THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.332 2011 Date:20th June, 2011 Between: M/s. Mamatha Chit Fund (P) Ltd. (in provisional liquidation) Rep. by the Official Liquidator, High Court of A.P., Hyderabad. …Applicant and 1. Sri C.Narender & Ors. …Respondents *** THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.332 of 2011 ORDER: This Company Application has been taken out by the Official Liquidator representing M/s.Mamatha Chit Fund (P) Ltd. (in provisional liquidation) under Section 446(2)(b) of the Companies Act, 1956 r/w. Rules 9 and 11(b) of the Companies (Court) Rules, 1959, seeking a decree against the respondents jointly and severally for a sum of Rs.5,283.40ps. with interest @ 12% p.a. w.e.f. 18.07.2000 till the date of realisation. 2. By order, dated 20.03.2002, passed in Company Petition No.13 of 2002, the Official Liquidator attached to this Court was appointed as provisional liquidator of M/s.Mamatha Chit Fund (P) Ltd., (in provisional liquidation). As per the records of the Company (in provisional liquidation), the 1st respondent joined in the chit group No.LP17E with ticket No.26 conducted by the Company (in provisional liquidation). The value of the chit is Rs.50,000/- with a duration of 50 months at the rate of Rs.1,000/- per month each. The 1s t respondent became the prized subscriber and received an amount of Rs.25,846/- against the bid amount of Rs.30,000/- by way of cheque bearing No.413952 for Rs.10,000/- and cheque bearing No.413953 for Rs.15,846/- after deducting an amount of Rs.4,154/-. He paid 45 instalments and committed default in payment of the rest of the instalments. The respondents 2 to 4 stood as sureties to the 1st respondent in respect of the prized chit amount. The Official Liquidator issued a notice, dated 03.03.2003, calling upon the 1st respondent to pay an amount of Rs.6,913.40 ps. shown as due in the list of debtors forming part of statement of affairs. The notice sent to the 1st respondent returned with postal endorsement ‘addressee left’. Hence, this Company Application by the Official Liquidator seeking a decree against the respondents as stated supra. 3. Notice to the respondents came to be ordered on 29.03.2011. Notice sent to the 4th respondent returned unserved with an endorsement ‘not claimed’. In view of the said endorsement, notice sent to the 4th respondent is deemed to have been served on him. Learned counsel appearing for the applicant seeks permission to withdraw the claim against the respondents 2 and 3. Accordingly, the claim against the respondents 2 and 3 is dismissed as not pressed on 14.06.2011. 4. The applicant filed affidavit of Mr.R.Ramakrishna Reddy, in lieu of chief-examination, and produced 20 documents, which have been marked as Exs.A1 to A20. 5. Heard learned counsel appearing for the Official Liquidator and perused the affidavit of Mr.R.Ramakrishna Reddy and Exs.A1 to A20. 6. The first respondent became the prized subscriber of the chit group No.LP17E with ticket No.26 conducted by the Company (in provisional liquidation) and received Rs.25,846/-. against the bid amount of Rs.30,000/-. The Respondents 2 to 4 stood as sureties for the first respondent in respect of the prized chit with Ticket No.26. The 1st respondent paid 45 instalments and subsequently committed default in paying the rest of the instalments, as per the certified copy of the chit ledger, which has been exhibited as Ex.A12. The Official Liquidator after taking charge of the book and assets of the company (in provisional liquidation), verified the accounts and issued a notice to the 1st respondent on 03.03.2003 calling upon him to pay the balance due. The 1st respondent failed to liquidate the liability. The evidence of PW.1 and the documents placed on record, which have been marked as Exs.A1 to A20, substantiated the claim of the applicant against the respondents 1 and 4. 7. Accordingly, the Company Application is partly allowed with costs granting a decree in favour of the applicant and against the respondents 1 and 4 jointly and severally for a sum of Rs.5,283.40ps. with interest at the rate of 12% p.a. w.e.f. 18.07.2000 to this day and at the rate of 6% p.a. from this day to the date of realisation. The Company Application against the respondents 2 and 3 is dismissed as not pressed. _____________________ B.SESHASAYANA REDDY, J Date:20th June, 2011. cs THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.332 of 2011 Date :20th June, 2010