Thursday, 23, Apr, 2026
 
 
 
Expand O P Jindal Global University
 
  
  
 
 
 

Vinergy International Pvt. Ltd vs Dimple Dineshbhai Shah
2016 Latest Caselaw 6980 Bom

Citation : 2016 Latest Caselaw 6980 Bom
Judgement Date : 7 December, 2016

Bombay High Court
Vinergy International Pvt. Ltd vs Dimple Dineshbhai Shah on 7 December, 2016
Bench: K.R. Sriram
                                                                           suit1947.08(2).doc


                 IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                        ORDINARY ORIGINAL CIVIL JURISDICTION  




                                                                                           
                                                 
                                        SUIT NO.1947 OF 2008




                                                                   
    Vinergy International Pvt. Ltd.                         ....Plaintiff 
                V/s.
    Dimple Dineshbhai Shah                   ....Defendant 




                                                                  
                                   ----

Mr.Mikhail Behl a/w Mr.Sachin Kudalkar i/by M/s.Madekar & Co. for the plaintiff.

Mr. D.P.Desai a/w Mr.Jay Mehta i/by Law Frame for the defendant.

----

                                       ig      CORAM : K.R.SHRIRAM,J   
                                         RESERVED ON   : 22.11. 2016
                                       RONOUNCED ON : 7.12.2016
                                     
    P.C.:-

    1               The plaintiff had filed this suit for a summary decree   in 
            

the sum of Rs.1,49,50,000/- with interest @ 18% p.a. on the amount

of Rs.1,00,00,000/- from the date of filing of the suit till

payment/realization. The suit as filed is based on dis-honoured

cheque which was issued by the defendant for an amount of

Rs.1,00,00,000/-. By an order dated 16.2.2010, unconditional leave

to defend was granted by this court.

2 According to the plaintiff, the defendant had issued the

cheque as security in favour of plaintiff to secure payment in respect

K.J 1/20

suit1947.08(2).doc

of supply effected by plaintiff on M/s.Umesh Enterprises and its

customers. It is the plaintiff's case that some time in or around March,

2004 one Umesh Shah, Proprietor of M/s.Umesh Enterprises,

approached the plaintiff and requested plaintiff to supply Furnace Oil

and Light Diesel Oil to M/s.Umesh Enterprises as well as to the

customers of M/s.Umesh Enterprises and had agreed to make

payment to plaintiff on behalf of its customers. Accordingly, the

plaintiff supplied the goods from time to time to diverse customers of

M/s.Umesh Enterprises as well as to M/s.Umesh Enterprises and

initially payments were made by Umesh Enterprises. However,

subsequently, the cheques issued by M/s.Umesh Enterprises started

getting dishonoured and when the matter was taken up with

M/s.Umesh Enterprises, plaintiff was assured that payment towards

the said supplies would be effected through another group concern of

the said Umesh Enterprises, i.e., through the defendant herein who

was the brother of the said Umesh Shah and carrying on business as

Proprietor of Arihant Petrochem. In view of the assurances given by

the Proprietor of M/s.Umesh Enterprises, plaintiff supplied material to

its customers once again and the amount which was due and payable

to plaintiff as on 11.01.2005 was Rs.3,25,96,444/-.

    K.J                                                                                2/20





                                                                              suit1947.08(2).doc


The plaintiff has received part payments from M/s.Umesh

Enterprises as well in the sum of Rs.1,35,88,279/- (Rupees One Crore

Thirty Five Lakh Eighty Eight Thousand Two Hundred Seventy Nine)

and a sum of Rs.54,40,000/- from defendant and that left an amount

of Rs.1,35,68,165/- (Rupees One Crore Thirty Five Lakh Sixty Eight

Thousand One Hundred Sixty Five) due and payable .

3 It is the case of the plaintiff that as there was a large

amount of Rs.1,35,68,15/- (Rupees One Crore Thirty Five Lakh Sixty

Eight Thousand One Hundred Sixty Five) due and payable by

M/s.Umesh Enterprises to the plaintiff the plaintiff met the defendant

and Umesh Shah. During the meeting the defendant guaranteed

payments to be made by Umesh Shah Enterprises and in furtherance

thereto gave a cheque for Rs.1 crore as security. As the said Umesh

Enterprises did not pay the balance amount and since the defendant

had guaranteed the repayment of the dues of Umesh Enterprises and

its customers, the plaintiff presented the cheque for Rs.1 crore issued

by the defendant. The cheque was dishonoured on presentation.

