I had issued a cheque for Rs. 1,20,000/= to a chit company being the amount payable towards Future Instalments of chit amounts. But to some other dispute, I stopped the payments of instalments after two months of the issue of cheque. Therefore, the amount due stands at Rs. 90,000/= only.
But the chit company presented the cheque of Rs.1,20,000/= which was stopped by me. They have filed a case under sec 138 of the N.I.Act and are claiming Rs. 1,20,00/=. where as the actual amount due was rs.90,000/= only
One of the sections under the chit fund act says, that in case of dispute, between the foreman and the subscriber, the matter has to be referred for arbritration under the Assistant Registrar of Chits. AND IT FURTHER STATES, THAT NO OTHER CIVIL COURT HAS ANY RIGHT TO TAKE UP THE CASE.
Under the above provision of the chit fund act, is the chit fund company right to file a case under sec 138?
