Vastava Chit Funds (Private) Ltd. vs Madala Benarjee And Ors. on 2 March, 2005
12. It is pertinent to note here that the Apex Court in Shriram Chits and Investments (P) Limited v. Union of India and Ors. (2nd supra) did not consider the aspect of reckoning the period of limitation, but a Division Bench of this Court in Dhanalakshmi's case (3rd supra) and a learned Single Judge of this court in K.V. Raghavulu's case (4th read above), have taken the view that the contract based on promissory note, or bond or on documents more than one, period of three years begins to run when the default is made unless the payee or obligee waives the benefit. Admittedly, the contract in the present case, arose out of chit transaction, which is based on more than two documents viz., Ex.A-3 dated 12-5-1995-agreement of chit executed by the defendant No.1 in favour of the plaintiff, Ex.A-4 dated 23-6-1995 - agreement of guarantee executed by the defendants 2 to 4 in favour of the plaintiff, Ex.A-5 dated 23-6-1995 promissory note executed by the defendants 1 to 4 in favour of the plaintiff's company.