Supreme Court Refuses To Transfer Margadarsi Chit Fund's Appeals From Andhra Pradesh HC To Telangana HC

The Supreme Court on Friday (February 2) refused to transfer the criminal appeal pending against Margadarsi Chit Fund Private Limited (MCFPL) before the Andhra Pradesh High Court to the Telangana High Court.

At the outset, when the matter was called on for hearing, the Bench of Justices Abhay S Oka and Ujjal Bhuyan asked the petitioner's counsel “why do you want to transfer the case arising in Andhra Pradesh to Telangana?”

Appearing on behalf of Chit Fund Company, Senior Counsel Siddharth Luthra contended that transfer of the criminal appeals is necessitated as the cause of action arising for registration of cases arises out of Telangana and the similar issues related to quashing of the FIRs were pending before the Telangana High Court, so the matters pending before the Andhra Pradesh High Court should also be transferred over there.

“You can always file an application for the stay of the appeals before the Andhra Pradesh High Court”, Justice Oka told Luthra.

The Court noted that there is no reason to pass an order of transfer.

Luthra expressed concerns about the deciding of the criminal appeal before deciding on the petition for quashing an FIR.

“An apprehension is expressed that the appeals may be decided even before the petitions filed by the petitioners for quashing FIR which are pending before the Telangana High Court are decided. If that is so, the petitioner can always apply for appropriate interim relief in the pending appeal. If such application is made on the ground of pendency of the petition for quashing in Telangana High Court, the High Court will decide the same in accordance of law after opportunity is given of being to the contesting respondents.”, the court observed.

Background

Established in 1962, the petitioner company transformed into a public limited company in 2002. It asserts itself as the largest chit fund company, boasting an impressive annual turnover of Rs 9,677 crore. The company has a subscriber base exceeding three lakh individuals and operates through 108 branches scattered across four states in the country.

The matter before the Andhra Pradesh High Court involved appeals challenging the district court's decision to return the charge sheet on the ground there is no default alleged or shown over there. The Special Court had refused to take cognizance of the offence alleged the Chit Fund Company, citing the lack of material default under the AP Protection of Depositors Financial Establishment Act, 1999.

Case Details:

M/S MARGADARSI CHIT FUND PVT LTD VERSUS THE STATE OF ANDHRA PRADESH & ORS.

Transfer Petition(s)(Criminal) No(s). 968-969/2023