SUDHAKAR SYNDICATE P LTD Vs. H M CHANDRASEKHARIAH

JUDGEMENT

(1.) This is an application filed by the Official Liquidator under Sec. 446 (2) (b) of the Companies Act, 1956 to recover a sum of Rs. 1709 being the principal and interest due from respondents 1, 2 and 3 jointly and severally in respect of the chit fund transaction the 1st respondent had with the Company in liquidation while it was carrying on business.

(2.) The Chit value was Rs. 2,500. Respondent-1 was the highest bidder at the auction held for chit Group-DLN of the Company (in Liquidation). The auction was held on 23-6-74. He received the prize amount on 22.7.74 and on the latter date, he executed a promissory note for Rs. 1,675-00 promising to repay the said amount together with interest at the rate of 18% per annum. Respondents 2 and 3 executed the pronote as sureties.

(3.) After the Company came to be wound up, the Official Liquidator issued notice of demand to respondents for the payment of the balance due by the 1st respondent in respect of the aforementioned transaction he had with the Company without success.