MGRM MEDICARE LTD Vs. NARANG SURGICALS & ORS

JUDGEMENT

(1.) The plaintiff has instituted this suit under Order XXXVII of the CPC for recovery of Rs. 2,91,52,237/- along with interest jointly and severally from the three defendants viz. (i) Narang Surgicals, (ii) Ajay Narang, and, (iii) Dharamvir Narang, pleading that (a) the defendant no.1 Narang Surgical is the sole proprietary of defendant no.3 Dharamvir Narang who is the father of defendant no.2 Ajay Narang; (b) the three defendants are in connivance with each other and as part of the said conspiracy, the defendant no.2 Ajay Narang posing to be partner of defendant no.1 Narang Surgical signed Memorandum of Understanding (MOU) dated 27th October, 2014 with the plaintiff; (c) the plaintiff, on the basis of representations made to it, rendered financial assistance to the tune of Rs. 1,95,00,000/- to the defendants to meet the working capital requirements of the defendants; (d) the defendants handed over four cheques for a total sum of Rs. 2,39,75,000/- towards refund of the said amount with an agreed interest; (e) all the said cheques were dishonoured; and, (f) the plaintiff has lodged complaints of offence committed by the defendants and in pursuance to which an FIR has been registered against the defendants. The counsel for the plaintiff states that charge sheet has also been filed.

(2.) Summons for appearance were issued to the defendants and upon the defendants entering appearance, summons for judgment were issued and in response whereto the defendants no.1 and 3 and the defendant no.2 have filed applications for leave to defend and the defendants no.1 and 3 have also filed IA No.3639/2017 and the defendant no.2 has separately filed IA No.3662/2017, both under Section 8 of the Arbitration & Conciliation Act, 1996.

(3.) The counsels have first been heard on the applications under Section 8 of the Arbitration Act.