscriber of the chit, foreman, prized subscriber would be covered within sub-section (3). Explanation attached to Section 64(1) of the Act makes it very clear that the claim of chit fund for recovery from the defaulter subscriber, cannot be made by way of a civil suit. Such claim can be entertained only before the Registrar or Arbitration. Thus in terms of Section 64 Digitally signed by SHELENDER SHELENDER MALIK MALIK Date:
2026.03.23 16:15:48 +0530 _____________________________________________________________ Page No.3 of the Act it provides a mechanism for settlement of dispute by process of arbitration and civil suit is not maintainable. On this count itself the suit can be dismissed being not maintainable.
6. Even on merits this court finds that plaintiff company has failed to establish its case, firstly because the plaintiff company claims to be having its registration certificate dated 22.01.2018 which is Ex.P2. This registration certificate in original has not been placed on record. Mere exhibition of a photocopy of a document, is not proof of the same, specifically when no one from the Department of Chit Funds, Govt. of NCT of Delhi has been summoned to prove this document as per law. Secondly, as per the case of the plaintiff the commencement of chit fund was certified by certificate dated 10.09.2020 which is Ex.P3. Again it is a copy of the document. Chit fund agreement is dated 27.08.2020 which is Ex.P4. As per Ex.P4 it was signed by Executive Director Ms.Nupur Bhargava for Director of plaintiff company and by Raghav Chhabra (defendant) being proprietor of Hindustan Chemical Company. This document is also signed by two witnesses namely Abhishek Shah and Rahul. Admittedly none of the executant of this document has been examined by plaintiff. PW1 is admittedly not the executant of this document. As such it is hard to understand as to how in the evidence of PW1 this document has been proved. As noted above mere exhibition of a document in itself is not a proof. When the very claim of the plaintiff company arises from the chit fund agreement Ex.P4 but none of the executant of the agreement has been examined, neither the Director Ms.Nupur Bhargava nor Digitally signed by SHELENDER SHELENDER MALIK _____________________________________________________________ MALIK Date:
2026.03.23 Page No.416:15:55 +0530 any of the witnesses of that agreement have been examined. This court therefore finds that the document has not been proved and therefore very basis of the claim of the plaintiff company has not been proved.
7. Another aspect necessary to note that as per plaintiff company, defendant made the offer for respective chits and a sum of Rs.20,25,000/- was paid to defendant against Ticket No.3 vide cheque no.448594 dated 26.10.2020 drawn on Punjab National Bank, Chandni Chowk Branch. In this regard the payment dated 26.10.2020 has been proved from the document at page no.39 which is marked as Mark A and another payment of 31.12.2020 which is Mark B but none of these payments have been proved by the plaintiff. Plaintiff company has also exhibited ledger account as Ex.P7 for establishing the payment made to the defendants. Ledger is a copy of the document and has not been proved by the accountant. Even otherwise as per Section 34 of the Indian Evidence Act the extract of a ledger may be relevant for proving the entries but cannot be sufficient to fasten the liability. Plaintiff company has further referred to document Ex.P8 which is a certification from PNB against defendant. Again this document is a computer generated document having stamp of the bank. Certificate u/s 63 of BSA in support of the same given by PW1 is not in accordance with provisions of Section 63(4) of BSA. Thus even on that count also documents have not been proved as per law. As a consequence therefore present suit stands dismissed.
Digitally
signed by
SHELENDER
SHELENDER MALIK
MALIK Date:
2026.03.23
16:16:00 _____________________________________________________________
+0530
Page No.5
8. Decree sheet be prepared. After due compliance, file be consigned to record room.
Announced in the open court (Shailender Malik) on 23.03.2026 District Judge (Commercial)-02 North District, Rohini Courts, Delhi Digitally signed by SHELENDER SHELENDER MALIK MALIK Date:
2026.03.23 16:16:05 +0530 _____________________________________________________________ Page No.6