BHARAT OVERSEAS BANK LIMITED Vs. ASHIMA LIMITED

JUDGEMENT

(1.) This Appeal From Order is filed against the order passed by the learned City Civil Judge below an application Exh.6-7 in Civil Suit No. 854 of 2003 on 22.04.2003 whereby the notice of motion application taken out by the present respondent - original plaintiff was allowed and the appellant was restrained from the recovery of the debts of the respondent, by way of temporary injunction and further restrained from enforcing any security or use any negotiable instruments including four post dated cheques aggregating to Rs.449.52 lacs drawn on HDFC Bank, Ahmedabad and lying to the custody of the appellant, on the ground that the respondent was protected under the BRU notification dated 11.11.2002 issued by the State Government, Labour and Employment Department in favour of the respondent under the Bombay Relief Undertaking (Special Provisions) Act, 1958 till the said notification remained in force i.e. upto 11.11.2003. The said period was further extended by one year i.e. upto 10.11.2004 by another notification dated 20.10.2003, a copy of which was placed on the record of this Court, during the course of hearing of the present Appeal From Order.

(2.) The brief facts giving rise to the present Appeal From Order are that the respondent Company has made a request to the appellant Bank to sanction in its favour a bill discounting facility of Rs.500 Lakhs and as a security for the payment of the Company's liability to the appellant, the respondent had issued the following three post dated cheques in favour of the appellant. <FRM>JUDGEMENT_335_TLGJ0_2004Html1.htm</FRM>

(3.) All the aforesaid three cheques were presented by the appellant on their due dates and the said cheques were bounced. The appellant bank, therefore, filed criminal complaints on 22.03.2002 & 27.03.2002 in the Court of the Metropolitan Magistrate, Ahmedabad for offences under Section 138 read with Section 142 of the Negotiable Instruments Act against the Company and its Directors. The Court had issued process to all the accused. On 23.03.2002, the respondent Company requested the appellant Bank to convert the outstanding bills into Working Capital Demand Loan and agreed to pay the entire outstanding dues to the bank in six quarterly installments as follows :- <FRM>JUDGEMENT_335_TLGJ0_2004Html2.htm</FRM>