2003 (11) TMI 347 - HC - Companies Law

Summary

Issues Involved:
1. Recovery of dues by the Official Liquidator from the respondents.
2. Liability of respondents to pay the claimed amount.
3. Entitlement of respondent No. 1 to the claimed amount from the applicant.
4. Adjustment of amounts between Chit No. 18 and Chit No. 46.
5. Attachment of property for realization of dues.

Detailed Analysis:

Issue 1: Recovery of Dues by the Official Liquidator
The Official Liquidator, representing M/s. Sri Krishna Tulasi Chit Fund (P.) Limited, filed an application under section 446(2) of the Companies Act, 1956, seeking a direction for the respondents to pay Rs. 1,51,846 with interest at 12% per annum from 10-3-1999 until realization. The application also prayed for the attachment of property in the name of respondent No. 2.

Issue 2: Liability of Respondents to Pay the Claimed Amount
The applicant contended that respondent No. 1, M/s. Renuka Traders, subscribed to Chit No. 18 of Chit Group KLT-2A, valued at Rs. 5,00,000, and paid 31 monthly subscriptions amounting to Rs. 3,10,000. Respondent No. 1 was the prized subscriber and received Rs. 2,47,000. The applicant claimed that respondent No. 1 still owed Rs. 1,51,846.

Issue 3: Entitlement of Respondent No. 1 to the Claimed Amount from the Applicant
Respondent No. 1 argued that he paid Rs. 6,00,000 towards subscriptions for Chit Nos. 18 and 46, with Rs. 3,80,000 for 38 monthly subscriptions in Chit No. 18 and Rs. 2,20,000 for 22 monthly subscriptions in Chit No. 46. He claimed that the applicant owed him Rs. 3,52,000 after deducting the prized amount received. The applicant disputed this, stating that respondent No. 1 paid only Rs. 3,10,000 for 31 months in Chit No. 18 and Rs. 39,000 additionally, totaling Rs. 3,49,000.

Issue 4: Adjustment of Amounts Between Chit No. 18 and Chit No. 46
The court examined the evidence, including the original passbook (Ex. B1), and concluded that respondent No. 1 paid only 31 monthly subscriptions amounting to Rs. 3,10,000, inclusive of dividends. The applicant did not dispute the payment of Rs. 2,20,000 for Chit No. 46. However, the court noted that respondent No. 1's membership in Chit No. 46 was terminated by a letter dated 26-8-1998, which respondent No. 1 did not contest. The letter indicated that the applicant owed respondent No. 1 Rs. 1,24,880 after deductions for damages and incidental charges.

Issue 5: Attachment of Property for Realization of Dues
The court decreed that respondent No. 1 was entitled to Rs. 1,24,880 from the applicant for Chit No. 46. After adjusting this amount against the Rs. 1,51,846 owed by respondent No. 1 for Chit No. 18, respondent No. 1 was found liable to pay Rs. 29,966 to the applicant. The court ordered that the respondents be jointly and severally liable to pay this amount with 12% interest per annum. If the respondents failed to pay, the applicant was authorized to attach the property covered by the title deeds deposited by respondent No. 2.

Conclusion
The court ruled in favor of the applicant, decreeing that the respondents pay Rs. 29,966 with interest. The applicant was directed to release the title deeds upon payment, or proceed with attachment if the payment was not made.