THE HON'BLE MR JUSTICE N.V. RAMANA Company Application No.1051 of 2009 in Company Petition No.38 of 2005 ORDER: This application is filed under Section 446(2)(b) of the Companies Act, 1956 read with Rules 9 and 11 (b) of the Companies (Court) Rules, 1959 by the Official Liquidator representing the company in liquidation viz., M/sVisveswar Finance & Chit Funds (Pvt.) Ltd., seeking a direction to the respondents jointly and severally to pay to the applicant herein a sum of Rs.28,442/- along with interest @ 12% p.a., from 27.06.2003 till the date of realisation. By order dated 15.11.2005 made in C.P.No.38 of 2005, this Court appointed the Official Liquidator as provisional Liquidator of the company in liquidation and further directed to recover the amounts from various parties to whom the company in liquidation had lent the money. As per the information in the statement of affairs of the company in liquidation, the first respondent was a prized subscriber in T.No.36 of Chit Group No.VCRM 1/10 and the value of the said chit was Rs.1,00,000/- with a duration of 40 months with monthly subscription of Rs.2,500/-. Respondent Nos.2 to 5 stood as sureties to the first respondent. The first respondent paid the chit subscription amount of Rs.62,500/-, for 25 months, including dividend and thereafter he stopped paying the chit subscription amount. It is submitted that still he has to pay the balance subscription amount of Rs.32,942/- for the remaining months. It is stated that pursuant to the notice issued by the Official Liquidator, the first respondent remitted a sum of Rs.4,500/- towards part of his liability and failed to pay the balance amount of Rs.28,442/- in spite of several reminders. Hence, this application. When the matter is taken up for consideration, the learned counsel for the Official Liquidator filed first report, bearing O.L.R.No.340 of 2009, stating that pursuant to the notice issued in this application, the first respondent has remitted an amount of Rs.5,000/-, which was acknowledged by the office of the Official Liquidator vide receipt, dated 10.09.2009, and sought time to pay the balance amount. The learned counsel for the Official Liquidator expressed no objection for grant of instalments, but sought to impose a default clause in case of non-payment of the debt due to the company in liquidation. Having regard to the facts and circumstances of the, this application is disposed of directing the first respondent to pay the balance amount of Rs.23,442/- in four equal monthly instalments. In such an event, the first respondent is not liable to pay the interest on the principal amount as claimed in the application. If the first respondent fails to discharge the amount due as directed above, the applicant is at liberty to recover the balance due in lumpsum along with interest from the date of filing of the application and costs of the application from the respondents. ___________________ N.V. RAMANA, J. Date:21.10.2009 VGB