THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.66 of 2003 12th August, 2011 Between :- M/s.Vara Vara Chits Ltd (in Liqn) Rep. By the Official Liquidator, High Court of Andhra Pradesh, Hyderabad .. Applicant And K.Ashok and another .. Respondents THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.66 of 2003 ORDER:- This application has been filed by M/s.Vara Vara Chits Limited (in Liqn) under Section 446 (2)(b) of the Companies Act, 1956 read with Rules 9 and 11 (b) of the Company (Court) Rules, 1959, seeking a Decree against the respondents for a sum of Rs.24,688 along with interest at 12% per annum from 23-1-1999 till the date of realization. This Court by an order dt.23-4-2001 made in C.P.No.131 of 2000 appointed the Official Liquidator attached to this Court as Provisional Liquidator of M/s.Vara Vara Chits Limited. Subsequently by an order dated 6-2-2002, M/s.Vara Vara Chits Limited was directed to be wound up and Official Liquidator was appointed as its Liquidator. As per the Chit Ledger furnished by the Ex-Managing Director of the Company (in Liqn), respondent No.1 herein became a prized subscriber to chit No.36 of Chit Group No.VVHL-30A. The chit value was Rs.30,000/-. The duration of the chit was 40 months. Respondent No.2 stood as guarantor to respondent No.1 in respect of the above referred chit. The 1st respondent paid chit subscription amount of Rs.5,250/- including dividend for 7 months. He committed default in paying the remaining monthly instalments. As per the chit ledger, the respondents have to pay an amount of Rs.24,688/- to the Company (in Liqn). Hence, this application seeking a Decree for the said amount against the respondents No.1 and 2 jointly and severally. Notice to respondents came to be effected by way of publication in Vaartha daily local edition as ordered by this Court on 20-6-2003 in C.A.No.427 of 2003. Despite service being effected by way of publication, respondents failed to enter appearance. Chief affidavit of Mr.G.Srinivasa Rao has been placed on record. 15 documents are filed and they are marked as Ex.A.1 to Ex.A.15. Heard learned Counsel appearing for the Official Liquidator and perused the evidence of P.W.1 and Ex.A.1 to Ex.A.15. As per Ex.A.2 – documentation sheet, the 1st respondent became the prized subscriber for the chit group Rs.VVHL-30A/36 on 21-6-1998 and received the prize amount of Rs.16,387/- by way of cheque Rs.581051. As per Ex.A.6 – Chit Ledger Folio, the 1st respondent paid 7 instalments and committed default in paying the subsequent instalments. Hence, I find that the evidence of P.W.1 and Ex.A.1 to Ex.A.15 substantiate the claim of the applicant against respondents Rs.1 and 2. Accordingly, the application is allowed with costs granting a Decree for a sum of Rs.24,688/- along with interest at 12% per annum from 23-1-1999 till this day and at 6% per annum from this day till the date of payment. _________________________ B.Seshasayana Reddy, J 12th August, 2011 smr