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S. M. SUBRAMANIAM
D. Srinivasan – Appellant
Versus
Government of Tamil Nadu, Represented by the Secretary to Government, Chennai – Respondent
JUDGMENT
(Prayer: Writ Petition is filed under Article 226 of the Constitution of India, for the issuance of Writ of Certiorari, calling for the records relating to the impugned order of the first respondent herein in Letter No.2029/G/2011-1, dated 18.04.2011 and the Award passed by the second respondent in ARC No.1313 of 2008 on 28.09.2019 and set aside the same.)
1. The present writ petition has been instituted to quash the order of the first respondent dated 18.04.2011 rejecting the appeal filed by the writ petitioner on the ground of delay.
2. Admittedly, the petitioner subscribed to chit for a value of Rs.10 lakhs in Chit Group No.84001 vide Ticket No.25. The chit was for a period of 40 months payable at the maximum rate of Rs.25,000/- per month. The petitioner had become prized subscriber in the auction of the chit held on 17.10.2007 and he had participated in the auction on account of certain urgent needs.
3. The learned counsel for the petitioner states that he was paying the monthly subscriptions and due to unavoidable circumstances, the petitioner committed default.
4. Action initiated by the third respondent and the Arbitrator adjudicated the issues and passed an Award in ARC
The court emphasized the importance of providing a valid reason for condoning a delay in filing an appeal and highlighted that leniency may not be shown if the conditions are not met.
Unexplained delay in filing appeal can lead to rejection, and abuse of judicial process by committing a default cannot be encouraged.
Court directs expeditious disposal of appeal under Chit Funds Act within three months.
The ceiling of 3 years in Section 71(b) of the Chit Funds Act does not apply if the decree is treated as a civil court decree.
Consumer forums have jurisdiction in disputes involving chit fund operators, and failure to fulfill obligations pertains to deficiency of service under the Consumer Protection Act, 2019.
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