AKHIL CHIT AND FINANCE PRIVATE LIMITED Vs. RAMDUTT SHARMA

JUDGEMENT

(1.) This civil revision is directed against the judgment and order of the Sub Judge, Delhi dated 27th November, 1986 in suit no. 336 of 1984.

(2.) The brief facts of the case are as follows : The petitioner herein filed a suit for the recovery of Rs. 7,600.00 against the defendants being amount towards balance under a pronote, interest @ 12 % per annum and notice expenses. It was averred in the plaint that the plaintiff company is doing chit fund business wherein a chit for Rs. 9.000.00 for 30 months and subscription of Rs. 300.00 per month was subscribed by defendant no. I who was declared a successful bidder on 10th June 1982 and was to get the amount of chit, after deduction of the offered bid of Rs. 3.150.00 . Respondents 2 and 3 stood as guarantors for re-payment of the future monthly subscription of a total sum of Rs 8,100.00 . Apromissory note was executed by the respondents to that effect on 19th June 1982 accepting joint and several liability. The respondents agreed to pay back the money with interest @ 12% per annum in case of default and also executed an indemnity bond. Since respondent no. I failed to make the payment, the petitioner claimed the balance amount on the basis of the pronote by way of a suit under Order 37 of the Code of Civil Procedure.

(3.) Notice and summons were issued to the defendants which were duly served on all the three defendants, however none of them appeared or made an application for leave to defend within the statutory period. When the matter came up before the trial court on 27th November 1986 though none of the defendants appeared, the trial court ordered that the suit cannot be treated under the provisions of Order 37 of the copy of Civil Procedure but be tried as an ordinary suit for which fresh summons were directed to be issued for settlement of issues.