AVIAT CHEMICALS PRIVATE LIMITED Vs. JAGMOHANSINGH ARORA

JUDGEMENT

(1.) THIS Judges Summons has been taken out by the appli cants Aviat Chemicals Private Ltd. (hereinafter referred to as "aviat") for a direction to the respondents Jagmohansingh Arora and others (hereinafter referred to as "aroras") to pay to Aviat an amount of Rs. 1,22,77,000/- on account of loss of profit and loss of reputation and goodwill and legal costs.

(2.) ARORAS had filed a Company Application being Company Application No. 152 of 1999 inter alia for setting aside of the order dated 17th December, 1998. This application was taken out by Aroras on the ground that Aviat had obtained the order dated 17th December, 1998 from the Company Court by suppressing material facts and by playing a fraud on the Court. On 4th February, 1999 Aroras were granted ad interim relief whereby Aviat was restrained from alienating or encumbering immovable property of Aviat and from carrying out production activities from the formulation unit which was set up by Aviat. An undertaking in terms of Rule 148 of the Bombay High Court (O. S.) Rules was furnished by Aroras in March 1999. Subsequently, the Company Application was heard on 23rd March, 1999, 24th March, 1999 and on 26th March, 1999. The application was dismissed on 9th April, 1999. It was held that the application made by Aroras was not bona fide. It was also held that the application is merely speculative in nature. The application had been disguised as a demonstration against a party who is said to have defrauded the Court.

(3.) IT is submitted by Mr. Dwarkadas that Aviat had set up a state of the art formulation unit, for the manufacture of multivitamin drops/multivitamin syrups. An order for purchase of 16,00,000 15ml Multivitamin drops of the value of Rs. 1,51,68,000/- and 7,00,000 200ml Multivitamin Surup of the total value of Rs. 1,26,70,000/- for the months of February 1999 and March 1999 had to be aborted in view of the ad interim order. It is stated that as a direct consequence of the ad interim order, Aviat had suffered a tremendous loss of profit which is estimated at Rs. 87,77,000/ -. The particulars of claim are attached to the affidavit in support of the Application at Exhibit G. The loss of reputation and goodwill is valued at Rs. 25 lacs. The legal costs are estimated at Rs. 10 lacs.