2001 (5) TMI 902

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....turn came to receive the amount of contribution made by him towards chit fund he was denied to receive the amount. Complainant lost before the District Forum but succeeded before the State Commission. There are three petitioners. First two petitioners are partners of third petitioner-Surya Financiers which was running the chit fund. As per scheme of the chit fund every month members were to contribute Rs. 5,000 and the amount of contribution was Rs. 1,25,000. Members used to bid and the persons offering to take the lesser amount used to get the same and the remaining amount was distributed among the members after deduction of the Commission of the petitioners. Commission was stated to be 5 per cent complainant paid all 25 instalments and be....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....as barred by limitation or how it was bad for mis-joinder of parties. It is contended that there is specific mode or resolving disputes between the members of the chit fund or the members and the management of chit fund and that District Forum rightly held that it has no jurisdiction in the matter. Reference was made to section 64 of Chit Fund Act which reads as under : "64. Disputes relating to chit business-(1) Notwithstanding anything contained in any other law for the time being in force, any dispute touching the management of a chit business shall be referred by any of the parties to the dispute, to the Registrar for arbitration if each party thereto is one or the other of the following, namely :- (a)a foreman, a prized subscribe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....(1)." 3. It cannot be disputed that the Registrar could arbitrate on the dispute as mentioned in clauses (a) and (b) of sub-section (1) of section 64 of the Chit Fund Act and the present case could be said to be covered under those provisions. Under section 3 of the Consumer Protection Act, provisions of the Act are in addition to and not in derogation of the provisions of any other law for the time being in force. There is nothing in section 64 of the Chit Fund Act which bars the jurisdiction of District Forum, State Commission or National Commission under the Consumer Protection Act. The bar is on the Civil Court. The concept of Civil Court is well understood. The Forum under the Consumer Protection Act is not a Civil Court though it h....