DUNLOP INDIA LTD Vs. MADHURA COATS LTD

JUDGEMENT

(1.) This appeal is directed against an order dated 21st of June, 2005 whereby His Lordship was pleased to allow the appellant/defendant to contest the suit, conditionally, after furnishing a security of a security of a sum of Rs. 3,61,54,627.54 paise with the Registrar, Original Side within two months from the date of communication of the order.

(2.) It appears that a suit was filed by the plaintiff/ respondent before this Hon'ble Court for recovery of the price of goods sold and delivered to the defendant/appellant. During 1996 and 1998 and during April, 2000 and May, 2001 it appears at the request of the appellant/defendant diverse quantities and qualities of dipped yarn, nylon tyre cord, dipped chafers etc. were sold and delivered to the defendant/appellant. Bills were raised in respect of such sale and were accepted by the appellant/defendant. It further appears that at time to time part payment was made. After giving credit to the said part payments it appears that a sum of Rs. 3,61,54,627.54 paise on account of principal and a sum of Rs. 2,48,66,609.75 paise on account of interest due and payable by the defendant/ appellant to the respondent/plaintiff. It appears that subsequent thereto and after taking into consideration in respect of the sale and supply effected by the plaintiff/respondent to the appellant/ defendant during April, 2000 to May, 2001, the dues of the defendant/appellant went up to Rs. 7,51,86,994.27 paise.

(3.) Winding up petition was filed by the plaintiff/respondent. The said petition could not be proceeded with since the reference was made before the Board for Industrial and Financial Reconstruction (hereinafter referred to as "BIFR") under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) by the appellant. Subsequently such reference was dismissed by the BIFR. The matter went up to Appellate Authority for Industrial and Financial Reconstruction (AAIFR) and the revival scheme was allowed by the AAIFR. It further appears that before the BIFR, in the scheme, the defendant/appellant has provided payment of Rs. 2.03 crore and the rest of the balance claim being Rs. 3,61,54,627.54 paise was allowed by granting leave to be recovered in accordance with law. Subsequently suit has been filed by the plaintiff/respondent. In the said suit the plaintiff/respondent filed an application under Chapter XIIIA of the Original Side Rules of this High Court and the parties duly filed their affidavits. After considering the facts of the case the Hon'ble First Court was pleased to allow the defendant/ appellant to contest the suit after imposing a condition to deposit a sum of Rs. 3,61,54,627.54 paise with the Registrar, Original Side.