ESSEL INTERNATIONAL Vs. NAV AURO INVESTMENT P LTD

JUDGEMENT

(1.) M/s. S. L. International, a partnership concern duly registered under the provisions of the Indian Partnership Act has filed the present suit through one of its registered partners Sh. Ashok Kumar Goel for recovery of Rs. 59,38,123/- (Rs. 50 lacs as principal, Rs. 9,27,123/- on account of interest upto 31st January, 1995 and notice charges of Rs. 11,000/- ). The plaintiff has further prayed for grant of future interest at the rate of 24 per cent p. a. till realization. Summons in the suit were issued to the defendants who thereupon not only filed the written statement jointly but also raised the claim of set off/counter claim praying for passing of a decree to the extent of Rs. 70,07,023. 25/- along with interest at the rate of 18 per cent p. a. from the date of institution of the suit till realization of the said amount. Thus by this judgment, I would deal with the suit of the plaintiff and the counter claim preferred by the defendants.

(2.) ACCORDING to the plaintiff, in the last week of April, 1994, the Chief Executive of the plaintiff firm namely Sh. P. C. Lahiri was approached by defendant No. 3 that their company defendant No. 1 needed temporary credit facility to the extent of Rs. one crore and that they shall return that amount within a period of about 8 months or earlier along with the interest at the rate of 24 per cent p. a. On these terms, the plaintiff agreed to advance the amount of Rs. One crore with interest returnable within 8 months. In pursuance of the request of the defendants and the agreed terms and conditions, the plaintiff extended the loan facility of Rs. one crore by issuing a cheque No. 007898 dated 6th May, 1994 in favour of defendant No. 2 which was encashed is their account. Defendant No. 2 is stated to be a division of defendant No. 1.

(3.) IT is specifically pleaded in the plaint that vide cheque No. 908359 dated 18th May, 1994 drawn on Punjab National Bank, Jorbagh, New Delhi, the defendants returned the amount of Rs. 50 lacs and consequently the said amount was credited in the account of the plaintiff on 19th May, 1994 leaving a balance of Rs. 50 lacs. The balance amount of Rs. 50 lacs was not paid by the defendants to the plaintiff even within 8 months and thus the payment has not been made to the plaintiff despite various visits of Shri P. C. Lahiri, Chief Executive of the plaintiff to the office of the defendants as well as discussion on telephone. Resultantly, the plaintiff has filed the present suit for recovery of the principal amount as well as the interest from 6. 5. 1994 till institution of the suit and charges for legal notice of Rs. 11,000/-, thus making a total of Rs. 59,38,123/ -.