THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Applications No.648 and 1637 of 2011 10th November, 2011 Between :- C.A.No.648 of 2011 M/s.Mamatha Chit Fund (P) Ltd (In Prov.Liqn) Rep.by the Official Liquidator, High Court of Andhra Pradesh, Hyderabad .. Applicant And P.Seetharamulu Goud And others .. Respondents C.A.No.1637 of 2011 P.Seetharamulu Goud .. Applicant And M/s.Mamatha Chit Fund (P) Ltd (In Prov.Liqn) Rep.by the Official Liquidator, High Court of Andhra Pradesh, Hyderabad and others .. Respondents THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Applications No.648 and 1637 of 2011 COMMON ORDER:- M/s.Mamatha Chit Fund (P) Ltd (In Prov.Liqn) represented by the Official Liquidator is the applicant in C.A.No.648 of 2011. The 1st respondent in the said application is the applicant in C.A.No.1637 of 2011 (The parties hereinafter referred to as they are arrayed in C.A.No.648 of 2011). This Court by an order dated 20-3-2002 made in C.P.No.13 of 2002 appointed the Official Liquidator attached to this Court as Provisional Liquidator of M/s.Mamatha Chit Fund (P) Limited. As per the available records of the Company (in Prov.Liqn), the 1st respondent joined as a member in the chit group No. LP-16E. As per the chit agreement, the chit group is valued at Rs.50,000/- for a period of 50 months @ Rs.1,000/- each. The chit group commenced on 29-9- 1996 and was to be terminated on 4th Sunday of October, 2000. The 1st respondent became a successful bidder in the auction held on 26- 7-1998 and received the prize amount of Rs.36,500/-. He paid 46 instalments and committed default in paying the subsequent instalments. As per the chit ledger, a sum of Rs.4,300/- is due from him. Respondents No.2 to 4 stood as guarantors for the 1st respondent. The Official Liquidator issued notice to the respondents No.1 to 4 demanding the amount of Rs.4,300/- shown as due as per the revised list of debtors forming part of statement of affairs. Notice sent to respondents No.1 and 2 served and whereas notice sent to respondents No.3 and 4 returned unserved. There being no response from the respondents No.1 and 2, the Official Liquidator filed the C.A.No.648 of 2011 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 jointly and severally for a sum of Rs.4,00/- along with interest @ 12% per annum w.e.f. 25- 6-2000 till the date of realiztion. Notice to the respondents came to be ordered on 22-6-2011. The 1st respondent entered appearance through a Counsel. 1st respondent filed counter. He also moved C.A.No.1637 of 2011 to set off the claim amount of Rs.4,000/- of chit No.LT-16E 3 from the amount of Rs.35,399/- due to him in respect of the Chit No.LT-16E 4, for which he is an unprized subscriber. Assistant Official Liquidator placed on record his report. As per the report, the 1st respondent herein is an unprized subscriber in respect of chit group No.LT-16E/04 with ticket No.4. The amount paid by him under the said chit is Rs.35,399/-. In view of the report, there cannot be any impediment in considering C.A.No.1637 of 2011. Accordingly, C.A.No.1637 of 2011 is ordered permitting the Official Liquidator to deduct Rs.4,000/- from the amount payable to the 1st respondent under chit group No.LP16E/04. Since C.A.No.1637 of 2011 is being allowed, the amount claimed by the applicant in C.A.No.648 of 2011 is deemed to have been discharged. Accordingly, both the Company Applications are ordered. _________________________ B.Seshasayana Reddy, J 10th November, 2011 smr