BIRENDRA STEEL INDUSTRIES Vs. PRESTO STEEL COMPANY

JUDGEMENT

(1.) THIS judgment of mine shall dispose of C. R. No. 2488 of 1991, C. R. No. 2519 of 1991 and C. R. No. 2520 of 1991.

(2.) THREE suits were filed against the petitioners for the recovery of various amounts, the details of which have been given separately in the said suits, before the Sub Judge 1st Class, Amloh. It was averred in the said plaints that sale and purchase took place at Mandi Gobindgarh, where the/defendants gave cheques to the plaintiffs and as such, the Court at Amloh has jurisdiction to try the suits.

(3.) THE suits were contested by the defendants (petitioners herein ). Apart from denying the claims made in the plaints, a specific objection was taken that the Court has no territorial jurisdiction to entertain the suits. It was also claimed that the defendant-firm is a Sick Industrial concern, and in the month of May, 1988, the Punjab Financial Corporation took action against the defendant-firm under Section 29 of the State Financial Corporation Act, Act No. 63 of 1951. Therefore, the suit against the defendant-firm is incompetent and not maintainable, and that the Punjab Financial Corporation is liable to be substituted as defendant. The trial Court framed six issues on 8-8-1989 and additional issues No. 6-A, 5-B and 6-C on 9-8-1990. Issues No, 6-A, 6-B and 6-C are reproduced as under: