ATMAKURU NIRMALAMMA Vs. STATE OF A.P.

JUDGEMENT

(1.) Heard Sri Mutyala Sobhanadri Naidu, learned counsel for the petitioner and Sri Dilip Nayak.K, AGP for Revenue for the respondents 1 to 3.

(2.) This writ petition under Article 226 of the Constitution of India has been filed by the petitioner challenging the Order vide Letter No.REV01- REGSOACTS (CHIT)/49/2024-REGN.II, dtd. 28/10/2024, informing the petitioner about the dismissal of her Appeal filed under Sec. 70 of the Chit Funds Act, 1982 as barred by limitation under the provisions of the said Act.

(3.) M/s.Margadarsi Chit Fund Private Limited, the 4th respondent, filed an arbitration case against 6 persons, including the petitioner, under Sec. 64 of the Chit Funds Act, 1982, before the Deputy Registrar of Chits, Tenali for recovery of an amount of Rs.17,67,275.00 along with interest and costs, which was numbered as D.I.S.(Dispute) No.32/2016. The 4th respondent-M/s. Margadarsi Chit Fund Company was carrying on the chit fund business. One A. Prathyusha is the subscriber of the 4th respondent Chit Fund Company having subscribed to Ticket No.40 in chit group, LT005D TL dtd. 27/3/2014. The chit amount was valued at Rs.25,00,000.00. The total months were 50 and the monthly installment was Rs.50,000.00. According to the 4th respondent Chit Fund Company, A. Prathyusha participated in the chit auction on 29/3/2014 and became successful bidder having agreed to forego an amount of Rs.10,00,000.00 and the bid amount of Rs.15,00,000.00 was paid to her on 14/6/2014. The petitioner stood as one of the guarantors to A. Prathyusha vide agreement dtd. 14/6/2014. According to the 4 th respondent, A. Prathyusha, subscriber, paid 18 installments and thereafter committed default from 16/9/2015 onwards, consequently, the Dispute No.32 of 2016 was filed. The petitioner did not appear in spite of the notice and was set ex parte. The 3rd respondent-the Deputy Registrar of Chits, Tenali, thereafter passed an award dtd. 31/10/2017 under Sec. 69 of the Chit Funds Act, deciding that the 4th respondent Chit Fund Company was entitled to recover an amount of Rs.17,67,275.00 with interest @18% per annum on the principal amount of Rs.15,63,040.00 from the date of filing the dispute till the date of realization.