Jindal Menthol And Investments ... vs Hamco Mining And Smelting Limited ...
2006 Latest Caselaw 353 Del

JUDGMENT

Badar Durrez Ahmed, J.

1. This is a summary suit filed by the plaintiff against the defendants. The defendant No.1 is the company with which the plaintiff had placed inter- corporate deposits. The defendant No.2 is the Managing Director of the defendant No.1 company, who had guaranteed the repayment of these deposits. The plaintiff is seeking recovery of a sum of Rs.40,08,066.73 on account of the principal amount of Rs.33,50,000.00 and interest up to 15.12.1998 on the principal amount computed at Rs.6,58,066.73 as indicated at paragraph 17 of the plaint. The learned counsel for the petitioner submits that the defendants had been served and they had initially entered appearance. However, they subsequently chose not to appear. The summons for judgment against defendants 1 and 2 was also affixed at the addresses mentioned in the memo of appearance, but no leave to defend application has been moved by the defendants. He submits that the suit is liable to be decreed straightway.

2. There is no doubt that the defendants were served. They appeared on a previous occasion. Thereafter, summons and judgment were also served. Yet, the defendants have chosen not to file any leave to defend. Therefore, the plaintiff would be entitled to a decree in terms of the procedure set out for summary suits under Order 37 of the Code of Civil Procedure, 1908. The case of the plaintiff as indicated in the plaint is that the plaintiff has made one inter-corporate deposit of an amount of Rs. 60 lakhs and in terms of an agreement dated 03.03.1998, the defendant No.1 made certain payments as agreed. However, a balance amount of Rs.33,50,000/- was due and payable by the defendant No.1 to the plaintiff. The defendant No.2, who was the Managing Director of the Defendant No.1, issued a letter of guarantee in favor of the plaintiff on 03.03.1998. Since the amounts have not been repaid, this suit has been filed. The plaintiff has been able to establish that the amount of Rs.40,08,066.73 is due and owing from the defendants to the plaintiff.

3. Accordingly, I pass a decree in favor of the plaintiff and against the defendants for the said amount jointly and severally. The plaintiff shall also be entitled to pendente lite and future interest on the said amount @ 12% per annum. This suit is decreed with costs in favor of the plaintiff.