JUDGMENT:

This appeal is preferred against the judgment and decree, dated 15.09.2011, passed in O.S.No.162 of 2008 on the file of the Court of XII Additional District Judge (Fast Track Court), Vijayawada.

2. Heard Sri Y.Subrahmanyam, learned counsel appearing for the appellants/defendants 1 & 2 and Sri Bhargav, learned counsel appearing for Sri P.Durga Prasad, learned counsel appearing for the

1st respondent/plaintiff.

3. The plaintiff-Margadarsi Chit Fund Limited is a company registered under the Indian Companies Act, 1956, doing chit fund business. On 27.05.2006, the 1st defendant joined as a member in a chit fund scheme with chit series No.FT4DB in the plaintiff company. The value of the said chit is Rs.20,00,000/-. The duration of the said chit was 40 months with a monthly subscription of Rs.50,000/- payable by the 1st defendant. The 1st defendant participated in the auction of the said chit in auction No.2 and became a successful bidder having agreed to forego a sum of Rs.8,00,000/- as bid amount. Defendants 2 to 6 are guarantors for prompt repayment of the subscriptions to the said chit. All the defendants 1 to 6 jointly executed a promissory note in favour of the plaintiff comp