THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application Nos.682 and 683 of 2010 in Company Petition No.25 of 2008 Date:21st April,2011 Between: Piyush M.Shah S/o.M.C.Shah, R/o.G-22, Varalaxmi Complex, M.G.Road, Ranigunj, Secunderabad – 500 003. …Applicant in both the C.As. and M/s.Sri D.S.M.Chit Fund (P) Ltd. (in liqn.) Rep. by the Official Liquidator, High Court of A.P., Hyderabad. ….Respondent in both the C.As. *** THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application Nos.682 and 683 of 2010 in Company Petition No.25 of 2008 COMMON ORDER: These two Company Applications have been filed under Rule 9 of the Companies (Court) Rules, 1959, r/w.Sec.151 CPC seeking direction to the respondent-company rep. by the Official Liquidator to set off the amount payable to the applicant by the respondent-company (in liquidation) towards the amount payable by him to the respondent- company (in liquidation) under various chits. 2. Background facts, in a nutshell, leading to filing of these two applications by Pyush M.Shah are: The applicant is a member of the chit No.20 of Chit Group ST 2 BR and Chit No.26 of Chit Group No.LT- IAR conducted by the respondent-company (in liquidation). He became the prized subscriber in respect of Chit No.20. He is liable to pay Rs.36,000/- towards the balance subscriptions to the respondent- company (in liquidation). He is also a member in another chit bearing No.26 of the Chit Group No.LT-IAR. He remained as unprized subscriber with regard to the said chit. He has to get Rs.4,37,500/- from the respondent company (in liquidation). He also stood as a guarantor for Sri Badal R.Lakhani, who joined as a member of chit No.04 of Group No.LT-IAR conducted by the respondent-company (in liquidation). He became the prized subscriber. He paid 35 monthly installments at the rate of 12.500/-. He has to pay Rs.62,500/- towards the said chit. These two applications have been filed seeking direction to the respondent-company to give set off of the amounts due from the respondent-company towards amounts payable by him to the respondent-company. 3. The Official Liquidator placed on record a common report. The report gives details about the subscriptions paid by the applicant. Para.6 of the report reads as hereunder: “6. In this regard, it is humbly submitted that basing on the information in the chit ledger record and clarifications of ex-directors of the company and copies of receipts submitted by Sri Piyush M.Shah, the net subscription amount paid to the credit of unprized T.No.26 of Group LT IAR and dividend allowed by the company are detailed hereunder: (a) Actual subscription paid by Sri Piyush M.Shah in T.No.26 of Group LT IAR as per chit ledger record. 2,41,600-00 (b) Dividend allowed by the company as per chit ledger record 1,08,400-00 Total 3,50,000-00 [c] If the two Receipts submitted by Applicant herein are considered, then actual subscription paid by as per Receipt Nos. 8330, 7091, dt.17.02.2008, 09.03.2008 towards installment Nos.30, 3 & 31. 25,500-00 (d) Dividend allowed by the company as per the above said Receipts 12,000-00 Total 37,500-00 4. As per the report of the Official Liquidator, the applicant has to get Rs.3,50,000/-. The applicant has to pay Rs.36,000/- towards the amount due in Ticket No.20 of Group ST 2BR and Rs.62,600/- towards the amount due in Ticket No.04 of Group LT IAR. In all the applicant has to pay Rs.98,500/-. 5. In view of the report of the Official Liquidator, the applicant is directed to submit his claims before the Official Liquidator and thereupon, the Official Liquidator has to adjudicate the same taking into consideration of the entries made in the chit ledger and receipts produced by the applicant. 6. Accordingly, both the Company Applications are ordered. ______________________ B.SESHASAYANA REDDY, J. Date:21st April, 2011. cs THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application Nos.682 and 683 of 2010 in Company Petition No.25 of 2008 Date:21st April, 2011