THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.989 of 2007 29th November, 2011 Between :- M/s.Visveswar Finance & Chit Funds (P) Ltd., Rep.by the Official Liquidator, High Court of Andhra Pradesh, Hyderabad .. Applicant And Adula Ravinder and others .. Respondents THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.989 of 2007 ORDER:- This application has been taken out by the Official Liquidator under Section 446 (2)(b) of the Companies Act, 1956 on behalf of M/s.Visveswar Finance & Chit Funds (P) Ltd (in Liqn) seeking to recover from the respondents jointly and severally a sum of Rs.52,000/- along with interest @ 12% per annum w.e.f., 8-1-2003 till the date of realization. Initially an ex parte decree came to be passed against the respondents. Respondents No.1 and 5 filed application under Order IX Rule 13 of C.P.C. along with delay condonation petition. The said two applications have been allowed by this Court and consequently ex parte decree granted on 15-9-2008 came to be set aside. The Company was carrying on Chit Fund business prior to this Court ordering for its winding up on 15-11-2005 made in C.P.No.38 of 2005. The Official Liquidator attached to this Court has been appointed as its Liquidator and as part of steps taken for realizing the monies due to the Company. The 1st respondent is a prized subscriber to Ticket No.14 of Group No.VCRL 1/9 valued at Rs.1,00,000/-. The duration of the chit is for 50 months with monly contributions of Rs.2,000/-. The chit group commenced its operations in November, 2000. The 1st respondent became prized subscriber and received a sum of Rs.44,800/- by way of cheques bearing No.603071 and 603459, dated 16-7-2001. The 1st respondent has executed a joint promissory note along with the other respondents herein. Respondents No.2 to 5 also executed the Guarantee/Surety bond. As per the Ledger Extracts, the 1st respondent due an amount of Rs.52,000/-. The Official Liquidator by notice dated 13-12-2000 demanded the respondents herein to pay the amount due under the Chit. There being no response from the respondents, the Official Liquidator filed the application seeking a Decree as stated supra. Heard learned Counsel appearing for the parties. Learned Counsel appearing for the respondents 1 and 5 submits that respondent No.5 is an unprized subscriber under chit No.VCRL 1/19/4 and an amount of Rs.25,000/- is to her credit. Learned Counsel also submits that one Veerender, who is the son of respondent No.5, is also an unprized subscriber in respect of chit No.VCRL 1/19/7 and an amount of Rs.32,6000/- is due. If those amounts are adjusted to the amount due by the 1st respondent, the amount claimed by the applicant is deemed to have been fully satisfied. The Assistant Official Liquidator placed on record his report. As per the report, the family members of R.1 and R.5 subscribed for three chits, particulars of which are hereunder:- S.No. Name of the subscriber Ticket No. & Group No. Value of the chit Monthly instalments paid 1. Sri Adula Ravinder T.No.14 of Group No.VCRL 1/19 Rs.1,00,000/- (@ Rs.22,000/- p.m. for 50 months) 24 months @ Rs.2,000/- pm = Rs.48,000/- 2. Smt.A.Balamani T.No.4 of Group No.VCRL 1/19 Rs.1,00,000/- (@ Rs.2,000/- p.m., for 50 months) 22 months @ Rs.2,000/- pm = Rs.44,000/- 3. Sri A.Veerender T.No.7 of Group No.VCRL 1/19 Rs.1,00,000/- (@ Rs.2,000/- p.m., for 50 months) 22 months @ Rs.2,000/- pm = Rs.44,000/- It is also stated in the report that an amount of Rs.25,000/- is due to 5th respondent and an amount of Rs.32,600/- is due to A.Veerender. The Official Liquidator reports no objection for adjustment of the amount due to Smt.A.Balamani and A.Veerender to the amounts due from the respondents herein. He would also submit that an amount of Rs.5,000/- has been incurred towards publication and advertisement charges and therefore the amount due from the respondents comes to Rs.52,000/- + Rs.5,000/- = Rs.57,000/-. The applicant also placed on record the affidavit of the A.Veerender reporting his no objection for adjustment of the amount due to him under chit No.VCRL 1/19/7 to the amount due from the respondents herein. In that view of the matter, the amounts due to Smt.A.Balamani (R.5) and her son A.Veerender under chit Nos.VCRL 1/19/4 and VCRL 1/19/7 respectively stands adjusted to the amount claimed by the applicant from the respondents herein. Accordingly, the amount due from the respondents are deemed to have been discharged. The Official Liquidator has to make necessary adjusting entries in respect of the amounts due to Smt.A.Balamani – respondent No.5 and her son A.Veerender. Accordingly, the Company Application is disposed of. No order as to costs. ________________________ B.Seshasayana Reddy, J 29th November, 2011 smr