( 1 ) THE plaintiff is the appellant herein, who challenges the dismissal of its suit for recovery of Rs. 41,587. 50 as per the judgment and decree in O. S. No. 140 of 1984, dated 10-4-1985 on the file of the Additional Chief Judge, City Civil Court, Hyderabad.

( 2 ) THE suit claim is for recovery of the amount due under a chit with the plaintiff, a registered company doing chit business, wherein the defendant having become a member for the chit of the value of Rs. 45,000. 00 with a duration of 30 months with a monthly subscription of Rs. 1,500. 00 with effect from 29-4-1976 and having executed the agreement and subscribed for the same, had lifted the prize money of 24,925/- on 6-8-1976 in the auction held on 26-7-1976 and subsequently, committed default in payment of instalments. Defendants 2 to 4 are the guarantors. Defendant No. 1 had also executed a pronote dated 24-7-1976 for a sum of Rs. 39,000. 00 with the collateral security from defendants 2 to 4, who had executed a separate agreement. Though the plaintiff had issued a notice to the defendant No. 1 on 3-2-1977, it was returned unserved and on receipt of the same notice, defendants 2 to 4 replied on 24-2-1