THE HON’BLE Ms. JUSTICE G. ROHINI COMPANY APPLICATION No.1226 OF 2007 AND COMPANY APPLICATION (SR) No.2378 OF 2010 IN COMPANY PETITION No.38 OF 2005 Date: 14.02.2011 C.A.No.1226 of 2007 Between: M/s. Visveswar Finance & Chit Funds (P) Ltd., Hyderabad. …Applicant And Sri B.H.S.R.Bharadwaj, Secunderabad and 3 others. …Respondents C.A.(Sr.)No. 2378 of 2010 Sri B.H.S.R.Bharadwaj, Secunderabad. …Applicant and M/s. Visveswar Finance & Chit Funds (P) Ltd., Hyderabad. … Respondents THE HON’BLE Ms. JUSTICE G. ROHINI COMPANY APPLICATION No.1226 OF 2007 AND COMPANY APPLICATION (SR) No.2378 OF 2010 IN COMPANY PETITION No.38 OF 2005 COMMON ORDER : By order dated 15.11.2005 in C.P.No.38 of 2005, M/s. Visveswar Finance & Chit Funds (P) Limited was directed to be wound up and the Official Liquidator attached to this Court was appointed as Liquidator of the said company. Company Application No.1226 of 2007 has been filed by the Official Liquidator representing the company-in-liquidation under Section 446 (2) (b) of the Companies Act, 1956 against the 1st respondent and the sureties for recovery of a sum of Rs.36,000/- along with interest at 12% p.a. w.e.f. 26.11.2002. It is alleged that the 1st respondent was the prized subscriber in respect of Chit Ticket No.04 of Chit Group VCKL 1/10 valued at Rs.1,00,000/- payable for a period of 50 months at the rate of Rs.2,000/- every month. After paying 32 monthly subscriptions totalling Rs.64,000/-, the 1st respondent lifted the chit and received the bid amount, but thereafter did not pay the balance 18 months’ subscription amounting to Rs.36,000/-. Hence Company Application No.1226 of 2007 seeking recovery of the said amount together with interest. The respondent No.1 filed Company Application (SR) No. 2378 of 2010 stating that he was also a subscriber of another chit viz., Chit Ticket No.31 of Chit Group VCKM 5/1 and that though he had paid 31 monthly subscriptions totalling Rs.1,55,000/-, he had not lifted the said chit and thus stood as unprized subscriber. It is claimed that the company-in-liquidation is liable to pay to him a sum of Rs.1,55,000/- towards the said unlifted chit. Thus the 1st respondent prayed to set off the amount of Rs.36,000/- payable towards Chit Ticket No.04 in Chit Group VCKL 1/10 and direct the Official Liquidator to pay the balance amount to him by waiving interest payable with regard to the amount due in Chit Ticket No.04. It is also stated that as per the Chit Ledger Records, the actual subscription paid by the respondent No.1 was Rs.1,08,537-50ps and a sum of Rs.46,462-50ps was credited by the company-in-liquidation towards dividend and the said Chit Ledger Record did not disclose any details with regard to refund of the chit subscription in T.No.31. However, it is added that in the list of creditors furnished along with the statement of affairs by the Ex. Director of the company-in- liquidation, Chit Group No.VCKM 5/1 was not shown and steps are being taken to call for an explanation from the Ex. Director. I have heard the learned counsel for both the parties and perused the material available on record. Having regard to the report submitted by the Official Liquidator in which the fact that the petitioner had subscribed to another chit namely T.No.31 and a sum of Rs.1,08,537-50ps was actually paid by him, I am of the opinion that the respondent No.1 is entitled to claim set off the amount due under Ticket No.04 of Chit Group VCKL 1/10 against the sum available to the credit of T.No.31 of Group VCKM 5/1. In the facts and circumstances of the case, this Court also deems it appropriate to waive the interest claimed by the Official Liquidator in C.A.No.1226 of 2007 on the amounts due in respect of Chit No.04 of Chit Group VCKL 1/10. So far as the dividend is concerned, it is contended by the learned counsel for the Official Liquidator that the 1st respondent is not entitled for any dividend in terms of the bye-laws of the company-in- liquidation. Accordingly, both the Applications are disposed of with a direction to the Official Liquidator to pay the amounts to which the 1st respondent is entitled to in respect of Chit No.31 after setting off the principal amount due from him under Chit No.04. The interest claimed in Company Application No.1226 of 2007 is hereby waived. No costs. _____________ G. ROHINI, J. Dt. 14.02.2011 gbs