REGISTRAR CHIT FUNDS Vs. ASHWANI KUMAR AND CO

JUDGEMENT

(1.) This revision petition arises from the order passed by the State Commission setting aside the order of the District Forum which had allowed the complaint.

(2.) Bare facts necessary to understand the case are that the respondent/complainant was a subscriber to the Chit Fund by the name of CMS Chit Fund Pvt. Ltd., Mr. H.S. Bajaj and Mr. Madan Kishore were its Directors. This company ceased to exist in 1989. Not getting his money back, the complainant filed a complaint before the District Forum who after hearing both the parties and based on a compromise reached between the parties, passed an order on 4.7.1996 directing the opposite parties to pay Rs. 84,000/- with interest @ 18% within a period of one month. No appeal was filed against his order. When the order passed by the District Forum was not complied with, the complainant moved for proceedings under Section 27 of C.P.A. When at this stage non-bailable warrants were issued against the Directors of the Chit Fund Company, then one of the Directors, Mr. Madan Kishore filed an appeal before the State Commission who after hearing the appellant disposed it off with a direction to the Registrar of the Chit Funds to release a sum of Rs. 84,000/- in favour of the complainant. It is against this order of the State Commission that this revision petition has been filed by the petitioner, Registrar, Chit Fund Scheme.

(3.) His main ground for assailing the order of the State Commission is that order was passed by the State Commission behind his back. He was neither a party nor was he given any notice. There is a proper procedure/prescribed format in which the company has to apply for release of funds lying with the Registrar as a security which has not been done. Even under law, these funds cannot be attached in execution. The order of the State Commission is bad in law and facts hence need to be set aside.