According to the plaintiff, notice was issued to the defendant after

dishonour of the said cheque and a complaint was filed on or about

K.J 3/20

suit1947.08(2).doc

22.8.2005.

The present suit is instituted against the defendant in his

capacity as guarantor of the dues of his brother Mr.Umesh Shah.

4 In the written statement filed, the defendant took the

following defences :-

(i) There is no privity of contract between the defendant and plaintiff and therefore the defendant is not liable to pay or agreed to discharge

the liability of Umesh Enterprises as the plaintiffs have not produced any document to show that Umesh Enterprises have agreed to discharge the liability of the plaintiffs ;

(ii) The plaintiffs have not joined Umesh Enterprises as necessary party to the suit ;

(iii) The plaintiffs filed false and frivolous criminal case being Criminal Case No.192 of 2005 against the defendant under Section

138 of the Negotiable Instrument Act in Magistrate Court at Jodhpur ;

(iv) The plaintiffs have failed to produce any document to show that the defendant stood as a guarantor to discharge the liability of Umesh

Shah or Umesh Enterprises ;

(v) The defendant is not concerned with Umesh Enterprises. The defendant is proprietor of Arihant Petrochem and the defendant has no concern with the business of Umesh Enterprises ;

(vi) The defendant has not issued any cheque to the plaintiff. The plaintiff have managed to get one blank cheque which they used by forging the same. In fact, the plaintiff misused the blank cheque and deposited the same in the Jodhpur bank account and filed false criminal case against the defendant when the cheque got dishonoured ;

    K.J                                                                                               4/20





                                                                               suit1947.08(2).doc


            (vii)     In   the   cross   examination   dated   27.9.2005   filed   in   the  

Magistrate's Court at Jodhpur in the affidavit of evidence, Mr.Mukul

Agarwal of the plaintiff has admitted the fact that Umesh Enterprises does not owe anything to the plaintiff.

5 On 30.9.2014 issues were settled, as reproduced in

paragraph no.22.

6 In order to prove its claim the plaintiff led evidence of one

witness Sunil Shukla (General Manager-Accounts) (PW 1). The

defendant did not lead any evidence. PW 1 filed two affidavits in lieu

of examination in chief, one dated 9.12.2014 and the other dated

12.10.2015. He has deposed on the basis that he was personally

conversant with the facts of the case, on the basis of personal

knowledge as well as records available with the plaintiff. Based on

the testimony of PW-1, documents produced by the plaintiff were

received in evidence and marked as Exhibits.

7 PW-1 has given testimony regarding an oral agreement

between the defendant, his brother Umesh Shah and the plaintiff,

whereby the defendant guaranteed to the plaintiff that in case of

default in payment by Umesh Shah, the defendant would discharge

K.J 5/20

suit1947.08(2).doc

the liability of Umesh Shah. PW-1 has stated that in furtherance of

the contract of guarantee the defendant also issued a cheque in favour

of the plaintiff bearing No.214672 (Exhibit P-8) as security for an

amount of Rs.1,00,00,000/-. In paras 6 & 11 of affidavit dated

9.12.2014 (Exh.P-1), PW-1 has stated as under :-

(6) .............I say that when the matter was taken up with the said Umesh Shah of M/s.Umesh Enterprises, the defendant being the brother of the said Umesh Shah in or about August 2004

promised me on behalf of the plaintiffs that in case of default in payment by the said Umesh Shah, the defendant shall discharge

the liability of the plaintiff that and he would personally and be jointly and severally liable to pay the plaintiffs, towards the supplies effected by the plaintiffs to M/s.Umesh Enterprises and to its customers would be made by the defendant..............

