2025:MHC:3023

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 10-12-2025

CORAM :

THE HONOURABLE MR.JUSTICE R.SAKTHIVEL

C.R.P. No.1360 of 2023

D.Govindarajan,

UPTODATE Unisex Saloon,

Ganesh Apartment,

No.12, Medavakkam Tank Road,

Ayanavaram,

...Petitioner/Petitioner/Defendant

Chennai – 600 028.

Vs

Rahul Raveendran

Proprietor,

M/s.Sree Ravees Finance,

No.12, (Old No.38), Marichetty

Street, Mandaveli,

...Respondent/Respondent/Plaintiff

Chennai - 600028.

PRAYER

Civil Revision Petition filed under Article 227 of the Constitution of India, 1950, praying to set aside the Order passed on September 02, 2022 in I.A.No.1 of 2021 on the file of XX Assistant City Civil Court, Allikulam,

Chennai.

For Petitioner : Mr.K.N. Nataraaj

For Respondent : Mr.B.Dinesh Kumar

ORDER

The Revision Petitioner herein is the Defendant in O.S.No.3758 of

2021 on the file of 'the XX Assistant City Civil Court, Chennai' (hereinafter referred to as the 'Trial Court') and the Respondent herein is the Plaintiff in the said Suit. Hereinafter, the parties will be referred to as per their array in the Original Suit.

2. The Plaintiff filed the Suit under Order XXXVII Rule 1 of 'the Code of Civil Procedure, 1908' ('CPC' for short), seeking a money decree for a sum of Rs.9,26,700/- together with interest at the rate of 18% per annum on the principal amount of Rs.7,50,000/- from the date of the Suit till realization, against the Defendant.

3. The case of the Plaintiff is that the Defendant borrowed a sum of Rs.7,00,000/- on August 28, 2015 and assured to repay the amount with interest, by executing two Promissory Notes on the same date. The Defendant paid interest up to September 17, 2018, but thereafter, failed to make any payment. Hence, the Plaintiff made a complaint before the Police and CSR.No.1633 of 2019 was registered on November 23, 2019.

Thereafter, an amicable settlement was arrived between the parties. As per the settlement, the Defendant agreed to settle by paying a sum of Rs.7,50,000/- towards principal and interest due, with interest thereon at 1.5% per month within a period of six months and requested not to take any legal action against the defendant. To that effect, the defendant executed an acknowledgment of debt on December 01, 2019 and 3 fresh promissory notes dated December 01, 2019 for Rs.5,00,000/-, Rs.2,00,000/- and Rs.50,000/-, enabling the defendant to settle one after the other for his convenience.

4. When the Plaintiff approached the Defendant in the month of September 2020 for repayment of the principal along with arrears of interest, the Defendant started paying interest in piecemeal. The Defendant paid a total sum of Rs.3,300/- only between September 24, 2020 and December 31, 2020 and thereafter, stopped making any payments. Hence, the plaintiff filed the Suit under Order XXXVII Rule 1 of CPC.

5. The Defendant after receiving summons, entered appearance and filed a petition in I.A. No.1 of 2021 under Order XXXVII Rule 3(5) of CPC seeking leave to defend the Suit.

6. The Trial Court, after hearing both sides and upon perusal of the plaint and plaint documents, concluded that the Defendant had not made out a case and accordingly, dismissed the petition.

7. Feeling aggrieved by the Dismissal Order passed by the Trial Court, the Defendant has filed this Civil Revision Petition.

8. The learned Counsel for the Revision Petitioner/Defendant submits that the Defendant had a valid defence. The Plaintiff was conducting chit fund business and the said promissory notes were executed only as a security for the purpose of the same. He further submits that as per Section 64(1) of the Chit Funds Act, 1982, the jurisdiction of the Civil Court is barred. The Trial Court without considering the same, erred in dismissing the leave to defend petition. Accordingly, he prays to allow the Civil Revision Petition.

9. Per contra, learned Counsel appearing for the Respondent/Plaintiff, reiterating the averments made in the plaint submits that after registration of CSR No.1633 of 2019 on November 23,