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Madras High CourtWA/771/2024dismissed

A.Gurusmay v. The Government Of Tamilnadu

2025-02-17Honourable Mr Justice S.M. Subramaniam,Honourable Mr.Justice K.Rajasekar7 pages

2025:MHC:742

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 17-02-2025

CORAM

THE HONOURABLE MR JUSTICE S. M. SUBRAMANIAM AND THE HONOURABLE MR.JUSTICE K.RAJASEKAR WA Nos. 771 & 775 of 2024 AND CMP Nos.24881 & 24883 of 2024

1. A.Gurusamy

2. G.Ranjani Appellant(s) Vs

1. The Government Of Tamilnadu rep by the Additional Chief Secretary to Government (FAC) Commercial Taxes and Registration Department Secretariat, Chennai 600009 2.The Deputy Registrar of Chits District Registrar's Office (Administration) Arbitration Cases, Erode 638 003.

3.M/s Margadarisi Chits Pvt Ltd.

Rep by Mr.N.Angayya, Formen, No.352/799, 2nd floor, Brough Road, Erode 1 Respondent(s)

WA No. 775 of 2024

1. A.Gurusamy 2.G.Ranjani Appellant(s) Vs

1. The Government Of Tamilnadu Rep. by the Additional Chief Secretary to Government (FAC) Commercial Taxes and Registration Department Secretariat, Chennai 600009.

2.The Deputy Registrar of Chits District Registrar's Office (Administration) Arbitration Cases, Erode 638003.

3.M/s Margadarisi Chits Pvt Ltd.

Rep. by Mr.N.Angayya, Formen, No.352/799, 2nd Floor, Brough Road, Erode 1 Respondent(s) PRAYER To set aside the order dated 03.11.2022 made in WP.No.21702 of 2017 passed by this Hon'ble Court by allowing this Writ Appeal and thus render justice. WA No. 775 of 2024 PRAYER To set aside the order dated 03.11.2022 made in WP.No.21703 of 2017 passed by this Hon'ble Court by allowing this appeal and thus render justice.

For Appellant(s):

Mr.N. Manoharan (in 2WAs) For Respondent(s):

M/s.T.Chandrasekaran Special Government Pleader For R1 and R2 (in 2WAs) M/s.D.Shivakumaran For R3 (in 2WAs) COMMON JUDGMENT (Judgment was delivered by S.M.Subramaniam J.) The writ appeals have been instituted challenging the common order dated 03.11.2022 passed in W.P.Nos.21702 and 21703 of 2017.

2. The writ appellants are members of chit fund managed by the 3rd respondent, Chit Company. They committed default in payment of chit amount, and the matter was referred for mediation. One of the appellant is the guarantor in the chit. The arbitrator passed an award on 06.05.2013. The appellant preferred an appeal under Section 70 of the Chit Funds Act, 1982 with a delay of 3 years, 7 months and 5 days. The Government rejected the appeal on the ground of delay, which resulted in filing of the writ proceedings. The learned Single Judge is convinced about the Government order rejection the appeal on the ground of delay and consequently the present writ appeal has been

instituted.

3. The Government verified the original records and found that the notice was sent to all the parties to the arbitral proceedings. The respondents in the arbitral proceedings received notice from the Arbitration Court and acknowledgment for receiving notices were available in the original records.

4. Hearings were conducted by the arbitrator on 21.01.2013, 18.02.2013, 11.03.2013, 18.03.2013, 25.03.2013, 27.03.2013, 15.04.2013 and 06.05.2013. The case was adjourned by the arbirator on several occasions and finally an award was passed on 06.05.2013. Paper publication was made in respect of the respondents in "Malai Murasu" on 03.05.2013. On the day of final hearing, the respondent did not appear before the arbitrator, and therefore, the arbitrator passed an ex-parte award. The ex-parte award was challenged before the Government under Section 70 of Chit Funds Act with a delay of 3 years, 7 months and 5 days.

5. The reasons stated by the appellants before the Government to condone such enormous delay were found to be not convincing. This Court do not find any reason to interfere with the order of the Government, as the appellants have slept over their rights and now they cannot wake up and knock the doors of the Court for re-adjudication of the issues, which were concluded long before.

6. Thus, the Writ Appeals stand dismissed. Consequently, the connected Miscellaneous Petitions are closed. No costs. (S.M.SUBRAMANIAM J.)(K.RAJASEKAR J.) 17-02-2025 Jeni Index:Yes/No Speaking/Non-speaking order Internet:Yes

To

1. The Government Of Tamilnadu rep by the Additional Chief Secretary to Government (FAC) Commercial Taxes and Registration Department Secretariat, Chennai 600009 2.The Deputy Registrar of Chits District Registrar's Office (Administration) Arbitration Cases, Erode 638 003.

3.M/s Margadarisi Chits Pvt Ltd.

Rep by Mr.N.Angayya, Formen, No.352/799, 2nd floor, Brough Road, Erode 1

S.M.SUBRAMANIAM J.

AND K.RAJASEKAR J.

Jeni AND WA No. 775 OF 17-02-2025