J.N.Road Abdis Hyderabad v. Government of Andhra Pradesh Hyderabad

Heard Sri Vedula Venkata Ramana, learned counsel for the petitioners and the learned Govern Pleader for Revenue, appearing for the respondents, who takes notice on behalf of the respondents herein and at their request, the writ petition itself is taken up for disposal.

This writ petition is filed at the instance of A.P. Federation of Chit Funds, Secunderabad, seeking issuance of a writ of Mandamus assailing the action of the respondents in attempting to enforce the provisions of the repealed Ordinance viz., A.P. Chit Funds (amendment) Ordinance, 2007, A.P. Ordinance No.11 of 2007, after lapsing of the said Ordinance, is arbitrary and illegal and direct the respondents to permit the petitioners to carry on chit fund business in accordance with the A.P. Chit Fund Act, 1971 (for brevity ‘the Act’).

Though several contentions are sought to be urged on behalf of the petitioners, however, the fact remains that as contended by the learned Government Pleader for Revenue, the ordinance, which is sought to be against the petitioners, is no longer in force. Therefore, there cannot be any apprehension on the part of the petitioners herein.

The learned counsel for the petitioners contended that since the ordinance has lapsed, the provisions of the Act, have come into force and consequently, the petitioners can avail the remedy by filing suits in the Civil Courts against defaulting members. It is noticed that under the lapsed ordinance, the jurisdiction of Civil Court was ousted and jurisdiction was conferred on the Chit Registrars to entertain the money claims against defaulting members.

As per the contentions raised by the learned counsel, and lapsing of the ordinance, the provisions of the Act as they were should be deemed to have come into operation again.

The learned Government Pleader for Revenue admitted that the ordinance has lapsed and hence, the provisions of the lapsed ordinance cannot remain effective.

Having heard the parties, it is noticed that since the ordinance is lapsed, the law regulating conduct of chit fund business would be the Act, as it stood prior to the issue of the lapsed ordinance. Hence, it is sufficient to note that having regard to the fact that the ordinance no longer in force, the question of availing any remedies as contemplated by the ordinance does not arise.

Hence, it is made clear that the petitioners are at liberty to avail all such remedies as provided by the A.P. Chit Fund Act, 1971, including the Civil Court for recovery of any amount from the defaulting members.

Subject to the above directions, the Writ Petition is disposed of. No costs. _______________________ JUSTICE B.PRAKASHRAO ________________________ July 18, 2008 JUSTICE R.KANTHA RAO Kvr