TMI Blog1981 (3) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... n application filed by a defendant in a suit before the trial Court to try a particular issue as a preliminary issue. The application is filed in the following circumstances. The petitioner was sued on a liability which he had incurred in a chit transaction conducted by the plaintiff which is a banking company. The petitioner resisted the suit on various grounds, chief amongst which was that he wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n nothing in the Act would affect a debt or liability of an indebted person in respect of any sum due to any banking company to which the Banking Regulation Act 1949 applies. Learned counsel for the plaintiff-Bank urged that this provision saved the present suit from Act 16 of 1976. 3. I think the reliance placed by the learned counsel for the plaintiff-Bank on s. 3 (h) (B) of the Act i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of S. 3 (h) (B) of the Act 16 of 1976 do not require that the liability should have arisen in a banking transaction properly so-called. All that it says is, that the debt sued on should be a liability in respect of any sum due to a banking Regulation Act 1949 must apply. It may be that this banking company has a separate department, that department is in addition to being governed by the Banking R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition of banking in the banking Regulation Act, 1949 would leave no doubt in any one's mind that chit fund transaction indulged in by a banking company at any rate partakes the character of a banking activity. Indeed a chit fund or kuri reflects the genius of the southern peoples of this country. A chit combines in itself two economic urges commonly appearing in people, namely, the urge to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... written statement in the suit, to such an extent that the trial of the suit is going to be very tame fair. But this kind of disposal of this application has been fairly invited by the petitioner himself. He alone is to be blamed for it. With this observation, the civil revision petition is dismissed. There will be no order as to costs. Petition dismissed. - - TaxTMI - TMITax - In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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