SHEEBA KURIES LTD. Vs. STATE OF KERALA

JUDGEMENT

(1.) This writ petition is filed seeking for a declaration that the information - cum - service / collection centers set up by the petitioner in the State of Kerala in respect of chits registered in Maharashtra does not amount to opening a new place of business within the meaning of S.19(4) of the Chit Funds Act, 1982 (for short 'the Act') and for a declaration that the petitioner need not register their chit which is already registered in the State of Maharashtra and for a further direction to respondents 5 and 6 not to take any coercive steps or register any crime against the petitioner for running the collection centre of their chit.

(2.) The facts involved in this case would disclose that the petitioner company is running a chit under the name and style Sheeba Finance and Kuries Ltd., which is a company registered in the State of Maharashtra. According to them, all chits are commenced and conducted from the registered office at Pune in accordance with the Chit Fund Act, 1982 and the Maharashtra Chit Fund Rules, 2004. Since their business expanded considerably, they have arranged for services like enquiry, door - to - door service to the customers and for establishment of collection centres of the chit amount from the States where the subscribers reside. They have therefore started information - cum - collection centres at Kochi, Kottayam and Melkulangara in the State of Kerala. This information - cum - collection centres, according to them, are neither branch office or sub-office or a place of business where the chit is commenced and conducted by the petitioner. It is contended that the said centres do not conduct any chit nor it enrolls customers.

(3.) It is stated that on 19/05/2014, an inspection was conducted in the collection centre and certain documents had been seized. According to the petitioner, such action was totally illegal as the petitioner was not conducting any chit in the State of Kerala. Further, on 27/05/2014, the 5th respondent conducted another raid in the Ernakulam collection centre of the petitioner and seized cash and other materials. Officers of the petitioner company, including Managing Director, were arrested on the ground that office being conducted by the petitioner is illegal and thereafter released on bail. It is contended by the petitioner that respondents have no authority to take action against the petitioner as the petitioner is a validly registered chit company and does not have any office in the State of Kerala.