TMI Blog2003 (6) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 account 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent was the subscriber of chit No. 4 of Chit Group No. VVSL-50G, the value whereof was Rs. 50,000 to be subscribed at the rate of Rs. 1,000 per month inclusive of dividends. The first respondent obviously paid 17 monthly instalments continuously. The last payment she made was on 6-3-2000. Further on 23-4-2001 Provisional Liquidator was appointed in this case and on 6-2-2002 the company was ordered to be wound up. Since the company was not functioning, no laches can be attributed squarely to the first respondent and it is a clear case where there has been no default on the part of the first respondent in paying the monthly subscriptions. On the other hand, it is a clear case where the company did not conduct the monthly auctions. In that vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubscribers. According to the said section, a chit is deemed to have been terminated on account of the foreman becoming incapacitated or a chit is not continued for any reason, every non-prized subscriber is entitled to get back his subscriptions at the termination of the chit without any deduction for dividend, if any, earned by him. It is obvious from section 42 that when once a chit is deemed to have been terminated, the non-prized subscriber who is entitled to the refund of the amount paid by him is obviously not entitled to dividends, if any, earned by him. Obviously its because, regular auctions at the end of the month are not being conducted and in consequence thereof, there will not be any prized subscribers and there will not be any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot arise at all does not arise." For the above reasons therefore, the plea of the first respondent that she is entitled to the dividends cannot be countenanced. 6. For the foregoing reasons, the Company Application is allowed and there shall be a decree in favour of the applicant for a sum of Rs. 33,000 against the respondents 1 to 4 who are jointly and severally liable to pay the same without any interest. The first respondent is permitted to pay the decretal amount in instalments at the rate of Rs. 1,000 per month commencing from 1-7-2003 and in the event of any default consecutively for two months, the respondents 1 to 4 are liable to pay the amount in lump-sum. Under the circumstances, there shall be no order as to costs. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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