C O M M O N O R D E R

These writ petitions are filed as against the orders of the first respondent/Principal Secretary to Government, Commercial Taxes Department G.O.Ms.(D) No.358, 357 Commercial Taxes and Registration (K) Department, on the appeal filed by these petitioners, under Section 70 of Chit Funds Act, 1982.

2.Since both the writ petitions are arising out of the orders of the first respondent/Principal Secretary to Government, Commercial Taxes Department, both the writ petitions are taken up together and disposed of by this common order.

3.The petitioner in WP(MD) No.8472 of 2009 and the petitioners in WP(MD) No.8611 of 2009 are wife, daughter and husband respectively. They were the members of Chit Fund, namely Samayapurathal Chits Pvt Ltd, Trichy/the third respondent herein. The petitioner in WP(MD) No.8472 of 2009, namely, Umayal joined in the chit group No.HX and Ticket No.37, for the value of Rs.1,00,000/- payable at Rs.2500/- per month for 40 months and she participated in an auction conducted on 25.05.2002 and received a price amount of Rs.70,000/- and also executed a promissory note for Rs.87,500/- along with one surety, namely C.T.Sundar, who is none other than the husband of the petitioner in W.P(MD) No.8472 of 2009 and also one of the petitioners in W.P(MD) No.8611 of 2009, for the due payment of future instalments.

4.In the same way, the first petitioner Suba in W.P(MD) No.

8611 of 2009 also joined in the same group as ticket No.2 participated in the auction on 07.12.2002, received the prize amount of Rs.70,000/- on 10.01.2002 and executed a promissory note for Rs.62,500/- along with her father C.T.Sundaram. Both the petitioners defaulted the payment on instalments after the 24th instalment. Therefore, the respondent company filed a case under Section 64 of the Chit Funds Act in ARC Nos.340 & 341 of 2007. Even though sufficient opportunity has been given to the petitioners, they did not appear before the authority and hence exparte awards were passed on 01.04.2008. As against those orders, appeals were preferred by these petitioners, under Section 70 of the Chit Funds Act, before the Secretary to Government, the first respondent herein. The first respondent, by the orders dated 30.07.2009 passed G.O(D) Nos.357 & 358, Commercial Taxes and Registration (K) Department, rejected the appeals filed by these petitioners and confirmed the orders of the Deputy Registrar.

Aggrieved over the same, the present writ petitions have been filed.

5.The learned counsel appearing for the petitioners submits that the dispute raised by the third respondent, under Section 64 of the Chit Funds Act is barred by limitation, as per Section 65 of the Chit Funds Act. The period of limitation in any dispute referred to the Registrar under Section 64 shall be filed within a period of three years, from the date on which the act or omission with reference to which the dispute arose took place. However, in this case, the chit was defaulted on 06.10.2003, whereas the dispute was raised only on 12.04.2007, beyond the period of limitation and therefore the second respondent is not correct in entertaining the application. However, the same has not been considered by the Appellate Authority. The third respondent is a Private Limited Company and it became defunct in the year 2002 itself, whereas Dr.S.Jambunathan, in the capacity of Chairman of the Chit Fund Company has filed the dispute before the District Registrar, under Section 64 of the Chit Funds Act, without any proof such as any resolution or documents to that effect and the Deputy Registrar has mechanically entertained the application even without any materials placed before him. This point was also not considered by the first respondent/Secretary.

6.The learned counsel appearing for the petitioners further submits that one C.Chithsabesan, the brother of the second petitioner in WP(MD) No.8611 of 2009 and the brother-in-law of the petitioner in WPMD) No. 8472 of 2009 was the Director of the Sama