IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE EIGHTEENTH DAY OF JULY TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE B.PRAKASH RAO and THE HON'BLE MR JUSTICE R. KANTHA RAO WRIT PETITION NO : 12674 of 2008 Between: 1 A.P Federation of Chit Funds 408 Swapnalok Complex S.D Road Secunderabad -3 Rep.by its Secretary General, Flat No.408 and 409 Swapnalok Complex Sarojinidevi Road Secunderabad-43 2 M/s.Saptavandana Chits & Finance(P) Ltd rep.by its Managing Director Flat No.408 and 409 Swapnalok Complex Sarojinidevi Road Secunderabad-43 3 M/s. Vijay Bhargavi Chit Fund(P) Ltd Rep.by its Managing Director Kodali Basava Rao, R/o.Flat No.207&208 Sri Datta Sai Commercial Complex RTC X Road Hyderabad 4 M/s S.R Chit Fund(P) Ltd rep.by its Managing Director Ch.Raghavendra Rao S/o.Venkataramaiah, R/o.5-8 1st Floor Chanda Nagar,Hyderabad 5 M/s. Sri Nilaya Chit Fund(P) Ltd rep.by its Managing Direcot A.B Shankara Rao,S/o.Badrachalam, R/o.11-4-650/1,1st Floor Lakadikapool Hyderabad 6 M/s. PCS Chits (P) Ltd rep.by its Manager(Legal) Kasthuri Narasimha Rao S/o.Rajeshawaraiah, R/o.Flat No.207 2nd Floor 5-2-282 Mahavir Complex Hyderbasthi Secunderabad 7 M/s.S.S.V Cht Fund(P) Ltd rep.by its Managing Director G.Venkateswara Rao S/o.Venugopal Rao, R/o.404 Nagasuri Plaza Plot No.8 Gayathri Nagar Behind Mythrivaram,Ameerpet,Hyderabad 8 M/s. A.N.G Chit Fund(P) Ltd rep.by its Managing Director U Gopala Krishna, S/o.Gangaiah R/o.102 Mahendra Residency Near Aditya Park Hotel Ameerpet Hyderabad 9 M/s. Kalpataruvu Chit Fund(P) Ltd Rep.by tis Managing Director Y.Subba Rao S/o.Y.Venkateswar Rao, 235&536 1st Floor Padmavathi Plaza Opp.KPHB Colony Kukatpally Hyderabad 10 M/s. Neeladri Chit Fund(P) Ltd rep.by its Executive Director B.Jangi Reddy, S/o.Ramachandra Reddy R/o.1-10-233/B Ashok Nagar Cross Roads Hyderabad 11 M/s. Satya Durga Chit Fund(P) Ltd rep.by its Managing Director T.Mohan Rao, S/o.Navaneetha Rao R/o.V.T Road Ramagiri,Nalgonda District 12 M/s.Suman Chit Fund(P) Ltd rep.by its Managing Director K.Basava Rao S/o.late Madhu Sudhan Rao R/o.4-1-288-1 1st Floor Pasha Chambers J.N.Road Abdis Hyderabad ..... PETITIONER(S) AND 1 State of Andhra Pradesh rep.by its Secretary (Registration and Stamps) Department, Secretariat Hyderabad 2 Inspector General of Stamps and Registration Cum-Director of Chits Government of Andhra Pradesh Hyderabad .....RESPONDENT(S) Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue a writ of Mandamus or any other appropriate writ, declaring that the action of the respondents in attempting to the provisions of the repealed ordinance viz A.P Chit Funds (amendment) ordinance 2007 A.P Ordinance No.11 of 2007 after lapsing of the said ordinance is arbitrary and illegal and direct the respondents to permit the petitioners to carry on Chit funds business in accordance with the un-amended provisions contained in the A.P Chit Fund act 1971 and grant such other relief as it deems fit in the circumstance of the case Counsel for the Petitioner: MR.V.VENKATARAMANA Counsel for the Respondent No.: GP FOR REVENUE The Court made the following : Form-NIC-OGS/WP{BMR} ORDER (Per Hon’ble Sri Justice B. Prakash Rao): Heard Sri Vedula Venkata Ramana, learned counsel for the petitioners and the learned Govern Pleader for Revenue, appearing for the respondents, who takes notice on behalf of the respondents herein and at their request, the writ petition itself is taken up for disposal. 2. This writ petition is filed at the instance of A.P. Federation of Chit Funds, Secunderabad, seeking issuance of a writ of Mandamus assailing the action of the respondents in attempting to enforce the provisions of the repealed Ordinance viz., A.P. Chit Funds (amendment) Ordinance, 2007, A.P. Ordinance No.11 of 2007, after lapsing of the said Ordinance, is arbitrary and illegal and direct the respondents to permit the petitioners to carry on chit fund business in accordance with the A.P. Chit Fund Act, 1971 (for brevity ‘the Act’). 3. Though several contentions are sought to be urged on behalf of the petitioners, however, the fact remains that as contended by the learned Government Pleader for Revenue, the ordinance, which is sought to be against the petitioners, is no longer in force. Therefore, there cannot be any apprehension on the part of the petitioners herein. 4. The learned counsel for the petitioners contended that since the ordinance has lapsed, the provisions of the Act, have come into force and consequently, the petitioners can avail the remedy by filing suits in the Civil Courts against defaulting members. It is noticed that under the lapsed ordinance, the jurisdiction of Civil Court was ousted and jurisdiction was conferred on the Chit Registrars to entertain the money claims against defaulting members. 5. As per the contentions raised by the learned counsel, and lapsing of the ordinance, the provisions of the Act as they were should be deemed to have come into operation again. 6. The learned Government Pleader for Revenue admitted that the ordinance has lapsed and hence, the provisions of the lapsed ordinance cannot remain effective. 7. Having heard the parties, it is noticed that since the ordinance is lapsed, the law regulating conduct of chit fund business would be the Act, as it stood prior to the issue of the lapsed ordinance. Hence, it is sufficient to note that having regard to the fact that the ordinance no longer in force, the question of availing any remedies as contemplated by the ordinance does not arise. 8. Hence, it is made clear that the petitioners are at liberty to avail all such remedies as provided by the A.P. Chit Fund Act, 1971, including the Civil Court for recovery of any amount from the defaulting members. 9. Subject to the above directions, the Writ Petition is disposed of. No costs. _______________________ JUSTICE B.PRAKASHRAO ________________________ July 18, 2008 JUSTICE R.KANTHA RAO Kvr