JUDGMENT :

The judgment of the learned XXVI Additional City Civil and Sessions Judge at Mayo Hall, Bangalore (CCH 20) dated 11.11.2010 in O.S.No.15279/2004 dismissing the suit of the plaintiff is under challenge in this appeal.

2. The plaintiff is the appellant herein. Defendant is the respondent. Parties shall be referred to during the course of this judgment as per their ranks before the Court below. During the pendency of this appeal, plaintiff died and his LRs have come on record.

3. The plaintiff instituted O.S.No.15279/2004 against the defendant before the Court below for recovery of a sum of Rs.4,00,170/-with interest at the rate of 12% p.a. from the date of filing the suit till the date of realization and costs. It is the case of the plaintiff and the defendant that they were both employees of Reserve Bank of India, Bangalore Branch and they knew each other. It is the case of the plaintiff that defendant was running Chits Group. The plaintiff joined three such groups namely, two chits of Rs.1,00,000/-each for 20 months with 20 members with each member contributing Rs.5,0