IFCI FACTORS LTD. Vs. INNOVENTIVE INDUSTRIES LIMITED

JUDGEMENT

(1.) The plaintiff has instituted the suit, under Order XXXVII of the CPC, for recovery of Rs.9,85,46,482.92 paise with pendente lite and future interest jointly and severally from defendants No.1 to 4, namely (i) Innoventive Industries Ltd., (ii) Chandu Chavan, (iii) Ravindra Katre and (iv) Sanjay Waghulade, pleading (a) that the plaintiff is a government undertaking and a non-banking finance company; (b) the defendant no.1 is engaged in the business of manufacture of steel tubes and motor vehicle (MV) parts; (c) the defendant no.1 had entered into an agreement dated 27th August, 2009 with the plaintiff, for factoring of receivables, whereunder the plaintiff agreed to provide the domestic factoring with recourse facility to the defendant no.1, for an amount of Rs.15 crores; (d) that the defendants no. 2 to 4 executed separate Deeds of Guarantee, all dated 27th August, 2009, in favour of the plaintiff, for securing the facility granted by the plaintiff in favour of defendant no.1; (e) the liability of the defendant no.1 extended to ensuring due payment of all the amounts payable by the defendant no.1 to the plaintiff in respect of factoring of receivables under the said agreement, along with interest and other charges; (f) the liability of defendants 2 to 4 was joint and several along with defendant no.1; (g) the defendant no.1, under the agreement, raised invoices on its debtors and presented the same to the plaintiff for factoring and the plaintiff paid a sum of Rs.1,81,12,27,978/- to the defendant no.1 towards factoring; (h) a sum of Rs.7,96,36,117/- is due to the plaintiff from the defendants towards factoring charges discounts, overdue discounts, tax and other debits; and, (i) a sum of Rs.9,85,46,482.92 paisa is due and payable by the defendants to the plaintiff under the agreement and which the defendants have failed to pay in spite of notice.

(2.) The suit came up first before this Court on 8th February, 2016 and thereafter on 4th March, 2016 and 19th July, 2016.

(3.) On 19th July, 2016, it was felt that there was no need to keep pending the admission of the present suit as a suit under Order XXXVII of the CPC, awaiting the outcome of the appeal preferred to the Division Bench against IFCI Factors Ltd. Vs. Maven Industries Ltd., 2015 225 DLT 32, since the said judgment was per incuriam, having failed to notice the amendment of Order XXXVII of the CPC by the Factoring Regulation Act, 2011. Thus, the suit was admitted and summons for appearance ordered to be issued to the defendants.