Dismissed

Canara Bank and Ors. v. Solar Busiform Ltd. and Ors.

Bombay HC24 Jun 2014SS/4591/1998

Case brief

AI extract

What is this about?

The Bombay High Court granted an ex parte decree to the Plaintiff Bank in Summary Suit No. 4591 of 1998. The Defendants failed to deposit the required security amount granted under a conditional stay order, leading to the decree for principal and interest on NCDs and short-term deposits.

What did the court decide?

Decree issued against Defendants jointly and severally to pay Rs. 3,12,88,177/- with 17% interest on Rs. 1Cr and Rs. 77,02,955/- with 20% interest on Rs. 20L.

Canara Bank and Ors. Vs Solar Busiform Ltd. and Ors. — Banking and Recovery | Bombay HC (2014)

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SS 4591 of 1998

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY

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ORDINARY ORIGINAL CIVIL JURISDICTION

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SUMMARY SUIT NO. 4591 OF 1998

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Canara Bank and Ors. ...Plaintiffs

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Versus

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Solar Busiform Ltd. and Ors.

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...Defendants

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Mr. Chirag Mody i/b. M/s. DSK Legal, for the Plaintiffs. None for the Defendants.

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CORAM : S.J. KATHAWALLA, J.

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DATE : 24th June, 2014.

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JUDGEMENT:

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Heard the learned Counsel for the Plaintiffs. The Suit is taken up for passing of an exparte decree. The above Summary Suit has been filed by the Plaintiffs against the Defendants to recover a sum of Rs. 3,12,88,177/(Rupees Three Crores Twelve Lakhs Eighty Eight Thousand One Hundred Seventy Seven only) qua the funds advanced by the Plaintiffs in respect of Non-Convertible Debentures with further interest on Rs. 1,00,00,000/-

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at the rate of 17% per annum from 1^st August, 1998, till payment and/or realisation; and a sum of Rs. 77,02,955/- (Rupees Seventy Seven Lakhs

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ssp

SS 4591 of 1998

Two Thousand Nine Hundred Fifty Five only) in respect of the Short Term Deposit advanced by the Plaintiffs with further interest on Rs. 20,00,000/at the rate of 20% per annum from 1^st August, 1998, till payment and/or realisation; as set out in the Particulars of Claim annexed to the Plaint at Exhibits “A-1” and “A-2” respectively. For the reasons stated in paragraph Nos. 3 to 6 of the Further Affidavit of Evidence dated 24^th June, 2014, filed by the Plaintiffs, namely that the original documents are not traceable and hence, the Plaintiffs are permitted to lead secondary evidence.

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By an order of this Court dated 22^nd , November, 1999, the Defendant No.1 Company was ordered to be wound up and the Official Liquidator, High Court, Bombay, was appointed as the Liquidator of the Defendant No.1 Company. By a further order of this Court (Coram: Mrs. K.K. Baam, J.) dated 21^st July, 2000, in Judges Summons No. 530 of 2000 in Company Petition No. 428 of 1994, the Plaintiffs were granted leave to continue the above Suit against the Defendant No. 1 Company. Thereafter, the Plaintiffs took out Chamber Summons No. 1153 of 2000 seeking liberty to join the Official Liquidator, High Court, Bombay, as a party to the Suit. By an order of this Court (Coram: Mr. R.J. Kochar, J.), dated 29^th September, 2000, the said Chamber Summons was allowed and liberty was granted to the Plaintiffs to join the Official Liquidator as a party to the above Suit. Accordingly, the Plaint was amended and the Official Liquidator was

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SS 4591 of 1998

added/joined as Defendant No. 4 in the above Suit.

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In the above Suit, the Plaintiffs had taken out Summons for Judgment No. 221 of 1999, wherein, this Court (Coram: Mr. A.S. Oka, J.) passed a conditional order dated 14^th January, 2010, granting leave to Defendant Nos. 1 and 3 to defend the Suit subject to them depositing a sum of Rs. 3 Crores and Defendant No.1 additionally depositing a sum of Rs. 80 lakhs within four months from the date of the said order. The said order also stated that it will be open for the Plaintiffs to apply for an ex-parte decree against Defendant No.2. However, Defendant Nos. 1 and 3 have failed to comply with the abovesaid order and have failed and neglected to deposit the aforesaid amount. A Non Deposit Certificate dated 6^th January, 2012, certifying the same has been issued by the Plaintiffs. The same has also been recorded by this Court (Coram: Mrs. Roshan Dalvi, J.) in its order dated 26^th March, 2014. Defendant No. 2 has not filed his appearance in spite of the service of Writ of Summons.

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In view thereof, the Suit is decreed in terms of the prayers sought which are reproduced hereunder:

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(i) that the Defendants be ordered and decreed jointly and severally to pay to the Plaintiffs a sum of Rs. 3, 12,88,177/- (Rupees Three Crores Twelve Lakhs Eighty Eight Thousand One Hundred Seventy Seven only) as per the Particulars of Claim being

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ssp

SS 4591 of 1998

Exhibit A-1“ ” to the Plaint with further interest on Rs. 1 ,00,00,000/- at the rate of 17

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percent per annum from 1^st August, 1998 till payment and/or realisation;

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(ii) that the 1^st Defendants be ordered and decreed to pay to the Plaintiffs a sum of Rs. 77,02,955/- (Rupees Seventy Seven Lakhs Two Thousand Nine Hundred Fifty Five only) as per the Particulars of Claim being Exhibit A-2 to the Plaint with further interest“ ” on Rs. 20,00,000/- at the rate of 20 percent per annum from 1^st August, 1998 till payment and/or realisation.

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The Suit is accordingly disposed of. The Plaintiffs shall be entitled to refund of Court Fees, as per Rules.

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[ S.J. KATHAWALLA, J.]

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ssp

Canara Bank and Ors. v. Solar Busiform Ltd. and Ors.

Case brief

What is this about?

What did the court decide?

Canara Bank and Ors. v. Solar Busiform Ltd. and Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Coram

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