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DELHI HIGH COURT
MINI PUSHKARNA
Umesh Kumar – Appellant
Versus
Abhay Raj Pandey – Respondent
| Table of Content |
|---|
| 1. factual basis of the loan agreement. (Para 1 , 2 , 3 , 4 , 5) |
| 2. contract invalid due to legal prohibition. (Para 6 , 9 , 10) |
| 3. chit funds act must be adhered to. (Para 7) |
| 4. appeal dismissed for lack of merit. (Para 11 , 12 , 13) |
JUDGMENT
[Physical Hearing/Hybrid Hearing]
Mini Pushkarna, J. (ORAL):
1. The present appeal has been filed seeking prayer for setting aside the judgment and decree dated 31.08.2020 passed by Ld. ADJ, North-West District, Rohini Courts Delhi in suit bearing No. 671/17.
2. The case on behalf of the appellant, who was the plaintiff in the suit, is that the appellant was engaged in the business of transportation under the name and style of M/s Vishal Golden. The father of the respondent herein was running a chit fund. The appellant was a member in chit fund of the respondent and made payments for the said purpose. It is the case of the appellant that the respondent demanded Rs. 3 Lakhs from the appellant herein on 23.06.2016 for treatment of his wife for a short period. The respondent assured that he will return the same after taking next chit in his name. Thus, it is submitted on behalf of the appellant that the appellant gave a friendly
Consumer forums have jurisdiction in disputes involving chit fund operators, and failure to fulfill obligations pertains to deficiency of service under the Consumer Protection Act, 2019.
A plaintiff cannot file a suit against an unregistered chit fund for recovery of money, highlighting the necessity of a valid Board resolution for instituting a suit on behalf of a company.
The legal principle of presumption when a party does not offer to be cross-examined was crucial in assessing the defendants' allegations.
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