THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.1434 of 2008 (Dated: 10-03-2010) Between: M/s.Monarch Finlease Limited (in Liquidation) Rep. by the Official Liquidator, High Court of Andhra Pradesh, Hyderabad ….Applicant A n d Shri N.Mujahid Khan S/o Shri S.Najirkhan And another …Respondents THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.1434 of 2008 ORDER: This is an application filed by M/s.Monarch Finlease Limited (in 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.38,792/- along with interest at 36% per annum with effect from 23.11.2000 till the date of realization. 2. The 1st respondent purchased TATA 407 Maxi Cab bearing Registration No.KA 16/3653 from Smt. K.V.Vasundara, Chitradurga under Hire Purchase Agreement. The 2nd respondent stood as guarantor to the loan availed by the 1st respondent. The asset covered under Hire Purchase Agreement has been valued at Rs.4,10,000/-. Ex.A-5 is the Hire Purchase Agreement and Ex.A-6 is the Demand Promissory note executed by respondents 1 and 2. Ex.A-7 is the receipt No.9351 dated 28.09.1998 acknowledging the receipt of cheque No.990840 dated 26.9.1998. The company (in Liquidation) financed an amount of Rs.2,00,000/- for the Hire Purchase of TATA 407 bearing registration No.KA16/3653. The 1st respondent agreed to pay the said sum of Rs.2,00,000/- plus H.P charges of Rs.72,000/- aggregating to Rs.2,72,000/- in 24 monthly instalments at Rs.11,350/- each per month from 1st to 23 months and Rs.10,950/- for the 24th month commencing from 26.10.1998. The company (in Liquidation) has released a further amount of Rs.2,00,000/- to Smt. K.V.Vasundhara. Since the respondents failed to liquidate the liability, the company (in Liquidation) after issuing notice to the respondents seized and repossessed the asset, auctioned the same and realized sale consideration of Rs.2,30,000/-. As per the ledger account, i.e., HP register, the said sale consideration of the vehicle was adjusted against the liability of respondent No.1 herein on 31.10.2000 and after such adjustment, the respondents herein are still due in a sum of Rs.38,792/- to the company (in Liquidation) with effect from 23.11.2000. 3. While so, by order dated 01.11.2006 passed in Company Petition No.173 of 2001, the petitioner company was ordered to be wound up, and the Official Liquidator attached to this Court came to be appointed as its liquidator. 4. Notice to the respondents has been ordered on 18.12.2008. The notice sent to the 1st respondent has been returned with an endorsement “unclaimed” and whereas the notice sent to the 2nd respondent returned with an endorsement “continuously absent”. Therefore, it is treated that notice to respondent has been served. The Official Liquidator filed affidavit in lieu of chief examination of Pw-1 and marked 24 documents as Exs.A-1 to A-24. The respondents did not choose to enter appearance. 5. Heard learned counsel appearing for the Official Liquidator and perused the evidence of Pw-1 and Exs.A-1 to A-24. 6. As per Ex.A-19 true copy of ledger accounts, an amount of Rs.38,792/- was due from the respondents 1 and 2 as on 23.11.2000. The Official Liquidator issued notice on 11.7.2002 to the 1st respondent. The notice sent to the 1st respondent was returned un-served. Ex.A-22 is the office copy of the notice dated 11.7.2002 and Ex.A-23 is the returned registered letter. The documents placed on record amply prove the claim of the applicant company. 7. Accordingly, the claim of the applicant is decreed for Rs.38,792/- with interest at the rate of 12% per annum with effect from 23.11.2000 till the date of decree and thereafter, at 6% per annum till the date of realization and costs. 8. 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.1434 of 2008 DATED : 10-03-2010