Madras High Court
WP(MD)/30180/2026 of Joy Edim Brove S Vs The Deputy Registrar of Chits on 2 November 2026
WP(MD) No. 30180 of 2026
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 02-11-2026
CORAM
THE HON'BLE MR. JUSTICE SENTHILKUMAR
RAMAMOORTHY
WP(MD) No. 30180 of 2026
CNR:{HCMD011490722026}
Joy Edim Brove S
D. No.23, Kamairajapuram West
Opp. To Chinna Kongu Mandapam
Karur-639002.
..Petitioner(s)
Vs
1. The Deputy Registrar of Chits
Karur District
Karur.
2. Margadarsi Chits Private Limited
Represented by its Branch In-charge
R. Harivaradhan
S/o. R. Ramaswamy
No. 1000C, Covai Road
Karur - 639 002.
3. The Branch Manager
HDB Bank
Karur Branch
No.42/1, 2nd Floor
TNHB, Plot No.C1, Trichy Main Road
Gandhigramam
Karur- 639 004.
4. Nandhakumar S
No.8/226-2, Amaravathi Nagar
Andankovil Post
Karur-639008.
..Respondent(s)
PRAYER: Writ Petition filed under Article 226 of the Constitution of __________
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WP(MD) No. 30180 of 2026
India, praying this Court to issue a Writ of MANDAMUS, to direct the 1st respondent to relieve the petitioner stood as Guarantor for the 4th respondent for borrowing the chit amount of Rs.50,00,000/- from the 2nd respondent chit company by receiving the petitioner liability amount as one of the guarantor based on the representation dated 21.10.2026 and pass such further or other orders as this Honble Court may deem fit and proper in the circumstances of the case and thus render justice.
For Petitioner(s)
:M/s C.Ezhilarasu
For Respondent(s)
:Mr.A.Sivasubramanian, AGP (R1)
Mr.R.Devaraj for R2
ORDER
In proceedings under the Chit Funds Act 1982, an award dated 24.10.2025 was issued by the first respondent. Pursuant thereto, it appears that execution proceedings were initiated.
2. Learned counsel for the petitioner submits that the petitioner is only a guarantor and that the award was issued ex parte. He also submits that the petitioner availed of a loan from the third respondent and was unable to execute and register the Memorandum of Deposit of Title Deeds as security for said loan. He seeks to be relieved from the obligation as guarantor of the fourth respondent. __________
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WP(MD) No. 30180 of 2026
3. Appearing on behalf of the second respondent, learned counsel submits that an appeal is provided for before the State Government under Section 70 of the Chit Funds Act. Consequently, he submits that the writ petition is not maintainable.
4. As pointed out by learned counsel for the second respondent, the Chit Funds Act provides for issuance of an award. An appeal against such award lies before the State Government under Section 70 of the statute. Such appeal is required to be filed within two months from the date of the award.
5. Even otherwise, the liability of a guarantor is co-extensive with that of the principal debtor under the Indian Contract Act. Consequently, unless the principal debtor were to discharge the liability, the lender is entitled to proceed against the borrower and guarantors on a joint and several basis.
6. For the reasons set out above, no case is made out to interfere and issue directions as requested for by the petitioner. If the petitioner is able to demonstrate that the award was received recently, it is open to the __________
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WP(MD) No. 30180 of 2026 petitioner to lodge an appeal within two months from the date of receipt thereof. It is also open to the petitioner to contest the execution proceedings in accordance with law. The writ petition is disposed of on these terms without any order as to costs. 02-11-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No PKN __________
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WP(MD) No. 30180 of 2026 To
1. The Deputy Registrar of Chits Karur District Karur __________
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WP(MD) No. 30180 of 2026 SENTHILKUMAR RAMAMOORTHY, J. PKN WP(MD) No. 30180 of 2026 02-11-2026 __________
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