BIDYADHAR SAHANI Vs. CUTTACK CHIT FUND AND ANR.
HIGH COURT OF ORISSA
Cuttack Chit Fund And Anr.
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S.K.Ray, J. -
(1.) THIS is an appeal by the J. Dr. from an order of the executing Court dismissing his application under Section 13 of the Orissa Money Lenders Act.
(2.) MR . Ramdas has taken a preliminary objection that this appeal is not maintainable because application under Section 13 of the Orissa Money Lenders Act does not lie. He says that a decree for money that was passed was regarding a transaction between J. Dr. and a Chit Fund. The Money that was advanced by the Chit Fund to the J. Dr. was not a loan and Chit Fund is not a money lender as defined in the Orissa money Lenders Act. Accordingly, Orissa Money Lenders Act being not applicable, this petition is not maintainable under Section 13 of the Orissa Money Lenders Act. In view of this, the appeal is not maintainable. It appears that this preliminary objection has substantial force and must be upheld. It has been held by this Court in the case of Sapa Narayan v. Shankar Chit Fund, 1970 C.L.T. 12, that the money advanced by a Chit Fund is not a loan relying upon a decision of Andhra High Court in G.K. Naidu v. C.K. Mouleswar Office Receiver Hyderabad, : A.I.R. 1962 A.P. 406. The principle of that decision applies to this case. That apart it also appears to me that Chit Fund is not a money lender as defined in the Orissa Money Lenders Act. I therefore, uphold the preliminary objection and dismiss the appeal. In the circumstances, there would be no order for costs.;
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