(11) I say that in furtherance of the guarantee and assurance that the payment towards the supply effected by the plaintiffs to M/s.Umesh Enterprises would be made by the defendant and to secure the payment in respect of supplies effected by the plaintiffs to Umesh Enterprises and its customers, the defendant also issued

and handed over to the plaintiffs a cheque bearing no.214672 drawn in favour of the plaintiffs and on Tamilnad Mercantile

Bank Ltd. Mandavi Branch, Mumbai for a sum of Rs.1,00,00,000/- (Rupees One Crore only) as security. I say that the said cheque has been signed by the defendant as the proprietor of the said M/s.Arihant Petrochem.

8 During cross-examination PW-1 was called upon to provide

particulars of the meeting during the course of which this agreement

was arrived at. A perusal of the notes of evidence of PW-1 recorded

and in particular the answers in cross-examination of PW-1 would

show that PW-1 has, to the question nos.20, 21, 81, 82, 83 & 84 put

K.J 6/20

suit1947.08(2).doc

to him, replied by providing the information. It will be useful to

reproduce the answers to these questions.

20............Per Commissioner :

Ans. :- Mr.Mukul Agarwal is the Director of the plaintiff company. Whatever deal is structured by the company is handed over to respective department namely marketing and accounts. Marketing is concerned with day to day supply and I maintained the cash flow

as a result of which I am concerned with receivables. When there were outstanding of Umesh Enterprises and the cheques issued by Umesh Enterprises started bouncing. Mr.Umesh Shah brother of Mr.Dimple Shah introduced us in the month of July 2004 that Mr.Dimple Shah is liable to pay the outstanding supply to Umesh

and his customers. In that meeting, I was present along with my Director Mr.Mukul Agarwal and Marketing G.M. Mr.Kamal Singh

Kandiyal. We discussed jointly to continue to supply and that Mr.Dimple Shah is responsible to pay the outstanding liability on behalf of Umesh Enterprise. That time he hand over the cheque in the name of Sumex Organics Pvt. Ltd. and based on our exposure

agreed, I filled the amount of Rs.One Crore in front of Mr.Dimple Shah.

Q.21. Just now in the above answer, you have said that my Director Mr.Mukul Agarwal and Marketing G.M.Mr.Kamal Singh Kandiyal

were present. When did this meeting take place ? Ans. : In the month of July 2004 in our office.

Q.81. Have you demanded payment either from Umesh Enterprises and/or its alleged customers ?

Ans. : No.

Q.82. Is the alleged guarantee in writing ?

Ans. : No. Witness volunteers : I have already mentioned in my earlier answer that we have meet jointly in the month of July 2004 discussed and decided to continue supply of material to Umesh Enterprises and its

customers and taken the cheque of Rs.1 crore as a guarantee from Mr.Dimple Shah.

Q.83 : Where did the alleged meeting take place ? Ans. : At our office i.e., 403, Arun Chamber, Tardeo Main Road, Mumbai-400 034.

Q.84 : Was the alleged cheque handed over to you in the above stated meeting ?

    K.J                                                                                              7/20





                                                                                  suit1947.08(2).doc


              Ans. :  Yes.  

Witness volunteers : I have already mentioned in my earlier answer.

I was present in that meeting and collected the cheque after finalizing the meeting.

As held in 1Madhuri Pukhraj Baldota Vs Omkarlal

Daulatram Banwat by eliciting these particulars the defendant

elicited positive statements which damaged the allegation of the

defendant namely that there was no contract of guarantee. The

defendant did not even put its affirmative case in this regard to the

witness and therefore must be deemed to have accepted the

correctness of the evidence. Further the defendant did not contravene

or rebut this positive evidence by leading its own evidence and hence

must be deemed to have accepted the correctness of the same. The

evidence proves that a contract of guarantee came into existence

between the plaintiff, the defendant and Umesh Shah in July 2004 at

which time the defendant issued the cheque bearing No.214672

drawn on the Tamilnad Merchantile Bank Ltd. (Exhibit P-8).

9 The testimony of PW-1 is not contradicted or undermined.

No suggestion is put to PW-1 that his deposition regarding the

1 2015(4) Mh.L.J.327

K.J 8/20

suit1947.08(2).doc

contract of guarantee and/or the further particulars he was called

upon to provide regarding the contract of guarantee were false.

