The High Court of Karnataka has said that it cannot act as an appellate authority over the orders passed by an appellate officer under Section 70 of the Chit Funds Act, 1972, particularly in the absence of allegations like violation of fundamental rights, principle of natural justice and erroneous application of law.
“This court in exercise of its power under Article 226 of the Constitution of India, cannot sit as an appellate authority over the order passed under Section 70 of the Act. It [High Court] cannot delve into disputed question of facts,” the court said.
Justice M.I. Arun passed the order while dismissing a 13-year-old petition filed by Margadarsi Chits (K) Pvt. Ltd., which had questioned an order passed by Joint Registrar of Chits, Raichur, way back in June 2011.
