Suvvari Venkata Ramana v. The Chits Registrar,

HONOURABLE SRI JUSTICE A.RAJASHEKER REDDY W.P.No.17306 OF 2016 ORDER:

The case of the petitioner is that 3rd respondent is the subscriber in the chit conducted by the 2nd respondent. The 3rd respondent is the prized subscriber in the auction held in the month of 25-02-2014 for a chit value of Rs.25 lacs bearing chit no.FSKT 01T Ticket No-8. The 3rd respondent, who is the prized subscriber, requested the petitioner to be surety/guarantor for the prized balance amount i.e. Rs.15 lacs and it is stated that as 3rd respondent is known to the petitioner, the petitioner stood as surety/guarantor for the bid amount. It is stated that while so, the petitioner received a legal notice dated 15-03-2016 from the 2nd respondent-Chit Fund Company stating that the 3rd respondent has defaulted in payment of future installments and has paid only 28 installments and required the petitioner to pay the defaulted chit amounts. The petitioner got issued reply notice stating that the 3rd respondent has got immovable properties on her name and the 2nd respondent can proceed against the immovable property of the 3rd respondent. That the 2nd respondent and the 3rd

respondent both colluded to cause wrongful loss to the petitioner as he stood as surety/guarantor. That the petitioner has made a representation dated 21-04-2016 to the 1st respondent-Chits Registrar to take action in the matter under Section 64 of the AP Chit Funds Act, 1982. The grievance of the petitioner is that till today no action has been taken and no orders are passed on his representation by the 1st respondent. Hence, this writ petition.

2. Heard learned counsel for the petitioner and the learned Assistant Government Pleader for Revenue.

3. Inasmuch as under Section 64 (2) of the AP Chit Funds Act, 1982, the 1st respondent is competent authority to take action in relation to disputes concerning to chit business, 1st respondent is directed to consider the representation dated 2104-2016 said to have been made by the petitioner and pass orders thereon, in accordance with law, expeditiously.

4. With the above directions, the writ petition is disposed of. As a sequel thereto, miscellaneous petitions, if any, pending in this writ petition, shall also stand disposed of. There shall be no order as to costs.

___________________________ A.RAJASHEKER REDDY, J Dated: 23-06-2016 NRG

HONOURABLE SRI JUSTICE A.RAJASHEKER REDDY

W.P. No.17306 OF 2016 Date: 23-06-2016 //WEB// NRG