1) claim of chit fund is barred by limitation
2) if your FIL had not paid money fro 6 years suit should have been filed by chit fund within period of 3 years from last payment made
Chit Fund company asking for dues after 6 years
Dear Sir, My Father-in-Law took a chit fund in 2008-2009 in my wife's name for 1,00,000 (One Lakh only). Thereafter he withdrew 80,000 from the fund for marriage expenses and later paid 60,000 back. The remaining amount was not paid due to some requirements . An agent from the chit fund company visited him last week and is forcing him to pay an amount of 45,000 (balance 20,000 with interest). Over these 6 years , he received no communication and notice regarding the balance. a) Can the chit fund claim money after these many years and also without any notice ? Also the company has just given receipts for the money paid back without any details of remaining amount etc. c) The money was received without collateral, so what would my father-in-law's liability be ? d) He is ready to pay the 20,000 Rs. but the agent is adamant on paying 45,000/- and has threatened him with dire consequences. What is the best way forward.
Asked 8 years ago in Civil Law
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6 Answers
Sir, chit fund was in my wife's name i.e before marriage. Does she have to pay the money? Can we complain to Chit fund registrar?
Asked 8 years ago
Your wife is not liable to pay any money as claim is barred by limitation
2) let the chit fund go to court . No need to complain to registrar
Hi
For recovery of any loan, steps to recover loan should be initiated within the limitation period.
The limitation period under Chit funds act is 3 years. Please refer to Section 65 (1) (b) of Chit funds Act 1982
65. Period of limitation.—
(1) Notwithstanding anything contained in the Limitation Act, 1963 (36 of 1963), but subject to the specific provisions contained in this Act, the period of limitation in the case of a dispute referred to the Registrar under section 64, shall—
(b) if the dispute is between a foreman and a subscriber or a past subscriber, or the nominee, heir or legal representative of a deceased subscriber, and the dispute relates to any act or omission on the part of either party to the dispute, be three years from the date on which the act or omission with reference to which the dispute arose, took place
First of all the chit fund cannot claim money after expiry of three years.
So ask the chit fund to initiate proceedings through registrar instead of threatening you.
No registrar or courts will initiate proceedings against you for default as the dispute is more than 6 years old. So no worries.
Did your father sign an agreement? If yes, what is the period of repayment prescribed by it? Be that as it may, the utmost which the company may do is to file a suit for recovery of money in view of the fact that no collateral was made. File a complaint to the nearest police station for criminal intimidation if the agent threatens you. Contest the case on merits if they go to court.
a) Can the chit fund claim money after these many years and also without any notice ? Also the company has just given receipts for the money paid back without any details of remaining amount etc.
The claim by the chit company is miserably barred by limitation and this fact is very well known to the company itself.,
Therefore do not make any commitment for payment in writing which will automatically renew the liability.
c) The money was received without collateral, so what would my father-in-law's liability be ?
Since it is barred by limitation, there is no liability at this stage.
d) He is ready to pay the 20,000 Rs. but the agent is adamant on paying 45,000/- and has threatened him with dire consequences. What is the best way forward.
Your father in law should not pay even a single penny, if the agent is threatening with dire consequence , he should either lodge a police complaint agaisnt his for his illegal acts or to issue a legal notice to the agent to refrain from indulging in such illegal and unlawful activities.
He should not commit to payment even a part amount.
chit fund was in my wife's name i.e before marriage.
Does she have to pay the money?
Can we complain to Chit fund registrar?
If the chit account was in your wife's name then the claim agaisnt your father in law is absolutely illegal and unjustified, however, since the claim is barred by limitation, please do not make any commitment for payment in writing.