AMMINA TARAKUMARI Vs. CITY CHITS AND FINANCE

JUDGEMENT

(1.) This Appeal suit was filed by the Appellants i.e., unsuccessful defendants under Section 96 of the Code of Civil Procedure, against the decree and judgment, dated 27.12.2007 passed in O.S.No.287 of 2005 on the file of the I Additional Senior Civil Judge, Kakinada.

(2.) The respondent herein i.e., M/s.City Chits and Finance, Kakinada filed the suit in O.S.No.287 of 2005 for recovery of Rs.3,62,174/- from the defendants.

(3.) As per the averments of the plaint the 1st defendant joined as member in the plaintiff company in Group No.I-2, Ticket No.39, for a chit of Rs.2,00,000/- payable at the rate of Rs.5,000/- per month for 40 months and executed the chit agreement on 12.02.2003. On 15.03.2003 1st defendant became successful bidder for a discount of Rs.1,00,200/- and brought defendant Nos.2 and 3, who executed the agreement of guarantee. The plaintiff further submits that 1st defendant joined another chit of Rs.3,00,000/- to be subscribed at the rate of Rs.10,000/- per month for 30 months and executed the chit agreement dated 24.01.2004 and in the auction held on 24.01.2004 1st defendant became successful bidder for a discount of Rs.1,29,900/- and defendants 2 and 3 executed the guarantee agreement. The plaintiff further submits that for the first chit, the defendants executed a demand promissory note for Rs.1,90,000/- and for the second chit defendants executed a demand promissory note for Rs.2,90,000/-. The 1st defendant paid some installments and thereafter committed default and as such, the plaintiff company issued legal notices, dated 24.05.2005 and 24.05.2005 and in spite of the legal notices, the defendants failed to pay the amount due and as such, the plaintiff is constrained to file the suit for recovery of Rs.3,62,174/- payable on both the chits.