HON’BLE SRI JUSTICE D.S.R. VARMA AND HON’BLE SRI JUSTICE B.N. RAO NALLA O.S.A.No.15 of 2009 ORAL JUDGMENT : (per Hon’ble Sri Justice D.S.R.Varma) Heard learned counsel appearing for the appellant as well as the learned counsel for the Official Liquidator appearing for respondent No.1, the company under liquidation. 2. This appeal is directed against the order, dated 25.11.2008, in Company Application No.983 of 2007 in Company Petition No.38 of 2005, passed by the learned single Judge of the Company Court, rejecting to pay interest on the amount due to the appellant by the company under liquidation. 3. It appears that the appellant is participating in two chits viz., Group No.VCDL 1/14 and Group No.VCDL 1/16-22. There is no dispute that, being a prized subscriber in Chit No.VCDL 1/14, the appellant has to pay Rs.8,000/- to the company under liquidation along with interest at 12% per annum. However, the said interest has been waived, the reasons of which are not relevant to be mentioned. However, in the other chit, i.e., Chit Group No.VCDL 1/16-22, being an unprized subscriber, the appellant has to receive a sum of Rs.76,000/-, which is to be repaid by the company under liquidation subject to availability of funds being recovered from the other debtors. The amount of Rs.8,000/-, which is due by the appellant to the company under liquidation in chit group No.VCDL 1/14, was permitted to be deducted by the Company Court by way of adjustment from out of the amount of Rs.76,000/- due to be paid to the appellant by the company under liquidation in chit group No.VCDL 1/16-22. The whole controversy is because the Company Court directed that no interest need be paid by the company under liquidation on the remaining amount of Rs.68,000/- due to the appellant after deducting the amount of Rs.8,000/- from out of the amount of Rs.76,000/-. Hence the present appeal by the appellant. 4. Learned counsel for the appellant contends that the Company Court has no jurisdiction to take away the right of the appellant/creditor to receive interest on the amount due to him. 5. The only question that falls for consideration in this appeal is whether the Company Court can take away the right of the appellant to receive interest on the amount due to be paid to him by the company under liquidation in another chit transaction. 6. Admittedly, the appellant, being a creditor, would be entitled to receive the balance amount of Rs.68,000/- (after deducting the amount of Rs.8,000/- from out of the amount of Rs.76,000/-) along with interest. However, the same is subject to availability of funds after recovery by the Official Liquidator from the debtors. Learned counsel for the Official Liquidator also admitted the said proposition. 7. Therefore, we are of the view that the learned single Judge of the Company Court erred in taking away the right of the appellant to receive interest on the amount due to him by the company under liquidation. 8. It is needless to reiterate that the appellant, being a creditor, is entitled to receive the balance amount of Rs.68,000/- (after deducting the amount of Rs.8,000/- from out of the amount of Rs.76,000/-) along with interest, however, subject to availability of funds at a future date. 9. It is further needless to mention that the appellant shall have to make a claim, if not already made, before the Official Liquidator for payment of the balance amount of Rs.68,000/- along with interest, which would be subject to adjudication by the Official Liquidator basing on the availability of funds being recovered from the other debtors. 10. With the above clarification, the appeal is disposed of, at the stage of admission. There shall be no order as to costs. _______________________ JUSTICE D.S.R.VARMA __________________________ JUSTICE B.N. RAO NALLA 28.07.2010. Msr HON’BLE SRI JUSTICE D.S.R. VARMA AND HON’BLE SRI JUSTICE B.N. RAO NALLA O.S.A.No.15 of 2009 28.07.2010 (Msr)