Karnataka High Court
Shri Panchanagouda S/O Basangouda ... vs The State Of Karnataka on 3 July, 2024
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NC: 2024:KHC-D:9054
WP No. 103086 of 2024
C/W WP No. 103092 of 2024, WP No.
103134 of 2024, WP No. 103177 of 2024
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
DATED THIS THE 3RD DAY OF JULY, 2024
BEFORE
THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM
WRIT PETITION NO. 103086 OF 2024 (GM-CFA)
C/W
WRIT PETITION NO. 103092 OF 2024
WRIT PETITION NO. 103134 OF 2024
WRIT PETITION NO. 103177 OF 2024
IN WRIT PETITION NO. 103086 OF 2024
BETWEEN:
1. SHRI PANCHANAGOUDA
S/O. BASANGOUDA DYAMANAGOUDA,
AGE: 56 YEARS, OCC: BUSINESS,
R/O. S.R. PETROL PUMP, MUNAVALLI,
TALUK: SAVADATTI, DIST: BELAGAVI.
2. SMT. SHARADA
W/O. PANCHANGOUDA DYAMANAGOUDA,
AGE: 46 YEARS, OCC: BUSINESS &
HOUSEHOLD WORK,
R/O. MUNAVALLI, TALUK: SAVADATTI,
ASHPAK
KASHIMSA
MALAGALADINNI
DIST: BELAGAVI.
...PETITIONERS
Location: HIGH
COURT OF
KARNATAKA,
DHARWAD
(BY SRI. SHIVARAJ P. MUDHOL, ADVOCATE)
BENCH
AND:
1. THE STATE OF KARNATAKA,
REPRESENTED BY ITS SECRETARY,
DEPARTMENT OF CO-OPERATION,
M.S. BUILDING, BENGALURU-560001.
2. THE DEPUTY REGISTRAR,
CO-OPERATIVE SOCIETY,
BELAGAVI AND DEPUTY REGISTRAR
OF CHIT FUNDS, BELAGAVI,
AT BELAGAVI, DIST: BELAGAVI, PIN-590001.
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NC: 2024:KHC-D:9054
WP No. 103086 of 2024
C/W WP No. 103092 of 2024, WP No.
103134 of 2024, WP No. 103177 of 2024
3. FOREMAN,
SHRI MAHAVINAYAK CHITS PVT. LTD. COMPANY,
LAXMI EXTENSION, LAXMI TEMPLE ROAD,
GOKAK, AT GOKAK, TALUK: GOKAK,
DIST: BELAGAVI, PIN-590001.
4. SHRI EKANAGOUDA
S/O. YALLAPAGOUDA PATIL,
AGE: 46 YEARS, OCC: BUSINESS,
R/O. S.R. PETROL PUMP, MUNVALLI,
AT POST: UGARGOL, TALUK: SAVADATTI,
DIST: BELAGAVI, PIN-591126.
...RESPONDENTS
(BY SRI. V.S. KALASURMATH, HCGP FOR R1 & R2;
SRI. PRASHANT F. GOUDAR, ADV. FOR R3)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE WRIT IN THE
NATURE OF CERTIORARI TO QUASH THE IMPUGNED JUDGMENT AND
AWARD DATED 6/2/2024 IN DISPUTE NO. DRL/G/N/ABN/41/2020-21
PASSED BY THE 2ND RESPONDENT VIDE ANNEXURE-A AND ETC.
IN WRIT PETITION NO. 103092 OF 2024
BETWEEN:
SHRI PANCHANAGOUDA
S/O. BASANGOUDA DYAMANAGOUDA,
AGE: 56 YEARS, OCC: BUSINESS,
R/O. S.R. PETROL PUMP, MUNAVALLI,
TALUK: SAVADATTI, DIST: BELAGAVI.
...PETITIONER
(BY SRI. SHIVARAJ P. MUDHOL, ADVOCATE)
AND:
1. THE STATE OF KARNATAKA,
REPRESENTED BY ITS SECRETARY,
DEPARTMENT OF CO-OPERATION,
M.S. BUILDING, BENGALURU-560001.
2. THE DEPUTY REGISTRAR,
CO-OPERATIVE SOCIETY,
BELAGAVI AND DEPUTY REGISTRAR
OF CHIT FUNDS, BELAGAVI,
AT BELAGAVI, DIST: BELAGAVI, PIN-590001.
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NC: 2024:KHC-D:9054
WP No. 103086 of 2024
C/W WP No. 103092 of 2024, WP No.
103134 of 2024, WP No. 103177 of 2024
3. FOREMAN,
SHRI MAHAVINAYAK CHITS PVT. LTD. COMPANY,
LAXMI EXTENSION, LAXMI TEMPLE ROAD,
GOKAK, AT GOKAK, TALUK: GOKAK,
DIST: BELAGAVI, PIN-590001.
4. SHRI EKANAGOUDA
S/O. YALLAPAGOUDA PATIL,
AGE: 46 YEARS, OCC: BUSINESS,
R/O. S.R. PETROL PUMP, MUNAVALLI,
AT POST: UGARGOL, TALUK: SAVADATTI,
DIST: BELAGAVI, PIN-591126.
