Unconstitutionality and illegality of the provisions of Articles 1 and 8A of the Act.

Sathiadev, J.

1. Petitioners in these writ petitions conduct chit funds on securing registration under Section 3 of the Tamil Nadu Chit Funds Act, 1961 (T.N. Act 24 of 1961)(hereinafter referred to as the Act). They seek for a declaration that the amendments effected to Article 1 and insertion of Article 8-A to Appendix II of the Tamil Nadu Chit Funds Rules, 1964 (hereinafter referred to as the Rules) are unconstitutional and illegal. The amendments were made in exercise of the powers conferred under Section 63 of the Act. These amendments came into force with effect from 21.10.1981 consequent to its publication in the Fort St. George Gazette : of G.O.Ms. No. 1075, Commerical Taxes and Religious Endowments, dated 23.9.1981. The amendments are to the following effect.

ANNEXURE.

Notification

In exercise of the powers conferred by Section 63 of the Tamil Nadu Chit Funds Act, 1961 (Tamil Nadu Act 24 of 1961) the Governor of Tamil Nadu hereby makes the following amendments to the Tamil Nadu Chit Funds Rules, 1964.

AMENDMENT

In the said Rules, in Appendix II, in the Table of Fees (1) for Article 1 and the countries relating thereto the following Article and entries shall be substituted, namely:

Rate of Fees

a) for chits for a term of less than Per subscriber or instalment whichever

one year Re. 1 is higher subject to a minimum of Rs . 50.

b) For chits for a term of one year Per subscriber or instalment whichever

and above Rs. 2.50 is higher subject to a minimum of Rs . 50.

i) for chit amount of value upto Rs. 5,000 Per subscriber or instalment whichever

- Rs. 5. is higher subject to a minimum of Rs . 50.

ii) for chit amount of value between Per subscriber or instalment whichever

Rs. 5,001 and Rs. 10,000 - Rs. 5. is higher subject to a minimum of Rs . 50.

iii) for chit amount of value between Per subscriber or instalment whichever

Rs. 10,001 and Rs. 20,000 - Rs. 5. is higher subject to a minimum of Rs . 50.

iv) for chit amount of value between Per subscriber - or instalment which ever

Rs. 20,001 and Rs. 30,000 - Rs. 10. is higher subject to a minimum of Rs . 50.

v) for chit amount of value between Per subscriber or instalment whichever

Rs. 30,001 and Rs. 40,000 - Rs. 12. is higher subject to a minimum of Rs . 50.

vi) for chit amount of value between Per subscriber or instalment whichever

Rs. 40,001 and Rs. 50,000 - Rs. 15. is higher subject to a minimum of Rs . 50.

vii) for chit amount of value exceeding Per subscriber or instalment whichever

Rs. 50,000 - Rs. 20. is higher subject to a minimum of Rs . 50.

(2) In Article 8, in Clause (b) for the letters and figures Rs. 50 "occurring in two places, the letters and figures "Rs. 250" shall be substituted;

(3) after Article 8, as so amended, the following Article and entries shall be inserted, namely:

8A. For filing Balance-sheets audited and certified by Chartered Accountant.

(a) Where the chit amount does not exceed Rs. 500 - Rs. 10.00.

(b) When the chit amount exceeds Rs. 500 for the first Rs. 500 as under Sub-clause (a) and for every Rs. 500 or part thereof in excess of Rs. 500 subject to the maximum of Rs. 250. The fee leviable under this clause 'shall not exceed Rs. 250.

2. Petitioners state that to start or conduct any chit, under Section 3, they will have to apply to the Registrar for registration of the by-laws of the chit, and as per Rule 4, such application for registration has to be made by the Foreman under Form II and it shall be accompanied by the fees set out in Appendix II. Section 53(a) provides that Government may from time to time prescribe the fee that shall be paid to the Registrar for the registration of the by-laws of the chit under Section 3. Rule 42 states that fees payable to the Registrar for matters specified in Section 53 shall be as set out in the Appendix II and shall be paid in cash. Article No. 1 in Appendix II as originally framed provided only Rs. 25 for the registration of the by-laws, and an amendment was made on 2.11.1979 revising the rates of registration as follows:

It is