PAUL Vs. T. MOHAN
LAWS(SC)-2020-4-49
SUPREME COURT OF INDIA
Decided on April 24,2020

PAUL Appellant
VERSUS
T. Mohan Respondents

JUDGEMENT

VINEET SARAN,J. - (1.)The appellant herein is the auction purchaser of the scheduled property measuring 2 acres 43 cents in Village Managiri, Madurai District, Tamil Nadu, which auction has been quashed by the High Court, and hence, this appeal.
(2.)The brief facts of this case are that the respondent No. 1 - T. Mohan was a guarantor of one Rajendran (who was his son's friend). The said Rajendran had taken a chit for a sum of Rs. 5,00,000/- (Rupees five lakhs only) from respondent No. 2-Shriram Chits Tamil Nadu Ltd. (for short "Chits Company") for a period of 40 months and had executed a pro-note dated 18.01.2000 for a sum of Rs. 3,37,500/- (Rupees three Lakhs thirty seven thousand five hundred only), for which the respondent No. 1 and his son stood as guarantors, and for that, a collateral security of the scheduled property had been executed. The said Rajendran had paid the first 25 installments out of 40 and thereafter failed to pay the remaining installments. A notice was issued to the said Rajendran requiring him to pay the remaining amount of Rs. 1,84,840/- (Rupees one lakh eighty four thousand eight hundred forty only) along with interest @ 24%, which he failed to pay. The respondent No. 2 Chits Company, thus filed a petition under Section 64(1)(A) of Indian Chit Funds Act, 1982 before the Deputy Registrar of Chits, Madurai South, in which an ex-parte Award dated 21.1.2002 was passed and the respondent No. 1 was directed to pay a sum of Rs. 1,95,631/- (Rupees one lakh ninety five thousand six hundred thirty one only) to the respondent No. 2-Chits Company. Respondent No. 1 claimed that he was not aware of the ex-parte award.
(3.)The respondent No. 2 Chits Company filed Execution Petition No. 21 of 2003 before the Ist Additional Subordinate Judge, Madurai for execution of the ex-parte Award.
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