...RESPONDENTS
(BY SRI. V.S. KALASURMATH, HCGP FOR R1 & R2;
SRI. PRASHANT F. GOUDAR, ADV. FOR R3;
R4-DISPENSED WITH)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE WRIT IN THE
NATURE OF CERTIORARI TO QUASH THE IMPUGNED JUDGMENT AND
AWARD DATED 6/2/2024 IN DISPUTE NO.DRL/G/N/ABN/38/2020-21
PASSED BY THE 2ND RESPONDENT VIDE ANNEXURE-A.
IN WRIT PETITION NO. 103134 OF 2024
BETWEEN:
1. SHRI PANCHANAGOUDA
S/O. BASANGOUDA DYAMANAGOUDA,
AGE: 56 YEARS, OCC: BUSINESS,
R/O. S.R. PETROL PUMP, MUNAVALLI,
TALUK: SAVADATTI, DIST: BELAGAVI.
2. SMT. SHARADA
W/O. PANCHANGOUDA DYAMANAGOUDA,
AGE: 49 YEARS, OCC: BUSINESS &
HOUSEHOLD WORK,
R/O. MUNAVALLI, TALUK: SAVADATTI,
DIST: BELAGAVI.
...PETITIONERS
(BY SRI. SHIVARAJ P. MUDHOL, ADVOCATE)
AND:
1. THE STATE OF KARNATAKA,
REPRESENTED BY ITS SECRETARY,
DEPARTMENT OF CO-OPERATION,
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NC: 2024:KHC-D:9054
WP No. 103086 of 2024
C/W WP No. 103092 of 2024, WP No.
103134 of 2024, WP No. 103177 of 2024
M.S. BUILDING, BENGALURU-560001.
2. THE DEPUTY REGISTRAR,
CO-OPERATIVE SOCIETY,
BELAGAVI AND DEPUTY REGISTRAR
OF CHIT FUNDS, BELAGAVI,
AT BELAGAVI,
DIST: BELAGAVI, PIN-590001.
3. FOREMAN,
SHRI MAHAVINAYAK CHITS PVT. LTD. COMPANY,
LAXMI EXTENSION, LAXMI TEMPLE ROAD,
GOKAK, AT GOKAK, TALUK: GOKAK,
DIST: BELAGAVI, PIN-590001.
4. SHRI EKANAGOUDA
S/O. YALLAPAGOUDA PATIL,
AGE: 46 YEARS, OCC: BUSINESS,
R/O. S.R. PETROL PUMP, MUNAVALLI,
AT POST: UGARGOL, TALUK: SAVADATTI,
DIST: BELAGAVI, PIN-591126.
...RESPONDENTS
(BY SRI. V.S. KALASURMATH, HCGP FOR R1 & R2;
SRI. PRASHANT F. GOUDAR, ADV. FOR R3;
R4-DISPENSED WITH)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE WRIT IN THE
NATURE OF CERTIORARI TO QUASH THE IMPUGNED JUDGMENT AND
AWARD DATED 6/2/2024 IN DISPUTE NO.DRL/G/N/ABN/40/2020-21
PASSED BY THE 2ND RESPONDENT VIDE ANNEXURE-A.
IN WRIT PETITION NO. 103177 OF 2024
BETWEEN:
1. SHRI PANCHANAGOUDA
S/O. BASANGOUDA DYAMANAGOUDA,
AGE: 56 YEARS, OCC: BUSINESS,
R/O. S.R. PETROL PUMP, MUNAVALLI,
TALUK: SAVADATTI,
DIST: BELAGAVI-590001.
2. SMT. SHARADA
W/O. PANCHANGOUDA DYAMANAGOUDA,
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NC: 2024:KHC-D:9054
WP No. 103086 of 2024
C/W WP No. 103092 of 2024, WP No.
103134 of 2024, WP No. 103177 of 2024
AGE: 49 YEARS, OCC: BUSINESS &
HOUSEHOLD WORK,
R/O. S.R. PETROL PUMP, MUNAVALLI,
TALUK: MUNAVALLI,
DIST: BELAGAVI-590001.
...PETITIONERS
(BY SRI. SHIVARAJ P. MUDHOL, ADVOCATE)
AND:
1. THE STATE OF KARNATAKA,
REPRESENTED BY ITS SECRETARY,
DEPARTMENT OF CO-OPERATION,
M.S. BUILDING, BENGALURU-560001.
2. THE DEPUTY REGISTRAR,
CO-OPERATIVE SOCIETY,
BELAGAVI AND DEPUTY REGISTRAR
OF CHIT FUNDS, BELAGAVI,
AT BELAGAVI,
DIST: BELAGAVI, PIN-590001.
3. FOREMAN,
SHRI MAHAVINAYAK CHITS PVT. LTD. COMPANY,
LAXMI EXTENSION, LAXMI TEMPLE ROAD,
GOKAK, AT GOKAK, TALUK: GOKAK,
DIST: BELAGAVI, PIN-590001.
