Research › Search › Judgment

Delhi High Court · body

2002 DIGILAW 998 (DEL)

MODERN SIXTIN CINE LABORATORY PRIVATE LIMITED v. CRB CAPITAL MARKETS

2002-07-26

S.MUKERJEE

body2002
S. Mukerjee ( 1 ) THIS is a summary suit filed under Order 37 of Code of Civil Procedure, 1908. Defendants 1 and 2 were served through official liquidator since these companies are in liquidation. Defendant No. 3 has been served by substituted service by publication in the newspaper in terms of order dated 25. 9. 2001. ( 2 ) AFTER the service was complete the matter was listed before the Joint Registrar on 22. 5. 2000 but neither the defendants nor any counsel appeared on their behalf. Thereafter the matter came up before this Court on 16. 7. 2002 on which date also no one appeared on behalf of the defendant. After hearing the submissions of learned counsel for the plaintiff, the matter was reserved for orders. ( 3 ) THE defendants have been duly served, and having failed to appear despite being so served, the result would be as contemplated under Order 37 Rule 3 sub rule 6 (a) Code of Civil Procedure, 1908 which provides for the consequences of a defendant being served but thereafter neither entering appearance nor filing leave to defend. ( 4 ) LEARNED counsel for the plaintiff submits that the only consequence of the defendant not filing leave to defend is that the decree as claimed should be allowed in favour of the plaintiff. ( 5 ) EVEN otherwise I have gone through the record and find that the amount claimed in the suit is covered by negotiable instruments in the form of cheque bearing No. 440601 dated 20. 5. 97 drawn on Bank of Baroda for Rs. 10,88,670/- which cheque had been issued towards repayment of discounted Bill of Exchange No. 304/96-97 dated 19. 2. 97 drawn by defendant No. 3 and accepted by defendant No. 2, and payable to defendant No. 1 on the terms and conditions mutually agreed between them. ( 6 ) I find that plaintiff has established an un-rebutted right to the proceeds of said post" dated cheque No. 440601 for an amount of Rs. 10,88,670/- dated 20. 5. 97. ( 7 ) THE said cheque when presented, was dishonoured with the remarks insufficient funds . The plaintiff served notice upon defendant No. 1. through advocate calling upon defendant to make payment of the amount of Rs. 10,88,670/- with interest @ 32% per annum from due date till date of actual payment. 10,88,670/- dated 20. 5. 97. ( 7 ) THE said cheque when presented, was dishonoured with the remarks insufficient funds . The plaintiff served notice upon defendant No. 1. through advocate calling upon defendant to make payment of the amount of Rs. 10,88,670/- with interest @ 32% per annum from due date till date of actual payment. Thereafter further notices through plaintiff s advocate, were addressed on 30. 5. 97 and 27. 1. 97. ( 8 ) SUBSEQUENTLY this Court appointed an official Liquidator attached to this Court as the provisional Liquidator of defendants 1 and 2 and thereupon the plaintiff also addressed a letter dated 27. 7. 97 to the said liquidator and thereafter the present suit was filed after obtaining leave from the Company court vide order dated 29. 3. 2000 and 4. 4. 2000. ( 9 ) SINCE the claim in the suit is of the nature contemplated by Order XXXVII Code of Civil Procedure, 1908 , and defendants have not filed leave to defend, therefore in terms of order 37 Rule 3 sub-rule 6 (a) of Code of Civil Procedure, 1908 , the plaintiff became entitled to judgment forthwith. Accordingly the suit of the plaintiff is entitled to be decreed in terms of prayer made in the plaint, and a decree for Rs. 10,88,670/- alongwith interest @ Rs. 18% pendente lite and future. ( 10 ) AS such in view of the un-rebutted averments of the plaintiff which are duly verified and also supported by the documents filed on record, the plaintiff is clearly entitled to a decree in the sum of rs. 10,88,670/- alongwith interest thereon @ 18% from 20. 5. 97 till the date of institution of the suit and for further pendente life and future interest till the date of realisation of the amount also @ 18% subject to exclusion of any period which may be established on record in terms of the provisions of Companies Act 1956. ( 11 ) SUIT is accordingly decreed with costs and interest @ 18% from the date of institution of the suit, pendente life and future. File be consigned to records.