JUDGMENT :

VENUTHURUMALLI GOPALA KRISHNA RAO, J.

1. The appellant is the 6th defendant in O.S. No. 22 of 2004 on the file of the VII Additional District Judge (Fast Track Court), Vijayawada, Krishna District. The 1st respondent herein is plaintiff and respondents 2 to 6 are defendants 1 to 5 in the said suit.

2. The parties will hereinafter be referred to as arrayed before the trial Court.

3. The brief averments in the plaint are as follows:

The plaintiff is a registered company under the Companies Act, 1956 and running chit fund business. On 27-5-2001, the 1st defendant joined as a member of the chit and he was allotted Ticket No. 24. The monthly subscription is Rs.50,000/- and the total period of chit is 40 months and the total value is Rs.20,00,000/-. In an auction conducted on 15-7-2001, the 1st defendant became the highest bidder foregoing Rs.8,00,000/-. At the time of payment of prize amount, the defendants 2 to 6 stood as guarantors to the 1st defendant. All the defendants executed a pronote agreeing to repay the amount due by the 1st defendant. Subsequently, the 1st defendant paid in all Rs.10,50,000/- by way of 21 instalments and the 1st defendant committed default in payment o