Likewise no suggestion is put to PW-1 that there was no

supplies made to M/s.Umesh Enterprises or its customers. This is

extremely pertinent given the defence taken by the defendant in the

written statement. There is no cross-examination of PW-1 as to how

he came into possession of the aforementioned security cheque

(Exhibit P-8) though it is the case of the defendant that PW-1

misappropriated the said cheque. This is of significance given the

nature of the allegations raised by the defendant against the plaintiff

in paragraph 18 of the written statement. The failure to confront PW-

1 with the defendant's affirmative case must go against the defendant.

In 2A.E.G Carapiet Vs. A.Y.Derderian paras 8 & 9 read as under :-

"8. Failure to put the important and crucial part of the case to the witnesses coming to prove testamentary capacity must be

held agaisnt the respondents. It is all the more so because the case of witness Venkat Ramiah is that as early as in October, 1956 he had told this story at Poona to Mr.Aratoon and the learned Counsel Mr.Ganguli. If that was so, then there can be no doubt that this case would have been put to the doctors and nurses who were being examined on commission in Poona itself.

It is also strange why then the Respondents did not have the evidence of this witness Venkata Ramiah immediately on commission at Poona and why he was kept up the sleeves to be played as a last trump as a last witness in the case when the entire evidence on the case of the propounder had been made and concluded. Lastly this course is all the more reprehensible here because witness Venkat Ramiah admits that on all his visits

2 AIR 1961 Cal 359

K.J 9/20

suit1947.08(2).doc

to the testator's room in the nursing home he found the wife present (Q.81) and if that is so then if the wife was put that case

she might have denied but by keeping back this case from her, she was denied the necessary opportunity to do so, leading to failure of justice in this case.

9. The law is clear on the subject. Wherever the opponent has declined to avail himself of the opportunity to put his essential and material case in cross-examination, it must follow that he believed that the testimony given could not be disputed at all. It is wrong to think that this is merely a technical rule of evidence.

It is a rule of essential justice. It serves to prevent surprise at trial and miscarriage of justice, because it gives notice to the other side of the actual case that is going to be made when the turn of the party on whose behalf the cross-examination is being made comes to give and lead evidence by producing witnesses. It

has been stated on high authority of the House of Lords that this much a counsel is bound to do when cross-examining that he

must put to each of his opponents witnesses in turn, so much of his own case as concerns that particular witness or in which that witness had any share. If he asks no question with regard to this, then he must be taken to accept the plaintiff's account in its

entirety. Such failure leads to miscarriage of justice, first by springing surprise upon the party when he has finished the evidence of his witness and when he has no further chance to meet the new case made which was never put and secondly, because such subsequent testimony has no chance of being tested

and corroborated.

10 The defendant through their learned counsel submitted

that the cheque was misappropriated. But the admitted position is till

date there been no criminal complaint of cheating/misappropriation

filed by the defendant against any officer of the plaintiff. This belies

this allegation of defendant. It is also necessary to note that the cross-

suit filed by the defendant has been dismissed.

    K.J                                                                                               10/20





                                                                                    suit1947.08(2).doc


    11              PW   1   has   deposed   that   post   the   meeting   in   July,   2004 




                                                                                                    

between M/s.Umesh Enterprises, the defendant and the plaintiff,

M/s.Umesh Enterprises placed several orders in respect of which the

plaintiff has made supplies and raised its invoices. PW-1 has also

stated that the defendant without demurrer or protest as to rate,

quality and/or quantity received the products. The invoices produced

by the plaintiff were received in evidence and marked as Exhibit P-11

(colly). The Judgment of the Calcutta High Court in Carapiet

Vs.Derderian (supra) was followed by a single judge of this court in

Harish Loyalka & Ors. Vs. Dilip Nevatia & Ors. Paras-9 & 10 read as

under :-

"9 Failure to put the important and crucial part of the case to the witnesses coming to prove testamentary capacity must be held

against the respondents............

