HON’BLE SRI JUSTICE K.C. BHANU CIVIL REVISION PETITION No.3608 of 2008 Date: September 13, 2010 Between: T. Ramchander. …Petitioner/Defendant No.2 And 1. The Model Chit Corporation Limited, rep. by Assistant Manager & 3 others. …Respondents/Defendants 1, 2 & 3 * * * HON’BLE SRI JUSTICE K.C. BHANU CIVIL REVISION PETITION No.3608 of 2008 ORDER: The civil revision petition is directed against the order dated 21.02.2008 in I.A. No.40 of 2008 in O.S. No.1538 of 2006 on the file of III Junior Civil Judge, City Civil Court, Hyderabad whereunder and whereby the petition filed under Order VII Rule 11 (a) and (d) read with Section 151 of CPC to reject the plaint on the ground that the suit transaction is barred by limitation was dismissed. 2. The learned counsel for the petitioner/D2 contended that the promissory note executed by petitioner/D-2 is on 31.08.2001 along with chit agreement and the suit has to be filed within three years thereafter, but admittedly the suit was filed in the year 2006 which is barred by limitation. 3. On the other hand, the learned counsel for the respondentNo.1/plaintiff contended that the suit claim is based on an agreement of guarantee dated 31.8.2001 whereunder the original borrower, first defendant, has to pay the instalments regularly and from the date of committing of default by the first defendant the cause of action arises and therefore, the trial court rightly dismissed the petition and there are no grounds to interfere with the same. 4. It is not in dispute before this Court that the present petitioner along with D-1 executed a chit agreement on 28.3.2001. Similarly, they also executed a promissory note on 31.8.2001. It is also stated in the plaint that the defendants executed a promissory note towards collateral security on 31.8.2001. It is clearly stated the defendants committed default in paying monthly instalments on 10.9.2003. Since suit is based on chit agreement, limitation starts from last date of default. If that is the case, the suit is well within the period of three years. 5. As seen from the plaint allegations, the promissory note was executed on 31.8.2001, which is for collateral security. The suit was filed on 10.3.2006, that means within three years from the last date of default of payment of chit amount. Whether the suit is based on agreement of chit or promissory note has to be decided after trial of the case. In view of the fact that it is a mixed question of law and fact, necessary evidence has to be adduced with regard to limitation. Therefore, there are no grounds to interfere with order impugned. 6. The civil revision petition is accordingly dismissed. No costs. ________________ K.C. BHANU, J Date: September 13, 2010. BSB