NARANG SHOES PVT LTD Vs. M P SHARMA

JUDGEMENT

(1.) This Regular First Appeal is preferred by the appellants against the judgment and decree dated 08.10.2015 passed by the learned Additional District Judge-01, Central District, Tis Hazari Courts, Delhi/ (hereinafter as the learned 'Trial Court') in Civil Suit No.35/2015 whereby the suit filed by respondents under Order XXXVII CPC was decreed for a sum of Rs.18.00 lacs with interest @ 12% per annum while rejecting the leave to defend application of appellants.

(2.) The brief facts which led to filing of this appeal are the respondent No.1 was having a friendly relation with appellant No.2 for the last many years and in fact on 05.08.2011 both the appellants No.2 and 3 have taken a friendly loan of Rs.5.00 lacs from respondent No.1, which was returned by them. However, on 01.11.2011, the appellants No.2 and 3 allegedly assured the respondents to make them partners in the business of appellant No.1 and asked them to invest money for gaining profits. The respondents agreed to invest money and on 05.11.2011 gave Rs.33.00 lacs in cash to appellants No.2 and 3 at New Delhi by arranging the same from brother, relative and respondent No.2. The appellant No.2 issued a receipt in his own handwriting and signatures stating interalia he has taken a friendly loan of Rs.23.00 lacs from respondent No.1 and Rs.10.00 lacs from respondent No.2 and would return it within three months; also issued three cheques in favour of respondent No.1 to the extent of Rs.10.00 lacs; Rs.10.00 lacs; and Rs.3.00 lacs and also two post dated cheques of Rs.5.00 lacs each in favour of respondent No.2, all five cheques were dated 05.02.2012 and were issued from the account of appellant No.1; the appellant No.2 being an authorised signatory of appellant No.1. Thus, it was alleged by the respondents that out of the total sum of Rs.38.00 lacs, the appellants had returned an amount of Rs.20.00 lacs and balance amount of Rs.18.00 lacs was payable, which they did not pay and when last three cheques bearing Nos.874177, 874178, and 874181 for a sum of Rs.18.00 lacs drawn on ICICI Bank, Karol Bagh, New Delhi were presented, all of them were dishonoured on 03.08.2012 on account of "žinsufficient funds"Ÿ. The respondents served a legal notice dated 01.09.2012 to which the appellants gave a reply dated 14.09.2012, but did not pay the balance amount, hence the suit for recovery of Rs.18.00 lacs with future interest under Order XXXVII CPC was filed by respondents.

(3.) The appellants filed leave to defend application alleging they never took any friendly loan; the respondent No.1 was unregistered money lender - used to lend money on interest and even had filed a complaint under Section 138 Negotiable Instruments Act, 1881 viz. CC No.596/1/2012 against the appellants and when was unable to produce the income tax certificate/record, then stopped appearing and thus such complaint was ultimately dismissed in default in 2013 by the learned Metropolitan Magistrate and only then this suit for money recovery was filed.