10 The law is clear on the subject. Wherever the opponent has declined to avail himself of the opportunity to put his essential and material case in cross-examination, it must follow that he

believed that the testimony given could not be disputed at all. It is wrong to think that this is merely a technical rule of evidence. It is a rule of essential justice. It serves to prevent surprise at trial and miscarriage of justice, because it gives notice to the other side of the actual case that is going to be made when the turn of the party on whose behalf the cross-examination is being made comes

to give and lead evidence by producing witnesses. It has been stated on high authority of the House of Lords that this much a Counsel is bound to do when cross-examining that he must put to each of his opponent's witnesses in turn, so much of his own case as concerns that particular witness or in which that witness had any share. If he asks no question with regard to this, then he must be taken to accept the plaintiffs account in its entirety. Such failure leads to miscarriage of justice, first by springing surprise

3 2015(1) Bom C.R.361

K.J 11/20

suit1947.08(2).doc

upon the party when he has finished the evidence of his witnesses and when he has no further chance to meet the new case made

which was never put and secondly, because such subsequent testimony has no chance of being tested and corroborated."

12 The defendant did not cross-examine PW-1 on the

invoices produced. There is no case put to the witness "denying

supply", "disputing price", "disputing quantity", "disputing quality"

etc. Furthermore the defendant calls upon the plaintiff to produce a

statement showing (a) the details of invoices relating to M/s.Umesh

Enterprises and (b) the details of invoices relating to the customers of

M/s.Umesh Enterprises. This statement was received in evidence and

marked Exhibit D-1. It is pertinent to note that though the meeting

before the commissioner was adjourned for the purpose of producing

this statement once it was produced, cross-examination was closed by

the letter dated 4.4.2016 (Exhibit D-2).

13 By not putting any of its affirmative case namely as regards

"the misappropriation of the cheque" and "the allegation of non

supply of goods" the defendant must be deemed to have accepted the

case of the plaintiff in its entirety.




    14            The failure to cross-examine a witness on material portions 

    K.J                                                                                       12/20





                                                                                        suit1947.08(2).doc


of his deposition must be taken as being truthful and credible. I find

support in (a) 4State of U.P. Vs. Nahar Singh & ors. Paras-13 & 14

read as under :-

"13 It may be noted here that that part of the statement of PW-1 was not cross-examined by the accused. In the absence of cross- examination on the explanation of delay, the evidence of PW-1

remained unchallenged and ought to have been believed by the High Court. Section 138 of the Evidence Act confers a valuable right of cross-examining the witness tendered in evidence by the opposite party. The scope of that provision is enlarged by Section 146 of the Evidence Act by allowing a witness to be

questioned :

(1) to test his veracity ;

(2) to discover who he is and what is his position in life, or (3) to shake his credit by injuring his character, although the

answer to such questions might tend directly or indirectly to incriminate him or might expose or tend directly or indirectly to expose him to a penalty or forfeiture.

14. The oft-quoted observation of Lord Herschell, L.C.in Browne V. Dunn clearly elucidates the principle underlying those

provisions. It reads thus :

"I cannot help saying, that it seems to me to be absolutely

essential to the proper conduct of a cause, where it is intended to suggest that a witness is not speaking the truth on a particular point, to direct his attention to the fact by some questions put in cross-examination showing that that imputation is intended to

be made, and not to take his evidence and pass it by as a matter altogether unchallenged, and then, when it is impossible for him to explain, as perhaps he might have been able to do if such questions had been put to him, the circumstances which, it is suggested, indicte that the story he tells ought not to be believed, to argue that he is a witness unworthy of credit. My Lords, I

have always understood that if you intend to impeach a witness, you are bound, whilst he is in the box to give an opportunity of making any explanation which is open to him and as it seems to me, that is not only a rule of professional practice in the conduct of a case, but it is essential to fair play and fair dealing with witnesses."

This aspect was unfortunately missed by the High Court when it

4 (1998 3 SCC 561

K.J 13/20

suit1947.08(2).doc

came to the conclusion that explanation for the delay is not at all convincing. This reason is, therefore, far from convincing."

(b) In 5Amar Singh Vs. The State of Bihar the Apex Court held as

under :-

"where evidence clearly discloses that : (1) the truck was being

driven at a very high speed. (2) it was having no lights, (3) it was being driven without the driver sounding the horn, and (4) the visibility was very poor at that time, and there is no cross-examination on the above crucial aspects, the finding that the accident happened due to rash and negligent driving

of the truck is justified."

