Judges : S.KRISHNAN UNNI
Krishnamoorthy - Appellant
Versus
Khaleel Rahman - Respondent
Case No : CRPNos.1799,1800 etc of 1991
Decided On : 08/09/1996
Advocates Appeared :
S. Venkitasubramonia Ayyar (Sr. advocate) & V. Giri For Petitioner V. Chitambaresh & K.K. Bhavadas Menon For Respondents
Execution Order - Maintainability - Chit Funds Act, 1982 - S.71
Fact of the Case:
The civil revision petitions questioned the maintainability of execution orders passed by the Deputy Registrar of Chits, Thirupur, who passed arbitration awards in the arbitration proceedings under S.61 of the Chit Funds Act, 1982. The Munsiff held that the Registrar is not a civil Court and cannot transfer the awards for execution under S.39 C.P.C., dismissing the Execution Petitions.
Finding of the Court:
The court found that the order passed by the Registrar under S.71(a) of the Chit Funds Act is deemed to be a decree of a Civil Court and shall be executed in the same manner as a decree of such Court. The legal fiction created by S.71(a) allows the Civil Court to execute the order as its own decree.
Issues: The main issue was the maintainability of execution orders passed by the Deputy Registrar of Chits, Thirupur, and the interpretation of S.71(a) of the Chit Funds Act, 1982.
Ratio Decidendi: The court held that the legal fiction created by S.71(a) allows the Civil Court to treat the order passed by the Registrar as a decree of the Civil Court and execute it accordingly. However, the Act must be enforced in the State for the Civil Court to have jurisdiction to treat the orders of the Registrar as a decree of a civil Court and execute it.
Final Decision: The court confirmed the lower court's order to dismiss the execution petitions, stating that in the absence of enforcement of the Chit Funds Act, 1982, in the State of Kerala, the Civil Courts cannot treat the orders of the Registrar under the Chit Funds Act as a decree of a civil Court and execute it. The civil revision petitions were dismissed with no costs.
S. Krishnan Unni, J.
These civil revision petitions were heard together because they raise the same point regarding the maintainability of execution order passed by the Deputy Registrar of Chits, Thirupur who passed the award in the arbitration proceedings. The respondents have opposed the maintainability contending that Execution Petitions are not maintainable. In all these cases, the Deputy Registrar appointed under S.61 of the Chit Funds Act, 1982 had passed arbitration awards and sent them for execution to the Civil Court. The Munsiff, Chittur by a common order held that the Registrar is not a civil Court and that he cannot transfer the awards for execution under S.39 C.P.C. and dismissed the Execution Petitions. The revisions arc directed against the said order,
2. The petitioner contended that the transfer of the award is perfectly legal and valid, under S.71 of the Chit Funds Act. The respondents' counsel contended, that Registrar is not a Court and not being so, cannot transfer his own award for execution. Under S.39,
"(1) The court which passed a decree may, on the application of the decree-holder, send it for execution to another court of competent jurisdiction, -
(a). if the person against whom the decree is passed actually and voluntarily resides or carries on business, or personally works for gain, within the local limits of the jurisdiction of such other Court, or
(b) if such person has not property with the local limits of the jurisdiction of the Court which passed the decree sufficient to satisfy such decree and has property with in-the local limits of the jurisdiction of such other Court, or
(c) if the decree directs the sale or delivery of immovable property situated outside the local limits of the jurisdiction of the Court which passed it or
(d) if the Court which passed the decree consider for any other reason, which it shall record in writing, that the decree should he executed by such other Court.
(2) The court which passed a decree may of its own motion send it for execution to any subordinate court of competent jurisdiction.
(3)For the purpose of this Section, a Court shall be deemed to be a Court of competent jurisdiction if, at the time of making the application for the transfer of decree to it such Court would have jurisdiction to try the suit in which such decree was passed".
Sub-s.3 above which was introduced by an amendment in 1977, states that for a purpose of the section, a Court shall be deemed to be a Court of competent jurisdiction if, at the lime of making the application for the transfer of decree to it, such court would have jurisdiction to try the suit in which the decree was passed.
3. It is argued that Court would have no jurisdiction over such matters because (1) it is not a suit and (2) the civil court will not have jurisdiction to try the case because it is expressly barred by provisions of Chit Funds Act. The Act defines what are disputes between the subscribers and foreman of the chitties and provides for referring such disputes for arbitration to the Registrar. The Registrar passes an order under S.66(1) of the Act. It is open to him to settle the disputes himself or refer it for disposal to a person appointed by hi m referred to as a nominee. Under S.64(2) of the Ac t, where any ques ti on arises as to whether any matter referred to for the award of the Registrar is a dispute or not for the purpose of sub-section (1), the same shall be decided by the Registrar whose decision thereon shall be final. Sub-s.(3) of S.64 states that no Civil Court shall have jurisdiction to entertain any suit or other proceedings in respect of any dispute referred to in sub-s.(1). The above provision will show that jurisdiction of the Civil Court is barred to entertain a suit or other proceedings in respect of the disputes referred to in S.64(1). The scheme of the Chit Funds Act, 1982 is that when'the Registrar settles a dispute and passes an award he ceases to have any more functions. The appeal fro
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