Writ petition challenging circular requiring specific securities in chit fund license was dismissed as infructuous after respondents clarified Accepted fixed deposits are also valid.
Writ petition dismissed as infructuous after respondents clarified FDRs remain authorized security.
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HON’BLE SRI JUSTICE GODA RAGHURAM
W.P.NO. 2617 OF 2006
DATED: 16.03.2006
Between:
M/s Venkatraya Chit Fund Private Limited
… Petitioner
and
The State of Andhra Pradesh represented By its Secretary, Revenue Department and others
… Respondents
HON’BLE SRI JUSTICE GODA RAGHURAM
W.P.NO. 2617 OF 2006
ORAL ORDER:
The petitioner is a registered chit fund company. It is aggrieved that, on account of the proceedings of the 3rd respondent dated 5.10.2005 bearing Proceedings No.G4/2574/98, the respondents are insisting that the petitionercompany should furnish security only by way of producing NSS Certificates and Kisan Vikas Patras and that they are declining FDRs, an authorized mode of security under the provisions of the A.P. Chit Funds Act, 1971 and the Rules thereunder.
Learned Government Pleader for Revenue, after obtaining instructions, in particular from the 3rd respondent, states that the 3rd respondent has merely issued a general circular dated 5.10.2005, but the respondents are not insisting that the petitioner-company should furnish security only by way of NSS Certificates or Kisan Vikas Patras. If the petitioner-company furnishes security even by way of FDRs drawn on a nationalized bank, the same would be acceptable and would not be rejected, is the submission on behalf of the respondents.
In view of the above clear submission of the respondents, no further proceedings are warranted. The writ petition is dismissed as infructuous, after recording the submission. No order as to costs.
GODA RAGHURAM, J
CVM
Date: 16.03.2006
M/s Venkatraya Chit Fund Private Limited
The State of Andhra Pradesh
Goda Raghuram
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
