RAJ PAL CLOTH HOUSE Vs. FANCY TEXTILES INDIA

JUDGEMENT

(1.) This Revision Petition is directed against an order passed on the application under Order 38 Rule 5 and under Order 39 Rules 1 and 2 Civil Procedure Code . directing the petitioners to furnish bank guarantee for the amount claimed in the suit.

(2.) Brief facts giving an occasion to the present revision petition, are as under :- According to the case of the plaintiff/respondent, the plaintiff supplied goods to the petitioners/defendant from time to time. The petitioners failed to clear the account despite the repeated requests. Moreover, the cheques issued by the defendants were also dishonoured on presentation for realisation. Whenever plaintiff visited the shop premises, it was found closed. Enquiries from neighbour further revealed that the defendants were planning to close down the premises. Through reliable sources, the plaintiff/respondent came to know that the defendants/petitioners were closing down their business by selling the cloth on a very low price. Apprehending that nothing would be left to recover from the petitioners, a suit was filed for recovery of Rs. 13,500.00 the price of the goods, and interest etc. An application under Order 38 Rule 5 and under Order 39 Rules 1 and 2 Civil Procedure Code ., was also filed.

(3.) The petitioner/respondent are contesting this case inter alia on the ground that they are running the said business for the last two decades and never had any intention to close down the business. It is further contended by the defendant/petitioners that the goods worth Rs. 1462.00 were received from the plaintiff/respondent for which payment had already been made. But goods valued at Rs. 9775.00 and Rs. 883.00 were never received from the respondent.