The Karnataka High Court stated that it could not examine the order passed under Section 70 of the Chit Fund Act, 1982, while exercising its powers under Article 226 of the Constitution as such order is final.

The bench of Justice M.I. Arun held thus while hearing a Writ Petition in which the Petitioner challenged the order of the Joint Registrar after it was decided by the Deputy Registrar.
In this case, the Petitioner approached the Deputy Registrar after the money was not paid by the respondent who had subscribed to the petitioner for chits. He passed an order in the petitioner's favor. Later, the Joint Registrar allowed the respondent’s appeal when they approached under Section 70.
After going through Section 70 of the Chit Funds Act, 1982 the Court observed,
“there is only one appeal provided in the statute against the order passed under Section 69 of the Act. Any order passed under Section 70 of the Act shall be final.”
The Court noted that there was not any allegation as to the violation of the Fundamental Right by the Petitioner nor they were able to show that there was any violation of the principle of natural justice.
The Court went on to observe that it cannot sit as an Appellate Authority over the order passed under Section 70 of the Act while exercising its powers under Article 226 of the Constitution. Hence, as per the Court, it cannot delve into disputed questions of facts.
The Court dismissed the Writ Petition.
Cause Title: M/s Margadasi Chits (K) Pvt. Ltd. v. H. Srinivas Reddy (Neutral Citation:
2024:KHC-D:4787)
Appearance:
Appellant: Adv. S N Banakar
Respondent: Adv. K.L. Patil, HCGP V. S. Kalasuramath

Karnataka High CourtJustice M.I. Arun

Tanveer Kaur