DHARAMPAL ARORA Vs. SHARE TIPS

JUDGEMENT

(1.) This order shall dispose of an application (IA 135/95), filed on behalf of the defendants, under Order XI Rule 12 and 14 read with Section 151 of the Code of Civil Procedure, 1908 (hereinafter referred to as 'the Civil Procedure Code') for the discovery and production of the documents.

(2.) The facts, relevant for the disposal of the above mentioned application, briefly stated, are that the plaintiff Sh. Dharampal Arora, in his capacity as sole proprietor of M/s Dharampal Arora, Stock & Share Brokers, has filed the present suit for the recovery of Rs. 50,00,000.00 against the defendants averring that defendants 2 & 3 are partners or proprietors of defendant No.1 and that the defendants were dealing in buying and selling of shares with the plaintiff and at times through plaintiff prior to 1989 till 1992. It is stated that the defendants were taking and giving the deliveries of the shares through the plaintiff and settling all the monetary transactions with the plaintiff. It is alleged that the defendants were also dealing in forward trading in specified shares with the plaintiff. It is stated that the defendants earned huge profit in the share business through plaintiff before 1992 and both the parties opened mutual current account because there had been reciprocal dealings in respect of the above said business between the parties prior to 1989 till 1992. Both the parties had very good business relations during the above said period and the accounts between the parties were finally settled and cleared on 23.8.91 when a cheque for Rs. 1,03,188.00 was given by the plaintiff to the defendants and the same was duly encashed by the defendants. It is stated that as per the books of accounts maintained by the staff of the plaintiff a sum of Rs. 33,59,809.70 is due against the defendants for the period from 23.8.91 to 27.11.92. It is stated that the above said amount due and payable to the plaintiff by the defendants has not been paid by the defendants inspite of the repeated requests and demands. It is further averred that as the defendants are not paying the above said amount which is due and payable to the plaintiff by the defendants intentionally and deliberately, the defendants are also liable to pay interest @ 18% per annum as per usage and custom of the market being money transaction. As per the case of the plaintiff on the date of the filing of the suit an amount of Rs. 16,40,190.30 is payable by the defendants to the plaintiff on account of interest. Thus in all, as per the case of the plaintiff, the defendants are liable to pay a sum of Rs. 50,00,000.00 to the plaintiff including the amount of principal as well as interest.

(3.) Since the defendants failed to pay the amount payable and due to the plaintiff, the plaintiff got served a legal notice dated the 2nd February, 1995 but despite service of legal notice the defendants have not cared to pay the above said amount which as per the case of the plaintiff is due and payable to the plaintiff by the defendants and hence the suit. It has been prayed by the plaintiff that a decree for a sum of Rs. 50,00,000.00 alongwith costs and pendentelite and future interest @ 18% per annum be passed in favour of the plaintiff and against the defendants.