The Judgment was delivered by :

The unscussful plaintiff in O.S. No. 137 of 1988 on the file of the District Munsif, Tiruvarur is the appellant herein. The appellant is running a Chit company. The first respondent herein joined as a subscriber in the chit value of Rupees 10, 000/- and the monthly subscription is Rs. 1, 000/-. The first respondent paid the first instalment of Rs. 1, 000/- and became the successful prized subscriber. He executed a pronote for the balance of Rs. 9, 000/- on 29-4-1985. Thereafter till 11-9-1987 the first respondent paid a sum of Rs. 3, 600/- and failed to pay the subscription arrears subsequently. Hence the suit was laid for recovery of a sum of Rs. 5, 400/- with interest. The second respondent herein is the guarantor and as such he has been impleaded as defendant in the suit.

2. The respondent disputed the claim of the appellant on the ground that the suit is not maintainable in view of Section 4 of the Chit Funds Act, 1982. Further the appellant did not issue any notice demanding the money and hence the suit is liable to be dismissed.

3. The trial Court, after considering the evidence let in by both the parties, by its judgment and decree da