IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE 29T H DAY OF NOVEMBER, TWO THOUSAND AND ELEVEN PRESENT HON'BLE SRI JUSTICE A. GOPAL REDDY AND HON'BLE SRI JUSTICE R. KANTHA RAO APPLICATION No.963 of 2011 And ORISINAL SIDE APPEAL No.14 of 2008 Between: P.Prakash Rao … Appellant And M/s.Visweswar Finance & Chit Funds (Pvt) Ltd., Rep. by the Official Liquidator and others … Respondents This Court made the following: HON’BLE SRI JUSTICE A.GOPAL REDDY AND HON'BLE SRI JUSTICE R.KANTHA RAO APPLICATION No.963 of 2011 And ORISINAL SIDE APPEAL No.14 of 2008 JUDGMENT: (per the Hon’ble Sri Justice A.Gopal Reddy) Appellant, who is a subscriber of the chit with respondent No.1-chit fund company, ﬁled this appeal aggrieved by the order of the learned Single Judge in Company Application No.279 of 2007 in Company Petition No.38 of 2005, dated 18.01.2008, whereby the learned Judge ordered the application directing the appellant and respondent Nos.2 to 4 jointly and severally to pay a sum of Rs.42,000/- along with interest at 12% per annum with effect from 02.11.2002 till the date of realization. The appellant ﬁled an application viz., Appl.No.963 of 2011 to give set oﬀ to the claims of respondent No.1 against the amounts due to the appellant in respect of two chits bearing No.VCRM-25 & 14 and pay the amounts due to the appellant under the said chits with interest. The Oﬃcial Liquidator ﬁled a report admitting that the appellant is entitled to a sum of Rs.2,27,998/- against ticket No.25 of chit group No.VCRM-9/4 and after giving set oﬀ of Rs.35,000/-, pursuant to the order dated 30.07.2008 made in C.A.No.985 of 2007 in C.P.No.38 of 2005 in respect of the ticket No.25 of chit group VCRM 5/5, which was due by Smt.P.Kanaka Thara, wife of the appellant, the balance amount of Rs.1,92,998/- is lying to the credit of the appellant’s account. Further, the appellant also lodged a claim with their Oﬃcial Liquidator’s oﬃce for an amount of Rs.5,40,775/- against ticket Nos.14 and 25 of Chit Group Nos.VCRM 9/4 in the matter of M/s.Visveswara Finance & Chit Funds (P) Limited (in liquidation), which is under adjudication. The Company Court in C.A.No.100 of 2007 in C.P.No.38 of 2005 passed a decree against Kanaka Thara and others for a sum of Rs.26,000/- along with interest till realization. The principal amount due as per the court orders passed in C.A.No.279 of 2007 in C.P.No.38 of 2005 and C.A.No.100 of 2007 in C.P.No.38 of 2005 is Rs.42,000/- and 26,000/- respectively, on which the interest at 12% per annum comes to Rs.45,760/- and Rs.28,328/- respectively, totaling to Rs.1,42,088/- and after giving set oﬀ from Rs.1,92,998/-, the balance amount due to the appellant is Rs.50,910/-. The said amount will be settled by the oﬃce of the Oﬃcial Liquidator at the time of settlement of all the claims of the creditors of the company (in liquidation). The amount of Rs.1,92,998/- due to the appellant is with the Oﬃcial Liquidator, who fairly submits that the said amounts also yields interest. Therefore, interest calculated on the principal amounts will be deducted from the liability and the same will be refunded to the appellant along with the balance amount of Rs.50,910/. The same is accordingly recorded and the Oﬃcial Liquidator is directed to refund the amount of Rs.50,910/- and also the interest of Rs.45,760/- and Rs.28,328/- which is given set off from the amounts due. The application is accordingly ordered and the appeal is disposed of in terms of the above consent order. Learned counsel for the appellant brought to our notice that the amount deposited pursuant to the interim order dated 01.05.2008 shall be refunded to the appellant, for which the Oﬃcial Liquidator has no objection. Registry is directed to refund the said amount to the appellant forthwith. ______________________ A. GOPAL REDDY, J _____________________ R. KANTHA RAO, J 28th November, 2011. lmv HON'BLE SRI JUSTICE A.GOPAL REDDY AND HON'BLE SRI JUSTICE R.KANTHA RAO APPLICATION No.963 of 2011 And ORISINAL SIDE APPEAL No.14 of 2008 28-11-2011 lmv