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High Court Modifies Single Judge’s Order in Chit Fund Payment Dispute Under Tamil Nadu Chit Fund Act. Direction to Pay Principal Balance Modified to Allow Rule of Appropriation, Payment Made Subject to Outcome of Pending Statutory Appeals Under Section 70.

The High Court of Madras, in intra-court writ appeals, dealt with a dispute arising from chit fund transactions governed by the Tamil Nadu Chit Fund A...

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Madras High Court Modifies Direction to Deposit Principal Balance in Chit Fund Dispute; Allows Adjustment Under Rule of Appropriation. Subscriber Directed to Pay Part Amount to Chit Fund Company Pending Statutory Appeal Under Section 70 of Tamil Nadu Chit Fund Act, 1961.

Background: The dispute arises from a chit fund transaction. The appellant is a chit fund company, and the first respondent is a subscriber. An arbitr...