THE HON’BLE SRI JUSTICE NOOTY RAMAMOHANA RAO COMPANY APPLICATION No. 1116 of 2009 IN COMPANY APPLICATION No.36 of 2008 IN COMPANY PETITION No. 38 of 2005 Date: 23.10.2009 Between: Smt. Ram Kali ………….. Applicant and M/s Visveswara Finance & Chit Fund (P) Limited, Rep. by its Official Liquidator. & others …….Respondents THE HON’BLE SRI JUSTICE NOOTY RAMAMOHANA RAO COMPANY APPLICATION No. 1116 of 2009 IN COMPANY APPLICATION No.36 of 2008 IN COMPANY PETITION No. 38 of 2005 O R D E R: Heard Sri P. Satyanarayana, learned counsel for the applicant and Sri M. Anil Kumar, learned counsel for the Official Liquidator. This Application has been moved by Smt. Ram Kali, W/o Sri Ram Singh, the 1st respondent in Company Application No. 36 of 2008. Company Application No. 36 of 2008 has been moved by the Official Liquidator on behalf of M/s Visveswara Finance & Chit Fund (P) Limited, company under liquidation, seeking directions to the respondents therein to pay a sum of Rs.53,000/- together with interest at the rate of 12% per annum from 19th June 2003 till the date of realization. Though the respondents are served, only the 1st respondent sought to contest the matter by filing a counter-affidavit, but thereafter, there is no representation made on her behalf. In spite of providing opportunities, since no evidence has been let in, based upon the evidence available on record, Company Application No. 36 of 2008 has been allowed by this Court on 24th October 2008 directing the respondents therein to pay a sum of Rs.53,000/-. Time was also granted to pay up the said money, up to 31st January 2009 and if the money is so paid, the Official Liquidator was directed not to collect the interest at the rate of 12% per annum, though sub-section (2) of Section 25 of the Chit Funds Act, 1971 permits collection of interest at the rate of 12%, but however, the company under liquidation is very unlikely to pay its creditors interest at the same rate. Now the present Application has been moved by the 1st respondent seeking to liquidate the liability in 20 installments. It is appropriate to notice that from 24th October 2008, one year period has elapsed by today. Admittedly, the 1st respondent has not paid any money. Even as per her request, eight more monthly installments have got to be granted. I, therefore, consider it appropriate to modify the order passed on 24th October 2008 by directing the 1st respondent to liquidate the liability of Rs.53,000/-in one or more than one installment, by enlarging the time therefor up to 31st January 2010. If the 1st respondent fails to pay and liquidate the entire liability of Rs.53,000/- to the company under liquidation, on or before 31st January 2010, the Official Liquidator would be at liberty to collect the money due and payable by the respondents with interest at the rate of 12% per annum, as ordered by this Court on 24th October 2008. With this, the Company Application stands disposed of. No costs. ---------------------------------- (NOOTY RAMAMOHANA RAO, J) 23rd October 2009 ksld