USP STUDIOS PVT. LTD Vs. GANPATI ENTERPRISES

JUDGEMENT

(1.) This commercial division summary suit is instituted for recovery of a sum of Rs.3,02,78,710.00 along with further interest on the principal sum of Rs.2.00 Crore at the rate of 18% p.a. from the date of the institution of the suit till payment and/ or realization.

(2.) The plaintiff is a company incorporated under Companies Act, 1956. It deals in the business, inter alia, of production of audio visual contents - programs, which are broadcast on various digital media platforms like YouTube. Defendant no.2 - Parvinchand Narindernath Sehgal is the proprietor of Ganpati Enterprises, defendant no.1. Defendant no.3 is the karta of defendant no.2.

(3.) The plaintiff claims, on the request of defendant no.2, plaintiff had advanced a sum of Rs.2.00 Crore to the defendants. A loan agreement dtd. 28/7/2016 evidencing the said transaction came to be executed. The loan was to be repaid after a period of 12 months, along with interest at the rate of 18% p.a. The plaintiff remitted the amount of Rs.2.00 Crore on 28/7/2016 to the account of defendant no.1 through banking channels. Only an amount of Rs.30,00,000.00 towards interest component was paid by the defendants. After expiry of the term of loan and upon repeated demands, the defendant issued two cheques drawn for Rs.1.00 Crore each payable on 29/1/2018, towards repayment of the loan. Both the cheques were returned unencashed on presentment. Despite service of a statutory notice under Sec. 138 of the Negotiable Instruments Act, 1881 ("the N.I. Act"), the defendants committed default in payment of the amount covered by the cheque necessitating the lodging of a complaint under the N.I. Act, being CC No.1583 of 2018, before the Metropolitan Magistrate, Bandra, Mumbai. Hence, this suit based on written contract and the negotiable instruments.