MODIPON LIMITED Vs. SINGHAL TRANSPORT CORPORATION

JUDGEMENT

(1.) The present Appeal assails the Order of the learned Single Judge dated 27.1.2011 passed in IA No.1502/2009 in CS(OS) No.940/1009 granting the Appellant conditional leave to defend the Suit, subject to deposit of the Suit amount of 95,08,324/- with the UCO Bank, Delhi High Court Branch, New Delhi.

(2.) The Suit filed by the Respondent/Plaintiff is one for recovery of money under Order XXXVII of the Code of Civil Procedure, 1908 (CPC for short). It is not disputed by the Appellant/Defendant that the Respondent/Plaintiff invested a sum of 70,00,000/- in the Fixed Deposit Scheme of Modipan Limited. As against this investment, twelve Fixed Deposit Receipts (FDRs) were issued to the Respondent/Plaintiff each mentioning an interest of fourteen per cent per annum. These facts are not disputed.

(3.) The cause of action is stated to have arisen when the Appellant/Defendant failed to pay interest with effect from 2006/2007. It was then, by letter dated 18.8.2008, that the Plaintiff/Respondent demanded the redemption of these FDRs along with the interest that had accrued thereon.