FAO NO.53/2021 1 2025:KER:29647 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE SYAM KUMAR V.M. THURSDAY, THE 3RD DAY OF APRIL 2025 / 13TH CHAITHRA, 1947 FAO NO. 53 OF 2021 ARISING OUT OF THE ORDER DATED 13.02.2020 IN I.A.NO.111 OF 2019 IN OS NO.106 OF 2008 OF SUBORDINATE JUDGE'S COURT, NEDUMANGAD APPELLANT/COUNTER PETITIONER/PLAINTIFF: RECOVERY MANAGER M/S.THOPPIL CHITS (P) LTD., THOPPIL TOWERS, ST. FRANCIS XAVIERS CHURCH ROAD, KALOOR, ERNAKULAM, REPRESENTED BY ANUJAN KOSHY THOMAS, AND NOW REPRESENTED BY THE PRESENT MANAGING DIRECTOR T.V.THOMAS, S/O.VARGHESE, AGED 60, THOPPIL HOUSE, KALOOR, COCHIN 17. BY ADV. SHYSON P.MANGUZHA RESPONDENTS/PETITIONERS/DEFENDANTS: 1 BIJU.B.S.NAIR AGED 34 YEARS S/O.BALAKRISHNAN NAIR, REMA VILASAM, KADAMBANADU, CHERIYAKONNI, ARUVIKARA. 2 SMITHA R. AGED 25 YEARS W/O.BIJU B.S.NAIR, REMA VILASAM, KADAMBANADU, CHERIYAKONNI, ARUVIKARA. 3 BALAKRISHNAN NAIR AGED 60 YEARS S/O.RAMAN PILLAI, REMA VILASAM, KADAMBANADU, CHERIYAKONNI, ARUVIKARA. FAO NO.53/2021 2 2025:KER:29647 4 K.S.SUNILKUMAR AGED 35 YEARS S/O.SUKUMARAN NAIR, JAYA MANDIRAM, CHELLAMCODE, POOVATHOOR, NEDUMANGADU. BY ADVS. A.R.DILEEP, R1 to R3 N.SASIDHARAN UNNITHAN(K/50/2007) THIS FIRST APPEAL FROM ORDERS HAVING BEEN FINALLY HEARD ON 03.04.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: FAO NO.53/2021 3 2025:KER:29647 JUDGMENT Dated this the 03rd day of April, 2025 This appeal is filed challenging the order dated 13.02.2020 in I.A.No.111 of 2019 in O.S.No.106 of 2008 of the Subordinate Judge’s Court, Nedumangad. Appellant was the counter petitioner in the I.A. and plaintiff in the suit. Respondents were the petitioners in the I.A. and defendants in the suit. 2. I.A.No.111 of 2019 was filed by the defendants challenging the maintainability of the suit on the ground that it is hit by Section 64 of the Chit Funds Act, 1982, which mandates that any dispute relating to the management of a chit business must be referred to the Registrar of Chits for arbitration and thus barring civil court jurisdiction for such matters. The said I.A. was allowed by the Sub Court vide the order impugned in this appeal. 3. Heard Sri.Shyson P.Manguzha, Advocate for the appellant and Sri.A.R.Dileep, Advocate for respondents 1 to 3. 4. It is brought to my notice that this Court had vide judgment dated 07.04.2022 in C.R.P.No.790 of 2019 held that in view of the FAO NO.53/2021 4 2025:KER:29647 provisions under clause (a) of Section 85 of the Chit Funds Act, 1982, nothing in the Chit Funds Act shall apply in respect of any chit fund started before the commencement of the said Act. It has also been held therein that the provisions under Chapter XII of the Chit Funds Act, 1982 which deals with disputes and arbitration, and the forum for disputes resolution provided under Section 64 (1) of the said Act have no application to any chit started in the State of Kerala before the commencement of the Chit Funds Act, ie., to any chit started before 30.04.2012. It has thus been clarified by this Court in the said judgment that the forum prescribed under the sub-section (1) of Section 64 of the Chit Funds Act, 1982 shall have no jurisdiction to entertain any dispute in respect of any chit started before the commencement of the said Act. The civil courts shall thus continue to have jurisdiction to entertain any suit or other proceedings in respect of any disputes in respect of any chit started before the commencement of the Chit Funds Act. 5. The above dictum squarely covers the appellant's case. It follows that the bar contained in sub-section (3) of Section 64 of the Chit Funds Act has no application to suit filed by the appellant. The FAO NO.53/2021 5 2025:KER:29647 proceedings in the suit can hence be continued before the concerned court. Accordingly, the F.A.O. is allowed. Impugned order is set aside. Parties are directed to appear before the Subordinate Judge’s Court, Nedumangad, on 10.04.2025 at 11.00 A.M. Sd/- SYAM KUMAR V.M. JUDGE csl FAO NO.53/2021 6 2025:KER:29647 APPENDIX OF FAO 53/2021 PETITIONER'S ANNEXURES Annexure A1 TRUE COPY OF THE UN REPORTED JUDGMENT IN RSA NO.1143 OF 2019 OF THIS COURT