THE HON'BLE MR JUSTICE L.NARASIMHA REDDY WRIT PETITION NO : 6734 of 2000 ORDER: The petitioner claims to have made deposits of Rs.25,000/- each in the name of himself and his family members, with M/s.Dhanalaxmi Chit Fund and Finance, 3rd respondent herein, in the year 1997. The deposit in favour of the petitioner is said to have become matured on 10.04.1999 and others on 08.03.2000. The petitioner states that the 3rd respondent did not pay the deposits even after demand and that several other several depositors were also denied the payment. He claims to have made a representation to the 2nd respondent to take action against the 3rd respondent under the provisions of A.P. Protection of Depositors of Financial Establishments Act, 1999 (for short ‘the Act’). His grievance is that no action has been taken thereon. It is also alleged that complaints were registered with the Station House Officer, Alair P.S., 5th respondent herein and similar allegation was made. The 5th respondent filed a counter affidavit, stating that soon after receiving the complaints, F.I.R.No.69 of 1999 was registered under Section 420 I.P.C. and further steps could not be taken, on account of non-availability of the persons managing the 3rd respondent. Heard Sri D.Goverdhanachary, learned counsel for the petitioner and the learned Government Pleader for Home. The grievance of the petitioner is that the 2nd respondent did not take any steps under the Act against the 3rd respondent. Therefore, it becomes necessary to know the scope and ambit of the Act. With a view to protect the interests of the depositors in various financial establishments, the A.P. State Legislature enacted the Act in the year 1999. Section 3 of the Act empowers the Government, either on a complaint received from depositors, or on its own accord, to order ad interim attachment of the money or other property of the financial establishment. Once the property is attached, it is kept under the control of “competent authority”. The District Collectors are said to be conferred with such power. Under Sub-section (3) of Section 4 of the Act, the 2nd respondent has to approach the Special Court constituted under Section 6 of the Act within 15 days from the date of attachment, with a prayer to make the ad interim attachment absolute. The Courts of Principal District Judge in each District are designated as Special Courts under the Act. Section 7 empowers the Special Court to issue notices to the affected parties and to make the ad interim order of attachment absolute or to modify the same. It is rather curious that the Act is silent as to the manner in which the attached property is to be dealt with. Provision is only made for maintenance thereof. This legislature does not appear to have taken note of the fact that mere attachment of the property, without the facility of disposal thereof or adjudication of claims, would not serve the purpose. That however is a different aspect. Reverting to the facts of the case, the petitioner did not even allege that he has ever approached the 1st respondent with a prayer to order ad interim attachment of the properties of the 3rd respondent. Unless such an application is made, there would not be an occasion for directing the 1st respondent to take any steps. Further, the 1st respondent must be satisfied about the necessity to order attachment. It has already been pointed out that the 2nd respondent is not conferred with the power to direct attachment of the property of the 3rd respondent. Respondents 4 and 5 do not figure anywhere in the scheme of the Act. Therefore, the complaint submitted to them would be hardly of any use in this regard. For the foregoing reasons, the writ petition is disposed of, leaving it open to the petitioner to approach the 1st respondent with necessary application and the latter in turn shall pass appropriate orders within four (4) weeks from the date of receipt of complaint. There shall be no order as to costs. _________ 31.12.2008 JSU THE HON'BLE MR JUSTICE L.NARASIMHA REDDY WRIT PETITION NO : 6734 of 2000 Date: 31.12.2008 JSU