Writ Petition No. 16523 of 2011 · Andhra Pradesh High Court

The petitioner claims to be subscriber of a chit run by the 5th respondent. It is stated that himself and his family members have subscribed to 13 chits in 5 groups and that 12 chits are pending. He made a representation, dated 24.05.2011, to the District Registrar (Chits and Registration), Guntur, the 3rd respondent herein, stating that

5th respondent is not distributing the profits derived out of the first chit to the members and it is exclusively appropriating the amounts to itself. He has also stated that by the time the representation was made, the 5th respondent has appropriated nearly Rs.20 crores and acted contrary to the Chit Funds Act, 1982 (for short ‘the Act’) and the Rules made thereunder. He prayed for cancellation of the licence as well as for a direction to the 5th respondent to distribute the profits derived out of the first chit, for the past several years, with interest at 24% per annum. The grievance of the petitioner is that, no action has been taken on the representation. Heard learned counsel for the petitioner and learned Government Pleader for Revenue. The petitioner appears to have made a representation to the 3rd respondent, seeking remedies under the Act. The Act provides for several remedies, ranging from winding up of chits under Section 48 to arbitration of the disputes under Section 64. It is only when a specific grievance referable to a particular provision of law is made out that the 3rd respondent would be in a position to apply mind and take necessary steps. The representation submitted by the petitioner is general and it does not pinpoint any particular grievance. From a perusal thereof, it is evident that he wanted the accounts of the 5th respondent for the past several years to be verified by the 3rd respondent and directions be given for distribution of the profits to all the members with interest at 24%, per annum. A prayer for cancellation of licence was also made. When such is the vague and general nature of representation, nothing can be expected from the 3rd respondent. The writ petition is therefore, dismissed. It is left open to the petitioner to make specific representation by referring to the relevant provisions of law. As and when such representation is made, the 3rd respondent shall pass appropriate orders, in accordance with law. There shall be no order as to costs. ____________________ L.NARASIMHA REDDY, J. Dated:18.01.2012 GJ