(c) In 6Mahavir Singh Vs. State of Haryana , paragraphs 16 & 17

read as under :-

"16. It is a settled legal proposition that in case the question is not put to the witness in cross-examination who could furnish explanation on a particular issue, the correctness or legality of the

said fact/issue could not be raised (Vide Atluri Brahmanandam v. Anne Sai Bapuji and Laxmibai v. Bhagwantbuva)

17. In the instant case, we had gone through the cross-examination of the witnesses who could furnish an explanation for the discrepancies pointed out by the learned counsel for the appellant.

However, we came to the conclusion that the defence had never put any question in these regards to the material witness who could furnish the explanation for the same. So the chain of all the circumstantial evidence is complete and no link is missing and the accused persons had an opportunity to commit the murder of the deceased."

15 The plaintiff has also produced circumstantial evidence,

5 (1971) 3 SCC 273 6 (2014) 6 SCC 716

K.J 14/20

suit1947.08(2).doc

which supports and corroborates its case. The plaintiff has tendered

in evidence a letter dated 4 th January 2005 (Post the contract of

guarantee which was arrived at in July 2004) (Exh.P-4) sent by fax

from Umesh Enterprises to the plaintiff (Plaintiff's earlier name was

Sumex Organics Pvt. Ltd.). As stated earlier, one Umesh Shah, the

brother of the defendant, was the sole proprietor of Umesh

Enterprises. When one reads Exh.P-4, P-5, P-6 and P-7 together, it

pertains to invoice No.LO6967 dated 4th January, 2005. Exh.P-4

provides excise details in respect of the supply covered by the invoice.

The invoices are received in evidence as Exhibit P-11 (colly). If the

statement (Exh.P-7) pertaining to the payments made by the

defendant to the plaintiff following his commitment to discharge his

brother's dues is seen, it can be noted that the defendant issued a

cheque dated 13th January, 2015 bearing No.214671 for Rs.4,00,000/-

which was adjusted towards payment of invoice LO6928, LO6947,

LO6966, LO6967 & LO6968. The statement (Exh.P-7) if perused in

comparison with the invoices would corroborate that likewise for

several other invoices the defendant issued cheques to discharge his

brother's liability. These also establish the agreement between the

plaintiff and the defendant.

    K.J                                                                                 15/20





                                                                          suit1947.08(2).doc




                                                                                          
    16            The defendant has contended in the written statement that 




                                                                 

the payments it had made the plaintiff were temporary loans. The

defendants however, did not confront PW-1 with this case in the

cross-examination. Furthermore the suit that was filed by the

defendant for the recovery of the said sums alleged to be loans has

been dismissed and has attained finality. The defendant did not also

lead any evidence in the present suit.

17 During the course of cross-examining PW-1 the defendant

put suggestions (Q.91 & Q.92) that M/s.Umesh Enterprises had repaid

the entire amount to the plaintiff and the goods were supplied to

customers of Umesh Enterprises, where Umesh Shah was only a

broker. Therefore, this gives an assumption of delivery of goods as

also a liability to pay. However, despite asserting this case and it

being denied, no evidence was produced by the defendant to show

discharge of dues by M/s.Umesh Enterprises.

18 The counsel for the defendant submitted that the fact that

the date on Cheque No.214672 for Rs.1 crore is 23 rd May, 2005

K.J 16/20

suit1947.08(2).doc

(Exhibit P-8) establishes that the Cheque was not issued at the

meeting held in July, 2004. This submission in my view is based on

assumptions and conjectures. The counsel assumes that the cheque

(Exhibit P-8) was not post-dated. The post dating of a cheque is a

matter that quite easily fits in with the case of the plaintiff that the

defendant stood security for the supplies to be made by the plaintiff to

M/s.Umesh Enterprises and its customers. It is extremely pertinent to

note that PW-1 was never asked to explain this so called anomaly.

19 The learned counsel for the defendant submitted that the

plaintiff did not produce the ledger books of M/s.Umesh Enterprises.

PW-1 has, during his course of cross-examination, in response to

Questions 61 to 63 stated that the statement (Exhibit P-5) was

prepared based on the ledger account of M/s.Umesh Enterprises as

maintained by the plaintiff. PW-1 was not called upon to produce the

same.

