JUDGMENT :

1) Heard Ms. Baliboyina Sravani, learned Counsel for the Petitioner and Sri. V. Farook, learned Assistant Government Pleader for the Respondent Nos. 1 to 3.

2) This Writ Petition under Article 226 of the Constitution of India is filed challenging the Award, dated 31.03.2016, in Dispute No. 04 of 2014, passed by the Deputy Registrar of Chits, under Section 64 of the Chit Funds Act, 1982, [in short ‘the Act 1982’] as also the E.P. No. 104 of 2016 proceedings for execution of the Award, on the file of the Senior Civil Judge at Markapuram.

3) The 5th Respondent – Muppa Raju Venkateswarlu, is the Principal Subscriber of the chit of the 4th Respondent – M/s. Kapil Chits (Kosta) Private Limited, vide chit series No.FKNT04J-35, subscribed to ticket No. 35 in the chit group, for a value of Rs.5,00,000/-which is payable at the rate of Rs.10,000/-per month for a period of 50 months. The Petitioner is the guarantor No. 4 [Opponent No. 5 in Dispute No. 04 of 2014], which was at the instance of the 4th Respondent on the ground that the Principal Subscriber committed default.

4) Summons were issued on 11.03.2014 to the Opponents in Dispute No. 04 of 2014. On 26.03.2014, fresh summons were issued, inter alia, to the Petitioner and awaiting service, the proceeding were adjourned on 09.05.2014 and 23.05.2014. Fresh summons were issued on 11.06.2014. Awaiting the report, the matter was adjourned on 22.08.2014 and 09.09.2014. On 24.09.2014, order for paper publication was passed. On 10.10.2014, the paper publication with bill was filed. The Petitioner was absent and was set exparte for trial, posting the matter to 29.10.2014. After few dates, the Award was passed on 31.03.2016. Thereafter, the 4th Respondent filed E.P. No.104 of 2016, which is pending.

5) Challenging the Award, learned Counsel for the Petitioner, Ms. B. Sravani, raises the following arguments:

5.1 Under Section 66 of the Chit Funds Act, 1982, the dispute under Section 64, is to be settled by the Registrar himself or he may refer it for disposal to a person appointed by him, referred as his ‘nominee’. For appointment as Registrar’s Nominee, Rule 48 of the A.P. Chit Funds Rules, 2008 [for short ‘the Rules, 2008’], lays down the qualifications under Sub-Rule (1) and such appointment shall be made by notification in the official gazette under Sub-Rule (2). But, there was no such notification in the official gazette, appointing the Deputy Registrar, as Registrar’s Nominee. Consequently, the Award is without jurisdiction, void ab initio.

5.2 The Award is passed without serving any notice and so it is contrary to law and against the principles of natural justice.

6) Sri. V. Farook, learned Assistant Government Pleader submits as follows:

6.1 The Award was passed in the year 2016. The Petitioner is approaching in 2023, belatedly. Writ Petition suffers from unexplained laches.

6.2 The Award was passed after due opportunity of hearing, after paper publication, but the Petitioner did not turn up. He was set exparte. There is no violation of the principles of natural justice and the Award is not without jurisdiction.

7) I have considered the submissions advanced by the learned Counsels for the parties and perused the material on record.

8) The following points arise for consideration:

8.1 – Whether the Writ Petition deserves to be dismissed on the ground of laches?

8.2 – Whether the Award, dated 31.3.2016, is without jurisdiction, in the absence of the appointment of the Deputy Registrar as Registrar’s Nominee under Section 66 (1) of the Chit Funds Act, 1982 read with Rule 48 of the A.P. Chit Funds Rules, 2008?

8.3 – Whether the Award is without service of notice of the case on the Petitioner and in violation of the principles of natural justice?

Point No. 8.1

9) The Award was passed on 31.03.2016. The Petitioner is approaching this Court in the year 2023. However, the Award has yet not been executed for which E.P. is pending. In State of Jammu And Kashmir Vs. R.K. Zalpuri And Others, (2015) 15