CHEMENTECNO SRL Vs. INDI FINORCIL PRIVATE LIMITED HYD

JUDGEMENT

(1.) The respondents-defendants are the petitioners in this revision petition. The instant civil revision petition is filed questioning the correctness of the order passed by the learned V Additional Judge, City Civil Court, Hyderabad in I.A.No.295 of 1996 in O.S-No.241 of 1996. By the impugned order, the trial court directed the petitioners herein to furnish bank guarantee for a sum of US $ 1,83,750 equivalent to Indian currency Rs.63,39,375/- as a security within four weeks from the date of the order. Upon furnishing such security, the ex-parte prohibitory garnishee order dated 7.3.1996 was directed to be vacated and in default of compliance of the order, the ex-parte order dated 7-3-1996 shall remain in force. This is in substance, the order passed by the trial Court.

(2.) The respondents herein filed an application in the Court below under Order 21 Rule 46, 46-A read with Section 115 CPC for grant of garnishee order prohibiting one Vantech Pesticides Limited and three other companies from making any payments to the petitioners herein either by way of collaboration or otherwise for deposit of the said amount into the Court. The Court by an order dated 7-3-1996 granted an ex-parte order prohibiting the said four companies from making any payments to the petitioners herein until further orders. The petitioners herein filed the counter and an application to vacate the said order dated 7-3-1996.

(3.) It is required to notice that the respondent herein filed a suit for recovery of an amount of US $ 1,83,750 equivalent to Indian currency Rs.63,39,375/- with interest and costs towards the commission and collaboration agreements entered into between the parties and four other companies based at Hyderabad. It is its case that the petitioners herein committed breach of contract and trust and indulged in criminal acts. Admittedly, the petitioner-Company is placed in Italy and only its assets in India are the fee receivable from Indian companies with whom the petitioners have entered into collaboration agreements. It is the case of the respondent that if the petitioners are allowed to receive the fee and leave India, great prejudice would be caused to it as it would not be in a position to recover the amount in any manner.