KHODAY INDIA LTD Vs. RAKESH GUPTA

JUDGEMENT

(1.) This appeal seeks to assail the judgment dated 07.11.2012 passed by the learned Single Judge whereunder the learned Single Judge rejected the application for leave to defend filed by the Appellant No.2 and decreed the suit in favour of the Respondent and against the Appellants No.1 and 2 jointly and severally in the sum of Rs. 1,80,81,800/- (Rupees One Crore Eighty Lakhs Eighty One Thousand and Eight Hundred only) with interest at the rate of 24% per annum from the date of the institution till the date of recovery.

(2.) The background facts are that the Appellant no.1, Khoday India Limited had entered into an agreement with the Respondent dated 13.11.2000, which was subsequently amended on 5.5.2001 to change the name of the Appellant No.1. The agreement envisaged that the Respondent/Plaintiff would provide consultancy services to the Appellant No.1 Company of which the Appellant No.2 is the Managing Director. The said consultancy services were to be provided by the Respondent through M/s Astra Netcom Private Limited, a Company controlled by the Respondent.

(3.) Pursuant to the agreement, the Respondent through its Company, M/s Astra Netcom Private Limited provided the consultancy services to the Appellants till a dispute arose between the parties with regard to the payment of the consultancy fee and certain cases were filed by the Respondent including a Company Petition bearing C.P.No. 88/2004 before the High Court of Karnataka, Bangalore for winding up of the Appellant/Company on account of non-payment of dues amounting to Rs. 4,63,02,424/- (Rupees Four Crores Sixty Three Lakhs Two Thousand Four Hundred and Twenty Four only) to the Respondent. During the pendency of the winding up proceedings, however, two Settlement Agreements were executed between the parties at New Delhi on the 2nd day of April, 2005, one in the name of M/s Astra Netcom Private Limited and the other in the name of Mr. Rakesh Gupta, the Respondent herein. The Appellants admittedly came to Delhi and the Agreements dated 2nd April, 2005 were signed by the parties in the office of the Respondent at New Delhi. By the Agreement dated 2nd April, 2005 entered into between the Appellants and the Respondent, with which we are concerned, the Appellants admitted liability/dues on account of consultancy fees, which were settled at Rs. 2,09,00,000/- (Rupees Two Crores and Nine Lacs only), Rs. 10,00,000/- (Rupees Ten Lacs only) were settled on account of out of travelling expenses and Rs. 21,31,800/- (Rupees Twenty One Lacs Thirty One Thousand and Eight Hundred only) for payment of service tax. Thus, the total liability amounting to ' 2,40,31,800/- (Rupees Two Crore Fourty Lacs Thirty One Thousand and Eight Hundred only) was admitted by the Appellants, which the Appellants agreed to pay to the Respondent. It was further agreed that the total liability would be paid by the Appellant No.1 to the Respondent, Mr. Rakesh Gupta by way of monthly instalments. The following payments were accordingly made by the Appellant No.1 by means of cheques of Punjab National Bank, M.G. Road, Bangalore in favour of the Respondent in full and final settlement of the accounts:- <FRM>JUDGEMENT_3455_ILR(DEL)5_2013_1.html</FRM>