ASHOK COMMERCIAL ENTERPRISES Vs. R T V FILMS

JUDGEMENT

(1.) THE Summary Suit in the present case has been instituted for a decree (1) against defendant Nos. 1 to 4 in the amount of Rs. 2,82,13,643/- together with interest at the rate of 18% per annum on the principal sum of Rs. 2. 70 crores from the date of the suit until payment or realisation and (2) defendant Nos. 1 to 5 in the sum of Rs. 2,30,98,136/- with further interest on the principal sum of Rs. 2. 10 crores together with interest at the rate of 18% per annum from the date of the suit until payment or realisation. The suit is based on Bills of Exchange which were drawn by the first defendant which is a partnership firm of which the second and the third defendants are partners. The Bills of Exchange have been accepted by the Fourth and the fifth defendants.

(2.) THE first, the second and the third defendants were producing two motion pictures in Hindi and the plaintiffs advanced some time prior to 9th September, 1997, the amounts respectively of Rs. 2. 70 crores and Rs. 2. 10 crores in respect of the two films. Agreements were entered into on 27th March, 1996 and 3rd July, 1996 under which the plaintiffs agreed to advance certain sums of money in respect of the production of the two films. Thereafter, it is stated in para 6 of the plaint, by an agreement of 9th September, 1997 between the plaintiffs and defendant Nos. 1, 2 and 3, the aforesaid defendants acknowledged that an amount of Rs. 4. 30 crores was advanced to them which amount together with interest of Rs. 55 lakhs was due and payable. It may be stated that these agreements are not the foundation of the Summary Suit and leave under Order 2, Rule 2 of the Code of Civil Procedure, 1908 has been obtained by the plaintiff on 28th January, 1999 to omit to sue in respect of reliefs other than those claimed in the Summary Suit.

(3.) IN so far as the Summary Suit is concerned, it has been stated that between 20th August, 1997 and 20th March, 1998, the first defendant drew and issued Bills of Exchange in diverse amounts totally in the sum of Rs. 4. 80 crores. The second defendant signed these Bills of Exchange for and on behalf of the first defendant. The fourth defendant accepted Bills of Exchange in the aggregate amount of Rs. 2. 70 crores while the fourth and the fifth defendants accepted Bills of Exchange in the aggregate amount of Rs. 2. 10 crores. The Bills of Exchange which have been accepted by the fourth defendant are annexed at Exh. B to B-21 to the plaint, while those accepted by the fourth and the fifth defendants jointly are annexed at Exh. C to C-13 to the plaint. Certain cheques which were issued by the first, the second and the third defendants are stated to have been dishonoured upon presentation and criminal complaints under section 138 of the Negotiable Instruments Act, 1881 are pending.