ASAD MUEED Vs. BANK OF INDIA

JUDGEMENT

(1.) IA No. 4331/2017 (u/O 39 R-1&2 CPC) in CS(OS) 162/2017

(2.) Averments in the plaint are that Abdul Mueed, father of the plaintiff and the defendant No. 4 being the eldest son of the founder was the first Chief Mutawalli of HLI; he assumed the office of Chief Mutawalli in 1974 and held it till his demise in March, 2015.

(3.) In 2006, the second defendant who was in-charge of the Marketing and Sales Department of HLI was ousted due to his involvement in various acts of defalcation of organizational monies. Various civil and criminal proceedings were initiated against him. In 1998, the second defendant as head of Marketing & Sales of HLI appointed Eden Enterprises Pvt. Ltd., a non-existent entity as distributor of HLI products. The said entity came into existence after the appointment of Eden Enterprises Pvt. Ltd. as distributor; it had a share capital of Rs. 3,000.00 and its promoter was one Shammi Tandon, second defendant's subordinate. Within a span of few months, HLI products worth crores were given to the said enterprise by the second defendant being head of Marketing & Sales without payment of sale price. The said enterprise did not pay the price of the goods as a result wrongful loss of Rs. 1.76 crores was caused to HLI. Criminal Complaint Case No. 7/1/2012 is pending against the second defendant and others in this regard, besides CS(OS) 59/2011 for recovery of the siphoned goods /proceeds.