Guruvijaya Kuri Company Ltd vs State Of Kerala
2023 Latest Caselaw 4270 Ker

                IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                PRESENT
                THE HONOURABLE MR. JUSTICE SHAJI P.CHALY
     FRIDAY, THE 31ST DAY OF MARCH 2023 / 10TH CHAITHRA, 1945
                        WP(C) NO. 33231 OF 2022
PETITIONER/S:

          GURUVIJAYA KURI COMPANY LTD
          PALIYAM ROAD, THRISSUR-680001, REPRESENTED BY ITS
          CHAIRMAN
          BY ADVS.
          LINDONS C.DAVIS
          E.U.DHANYA
          SWATHY A.P.
          RAJITH DAVIS


RESPONDENT/S:

    1     STATE OF KERALA
          REPRESENTED BY ITS ADDITIONAL SECRETARY, TAXES (C)
          DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM-695 001.
    2     INSPECTOR GENERAL OF REGISTRATION,
          OFFICE OF THE INSPECTOR GENERAL OF REGISTRATION, NEAR
          DISTRICT COURT, VANCHIYOOR, THIRUVANANTHAPURAM - 695035
    3     REGISTRAR OF CHITS, CENTRAL ZONE, OFFICE OF DISTRICT
          REGISTRAR, THRISSUR-680020.
    4     NOMINEE OF REGISTRAR OF CHITS,
          CHITTY ARBITRATOR OFFICE, CENTRAL ZONE, OFFICE OF
          DISTRICT REGISTRAR, THRISSUR-680020.
    5     DAVID,
          S/O.DEVASSY, CHALISSERY VALAPILAA HOUSE, PANAMUKKU
          DESOM, KANIMANGALAM P.O, THRISSUR-680027.
    6     SHEELA DAVID
          W/O.DAVID, CHALISSERY VALAPILAA HOUSE, PANAMUKKU DESOM,
          KANIMANGALAM P.O, THRISSUR-680027.
          R1 TO R4 BY RAJEEV JYOTHISH GEORGE, GP
          R5 & R6 BY N.M.MADHU
          C.S.RAJANI(K/2275/1999)


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
31.03.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO. 33231 OF 2022
                                   -2-

                            JUDGMENT

Petitioner is a company registered under the Companies Act,

1956, engaged in chitti business. The grievance of the petitioner is

that, petitioner was not provided with an opportunity of hearing

before passing Ext.P7 order, in the statutory appeals filed before the

Government, dated 17.09.2022. The case of the petitioner is that,

petitioner was aggrieved by Exts.P1, P3 and P5 awards passed by the

Arbitrator under the Chit Funds Act. It was against which petitioner

has submitted Exts.P2, P4 and P6 appeals before the State

Government. The prime contention advanced by the petitioner is that,

Ext.P7 order is passed without providing any opportunity of hearing

and therefore, it suffers from the vice of arbitrariness and illegality

and liable to be interfered with under Article 226 of the Constitution

of India.

2. I have heard the learned Counsel for the petitioner,

Sri. Lindons C.David, learned Government Pleader, Sri. Rajeev

Jyothish George and the learned Counsel appearing for the 5 th and 6th

respondents, Sri. N.M.Madhu, and perused the pleadings and material

on record.

WP(C) NO. 33231 OF 2022

3. On a perusal of Ext.P7 order, what I could gather is that,

without hearing the petitioner, Government has passed the order.

May be true, Government had taken into account the contentions put

forth by the petitioner in the appeal, but in order to satisfy the

requirements of principles of natural justice, definitely an opportunity

of hearing should have been provided to the petitioner before passing

Ext.P7 order. Considering so, I am of the view that Ext.P7 suffers from

the vice of arbitrariness and illegality and it is also passed in violation

of principles of natural justice.

4. Therefore, Ext.P7 order is quashed, and there will be a

direction to the 1st respondent State Government to finalize Exts.P2,

P4 and P6 appeals, at the earliest, and at any rate, within two months

from the date of receipt of a copy of this judgment, after providing an

opportunity of hearing to the petitioner company as well as

respondents 5 and 6.

The writ petition is disposed of accordingly.

Sd/-

SHAJI P.CHALY JUDGE uu/31.03.2023 WP(C) NO. 33231 OF 2022

APPENDIX OF WP(C) 33231/2022

PETITIONER EXHIBITS Exhibit P1 A COPY OF THE ORDER DATED 03.02.2022 OF THE REGISTRAR OF CHITS, THRISSUR IN ARBITRATION CASE NO.1172/2019/TSR. Exhibit P2 TRUE COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT AGAINST AWARD NO.1172/2019/TSR WITHOUT EXHIBITS.

Exhibit P3 COPY OF THE ORDER DATED 03.02.2022 OF THE REGISTRAR CHITS, THRISSUR IN ARBITRATION OF CASE NO.1173/2019/TSR. Exhibit P4 A COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT AGAINST AWARD NO.1173/2019/TSR WITHOUT EXHIBITS.

Exhibit P5 A COPY OF THE ORDER DATED 03.02.2022 OF THE REGISTRAR OF CHITS; THRISSUR IN ARBITRATION CASE NO.1174/2019/TSR. Exhibit P6 A COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT AGAINST AWARD NO.1174/2019/TSR WITHOUT EXHIBITS.

Exhibit P7 A COPY OF THE G.O(RT)NO.721/2022/TAXES DATED 17.09.2022 ISSUED BY THE 1ST RESPONDENT.