RANI LEASING & FINANCE LTD. Vs. SANJAY KHEMANI

JUDGEMENT

(1.) The suit is for recovery of money lent and advanced against pledge of shares.

(2.) The plaintiff contends that, it had lent and advanced a sum of Rs.1,10,00,000/- to the defendant against security of shares pledged by the defendant with the plaintiff. According to the plaintiff, from time to time between June 2000 to January 2001 the plaintiff had advanced a sum of Rs.1,10,00,000/- to the defendant and the defendant had pledged shares from time to time as security thereof. The plaintiff states that the shares pledged by the defendant lost their value substantially. The plaintiff had requested the defendant to pledge further shares. The defendant however, did not do so. The defendant had paid interest up to March 31, 2001 with such payment being made on April 24, 2001.

(3.) The plaintiff had, thereafter, issued a demand letter dated January 14, 2001. The defendant did not pay in spite of such demand. The plaintiff, thereafter, sold the pledged shares for the value of Rs.8,55,400/-. The plaintiff claims decree for the balance amount from the defendant along with interest and costs.