Margadarsi Chit Fund Company: Apex Court Agrees to Hear A.P’s Plea Seeking Transfer Of MCFPL Case On July 18
(Judicial Quest News Network)
The State Wants All Petitions Concerning irregularities alleged against MCFPL transferred from Telangana to Andhra Pradesh High Court.,
The Supreme Court has listed for July 18, petition of MCFPL filed by the Andhra Pradesh seeking a transfer of writ petitions concerning irregularities in MCFPL.
A vacation bench of Justices Anirudha Bose and Rajesh Bindal issued notice to the chit fund company and scheduled the matter for hearing on 18, June.
Senior Advocate Harish Salve, representing the company opposed the plea and submitted that this kind of politics should be avoided.
The State of Andhra Pradesh represented by Senior Advocate Neeraj Kishan Kaul Advocate Mehfooz Ahsan Nazki said the please should not be pending in the Telangana High Court, and strongly urged the SC court to transfer the same to Andhra Pradesh High Court.
The state government submitted that Telangana High Court lacked the jurisdiction as all the investigations were undertaken by the authorities pursuant to the registration of FIRs not only for violating the Chit Funds Act but also under the IPC.
The pleas said, “the cause of action in these0rit petitions has arisen in Hyderabad, it is settled law that as even if a small part of the· cause of action · arises within the territorial jurisdiction of a High Court hearing a matter under Article 226, the same may not be considered to be a determinative factor compelling the high Court to decide the matter on merits”
The Andhra Pradesh government further contended that even if it is held that a small part of cause of action may arise in Telangana because of the location of MCFPL is in Hyderabad would not confer any jurisdiction, whatsoever on the Telangana High Court.
The A.P govt further submitted that all the aforesaid FIRs were registered in the State of Andhra Pradesh, for offences committed exclusively / primarily in the State of Andhra Pradesh, and they are being investigated by the police in Andhra Pradesh. It is also a matter of fact that the largest number of subscribers to the chit funds of MCFPL are located in Andhra Pradesh, and that the majority of the branch offices of MCFPL are located in Andhra Pradesh. Therefore, the cause of action arises / the situs of the offences is in Andhra Pradesh, and thus, it is only the Hon’ble High Court of Andhra Pradesh which will have jurisdiction over these matters, and no other High Court, including the Hon’ble Telangana High Court.
The plea said that the Telangana High Court had passed orders protecting the MCFPL from coercive action despite its lack of jurisdiction in the case.
The petition further argued that submitted that the all the aforesaid FIRs were registered in the State of Andhra Pradesh, for offences committed exclusively / primarily in the State of Andhra Pradesh, and they are being investigated by the police in Andhra Pradesh.
It is also a matter of fact that the largest number of subscribers to the chit funds of MCFPL are located in Andhra Pradesh, and that the majority of the branch offices of MCFPL are located in Andhra Pradesh.
Therefore, the cause of action arises / the situs of the offences is in Andhra Pradesh, and thus, it is only the Hon’ble High Court of Andhra Pradesh which will have jurisdiction over these matters, and no other High Court, including the Hon’ble Telangana High Court.