...RESPONDENTS
(BY SRI. V.S. KALASURMATH, HCGP FOR R1 & R2;
SRI. PRASHANT F. GOUDAR, ADV. FOR R3)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE WRIT IN THE
NATURE OF CERTIORARI TO QUASH THE IMPUGNED JUDGMENT AND
AWARD DATED 6/2/2024 IN DISPUTE NO.DRL/G/N/ABN/39/2020-21
PASSED BY THE 2ND RESPONDENT VIDE ANNEXURE-A.
THESE PETITIONS ARE COMING ON FOR PRELIMINARY
HEARING THIS DAY, THE COURT MADE THE FOLLOWING:
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NC: 2024:KHC-D:9054
WP No. 103086 of 2024
C/W WP No. 103092 of 2024, WP No.
103134 of 2024, WP No. 103177 of 2024
ORDER
The petitioners, who are the defaulting subscribers of chit are assailing the judgment and award dated 06.02.2024 passed in the dispute bearing Nos.DRL/G/N/ABN/41/2020-21, DRL/G/N/ABN/38/2020-
21, DRL/G/N/ABN/40/2020-21 and DRL/G/N/ABN/39/2020-21 by respondent No.2.
2. The primary objection raised in the petitions is in regard to respondent No.2's jurisdiction to entertain the dispute under Section 64 of The Chit Funds Act. Learned counsel for the petitioners would point out that chit amount admittedly being less than Rs.15 lakhs, the Deputy Registrar lacks jurisdiction to entertain the dispute under Section 64 of The Chit Fund Act.
3. Learned HCGP, however, countering the petitioners' objection would contend that since permission is granted by respondent No.2/Deputy Registrar of Chit Funds, the dispute lies before the Deputy Registrar and -7- NC: 2024:KHC-D:9054 WP No. 103086 of 2024 C/W WP No. 103092 of 2024, WP No. 103134 of 2024, WP No. 103177 of 2024 not before Assistant Registrar as of chits as claimed by the petitioners herein.
4. Learned counsel appearing for respondent No.3 has argued in the same vein and has contended that dispute is very much maintainable before respondent No.2/Deputy Registrar of Chit Funds. Both the counsels placing reliance on the reported judgment rendered by this Court in W.P.No.67670/2010 C/w W.P.Nos.104278/2014, 103670/2017, 103671/2017 disposed of on 25.04.2024, would contend that petitioners have a remedy of an appeal under Section 17 of The Chit Funds Act and therefore, request not to grant any indulgence.
5. This Court has examined the grounds urged in the petitions. The petitioners' contentions that since the chit value is less than Rs.15 lakhs, the dispute would lie before the Assistant Registrar of Chit Funds, is totally misconceived. The notification dated 01.03.2008 explicitly provides the category of officers, who are vested with -8- NC: 2024:KHC-D:9054 WP No. 103086 of 2024 C/W WP No. 103092 of 2024, WP No. 103134 of 2024, WP No. 103177 of 2024 jurisdiction to decide the disputes depending upon aggregate chit value of total Chits.
6. Learned HCGP and learned counsel appearing for respondent No.2 on instruction submit that the value admittedly is above Rs.15 lakhs, to be specific it is Rs.16 lakhs.
7. On examining the records, this Court is of the view that the petitioners' contentions that the chit value is less than Rs.15 lakhs is totally misconceived. The jurisdiction of the officers, would depend upon aggregate chit value of total chits, as indicated in the notification dated 01.03.2008. Therefore, petitioners' contentions that the jurisdiction of officers has to be determined in respect of only disputed chit amount, cannot be acceded to as it runs contrary to the notification dated 01.03.2008. Therefore, in the light of observations made by the Coordinate Bench of this Court, the petitioners need to be relegated to avail a remedy of an appeal before the -9- NC: 2024:KHC-D:9054 WP No. 103086 of 2024 C/W WP No. 103092 of 2024, WP No. 103134 of 2024, WP No. 103177 of 2024 competent Appellate Authority. For the foregoing reasons, this Court passes the following:
ORDER
i) Writ petitions are disposed of reserving liberty to the petitioner to avail a remedy of an appeal.
ii) The judgment and award dated 06.02.2024 passed in Dispute Nos. DRL/G/N/ABN/41/2020-21, DRL/G/N/ABN/38/2020-21, DRL/G/N/ABN/40/2020-21 and DRL/G/N/ABN/39/2020-21 respectively by respondent No.2, are stayed for a period of three weeks from the date of receipt of certified copy of this order subject to petitioners in the respective petitions depositing 25% of the award amount with accrued interest before the Joint Registrar.
iii) In the event, appeal is filed within three weeks, petitioners are entitled for the benefit under Section 14 of The Limitation Act, which shall be subject to deposit of 25% with accrued interest.
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NC: 2024:KHC-D:9054 WP No. 103086 of 2024 C/W WP No. 103092 of 2024, WP No. 103134 of 2024, WP No. 103177 of 2024
iv) All contentions of the parties are kept open.
Sd/-
JUDGE AM List No.: 1 Sl No.: 2