JUDGMENT:

The instant appeal has been filed by the Appellant/Plaintiff Chit Fund Company against the judgment and decree, dated 04.06.2001 in O.S.No.1037 of 1997 passed by the learned VII Senior Civil Judge, City Civil Court, Hyderabad (for short, “the trial Court”), dismissing the suit filed by the plaintiff for recovery of arrears of subscription amount.

2. For the sake of convenience the parties will hereinafter be referred as arrayed in the original suit.

3. The brief facts of the case are that the plaintiff, M/s.Vijay Bhargavi Chit Fund Company is registered with the Registrar of Chits. The defendant No.1 invested in chit fund with series No.MT1SA-32 for an amount of Rs.4,00,000/- payable in equal 40 monthly installments of Rs.10,000/- each, in the plaintiff company. Originally, one M/s. Gayathri Maintenance Services (P) Ltd. was the subscriber of ticket No.32 and the said subscriber paid the subscription only few months but later discontinued in the chit series No.MT1SA-32 therefore the defendant No.1 was admitted in the place of the original subscriber in the month of November, 1996 and paid an amount of Rs.91,600/-, through a cheque, which was the amount payable upto said m