LAWS(DLH)-2010-10-198

SUDESH MADHOK Vs. PAAM ANTIBIOTICS LTD

Decided On October 25, 2010
SUDESH MADHOK Appellant
V/S
Paam Antibiotics Ltd Respondents

JUDGEMENT

(1.) The plaintiff contends that it resides at W-93, Greater Kailash-II, New Delhi. The defendant No. 1 is a public limited company having its registered office at 18, Bhargava lane, Civil Lines, Delhi and its corporate office at 13, Alipur Road, Exchange Store Building, Civil Lines, Delhi. The second defendant is also a public limited company having its registered office at 26, Bhargava Lane, Nitya Nand Marg, Civil Lines, New Delhi.

(2.) The suit contends that in the month of June, 1996, the first defendant represented to the plaintiff that about its urgent need of finances; since the plaintiff was in a position to lend, the defendant requested her to advance the money. The plaintiff therefore, advanced a sum of Rs. 50 lakhs to the first defendant by cheque No. 670544 for Rs. 50 lakhs drawn of Bank of America, New Delhi. As an acknowledgement of having received the said sum of Rs. 50 lakhs, the first defendant executed and delivered a receipt and at the same time issued a demand promissory note dated 08.07.1996 (to the plaintiff), thereby promising to pay her on demand the said amount along with the interest @15 per cent per annum. The first defendant issued three cheques bearing Nos. 721371, 721372 and 731373 for a total sum of Rs. 52,33,877.00 in favour of the plaintiff.

(3.) The suit alleges that the cheques, on presentation for negotiation and crediting the proceeds thereof in the account of plaintiff were dishonored. When the plaintiff apprised the first defendant of the dishonor of the said cheques, it (the first defendant) delivered five other cheques, bearing Nos. 531589, 531590, 531591, 531592 and 531593 for Rs. 10 lakh each totaling Rs. 50 lakhs drawn on Punjab National Bank, Civil Lines, New Delhi. These cheques were drawn by second defendant to and in favour of the plaintiff. By way of additional security for the repayment of the aforesaid amount, the first defendant pledged its 2,50,000 shares of second the defendant held by and duly registered in the name of M/s. Pushkar Trading Company Limited with the plaintiff.