VARA VARA CHITS LTD Vs. Y PUNYAVATHI

JUDGEMENT

(1.) M/s. Vara Vara Chits Limited represented by the Official Liquidator seeks a direction to the respondents to pay jointly and severally a sum of Rs.31,429/- with interest at the rate of 12% per annum from 23.4.2001 till the date of realisation.

(2.) The facts lie in a narrow compass:

(3.) By an order dated 23.4.2001 passed in Company Petition No. 131 of 2000, the Official Liquidator attached to the Company Court was appointed as Provisional Liquidator of M/s.Vara Vara Chits Limited, the company which was under provisional liquidation. Subsequently on 6.2.2002 the company was ordered to be wound up. Pursuant to the said orders, the Official Liquidator took possession of the assets and books of accounts of the company. It revealed from the information contained in the statement of affairs and the list of debtors, that the first respondent was a subscriber to Chit No.4 of Chit Group No. VVSL-50G the value whereof was Rs.50,000/-, to be subscribed at Rs.1,000/- per month for a duration of 50 months. The chit was commenced in the month of November, 1998. Later, the first respondent became the prized subscriber and the Respondents 2 to 4 stood as guarantors to the first respondent. They together executed a promissory note and the Respondents 2 to 4 further executed an agreement of guarantee undertaking to repay an amount of Rs.33,000/-. By then the first respondent paid an amount of Rs.17,000/- towards monthly subscriptions for 17 months inclusive of the dividend. Therefore, the first respondent has to pay an amount of Rs.33,000/- for the remaining 33 months. The last payment made by him was on 6.3.2000, a month after the final orders of winding up. The Official Liquidator got a notice dated 18.10.2001 issued to the respondents. The notices were served on the Respondents 1, 2 and 3. The first respondent got a reply dated 23.10.2001 issued through her Counsel mentioning inter alia that she is not liable to pay the interest. Hence, the claim.