IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE SEVENTH DAY OF NOVEMBER TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE P.V.SANJAY KUMAR WRIT PETITION No: 18851 of 2001 BETWEEN: 1 Nutana Sreyobhilashi Chit Funds Limited, Rep. by its Foreman Mr.L.S.R.K. Prasad, S/o. L.S.Sastry, Wyra Road, Khammam, R/o. Wyra Road, Khammam. 2 Gouthami Chit Funds, Rep. by its Foreman Mr.M.Jalender Reddy, S/o. Malla Reddy, R/o. Khammam. 3 Punakala Chit Funds, Pvt. Limited, Rep. by its Foreman Mr.M.Surya Narayana, S/o. Narasaiah, Khammam, R/o. Khammam. 4 Usha Kiran Chit Funds, Rep. by its Foreman Mr.M.Laxminarayana, S/o. Rama Murthy, Khammam, R/o. Khammam. 5 Sukhapradha Chit Funds Pvt. Limited, Rep. by its Foreman V.Yetirajulu, S/o. Rama Krishnaiah, Khammam, R/o. Khammam. ... PETITIONERS AND 1 Government of Andhra Pradesh, Rep. by its Secretary, Revenue (Regn.II) Department, Secretariat Buildings, Hyderabad. 2 Director of Chits and Inspector General of Registration and Stamps, Andhra Pradesh, Hyderabad. ...RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Aﬃdavit ﬁled herein the High Court may be pleased to issue a Writ of Mandamus or any other appropriate writ, order or direction declaring the Memo.No.78348/Reg.II-2/91-92, dt. 4-6-92 issued by 1st Respondent and the consequential circular Memo No.CC/24005/91 dated 18-7- 1992 of 2nd Respondent as arbitrary, inoperative and illegal as violative of the provisions of the A.P. Chit Funds, Act, 1971 and the Rules made there under direct the 2nd Respondent not to insist for deletion of relevant bye-laws providing for the procedure of meeting expenditure in relation to and in conducting the Chit business of the petitioners. Counsel for the Petitioners: MR.HARI SREEDHAR Counsel for the Respondents: GP FOR REVENUE The Court made the following: ORDER: In this writ petition, the petitioner Chit Fund Companies, challenge the Memo.No.78348/Reg.II-2/91-92 dated 04.06.1992 issued by the Government of Andhra Pradesh, represented by its Secretary, Revenue (Regn.III) Department, Secretariat Buildings, Hyderabad, the ﬁrst respondent herein and the consequential circular Memo.No.CC/24005/91 dated 18.07.1992 issued by the Director of Chits and Inspector General of Registration and Stamps, Andhra Pradesh, Hyderabad, the second respondent herein. 2. It is brought my notice by the learned counsel for the petitioners that a Division Bench of this Court in W.A.No.1582 of 1999 and batch by its judgment dated 23.01.2002 set aside the proceedings impugned in this writ petition. A copy of the order dated 24.10.2002 passed in a similar writ appeal, W.A.No.1147 of 2000, is produced before me and the same shows that the impugned memo dated 04.06.1992 and also the consequential circular dated 18.07.1992 were set aside, following the earlier judgment of this Court in W.A.No.1582 of 1999 and batch dated 23.01.2002. In the light of the above judgments, this writ petition is allowed. The interim direction passed by this Court on 10.09.2001, directing the petitioners to maintain a separate account of the amounts realized from the subscribers of chits under Bye-laws 11, 13 and 16, accordingly stands dissolved and it is open to the petitioners to appropriate the sums deposited by them in such accounts pursuant to the order of this Court. There shall be no order as to costs. __________________ P.V. SANJAY KUMAR, J November 7, 2008 DSK