COMPA/1862/2011 of B. Devender Reddy Vs M/s Mamatha Chit Funds (P) Ltd (In Prov. Liqdn), on 29 December 2011

ORDER:-

This application has been filed by B.Devender Reddy, who is the3[rd] respondent in C.A.No.2837 of 2003, to close E.P.No.147 of 2005on the file of the First Senior Civil Judge, City Civil Court, Hyderabad,by recording full satisfaction memo in view of his payment ofRs.1,20,000/- which is the principal amount claimed by the applicant inC.A.No.2837 of 2003.

The applicant stood as guarantor to the chit amount received bythe 2[nd] respondent herein. Consequent on the failure of the 2[nd]respondent to pay the chit amount, proceedings have been initiated by the Official Liquidator on behalf of M/s.Mamatha Chit Funds (P) Ltd., (InProv.Liqn.) for recovery of the amount by filing C.A.No.2837 of 2003. The said application came to be allowed granting a decree for a sumof Rs.1,20,000/- with interest at 12% per annum from 9-11-1999 till thedate of realization in favour of the Company (In Prov.Liqn.). Since theJudgment-debtors in C.A.No.2837 of 2003 failed to pay the moneydespite the decree being granted, the Official Liquidator representingthe Company (In Prov.Liqn.) filed E.P.No.147 of 2005 on the file of theFirst Senior Civil Judge, City Civil Court, Hyderabad, for recovery ofthe decretal amount in C.A.No.2837 of 2003. The particulars of theamount sought to be recovered from Judgment-debtors are as follows:- The applicant herein, who is the Judgment-debtor No.3 inC.A.No.2837 of 2003 paid principal amount of Rs.1,20,000/- andmoved the instant application seeking waiver of the interest.

The Assistant Official Liquidator representing the Company (InProv.Liqn.) placed on record his report.

Heard learned Counsel appearing for the applicant – J.Dr.No.3and the learned Counsel appearing for the Official Liquidatorrepresenting the Company (In Prov.Liqn.) – M/s.Mamatha Chit Fund(P) Ltd.

Learned Counsel appearing for the applicant submits that theapplication is only a guarantor and he did not receive any amount fromCompany (In Prov.Liqn.). A further submission has been made that the applicant made a payment of principal sum of Rs.1,20,000/- andtherefore seeks waiver of interest.

The factual aspect of the applicant being the guarantor is not indispute. The applicant paid Rs.1,20,000/- as on this day. The balanceamount, if the interest is calculated at 4% per annum under Section156 of the Companies (Court) Rules, 1959, payable by the applicantcomes to Rs.46,540/-. In similar circumstances, part of the interest hasbeen waived by this Court. Copy of the order passed in C.A.No.993 of2011 in C.A.No.568 of 2008 in C.P.No.13 of 2002 has been placed onrecord. Having regard to the facts and circumstances, I am of the viewthat future interest payable by the applicant can be waived subject tohis paying Rs.35,000/- (Rupees thirty five thousand only) within aperiod of four weeks from today, failing which, the Decree-holder inC.A.No.2837 of 2003 can recover the amount as per the amountclaimed in E.P.No.147 of 2005 on the file of the First Senior CivilJudge, City Civil Court, Hyderabad.

Accordingly, the Company Application is partly allowed.

29[th] December, 2011smr

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B.Seshasayana Reddy, J