Many people, including famous authors going back at least as far as Shakespeare, have used this chapter-by-chapter method of writing. Sometimes the results as "as beautiful as possible" for the specific method used.
Many? One novel, written by several people each contributing one chapter? Various authors have produced work in collaboration with others, but not (as far as we know) following this method, whether it's Beaumont and Fletcher (ok, substitute 'scene' for 'chapter') or (allegedly) Dick Francis and his family. Only in more recent times (20th century on) have we seen collaborative novels involving a whole group of writers, whether amateur groups or professional writers' collectives. Both often make a point of secrecy in respect of the individual contributions to the finished work, and the latter are less open about their working methods than the former, but in both cases, from what the groups have disclosed, the collaborative method is never a 'chapter per writer' method. Of course, individual authors have often published their work in instalments, in some (famous) cases the work not having been completed before the serialisation began, but that's a different matter - one author, one novel. In general, group writing has not been very successful (in terms of quality of product); the only writers' collective whose name I remember who published collaborative work (perhaps because they have had some success) was (perhaps 'is') the Luther Blissett Project, which later became Wu Ming; but from what they've told us, the 'one chapter each' was not their working method.
EDIT UPdate : just checked - Wu Ming is still going. I see it was actually involved in one project (in 2001-2)close to the one author per chapter model, described on their website as 'a short novel ... the result of an experiment in on-line collective writing. WM2 wrote the first and last chapter, the other ones were written by assorted websurfers and selected by a jury in a literary kangaroo court.' It's called
Ti chiamerò Russell; I can't say whether it's any good, as I haven't read it yet , but it's available (free) from their download page (in Italian only). Perhaps the OP's original quotation referred to this, though in that case some context would have been helpful, since it seems to be a unique creation.