INDCON POLYMECH LIMITED Vs. SWITCHING TECHNOLOGIES GUNTHER LIMITED

JUDGEMENT

(1.) This order disposes of I.A No. 7110/93, an application under Section 151 Civil Procedure Code and Order 39 Rule I Civil Procedure Code filed by the defendant. The plaintiff has filed a suit for recovery of Rs. 2,22,465.64 against the defendant. The defendant has preferred a counter claim to the tune of Rs. 50 lakhs against the plaintiff.

(2.) It appears that the defendant had commissioned a gas plant under IDBI bills re-discounting claim on deferred payment. The payment was guaranteed by the defendant's bankers, that is, the State Bank of India (Overseas Branch, Madras) in ten installments totalling to Rs.19,50,400.00 Out of the ten installments, the defendant's bank had already paid six installments totalling to Rs. 12,88,600/. The remaining four installments was to fall due on 20.8.1993, 20.2.94, 20.8.94 and 20.2.95. The case of the defendant is that defective machinery was supplied by the plaintiff and so the instalments was liable to be adjusted against the claim of the defendant. In the background of the abovesaid facts, the defendant sought for the following interim reliefs : (i) An ad interim injunction against the plaintiff from realising or enforcing the payment of the outstanding balance instalments; (ii) an injunction restraining the plaintiff from disposing of or dealing with any of its assets except in the normal course of business

(3.) The above application was filed on 10.8.93 On 19.8.93, the Court directed the plaintiff to remain restrained from realising and enforcing the payment of balance instalments from the defendant or their bank.