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2023 Supreme(Mad) 750

HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, J.
D. Srinivasan - Appellant
Versus
The Government of Tamil Nadu, Represented by the Secretary to Government, Chennai & Others - Respondents
WP No. 26331 of 2012 & MP No. 1 of 2012
Decided On : 20-03-2023

Advocates appeared:
For the Petitioner:S. Shinu, Advocate. For the Respondents:R1 & R2, Abishekmurthy, Government Advocate, R3, S. Prabhu, M. Devendran, Advocates.

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.

Headnote:

Delay - Chit Funds Act - The court dismissed the writ petition seeking to quash the order rejecting the appeal on the ground of delay in filing the appeal under the Chit Funds Act, 1982. The petitioner failed to provide a valid reason for condoning the delay, and the court found that no further leniency could be shown to the petitioner.

Fact of the Case:

The petitioner subscribed to a chit for a value of Rs.10 lakhs but committed default in paying the monthly subscriptions. The appeal filed by the petitioner under the Chit Funds Act, 1982 was rejected by the Government due to a delay of 133 days in filing the appeal.

Finding of the Court:

The court found that the delay in filing the appeal was not condonable as the petitioner failed to provide a valid reason for the delay. The court also noted that no further leniency could be shown to the petitioner to repay the chit amount.

Issues: The main issue was the delay in filing the appeal under the Chit Funds Act, 1982 and whether the delay could be condoned by the court.

Ratio Decidendi: The court decided that the delay in filing the appeal could not be condoned due to the lack of a valid reason provided by the petitioner. The court also emphasized that no further leniency could be shown to the petitioner.

Final Decision: The court dismissed the writ petition and the connected miscellaneous petition, with no order as to costs.

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 No.1313 of 2008 dated 28.09.2010. Against the Award passed by the Arbitrator, the petitioner preferred an appeal under Section 70 of the Chit Funds Act, 1982 before the first respondent-Government.

5. The Government rejected the appeal on the ground that there was a delay of 133 days in filing the appeal and the petitioner has not given any valid reason for condoning the delay in preferring the appeal.

6. The learned counsel for the petitioner states that there was no delay and the delay calculated by the first respondent is incorrect.

7. The learned counsel appearing on behalf of the third respondent objected the said contention raised on behalf of the petitioner by stating that the delay was calculated based on the date on which the Award was made ready and the petitioner has not given any valid reason for the purpose of condoning the delay of 133 days. Thus the appeal was rightly rejected.

8. This Court provided an opportunity to the writ petitioner that in the event of depositing the arrears of chit amount in the credit of the Execution Petition, this Court would be in a position to consider the case of the petitioner for remanding the matter. However, the learned counsel for the petitioner states that the petitioner has already paid the amount, which is lying with the respondents. Thus the petitioner is not in a position to pay any further amount.

9. This being the stand taken by the writ petitioner, this Court is not inclined to consider the present writ petition. The Award was passed on 28.09.2010 and 13 years have lapsed. The Government appeal was rejected on 18.04.2011 and the present writ petition is pending for the past about 10 years. The Execution Petition has already been filed by the third respondent, which is also pending for the past about 10 years.

10. Considering the facts and circumstances, this Court is of the opinion that no further leniency can be shown to the petitioner to repay the chit amount as per the conditions.

11. Accordingly, the present writ petition stands dismissed. However, there shall be no order as to costs. Consequently, the connected miscellaneous petition is also dismissed.

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