THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.599 of 2011 ORDER: This application has been taken out by the Official Liquidator representing M/s Mamatha Chit Fund (P) Limited (in Prov.Liqn.) under Section 446(2)(b) of the Companies Act, 1956 r/w Rule 9 and 11(b) of the Companies Court Rules, 1959 seeking a decree against the respondents 1 to 4 jointly and severally for a sum of Rs.5,000/- along with interest at 12% per annum with effect from 06.02.2000 till the date of realization and costs. This Court by order dated 20.03.2002 made in Company Petition No.13 of 2002, appointed the Official Liquidator attached to this Court as provisional liquidator of M/s Mamatha Chit Funds (P) Limited. As per the records of the Company in provisional liquidation, the 1st respondent became the prized subscriber to T.No.21 of Chit Group No.LP-13E. The said chit group is valued at Rs.50,000/- for a period of 50 months @ Rs.1,000/- each (which is inclusive of dividend) per month. As per the records, the company paid a sum of Rs.26,265/- against a bid amount of Rs.30,000/- to the 1st respondent vide cheque No.413007 dated 12.12.1996 after deducting a sum of Rs.3,600/- towards arrears of subscription dues plus Rs.135/- towards verification fees vide receipt No.14332 dated 01.02.1996 aggregating to Rs.3,735/-. Respondents 2 to 4 executed an agreement of guarantee in favour of the company in provincial liquidation in respect of the above referred prized chit. As per the chit ledger record of the company in provincial liquidation, the 1st respondent paid 44 monthly instalments for the period from 23.07.1996 to 06.02.2000. Subsequently, he committed default in payment of instalments. The Official Liquidator issued a notice on 30.04.2003 calling upon the 1st respondent to pay an amount of Rs.8,450/- shown as due in the revised list of debtors forming part of the statement of affairs. Despite receipt of notice, the 1st respondent did not choose to liquidate the liability. Hence, this application seeking the relief stated supra. Notice to respondents came to be ordered on 14.06.2011. Notice sent to the respondents 1, 2 and 4 served. None appeared on their behalf. Notice sent to respondent No.3 returned unserved stating that he expired. Therefore, the claim against R.3 is dismissed as abated. Applicant placed on record affidavit of R.Ramakrishna Reddy in lieu of chief-examination. 18 documents have been placed on record and they are exhibited as Exs.A.1 to A.18. Heard the learned counsel appearing for the Official Liquidator and perused the evidence of PW.1 and Exs.A.1 to A.18. As per Ex.A.5 prized subscriber bid payment final statement, the first respondent received an amount of Rs.26,265/- by way of cheque bearing No.413007 dated 12.12.1996. As per Ex.A.7 certified true copy of chit ledger folio in T.No.21 of Group No.LP13E, he paid 44 monthly instalments. Despite notice to the 1st respondent, he failed to liquidate the liability. The evidence of PW.1 and Exs.A.1 to A.18 substantiate the claim of the applicant against the respondents 1, 2 and 4. Accordingly, the company Application is allowed in part with costs granting a decree for Rs.5,000/- in favour of the applicant against the respondents 1, 2 and 4 jointly and severally. The decreed amount shall carry interest at 12% per annum from 06.02.2000 to this day and at 6% per annum from this day till the date of realisation. Claim against R.3 is dismissed as abated. _____________________ B.SESHASAYANA REDDY, J Dt. 12th July, 2011 PNV