CHAND KHANNA Vs. COSMOS TANNERIES PRIVATE LIMITED

JUDGEMENT

(1.) This Suit No. 1214 of 1997, for the recovery of Rs. 12,40,000.00, came up beforeCourt for the first time on 30.5.1997. While issuing summons/notice, the Defendantwas directed to furnish security to the sum of Rs. 12.50 lacs. This security was neverfurnished. On 9.7.1998, the Defendant having been served by publication, failed toput in any appearance, and was therefore proceeded ex-parte. Significantly, althoughapplication 1.A. No. 11,162/99, to set aside the ex-parte orders, was filed on behalf ofthe Defendant by its Director, Shri Arun Goel, this application was not prosecutedfurther. The Plaintiff was permitted to lead evidence by way of affidavits on that date.

(2.) In the plaint it has been averred, inter alia, that the Plaintiff and her husband wereshareholders of the Defendant Company. It has been alleged that on 6/09/1993 an Agreement was entered into between the Plaintiffs group and the Defendantand its other shareholders, whereby the Plaintiff transferred all its shareholding tothe Gupta group. With this transfer of shares the ownership control and managementof the Defendant vested with the Gupta group. The Agreement was reduced to writingon that date. The plaintiff deposited with the Defendant a sum of Rs. 8 lacs by way ofFixed Deposit Receipts, by two cheques, each dated 20/09/1993, for anamount of Rs. 4 lacs each. The defendant Company thereupon issued two FixedDeposit Receipts, copies of which have been enclosed with the plaint; they wererepayable after one year. It is futher pleaded that on 14/09/1994 thePlaintiff issued a notice calling upon the Defendant to pay the said amount. Since thiswas not complied with, the Defendant was liable to pay interest at the rate of 20 percent per annum. The liability for interest till the filing of this suit is Rs. 4.40 lakhs, theseaverments remain uncontroverted since no Written Statement has been filed.

(3.) In compliance with the orders of the Court, an affidavit of the Plaintiff dated 5/01/1999 has been filed. The Plaintiff has deposed that she and her husbandwere holding 14600 shares, 12600 shares and 5100 shares on 6.9.1993. On thisdate an Agreement was entered into between the Plaintiff's group and Mrs. ReenaGupta and her associates for the purchase of these shares. Rs. 8 lacs was to remainas an unsecured loan. The Agreement is Exhibit P 1. The Fixed Deposit Receipts forthe sum of Rs. 4 lacs each are Exhibit P2 and P3. She has futher deposed that anotice was issued on 14/09/1994 calling upon the Defendant to pay thesum of Rs. 8 lacs. She .has futher deposed that a claim for interest at the rate .of 20 percent per annum was also raised. This notice has not been filed or proved. There is,however, a letter dated 14.9,1994 addressed by the Plaintiff to the Defendant on theCourt Record. This letter has also not been proved. It dose not, however, contain anotice for the payment of interest at the rate mentioned above.