20 PW-1 has also, during his course of cross-examination, in

response to questions 73 to 76 pertaining to the statement (Exhibit P-

6) stated that though the ledger account of Arihant Petrochem was

K.J 17/20

suit1947.08(2).doc

not produced he was willing to produce the same. PW-1 was not

called upon to produce the statement on the next session of the

commission, instead was called upon to produce other documents

which are at Exhibits D-1 to D-5. There is no cross-examination of

any nature on the documents produced at Exhibit D-1 to D-5. The

defendant therefore, must be considered to have accepted the

correctness of the contents of the documents.

No evidence , however, was led by the plaintiff on the rate

of interest at 18% p.a. claimed on Rs.1 crore from 23.7.2015.

Therefore, this court is inclined to grant interest only from the date of

the suit until payment/realizations at 9% p.a. which is a reasonable

rate.

22 In the circumstances, I answer the issues as under :-

          Nos.                        Issues                         Findings
          (i)     Whether the plaintiff proves that it  Yes





                  is   entitled   to   recover   from   the 
                  defendant a sum as prayed for ?

          (ii)    Whether the plaintiff proves that a  Yes
                  cheque for a sum of Rs.1 crore was 
                  issued by the  defendant on behalf 


    K.J                                                                               18/20





                                                                           suit1947.08(2).doc


                   of   M/s.Umesh   Enterprises   as   a 
                   security for the sale and supply of 




                                                                                           
                   furnace   oil   and   light   diesel   oil 
                   effected   by   the   defendant   upon 




                                                                   
                   M/s. Umesh Enterprises as alleged 
                   in para 7 and 11 of the plaint ?

          (iii)    Whether the defendant proves that  No




                                                                  
                   the  monies  paid   by the  defendant 
                   to   the   plaintiff   were   the   advances 
                   and not towards the purchase price 
                   of goods sold and supplied by the 
                   plaintiff   to   one   M/s.Umesh 




                                                   
                   Enterprises and/or all its customers

          (iv)
                                     
                   Whether the defendant proves that  No
                   there   is   no   privity   of   contract 
                                    
                   between  the  parties  to  the   suit  as 
                   alleged   in   para   4   of   the   Written 
                   Statement ?
            

          (v)      Whether the defendant proves that  No
                   the   suit   is   not   maintainable   as 
         



                   alleged   in   para   1   of   the   Written 
                   statement ?

          (vi)     Whether the defendant proves that  No





                   the   plaintiff   procured   the   subject 
                   cheque   by   dishonest   means   as 
                   alleged   in   para   18   of   the   Written 
                   Statement ?





          (vii)    Whether the defendant proves that  No
                   she never paid any or agreed to pay 
                   any   amount   to   the   plaintiff   on 
                   behalf of M/s.Umesh Enterprises ?
          (viii)      What reliefs ?                             The suit is decreed in 
                                                                 the sum of Rs.1 crore 


    K.J                                                                                  19/20





                                                                 suit1947.08(2).doc


                                                      together   with   interest 
                                                      thereon   at   9%   p.a. 




                                                                                 
                                                      from   the   date   of   the 
                                                      suit                  until 




                                                         
                                                      payment/realization.
          (ix)        What costs ?                    The   defendant   to  pay 
                                                      a sum of Rs.1 lakh as 
                                                      cost to the plaintiff.




                                                        
                                             
    23             Decree be drawn up accordingly.  Suit stands disposed.
                                     
                                    
                                                   (K.R.SHRIRAM, J)
            
         






    K.J                                                                        20/20





 

 
Download the LatestLaws.com Mobile App
 
 
Latestlaws Newsletter
 

Publish Your Article

 

Campus Ambassador

 

Media Partner

 

Campus Buzz

 

LatestLaws Guest Court Correspondent

LatestLaws Guest Court Correspondent Apply Now!
 

LatestLaws.com presents: Lexidem Offline Internship Program, 2026

 

LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!

 
 

LatestLaws Partner Event : IDRC

 

LatestLaws Partner Event : IJJ

 
 
Latestlaws Newsletter