GANGA TARO VAZIRANI Vs. DEEPAK RAHEJA

JUDGEMENT

(1.) This Summons for Judgment seeks a decree against the defendant in the sum of Rs.5,54,00,000/- along with an amount of Rs.1,49,75,342.47 towards interest calculated on the amount of Rs.5,00,00,000/- @ 12% per annum from 1st January, 2017 to 30th June, 2019 (aggregating to Rs.7,03,75,342.47) and further interest @ 12% p.a. on the amount of Rs.5,00,00,000/- from the date of filing of the suit till payment and/or realization.

(2.) The above suit has been filed as a Commercial Summary Suit under the provisions of Order XXXVII of the Code of Civil Procedure, 1908 (for short "the CPC") seeking a decree of the amounts mentioned above. The suit is based on two dishonoured cheques, one for Rs.5,00,00,000/- and the other for Rs.54,00,000/-. These two cheques were given by the defendant to the plaintiff. Both the aforesaid cheques were dishonoured when presented for payment, hence the present suit.

(3.) To understand in what circumstances these two cheques were issued by the defendant to the plaintiff, it would be necessary to refer to the facts and which are undisputed. In 2011, pursuant to the defendant's request for financial assistance, the plaintiff agreed to disburse a sum of Rs.5 Crores to the defendant as a loan for business purposes. The said loan was repayable along with interest @ 19 % p.a. According to the plaintiff, on the basis of the defendant's assurance of repayment along with the agreed rate of interest, the plaintiff issued a cheque of Rs.5 Crores dated 1st January, 2011 in favour of the defendant. The said cheque was duly encashed by the defendant and honoured by the plaintiff. On 3rd January, 2011, the defendant also drew a Bill of Exchange in favour of the plaintiff in the sum of Rs.5 Crores as a security for the said loan.