NARESH KUMAR JAIN Vs. ALLIAZ SECURITIES LTD

JUDGEMENT

(1.) The plaintiff has filed a suit under the provisions of Order 37 of the Code of Civil Procedure, 1908 (hereinafter referred to as the Code) seeking recovery of a sum of Rs.22,01,770.50. The claim arises from the shares owned by the plaintiff which were handed over to the defendant for sale. The shares related to 32 companies and have been set out in para `4' of the plaint. The share certificates were delivered along with transfer deeds on or about 10.07.1997 to the defendant and these shares were then sold by the defendant in the market. The plaintiff has also filed a copy of the delivery ledger of the defendant company showing the transaction.

(2.) The delivery of the shares to the defendant is not denied by the defendant but the stand of the defendant in the application for leave to defend is that some of the shares were returned back to the plaintiff on account of defects. In this behalf, along with a rejoinder, a letter dated 19.08.1997 of the defendant, acknowledged by the plaintiff is available which shows return of some shares of four companies. There is no other material placed on record by the defendant to show that the other shares handed over to them were returned back to the plaintiff on account of any defect.

(3.) The most important aspect to be considered is that the defendant company issued a cheque of Rs.10,22,228.90 to the plaintiff on 08.08.1997, drawn on Canara Bank, Green Park Extension, New Delhi. This cheque was presented on the same day and was dishonoured on account of stop payment instructions of the defendant. The stand of the defendant in this behalf is that since the shares were returned, stop payment instructions were issued.