THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.544 of 2010 Date:13th June, 2011 Between: M/s. Mamatha Chit Fund (P) Ltd. (in provisional liquidation) Rep. by the Official Liquidator, High Court of A.P., Hyderabad. …Applicant and 1.Sri Kuchakulla Krishna & Ors. …Respondents *** THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.544 of 2010 ORDER: This Company Application has been taken out by the Official Liquidator representing M/s.Mamatha Chit Fund (P) Ltd. (in provisional liquidation) under Section 446(2)(b) of the Companies Act, 1956 r/w. Rules 9 and 11(b) of the Companies (Court) Rules, 1959, seeking a decree against the respondents jointly and severally for a sum of Rs.7,000/- with interest @ 12% p.a. w.e.f. 21.03.2000 till the date of realisation. 2. By order, dated 20.03.2002, passed in Company Petition No.13 of 2002, the Official Liquidator attached to this Court was appointed as provisional liquidator of M/s.Mamatha Chit Fund (P) Ltd., (in provisional liquidation). The 1st respondent joined in the chit group No.LP16E with ticket No.39 conducted by the Company (in provisional liquidation). The value of the chit is Rs.50,000/- with a duration of 50 months at the rate of Rs.1,000/- per month each. The 1s t respondent became the prized subscriber and received an amount of Rs.30,325.20 ps. against the bid amount of Rs.33,960/- by way of cheque bearing No.521928, dated 06.03.1999 after deducting an amount of Rs.3,634.80ps. towards arrears of subscription dues in respect of Ticket Nos.39 and 40. The 1st respondent paid Rs.43,000/- for 43 instalments for the period from 23.09.1996 to 21.03.2000, which includes an amount of Rs.10,417.60 ps. towards dividend credited by the Company (in provisional liquidation), leaving a balance of Rs.7,000/- remaining unpaid. As per the revised list of debtors forming part of statement of affairs filed on 17.01.2003 by the Ex-Managing Director of the Company (in provisional liquidation), the 1st respondent has to pay Rs.9,556.50 ps. and the said amount includes a sum of Rs.2,350/- towards other dues and penalties. The respondents 2 to 4 stood as sureties to the 1st respondent for the prized chit amount. A notice dated 28.02.2003 came to be issued by the Official Liquidator to the 1st respondent calling upon him to pay the amount due. The notice sent to the 1st respondent returned unserved. Hence, this Company Application by the Official Liquidator seeking a decree against the respondents as stated supra. 3. Notice to the respondents came to be ordered on 14.07.2010. The applicant filed C.A.No.176 of 2011 seeking service of notices to the respondents through substitute service by way of publication. The said application came to be ordered on 16.03.2011 permitting the applicant to take out notice to the respondents by way of publication in ‘JANATHA’, a Telugu daily, in local edition having circulation in Hyderabad. The applicant took out the publication and filed copy of the same as proof. Despite notice being served on the respondents by way of publication, they did not choose to enter appearance either in person or through a counsel. 4. The applicant filed affidavit of Mr.R.Ramakrishna Reddy, in lieu of chief-examination, and produced 23 documents, which have been marked as Exs.A1 to A23. 5. Heard learned counsel appearing for the Official Liquidator and perused the affidavit of Mr.R.Ramakrishna Reddy and Exs.A1 to A23. 6. The first respondent became the prized subscriber of the chit group No.LP16E with ticket No.39 conducted by the Company (in provisional liquidation) and received Rs.30,325.20ps. against the bid amount of Rs.33,960/-. The Respondents 2 to 4 stood as sureties for the first respondent in respect of the prized chit with Ticket No.39. The 1st respondent paid 43 instalments and subsequently committed default in paying the rest of the instalments. As per Ex.A1 the respondents executed demand promissory note promising to repay Rs.20,000/- Ex.A3 is the Surety and Security Proposal Form executed by the respondents 1 to 4. Ex.A4 is the prized subscriber bid payment final statement. It contains the signature of the 1st respondent. As per Ex.A12 certified copy of the chit ledger, the 1st respondent paid 43 instalments. The amount due as per chit ledger is Rs.7,000/- The evidence of PW.1 and the documents placed on record substantiated the claim of the applicant against the respondents 1 to 4. 7. Accordingly, the Company Application is allowed with costs granting a decree in favour of the applicant and against the respondents jointly and severally for a sum of Rs.7,000/- with interest at the rate of 12% p.a. w.e.f. 21.03.2000 to this day and at the rate of 6% p.a. from this day to the date of realisation. _____________________ B.SESHASAYANA REDDY, J Date:13th June, 2011. cs THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.544 of 2010 Date :13th June, 2010