KRISHAN MURARI GUPTA Vs. HEMANT KUMAR SETHI

JUDGEMENT

(1.) Petitioner is aggrieved by the order dated 16.9.97 ofthe Additional District Judge, granting leave to defend the Suit, subject to thecondition that petitioner deposited a sum of Rs. 2,50,000.00 within four weeksfailing which the application for leave to defend, would be dismissed and thesuit shall stand decreed.

(2.) The respondent had instituted a Suit for recovery of Rs. 4,30,000.00 alongwith pendentelite and future interest. The respondents, who are jewellers,claimed in the Suit that the petitioners had purchased jewellery items worth Rs.2,50,000.00 vide bills No. 005 and 006 both dated 5.2.1994, and acknowledged thereceipt of the jewels on the copy of the bills. The petitioners had issued 5 chequesof Rs. 50,000.00 each bearing Nos. 544251 to 544255 dated 5.2.94,20.2.94, 7.3.94,21.3.94 and 25.4.94 respectively. The said cheques were dishonoured. Therespondent/plaintiff thereupon, after issuing the notice filed a complaint underSection 138 of the Negotiable Instruments Act for the five dishonoured cheques.Subsequently the present suit was filed for recovery of the principal sum of Rs.2,50,000.00 and the interest thereon of Rs. 1,80,000.00 @ 24% p.a.

(3.) The learned Additional District Judge in a detailed reasoned judgment, considered the various grounds raised in the application for leave to defend. Healso considered the petitioners prayer for stay of the civil suit pending thecriminal proceedings under Section 138 of the Negotiable Instrument Act. Aftera detailed discussion of the various grounds raised in the application for leaveto defend, learned Additional District Judge reached the conclusion that thepetitioners' application for leave to defend be allowed subject to deposit of Rs.2,50,000.00 i.e. the principal amount.