Partly allowed

B. Devender Reddy v. M/s Mamatha Chit Funds (P) Ltd. (In Prov. Liqdn)

Telangana HC29 Dec 2011COMPA/1862/2011

Case brief

AI extract

What is this about?

The court partially allowed an application filed by a guarantor who paid the principal decree amount to request a waiver of interest. The court ordered the applicant to pay Rs.35,000 within four weeks to waive future interest; otherwise, the decree-holder could recover the full claimed amount through execution proceedings.

What did the court decide?

Future interest on the decree is waived subject to the payment of Rs.35,000 within four weeks; otherwise, the decree-holder may recover the claimed amount in execution proceedings.

B. Devender Reddy Vs M/s Mamatha Chit Funds (P)… — Execution and Attachment | Telangana HC (2011)

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THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.1862 of 2011 Company Application No.2837 OF 2003 In Company Petition No.13 of 2002

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2 9 th December, 2011

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Between :-

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B.Devender Reddy .. Applicant And

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M/s.Mamatha Chit Funds (P) Ltd (In Prov.Liqn.) Rep.by the Official Liquidator, High Court of Andhra Pradesh, Hyderabad and others .. Respondents

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THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.1862 of 2011 Company Application No.2837 OF 2003 In Company Petition No.13 of 2002

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ORDER:-

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This application has been filed by B.Devender Reddy, who is the 3^rd respondent in C.A.No.2837 of 2003, to close E.P.No.147 of 2005 on the file of the First Senior Civil Judge, City Civil Court, Hyderabad, by recording full satisfaction memo in view of his payment of Rs.1,20,000/- which is the principal amount claimed by the applicant in C.A.No.2837 of 2003.

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The applicant stood as guarantor to the chit amount received by the 2^nd respondent herein. Consequent on the failure of the 2^nd respondent to pay the chit amount, proceedings have been initiated by

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the Official Liquidator on behalf of M/s.Mamatha Chit Funds (P) Ltd., (In Prov.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 sum of Rs.1,20,000/- with interest at 12% per annum from 9-11-1999 till the date of realization in favour of the Company (In Prov.Liqn.). Since the Judgment-debtors in C.A.No.2837 of 2003 failed to pay the money despite the decree being granted, the Official Liquidator representing the Company (In Prov.Liqn.) filed E.P.No.147 of 2005 on the file of the First Senior Civil Judge, City Civil Court, Hyderabad, for recovery of the decretal amount in C.A.No.2837 of 2003. The particulars of the

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amount sought to be recovered from Judgment-debtors are as follows:-

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Amount of Decree	Rs.1,20,000-00
Interest at 12% p.a. From 9-11-1999 to 10-11-2005	Rs. 86,440-00
(6 years and 1 day)
E.P.Costs	Rs. 100-00
Total	Rs.2,06,540-00

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The applicant herein, who is the Judgment-debtor No.3 in C.A.No.2837 of 2003 paid principal amount of Rs.1,20,000/- and moved the instant application seeking waiver of the interest.

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

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

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Learned Counsel appearing for the applicant submits that the application is only a guarantor and he did not receive any amount from Company (In Prov.Liqn.). A further submission has been made that the

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applicant made a payment of principal sum of Rs.1,20,000/- and therefore seeks waiver of interest.

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The factual aspect of the applicant being the guarantor is not in dispute. The applicant paid Rs.1,20,000/- as on this day. The balance amount, if the interest is calculated at 4% per annum under Section 156 of the Companies (Court) Rules, 1959, payable by the applicant comes to Rs.46,540/-. In similar circumstances, part of the interest has been waived by this Court. Copy of the order passed in C.A.No.993 of 2011 in C.A.No.568 of 2008 in C.P.No.13 of 2002 has been placed on record. Having regard to the facts and circumstances, I am of the view that future interest payable by the applicant can be waived subject to his paying Rs.35,000/- (Rupees thirty five thousand only) within a period of four weeks from today, failing which, the Decree-holder in C.A.No.2837 of 2003 can recover the amount as per the amount claimed in E.P.No.147 of 2005 on the file of the First Senior Civil Judge, City Civil Court, Hyderabad.

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Accordingly, the Company Application is partly allowed.

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_________________________ B.Seshasayana Reddy, J

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29^th December, 2011

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smr

B. Devender Reddy v. M/s Mamatha Chit Funds (P) Ltd. (In Prov. Liqdn)

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B. Devender Reddy v. M/s Mamatha Chit Funds (P) Ltd. (In Prov. Liqdn)

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