JAIN FOOT COMFORTS PVT. LTD. Vs. JAGWATI JAIN

JUDGEMENT

(1.) The present suit for recovery has been filed by the Plaintiff - M/s Jain Foot Comforts Pvt. Ltd. seeking recovery of a sum of Rs.3,97,23,640/-. The case of the Plaintiff is that the Defendants had approached the Plaintiff for financial help and a loan transaction was agreed to between the parties. The letter written by Defendant No.1 on 20th July, 2015 requested for an advance of Rs.2 crores and a sum of Rs.1.20 crores was disbursed by the Plaintiff to Defendant No. 1 on 22nd July, 2015. The same was done by way of RTGS transfer. Defendant No.2 was the guarantor. Subsequently, another loan was given by the Plaintiff to Defendant No. 1 for a sum of Rs.2.50 crores, which was requested by Defendant No.1 vide letter dated 30th August, 2015. The said amount was paid through three RTGS transfers on 16th September, 2015. In order to secure this transaction of Rs.2.5 crores, a loan agreement dated 16th September, 2015 was entered into and an equitable mortgage is claimed to have been created on properties bearing No.426 to 431, Gali No.8, Friends Colony, G. T. Road, Shahdara, Delhi ('suit property'). Even this loan was guaranteed by Defendant No.2, who is the son of Defendant No.1. The loan was not returned despite request. Disputes arose between the parties.

(2.) Ld. Counsel for the Plaintiff invoked arbitration and a retired judge of the Meghalaya High Court was appointed as the Ld. Sole Arbitrator. During the said period, a Section 9 petition being OMP (I) No.12/2017 was filed by the Plaintiff wherein an interim settlement was entered into between the parties. The said settlement reads as under:

(3.) Despite the above admission, the Defendants did not honour the payments and hence, by order dated 9 th March, 2018, the Court held that the parties were unable to settle the dispute, however, status quo was directed to be maintained in respect of the suit property.