THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.13 of 2009 in Company Petition No.38 of 2005 Dated:09th March, 2010 Between: M/s. Visveswar Finance & Chit Funds (P) Ltd. (in liquidation) rep. by the Official Liquidator, High Court of A.P., Hyd. ….Applicant AND 1. Sri Kothapally Sudhakar Reddy and ors. …Respondents **** THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.13 of 2009 in Company Petition No.38 of 2005 ORDER: This is an application filed by applicant M/s.Visveswar Finance & Chit Funds (P) Ltd. (in liquidation) represented by the Official Liquidator under Section 446(2)(b) of the Companies Act, 1956 read with Rules 9 and 11(b) of the Companies (Court) Rules, 1959, seeking a decree against the respondents for a sum of Rs.30,000/- along with interest @ 12% p.a. w.e.f. 21.05.2003 till the date of realisation. A further relief sought for in the application is a direction to the respondents to pay Rs.1,240/- being the interest on belated payment of Rs.2,000/- by 1st respondent towards part of his liability in the office of the Official Liquidator. 2. Notice to the respondents has been ordered on 27.01.2009. Respondents 1, 3 and 4 received the notice. Despite service of notice on respondents 1, 3 and 4, they did not choose to enter appearance either in person or through a counsel. The Official Liquidator has given-up the claim against the 2nd respondent. 3. Affidavit in lieu of chief-examination of PW.1 has been placed on record together with documents, 22 in number, which were marked as Exs.A1 to A22. The applicant Company (in liquidation) was carrying on chit fund business. By an order dated 15.11.2005 passed in Company Petition No.38 of 3005, this Court ordered winding up of the applicant-Company and the Official Liquidator attached to this Court has been appointed as a liquidator of the said Company. In the process of realizing the assets of the applicant-Company and recovering the debts due to the applicant-Company, the 1st respondent herein found to be a prized subscriber of Ticket No.20 of Group No.VCKL 1/10 valued at Rs.1,00,000/- The duration of the chit is 50 months and hence monthly contribution is Rs.2,000/-. The bid of the 1st respondent, at the auction that was conducted on 26.02.2002 for Rs.60,000/-, has been accepted and he has been paid a sum of Rs.35,760/- against bid amount of Rs.60,000/- by way of cheque bearing No.729715 dated 15.07.2002 after deducting a sum of Rs.18,440/- towards arrears of subscription dues for installment Nos.12 to 25 plus Rs.200/- towards documentation charges aggregating to Rs.18,640/-. The respondents 2 to 4 stood as sureties to respondent No.1 herein in the said prized chit. The respondents executed a joint promissory note and respondents 2 to 4 executed an agreement of guarantee in favour of the applicant-Company (in liquidation). As per the chit ledger record of the company (in liquidation), the 1st respondent herein paid the chit subscription amount of Rs.68,000/- for 34 months and the said sum includes an amount of Rs.21,619/- towards dividend credited by the company (in liquidation) leaving a balance liability of Rs.32,000/- remaining unpaid with effect from 21.05.2003. 3. As per the statement of affairs filed by the Ex.Managing Director with office of the Official Liquidator on 26.5.2006, the 1st respondent is due in a sum of Rs.36,000/- to the company (in liquidation) in respect of the said chit w.e.f. 21.05.2003. 4. The Official Liquidator issued a notice dated 07.06.2007 requiring the respondents 1 to 4 to pay the amount due to the applicant- Company (in liquidation). There being no response from the respondents, the Official Liquidator filed this application under Section 446(2)(b) of the Companies Act r/w. Rules 9 and 11(b) of the Companies (Court) Rules, 1959, with the prayer stated supra. 5. Heard learned counsel appearing for the Official Liquidator and perused the affidavit filed in lieu of chief-examination of PW.1 and the documents filed along with the affidavit. 6. The first respondent became the successful bidder in the auction held on 26.02.2002. He received the chit amount by way of cheque bearing No.729715 dated 15.07.2002. The respondents 2 to 4 stood as guarantors. The first respondent paid some installments towards chit amount. The last installment paid by him is dated 21.05.2003. Despite notice being served on the respondents, they did not choose to liquidate the liability. As stated earlier, the Official Liquidator not pressed the claim against 2nd respondent. The claim against respondents 1, 3 and 4 is proved. 7. Hence, the claim of the applicant company against respondents 1, 3 and 4 is allowed and there shall be a decree against the respondents 1, 3 and 4 jointly and severally for a sum of Rs.30,000/- with interest at 12% per annum from 21.05.2003 till the date of the decree and thereafter at 6% per annum till the date of realization and costs. 8. Accordingly, the Company Application is allowed. ______________________ B.SESHASAYANA REDDY, J. Date:09th March, 2010. cs THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.13 of 2009 in Company Petition No.38 of 2005 Dated:09th March, 2010