INDUSTRIAL VENTURE CAPITAL LIMITED Vs. PRADEEP RANGANATHAN

JUDGEMENT

(1.) The suit is filed by the plaintiff against the defendant for recovery of money of Rs.1,45,93,508.31 together with interest thereon at the rate of 24% on Rs.59,87,400/- from the date of plaint till realisation, based on the document styled as loan agreement.

(2.) The plaintiff states that the defendant along with one S.N.Natarajan promoted a Company under the name of Neptune Inflatables Limited, with an authorised capital of Rs.3,50,00,000/- made up of 3,50,000 equity shares at Rs.10/- per share. It is stated that the defendant applied for a personal loan of Rs.59,87,400/- to the plaintiff for purchase of 3,52,200 equity shares of Rs.10/- at a premium of Rs.7 /- each and the loan was also sanctioned by the plaintiff. Thereafter, a loan agreement was executed between the plaintiff and the defendant on 11.01.1996. As per the said agreement, the defendant had agreed to pledge 3,52,000 equity shares purchased by him as security for the amount borrowed by the defendant and the same would be kept pledged till the amount was repaid. Accordingly, the shares purchased by the defendant vide Certificate Nos.23884 to 27405 (consolidated) were pledged with the plaintiff. Despite several demands, the defendant failed to repay the loan amount.

(3.) According to the plaintiff, it was not in a position to sell the shares pledged, since the shares of Neptune Inflatables Limited were not listed. The defendant also had admitted the liability vide letter dated 06.01.1999 under Ex.P3. The plaintiff, therefore sent a notice on 06.12.2001, calling upon the defendant to pay the loan amount, with interest at 24% per annum. As there was no response, the suit has been filed.