THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.594 of 2011 In Company Petition No.25 of 2008 5th September, 2011 Between :- M/s.Sri D.S.M.Chit Fund (P) Ltd (in Liqn) Rep. by the Official Liquidator, High Court of A.P., Hyderabad ..Applicant And Girish and another .. Respondents THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.594 of 2011 In Company Petition No.25 of 2008 ORDER:- This application has been taken out by the Official Liquidator representing M/s.Sri D.S.M.Chit Fund (P) Ltd (in Liqn) under Section 446(2)(b) of the Companies Act, 1956 read with Rules 9 and 11 (b) of the Companies Court Rules, 1959, seeking a decree against the respondents, jointly and severally, for a sum of Rs.3,12,500/- along with interest at 12% w.e.f. 12-11-2006 till the date of realisation. This Court by order dated 15-10-2008 made in Company Petition No.25 of 2008 directed for winding up of M/s.Sri D.S.M.Chit Fund (P) Ltd., and appointed the Official Liquidator attached to this Court as its Liquidator. The Official Liquidator took possession of the records of the Company (in Liqn). As per the Chit Ledger record of the Company (in Liqn), the 1st respondent herein became a member of the chit bearing T.No.18 of Group No.LT 1AR valued at Rs.5,00,000/-. Duration of the chit was 40 months @ Rs.12,500/- per month each. He became the prized subscriber of the chit and received an amount of Rs.3,60,000/- drawn on ICICI Bank Limited, Himayatnagar Main Road, Hyderabad. 2nd respondent stood as surety for the 1st respondent. The 1st respondent paid chit subscription of Rs.1,75,000/- for 14 months for the period from 7-10-2005 to 29-10-2006 which includes an amount of Rs.52,500/- towards dividend credited by the Company (in Liqn). The 1st respondent failed to pay the balance due under the above referred chit. The Official Liquidator issued a notice dated 15- 10-2009 calling upon the 1st respondent to pay the amount due under the chit. Notice sent to the 1st respondent returned unserved with postal remarks “Addressee Left”. The Official Liquidator sent another notice dated 18-2-2010 to respondents 1 and 2 calling upon them to pay the amount due under the chit. Both the notices returned with postal endorsement “No such Addressee”. Hence, this application. Notices to respondents came to be ordered on 14-6-2011. Notices sent to respondents No.1 and 2 returned unserved with an endorsement “no such addressee” vide memo of Proof of Service dated 27-6-2011 filed by the applicant. The applicant moved C.A.No.785 of 2011 seeking service of notice on respondents No.1 and 2 by way of publication in Telugu Daily newspaper having circulation in Hyderabad. The said application came to be ordered permitting the applicant to take out notices to the respondents No.1 and 2 by way of publication in “Andhra Bhoomi” (Telugu Daily) of Hyderabad edition. Proof of publication has been filed by the applicant on 25-8-2011. Despite service being effected on the respondents No.1 and 2 by way of publication, respondents No.1 land 2 failed to appear before the Court to resist the application. Affidavit of Mr.G.Srinivasa Rao, in lieu of chief-examination, has been placed on record. ‘18’ documents have been filed and they are marked as Ex.A.1 to Ex.A.18. Heard the learned Counsel appearing for the Official Liquidator and perused the evidence of P.W.1 and Exs.A.1 to A.18. The 1st respondent joined in the chit bearing T.No.18 of Group No.LT 1AR conducted by the Company (in Liqn). He came the prized subscriber of the chit and received the amount. He paid chit subscription amount of Rs.1,75,000/- for a period of 14 months. He failed to pay the balance amount of Rs.3,25,000/-. Ex.A.2 is the Demand Promissory Note executed by respondents No.1 and 2 consequent on the 1st respondent becoming the prized subscriber. As per Ex.A.7, the 1st respondent paid 14 instalments. The evidence of P.W.1 and Ex.A.1 to Ex.A.18 substantiate the claim against respondents No.1 and 2. Accordingly, the application is allowed with costs granting a Decree against respondents No.1 and 2, jointly and severally, for a sum of Rs.3,12,500/-, with interest @ 12% per annum w.e.f. 12-11- 2006 till this day and @ 6% per annum from this day till the date of realization. _________________________ B.Seshasayana Reddy, J 5th September, 2011 smr