2022 (1) TMI 100

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....e of the appellant/complainant was that it is a company registered under Companies Act, 1956 engaged in the business of chit and financing. The accused was a guarantor to one person named Mrs.Sunith Babu who was a subscriber of a chit conducted by the Company. The sala of the chitty was Rs. 50,000/- and the same was commenced on 26.02.2009 and terminated on 26.02.2011. The subscriber thereof received the chit amount, but later she defaulted the re-payment of monthly installments. The 1 st respondent herein had undertaken the liability of the said subscriber and issued a cheque in discharge of the same for an amount of Rs. 18,517/-. Upon presentation, the said cheque got dishnoured with a memo "Funds Insufficient". Even though statutory noti....

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....ant relies on the judgment in Secretary Bhubaneshwar Development Authority v. Susantha Kumar Mishra [(2009)4 Supreme Court Cases 684] and contends that, going by the observations made by the Honourable Supreme Court therein, the interest charged on monthly installments which contain interest element does not amount to compounding of interest. 5. However, I am of the view that the aforesaid contention is not legally sustainable. The decision in Bhubaneshwar Development Authority (supra) was pronounced in a completely different set of facts. The question considered therein was whether, when the installments payable by the consumer was defaulted, the penal interest charged upon such monthly installments can be treated as compounding of the ....