RESHMI NIGEL D'SOUZA Vs. NIKHIL A VARDE

JUDGEMENT

(1.) IN a suit for specific performance of two agreements both dated 7th February; 1995, the plaintiff has filed this notice of Motion for Receiver and injunction.

(2.) FACTS leading to the present suit are that the plaintiff is a British national of Indian origin and practices as a dental practitioner in Manchester, U.K. The plaintiff stated that she came to Mumbai in December, 1992 and made acquaintance with the 1st defendant. The plaintiff was in India from December, 1992 till March, 1993, and during the said period met the 1st defendant on several occasions and developed a close friendship with him. During the said period the 1st defendant gained the plaintiff's confidence. The 1st defendant represented to the plaintiff that he had enormous experience and expertise in the field of prawn farming and had floated company called "Aquarius Marine Farms Pvt. Ltd." The said company was in need of financial resources. The 1st defendant therefore requested the plaintiff to grant him a personal loan of Rs. 42,00,000/- which he would channelise into the said company for its commercial activities. The 1st defendant promised to the plaintiff to repay the plaintiff in India within three-and-half years during which the said amount would bear interest at the rate of 15% per annum.

(3.) IT is the case of the plaintiff that the 1st defendant utiiised the money advanced to him which were to be utilised by him for the commercial business of the said company, towards personal extravagance. All manners of luxuries were purchased from the said amount. For example, the said amount was utilised for purchasing expensive gadget sets, laser disc players, music systems, desktop and laptop, computers, jewellery, luxury car, etc. A part of the said amount was also used to purchase immoveable property at Devgad. The plaintiff has stated that she has been separated from her husband due to marital problems and was going through vulnerable and emotional period. The 1st defendant exploited the emotional state of the plaintiff and managed to win over the plaintiff's affection. The 1st defendant proposed to marry the plaintiff, which the plaintiff could not agree to, because she was still lawfully married to her husband and was only separated. Hence, the parties decided to await the result of the plaintiff's separation proceedings in U.K. The plaintiff has alleged that eventually she came to know that the 1st defendant had employed similar modus operandi, at another unsuspecting girl by representing to her that he was the Vice-President of Merrill Lynch Bank. Therefore, the plaintiff flew down to Madras and met the father of the girl. The full nature of the activities of the 1st defendant then came to light. The 1st defendant visited the house of the father of the said girl to be confronted by the plaintiff and the girl's family. The 1st defendant realised that his game was up and his modus operandi discovered. He, therefore, broke down and confessed himself to his misdeeds, particularly the fact that he had cheated the plaintiff in order to extract monies from her and that he had similar plans with the said unsuspecting girl from Madras. The 1st defendant executed a writing dated 14th January, 1995, admitting the said sum of Rs.42,48,000/- as loan to him from the plaintiff. The 1st defendant also set out the manner in which the said amount was spent and undertook to repay the same to the plaintiff.