JUDGMENT :

1. Assailing the judgment and decree, dated 09.08.2006, passed in O.S.No.110 of 2003 on the file of learned Additional Senior Civil Judge, Tenali, defendant filed the present appeal.

2. For the sake of convenience and brevity, the parties herein are referred to as per their array in the O.S.No.110 of 2003.

3. Plaintiff is a company registered under the Companies Act and carrying on chit fund business; that on 20.12.2022, defendant No.1 joined as member of chit NLD 02; that defendant No.1 was also allotted ticket No.6; that defendant No.1 agreed to subscribe Rs.10,000/- per month before tenth of each month payable in fifty equal monthly instalments; that in the auction conducted on 26.05.2002, defendant No.1 participate and became highest bidder for Rs.2,75,000/-; that defendant No.1 received the bid amount; that defendant No.1 paid Rs.50,000/- and thereafter did not pay the balance amount; that defendant Nos.2 and 3 stood as guarantors and executed guarantee agreement; that the defendants executed promissory note; that defendant No.1, as stated supra received Rs.2,75,000/- on 19.06.2022 under receipt Nos.15312 to 15317; that defendant No.1 committed default in payment of