TATANAGAR TRANSPORT CORPN Vs. AJANTA ENTERPRISERS

JUDGEMENT

(1.) Defendants are the appellants in this appeal under O.43, R.1(u), Civil P.C. against an order under O.38, R.5, C.P.C., directing them to furnish security.

(2.) Money Suit No. 324 of 1986 was filed in the Court of the Subordinate Judge, First Court, Cuttack, for recovery of Rs. 2,84,852.89 paise alleged to have been taken by the appellants as loan from the plaintiff respondent 1. In the said suit plaintiff filed an application for attachment of some aluminium ingots which were alleged to have been intended to be taken out of the jurisdiction of the Court for the purpose of defrauding the plaintiff. Alternatively it was prayed that the security should be directed to be furnished by the defendants. The trial Court attached the aluminium ingots by an ex parte order. After appearance, the appellants raised objection on the ground that they were only carriers. The attachment was vacated by the trial Court which was challenged in this Court in Misc.Appeal No. 210 of 1986. While confirming the order this Court directed the trial Court to consider the question of furnishing security as prayed for by the plaintiff. In this background the present order has been passed.

(3.) The allegations of the plaintiff, as revealed from the petition and affidavit, are that defendant 1 and its partners are deep in debt they have not discharged their statutory liabilities and they have been closing down their offices at different places wherefrom they carry on the business of transporting and their business is in the decline.