RP SINGH Vs. NATINONAL HORTICULTURE BOARD

JUDGEMENT

(1.) HEARD learned counsel for the parties.

(2.) VIDE impugned order dated March 28, 2012 the suit filed by the respondent No.1 under Order XXXVII of the Code of Civil Procedure has been decreed (not in full) against M/s Global Industries Ltd. and its two directors i.e. the appellants who executed personal guarantees to pay the respondent No.1 dues of the company if there was default upon leave to defend not being granted.

(3.) SEEKING leave to defend, the appellants did not deny that the company had taken two loans as pleaded and that only Rs.3,43,145/- was paid. The documents executed were explained as having been signed blank. Thus, the first ground on which leave to defend was sought was that the documents were signed blank. Second plea urged was that the company had mortgaged its assets in Haryana and thus it was pleaded that a suit under Order XXXIV of the Code ought to be filed. Thirdly it was urged that the agreement pertaining to the loan was executed at Haryana. Lastly it was pleaded that the suit amount i.e. Rs.1,76,68,908/- included interest @ 18% which was more than the rate at which the company was to pay service charges.