RACHNA MEHTA Vs. KANTA SHARMA

JUDGEMENT

(1.) In the suit Filed by plaintiff for recovery of Rs. 6,48,000.00 under the provisions of Order XXXVII Civil Procedure code based on two cheques for a total amount of Rs. 4,50,000.00 issued by defendant, the defendant has filed this application supported by her affidavit seeking leave to defend the suit. In the affidavit it is averred that defendant is the sole proprietor of firm M/s. C.K. Films and she is engaged in, the business of distribution and exhibition of films. Defendant had acquired rights of distribution and exhibition of film 'SAPNAY' for the territories of Delhi and UP from M/s. Gramco Films. Plaintiff through her father R.P. Bhasin approached the defendant for entering into a Joint Venture Agreement alongwith her brother Raman Bhasin for distributing the said pic- ture. After joint venture agreement was signed between the parties, the father of plain- tiff wanted to withdraw from joint venture agreement as the film was not doing well. Keeping in view past relationship, the defendant agreed to cancel said agreement but as she had incurred financial obligations on the basis of commitments of plaintiff and her brother through their father for paying royalty, it was agreed that the amount paid by plaintiff and her brother would be refunded in instalments. Accordingly, an agree- ment was drawn sometime in the last week of May 1997 whereby the defendant agreed to refund the amount of Rs. 15,65,000.00 in full and final settlement of their accounts Rs. 1,65,000.00 were paid in cash. At the time of execution of agreement the father of plaintiff got a bank account of the defendant opened in Anand Lok branch of Al- lahabad Bank as this branch was next door to his office representing that it would be easier for him to transact business as the bank staff of that branch was known to him. In good faith the defendant also handed over almost entire cheque book duly signed by her in blank of the said bank account on the understanding that if any amount would be required to be paid by defendant in connection with said agreement, the same could be withdrawn from bank account by the father of plaintiff. It is further averred that the father of plaintiff approached the defendant and her attorney and ob- tained following account payee cheques in favour of his son Raman Bhasin repre- senting that adjustment of amounts thereof was their internal family matter :- <FRM>JUDGEMENT_367_DRJ58_2001Html1.htm</FRM>

(2.) It is stated that after the defendant came to know about the withdrawal of amounts of cheque Nos. 188318,188319 and 188320 all dated 6/6/1997 in the sum of Rs. 1 lakh each from said Anand Lok branch of Allahabad Bank, the father of plaintiff on being confronted, admitted the withdrawal of Rs. 3 lakhs against said che- ques and he agreed to adjust this amount in the account of plaintiff and her brother. Accordingly, the whole issue was finally settled and entire payment against said agree- ment stood paid. Cheque issued in the name of brother of plaintiff in 1998 for Rs. 25,000.00 was towards the interest accrued on delayed payment. It is further averred that the'father of plaintiff still not satisfied got this suit filed through the plaintiff with maid fide intentions. Liability to pay interest at the rate of 2% p.m. as claimed by plaintiff is emphatically denied,

(3.) In the counter affidavit Filed alongwith reply by the plaintiff it is stated that for all practical purposes R.P. Bhasin has no connection with Joint Venture Agreement and he has been unnecessarily dragged by the defendant causing embarassment to him. Two cheques for a total amount of Rs. 4,50,000.00 were issued by the defendant towards admitted outstanding amount which was liable to be paid to the plaintiff. In response to averments made in Para No. 9 of the affidavit of defendant the plaintiff in Para No. TO of counter affidavit has not denied encashment of 7 account payee che- ques of the total amount of Rs. 11,25,000.00 by Raman Bhasin as also withdrawal of amount of Rs. 3 lakhs against three cheques dated 6/6/1997 by plaintiffs father. from the account of defendant in Anand Lok branch of Allahabad Bank.