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IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mr Justice P.VELMURUGAN
Rajarathnam Construction (P) Ltd. – Appellant
Versus
Ganapathy Funds Partnership Firm – Respondent
JUDGMENT :
P. Velmurugan, J.
The suit is instituted by the plaintiff-Company against the defendants for recovery of a sum of Rs.4,83,72,278/- towards the payment of Chit amount to the plaintiff-Company, together with interest @ 18% per annum from the date of plaint till the date of realisation and for costs of the suit.
2. The averments made in the plaint are as follows :-
(a) The first defendant, through its partners, who are defendants 2 to 6, had floated a firm known as Ganapathy Funds and carrying on business in Chit Fund and also accepted the deposits from the public. In the year 2013, the second defendant approached the plaintiff and informed about their business activities and giving a false glowing reports of the activities of the first defendant-group of companies and insisted the plaintiff to invest in the Chits conducted by the first defendant-firm and the second defendant promised to pay high returns by way of dividend on the investment to be made by the plaintiff and also assured the plaintiff-Company that they will be entitled to prize amount/maturity amount which would be promptly settled without any delay.
(b) The second defendant-Chit Fund group informed that a Chit Fun
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.
Mere introduction of the words “without prejudice” have no significance and the debtor clearly acknowledged the debt even after action was initiated under the Act and even after payment of a smaller ....
The legal representation of companies in litigation must adhere to proper authorization protocols, confirmed by board resolutions and compliance with the Civil Procedure Code.
The plaintiff failed to prove the execution of Exs.a-4 and a-5 by the 2nd defendant, and therefore, the plaintiff is not entitled to claim the suit amount from the 2nd defendant.
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.
The court emphasized the importance of specific pleading to support new cases during evidence and upheld the lower courts' findings regarding the execution of the promissory note and receipt of consi....
The liability of sureties is co-extensive with that of the principal borrower, and the execution of the agreement of guarantee and pronote by the defendants establishes their joint liability to pay t....
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