THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.1585 of 2008 (Dated: 10-03-2010) Between: M/s.Mamatha Chit Fund (P) Limited ( In Prov. Liqn) Rep. by the Official Liquidator, High Court of Andhra Pradesh, Hyderabad. ….Applicant A n d Sri Villanky Channa Krishna Reddy and others …Respondents THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.1585 of 2008 ORDER: This is an application filed by M/s. Mamatha Chit Fund (P) Limited (in Provisional Liquidation) represented by the Official Liquidator under Section 446(2)(b) of the Companies Act, 1956 read with Rule 9 and 11(b) of the Companies Court Rules, 1959 seeking a decree against the respondents herein jointly and severally for a sum of Rs.11,132.80 ps. along with interest at 12% per annum with effect from 27.09.2000 till the date of realization. 2. By order dated 20-03-2002 passed in Company Petition No.13/2002, the Official Liquidator attached to this Court has been appointed as its provisional liquidator. The 1st respondent is a prized subscriber to T.No.13 of Chit Group No.LP 22E valued at Rs.50,000/- for a period of 50 months at the rate of Rs.1,000/- each (which is inclusive of dividend) and the said Chit Group commenced in the month of August 1997. The applicant company (in provisional liquidation) paid a sum of Rs.33,204/- by way of cheque bearing No.532670 dt. 20-06-1999 against a bid amount of Rs.34,000/- after deducting a sum of Rs.796/- towards arrears of subscription dues and verification fees. The 1st respondent acknowledged receipt of prize money by way of cheque by affixing signature on the prized subscriber Bid payment final statement. Respondents 2 to 4 executed an agreement of guarantee in favour of the applicant company (in provisional liquidation). As per the chit ledger record of the company (in provisional liquidation), respondent No.1 herein paid the chit subscription amount of Rs.39,000/- for 39 months for the period from 20-08-1997 to 27-09-2000, which includes an amount of Rs.11,231.20 ps towards dividend credited by the company (in provisional liquidation) leaving a balance liability of Rs.11,000/-. The Official Liquidator issued a notice to respondent No.1 on 28.3.2003 directing him to pay an amount of Rs.11,132.80 ps. shown as due in the revised list of debtors forming part of statement of affairs. The registered letter addressed to the 1st respondent returned with an endorsement ‘not known’. Hence, the instant application by the application seeking the relief stated supra. 3. Notice to the respondents came to be ordered on 19.01.2009. Notice on the 2nd respondent has been served on 19.01.2009 and whereas notice to respondents 1, 3 and 4 have been returned as unclaimed. Therefore, it is presumed that notice to the respondents has been served. The affidavit in lieu of chief examination of Pw-1 together with documents have been filed. The documents are marked as Exs.A-1 to A-16. 4. Heard learned counsel appearing for the Official Liquidator and perused the evidence of Pw-1 and Exs.A-1 to A-16. 5. Ex.A-4 is the prized subscriber bid payment final statement signed by respondent No.1 herein Exs.A-12 and A-13 are the true copies of the statement of ledger extracts. As per the entries in the ledger extracts, the 1st respondent has to pay Rs.11,132.80 ps. towards the bid amount. The respondents 2 to 4 being the guarantors are also liable to pay the same. 6. In the result, the applicant proved the claim against the respondents 1 to 4. Accordingly, the application is allowed granting a decree against the respondents 1 to 4 jointly and severally for a sum of Rs. 11,132.80 ps. with interest at the rate of 12% per annum from 27-9-2000 till the date of decree and thereafter at 6% per annum till the date of realization. 7. Accordingly, the Company Application is allowed. _____________________ B.SESHASAYANA REDDY, J Dt. 10-03-2010 RAR THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.1585 of 2008 DATED : 10-03-2010