TaxTMI 
TaxTMI 
2003 (11) TMI 347
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....ed to take necessary steps for recovery of the dues of the applicant-company. Thereafter, by order dated 24-11-2000, the Official Liquidator was appointed as Liquidator of the applicant-company. 3. In the affidavit filed in support of the application, it is stated that as per the information furnished in the List of Debtors of Statement of Affairs and Chit Ledger by the ex-Director of the company, respondent No. 1, namely, M/s. Renuka Traders, subscribed to Chit No. 18 of Chit Group KLT-2A, the value of which is Rs. 5,00,000 with a duration of 50 months and subscription of Rs. 10,000 per month each Respondent No. 1 was the highest bidder and respondent Nos. 2 to 4 stood sureties by excluding joint promissory note and agreement of guarantee in favour of the company. Respondent No. 1 it is stated, had paid an amount of Rs. 3,10,000 towards 31 monthly subscriptions, which is inclusive of dividend for the period commencing from 30-11-1995 to 1-7-1998 and that the accounts also reflect that he had also paid an amount of Rs. 39,000, that the last payment made by him was on 10-3-1999, and he still liable to pay an amount of Rs. 1,51,000. 4. Respondent No. 1, it is further stated tha....
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....ption in two chits, he submits that applicant-company itself will be liable to pay him Rs. 3,52,000. Respondent No. 1 disputed the contention of the applicant that he had paid subscription only for 31 months amounting to Rs. 3,10,000 in Chit No. 18 and another sum of Rs. 39,000, aggregating to a total of Rs. 3,49,000 and that he has to pay balance of Rs. 1,51,000, and submitted that, he had, in fact, paid subscription for 38 months amounting to Rs. 3,80,000, and thus prayed for refund of the amount liable to be paid by the applicant to him and also release the title deeds deposited by him as security for the prized amount. 7. The applicant in support of its case, examined the Assistant working in the Office of the Official Liquidator as P.W. 1 and marked documents Exts. A1 to A20 and on behalf of the respondents, respondent No. 2, who is the proprietor of respondent No. 1, examined himself as R.W. 1 and marked documents Exts. B1 to B6. Heard the learned counsel for the applicant and the learned counsel for respondent No. 1. 8. The learned counsel for the applicant submits that respondent No. 1 is subscriber of Chit No. 18 of Chit Group KLT-2A valued at Rs. 5,00,000. In the au....
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....n the light of the submissions advanced by the respective parties, is whether respondent No. 1 is liable to pay the amounts as claimed by the applicant in respect of Chit No. 18 or whether the applicant itself is liable to pay the amounts as claimed by respondent No. 1 in respect of Chit No. 46. 10. There is no dispute about the fact that respondent No. 1 is subscriber of two chits, namely Chit Nos. 18 and 46 for Rs. 5,00,000 each in Chit Group No. KLT-2A and that in respect of Chit No. 18 he is the prized subscriber and that in respect of Chit No. 46 he is not the prized subscriber. Therefore, the evidence let in by the parties with respect to undisputed documents, need not be looked into. Respondent No. 1 though contended that he had paid 38 monthly subscriptions in Chit No. 18 amounting to Rs. 3,80,000, the material produced by him in support of his case, does not suggest so. The original pass book, Ex. B1, reflects the monthly subscriptions made by respondent No. 1. A perusal of the same, shows that respondent No. 1 commencing from 1-11-1995 and closing on 31-5-1998, had paid 31 monthly subscriptions, amounting to Rs. 3,10,000, which is inclusive of dividend of Rs. 1,08,154 ....
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.... deserving cases. An expelled member may be re-admitted on such terms as the Foreman deems proper." A plain reading of the above clause in the Agreement of Chit, which is marked as Ex. A21, on which respondent No. 1 had appended his signature, would disclose if the subscriber fails to pay the monthly subscription before the due date, penalty will be charged at the rate of 3 paise per rupee and if the default continues for the second month, penalty at the rate of 6 paise will be charged, and if the default continues in succession, the subscriber will not be entitled to dividends apart from charging of penalty and he would also be entitled to participate in the auction. The non-prized subscriber, if he fails to pay subscription in succession for three months, his membership would be liable for removal, and the Foreman would be entitled to substitute a new member in the place of the defaulting subscriber. 12. It is the case of the applicant that the membership of the respondent No. 1 as subscriber of Chit No. 46 was terminated by reason of letter, dated 26-8-1998, which the respondent No. 1 admits to have received, but not replied. By the said letter, the applicant while informi....