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IN THE COURT OF THE SENIOR CIVIL JUDGE : AT BHONGIR
(Dated this the 16th day of February, 2021)
PRESENT: Smt. K. Swapna Rani,
Senior Civil Judge,
Bhongir.
O.S. NO. 13 OF 2013
Between :
M/s. Padmodaya Finance Corporation, Bhongir. … Plaintiff AND
1. M. Mallaiah
2.K. Yadagiri
3.K. Shankar Reddy
4.Ch. Venkataiah
5.Ch. Muthaiah
6.K. Manemma … Defendants
This suit is coming on before me for final hearing and disposal in the presence of Sri Goda Venkateshwarlu, counsel for plaintiff and Sri M. Vanamaraju, counsel for defendant No.1, Sri N. Anjaiah, counsel for D3, D5 and D6, D2 and D4 died, having stood over for consideration till this day the Court made the following :
:: JUDGMENT ::
1.This is a suit for recovery of amount of Rs.1,47,100/ based on a chit fund transaction with subsequent interest and costs.
2.Brief averments of plaint are as follows:
The plaintiff company is registered under Indian Companies Act and has been doing chit fund business having its registered office at 1 835/4, First floor, Laxmidevi Complex, Opp : M.M. Court, Bhongir,
Nalgonda District. One of the branches is at Bhongir represented by its
Executive Director A. Somaiah. The 1st defendant joined as member of the chit fund scheme of the plaintiff company as per rules and regulations of plaintiff’s company and he was allotted Ticket No.8 in his/her name in the series MP2DP started in the month of January, 2 2009. The 1st defendant joined the said series of the scheme agreeing to subscribe @ Rs.10,000/ per month on or before the 7th of each month for 30 months regularly and the total value of the chit Rs.3,00,000/.
Accordingly the 1st defendant entered into an agreement with the plaintiff company on 24.04.2009. 1st defendant has participated in the said auction and became successful bidder having agreed to forgo
Rs.90,000/ out of chit value of Rs.3,00,000/. After deducting company commission, the balance amount was distributed among all the members in the said chit. As per the rules of the plaintiff company, the successful bidder has to furnish independent guarantors to the satisfaction of plaintiff company. The 1st defendant paid 19 installments till the date of action and the future liability was Rs.1,47,000/. The defendant
Nos. 2 to 6 stood as guarantors with the plaintiff company on 19.06.2009. Hence, defendant Nos. 2 to 6 also became liable jointly and severally for the balance amount of Rs.1,47,000/ payable by the defendant No.1 with the future installments with interest at Rs.12% per annum in case of default made by the 1st defendant in payment of monthly installments. To that effect, all the defendants executed a promissory note dt : 19.06.2009 for Rs.2,40,000/ as collateral security.
The 1st defendant was paid an amount of Rs.2,10,000/ by cheque bearing No.324631, dt : 19.06.2009. 1st defendant paid the installments upto July, 2010 and thereafter committed default in paying the installments from August, 2010. In spite of repeated demands made by the plaintiff company the defendants failed to pay the due amount.
Hence the suit.
3.The defendant Nos.1, 3 5 & 6 filed similar written statements denying the averments of the plaint stating that the suit is not maintainable either in law or on facts and the allegations made in the 3 plaint are not true and correct and they are rust created and cooked up and the suit is liable to be dismissed in limini. It is further denied about the defendant No.1 joining in chit fund scheme of the plaintiff company, allotment of ticket no.8 in his name, he agreeing to subscribe @
Rs.10,000/ per month and also participating in the chit auction, agreeing to forgo Rs.90,000/ out of chit amount of Rs.3,00,000/ and
D2 to D6 as guarantors to the chit and execution of agreement of guarantee, dated : 19.6.2009 in favour of plaintiff company and also execution of promissory note dt : 19.6.2009 for Rs.2,40,000/ as collateral security. They further denied the receipt of legal notice dt :
27.8.2012 and stated that it is created for the purpose of filing the present suit. They further stated that the plaintiff’s company did not show the payments made by the defendant in its account ledger maintained by the plaintiff’s company wantonly to gain wrongfully and to harass the defendant Nos.1, 3, 5 & 6. It is further stated that the interest claimed by the plaintiff’s company is very excessive and exaggerated and the plaintiff is not entitled to interest as claimed by it.
Further, the suit is barred by limitation. Hence prayed the Court to dismiss the suit.
4.Basing on the pleadings of both sides, the following issues are framed for trial :
(1) Whether the plaintiff chit fund private limited, Bhongir is entitled for the suit amount against the person and property of all the defendants jointly and severally, as prayed for ?
(2) Whether the interest claimed by the plaintiff chit fund private limited is excessive and exaggerated as pleaded by D 1, D5 and D6 ?
(3)Whether the suit is barred by limitation as pleaded by D1, D3, D5 and D6 ?
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5.During the trial, the Executive Director of the plaintiff’s company is examined as PW12 and not marked Exs.A.1 to Ex.A.55. No oral or documentary evidence is marked on behalf of defendants.
6.Heard.
