M/S. MAYAVARAM FINANCIAL CORPORATION LIMITED, KARAIKAL REPRESENTED BY ITS FOREMAN R. KALYANASUNDARAM Vs. THE REGISTRAR OF CHITS, KARAIKAL

JUDGEMENT

(1.) THE Registrar of Chits, Karaikal, has filed a complaint against the revision petitioner under S.14 of Pondicherry Chit Fund Act, 1966 (hereinafter referred to as the Act).

(2.) THE allegations are that M/s. Lakshminarayana Industries, represented by one, Alagirisamy was the subscriber in Group A 2 of Mayavaram Financial Corporation, Karaikal. The total amount of group A 2 is for Rs. 1,00,000/ - and the monthly subscription is Rs. 1,000/ -. At the fourth auction, the said Messrs, Lakshminarayana Industries were declared as the 'prized subscriber.' That auction was conducted on 9th January, 1976. The said Lakshminarayana Industries offered two sureties and they were rejected by A 1 as it was not to the satisfaction of the Foreman. Under S.14(2) of the Act, the Foreman of the Group A 1 chit fund company should deposit the prized amount into any one of the approved banks, which he has not done. On the other hand, he conducted re -auction on 11th February, 1976. The Foreman has, therefore, contravened the provisions of S.14(a) of the Act, which is punishable under S.56 of the Act. A 2, the Branch Manager was also charged along with A 1 as he was responsible for the improper conduct of the chit.

(3.) BEFORE me, learned counsel appearing for the revision petitioner, contended that the learned Magistrate was wrong in holding that there was an infringement of S.14(2) of the Act that the reauction held by the revision petitioner is valid and there is no necessity to deposit any amount under S.14(2) of the Act. Certain facts need narration before dealing with this question by the revision petitioner.