THE HON’BLE SRI JUSTICE K.SARATH

ORDER

Heard learned counsel for the petitioner and learned Assistant Government Pleader for Stamps and Registration appearing for the respondents. With their consent, this Writ Petition is disposed of at the stage of admission itself.

2. This writ petition is filed praying to:

a) “…To declare the action of the Respondents in failing to release the security deposit made in terms of Chapter III of the Chit Fund Rules 2008, upon termination of the chit groups, as illegal, arbitrary, and a dereliction of statutory duties under the Chit Funds Act, 1982, and as being in violation of Article 19(1) (g) of the Constitution of India, and b) To direct the Respondents to forthwith approve the pending auction minutes uploaded on the T-Chits portal, as per statutory requirements, and c) To direct the Respondents to forthwith release the security deposit amounting to Rs.21,00,000/- (Rupees Twenty One Lakhs only), duly deposited by the Petitioner upon termination of the chit groups, together with interest accrued thereon…”

3. Brief facts rising to file this writ petition are that petitioner is a registered Chit fund Company incorporated under the Companies Act, 2013 represented by its Director, Sri Kondam Kamalakar and carrying on chit fund business in the name of Kanakadurga Chit Funds Private Limited. The petitioner further submits that he has called for subscription and has diligently complied with all statutory obligation under the Chit Funds Act, 1982 and relevant rules there under including depositing of Fixed Deposit Receipts (FDRs) as security for registered chit groups with the Assistant Registrar of Chits, Mahabubnagar in terms of Chapter III of A.P. Chit Fund Rules 2008. The petitioner further submits that said chits have been depositing in terms of Section 20 of the Chit Fund Act, 1982 and the Rules 22 of the Rules 2008 is for release of security deposit made under Section 20 of the Act. On termination of the chits, the petitioner made application under Rule 22 of the Rules 2008 and the Registrar has to follow the procedure as specified of Rule 24 of Rules 2008 by displaying a notice inviting objection from the subscribers to the specified chits and thereafter release the security together interest accrued therein.

4. Learned Counsel for the petitioner would further submit that petitioner has deposited a sum of Rs.21,00,000/- for several chit groups during the period April 2019 to January 2021 and the said chits were terminated. Upon termination of each chit, the petitioner has submitted an application to the registrar for release of security deposit along with the declaration statement that the petitioner has cleared all dues to its subscribers. Subsequently, petitioner made application dated 16.10.2024 seeking for release of security deposit, but till date the respondent No.4 has not considered the petitioner’s representation. Aggrieved by the same, this writ petition is filed.

5. Learned Counsel for the petitioner would submit that the limited grievance of the petitioner is that the respondent No.4 has not considered the petitioner’s representation dated 16.10.2024 till date, hence pray this Court to direct the respondent authorities to consider the said representation and pass appropriate orders in a time bound period.

6. Learned Assistant Government Pleader appearing for respondents submits that if the said petitioner’s representation is still pending for consideration, the respondent authorities may be directed to dispose of the said representation dated 16.10.2024 and pass appropriate orders in accordance with law.

7. In view of the submission made by learned counsel appearing on either side and without expressing any opinion on the merits of the case, this writ petition is disposed of, directing the respondent authorities to dispose of the petitioner’s representation dated 16.10.2024 and pass appropriate orders in strictly in accordance with law, as expeditiously as possible, preferably within a