Issue No.1
7.Plaintiff company has examined the Executive Director of the plaintiff company as PW1. He reiterated the averments of the plaint in his chiefexamination and got marked as many as fifty five (55) documents in favour of plaintiff’s case. Whereas the defendants 1, 3, 5 & 6 having filed written statement did not either crossexamine PW1 or place any evidence on their behalf. The documentary evidence produced by plaintiff company under Exs.A.3, A4, A5, A6 prove that defendant
No.1 was the successful bidder in the open auction and agreed to repay the amount to the plaintiff company by furnishing sureties i.e. D2 to D
6. Further the other documents produced by plaintiff company prove that defendant No.1 failed to pay the chit installments from August, 2010. As discussed above, the defendants 1, 3, 5 & 6 failed to rebut the case of the plaintiff and not also produced any evidence to prove their pleadings in the written statement. Thus, both oral and documentary evidence produced by plaintiff company establishes the case of the plaintiff. Accordingly, the plaintiff company is entitled for the suit amount with interest.
8.In the result, the suit is decreed against all the defendants jointly and severally with costs for Rs.1,47,000/ (Rupees One Lakh and Forty Seven only) with subsequent interest thereon at the rate of 5 12% per annum from the date of filing of the suit till the date of decree and thereafter at 6% per annum till the date of realization.
Typed to my dictation by Stenographer, GradeI, corrected and
pronounced by me in the Open Court on this the 16th day of
February, 2021.
Senior Civil Judge,
Bhongir.
APPENDIX OF EVIDENCE
WITNESSES EXAMINED ON BEHALF OF PLAINTIFF
PW1A. Somaiah
WITNESSES EXAMINED ON BEHALF OF DEFENDANT
NIL
EXHIBITS MARKED ON BEHALF OF PLAINTIFF
Ex.A.1 is the true copy of rules and regulations of the plaintiff company
Ex.A.2 is the true copy of incorporation certificate, dated : 25.09.1995
Ex.A.3 is the Chit Agreement of defendant No.1, Dt : 24.04.2009
Ex.A.4 is the agreement of guarantee, dated : 19.06.2009
Ex.A.5 is the pronote, dated : 19.06.2009
Ex.A.6 is the cash voucher, dated : 19.06.2009
Ex.A.7 is the legal notice, dated : 27.08.2012
Ex.A.8 is the postal acknowledgement card of D1
Ex.A.9 is returned postal cover of D2
Ex.A.10 is the postal receipt of D3
Ex.A.11 is the postal receipt
Ex.A.12 is the return postal cover of D.5
Ex.A.13 is the postal acknowledgement card of D.6
Ex.A.14 is the true copy of Form No.II Certificate, dated : 23.05.2008
Ex.A.15 is the true copy of Form No.III certificate, dated : 23.1.2009
Ex.A.16 is the true copy of resolution, dated : 29.11.2001
Ex.A.17 is the copy of ledger extract
Ex.A.18 is the application signed by defendant No.1 dated : 24.4.2009
Ex.A.19 is the bid offer, dated : 26.4.2009
Ex.A.20 is the true copy of Minutes, dated : 26.04.2009
Ex.A.21 is the no claim certificate, dt : 26.04.2009
Ex.A.22 is the true copy of letter issued by Canara Bank
Ex.A.23 is the surety form, dt : 26.04.2009 6
Ex.A.24 is the salary certificate of D1, dt : 22.05.2009
Ex.A.25 is the xerox copy of ID card of defendant No.1
Ex.A.26 is the salary certificate of D2, dt : 20.5.2009
Ex.A.27 is the photo copy of ID card of D2.
Ex.A.28 is the salary certificate of D3, dated : 08.05.2009
Ex.A.29 is the salary certificate of D4.
Ex.A.30 is the photo copy of ID cared of D4
Ex.A.31 is the salary certificate of D5, dt : 11.05.2009
Ex.A.32 is the photo copy of ID card of D5
Ex.A.33 is the salary certificate of D6, dt : 9.5.2009
Ex.A.34 is the photo copy of ID Card of D6
Ex.A.35 is the Register notice, dt : 19.1.2011
Ex.A.36 is the postal acknowledgement card of D1
Ex.A.37 is the return postal cover of D2
Ex.A.38 is the return postal cover of D3
Ex.A.39 is the return postal cover of D4
Ex.A.40 is the postal acknowledgement card
Ex.A.41 is the postal receipt.
Ex.A.42 is the register notice, dt : 20.5.2011
Ex.A.43 is the postal acknowledgement card of D1
Ex.A.44 is the postal acknowledgement card of D2
Ex.A.45 is the return postal cover of D3
Ex.A.46 is the return postal cover of D4
Ex.A.47 is the postal acknowledgement card of D5
Ex.A.48 is the postal acknowledgement card of D6
Ex.A.49 is the Register notice, dt : 21.7.2011
Ex.A.50 is the postal acknowledgement card of D1
Ex.A.51 is the postal acknowledgement care of D2
Ex.A.52 is the return postal cover of D3
Ex.A.53 is the postal receipt
Ex.A.54 is the postal receipt
Ex.A.55 is the postal acknowledgement card of D6.
EXHIBITS MARKED ON BEHALF OF DEFENDANTS
-NIL
Senior Civil Judge,
Bhongir.
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