Madras High Court
M/S.Annai Steels vs S.P.Chandrasekar on 7 January, 2022
O.S.A. (CAD) No.114 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 07.01.2022
CORAM :
THE HON'BLE MR.MUNISHWAR NATH BHANDARI,
ACTING CHIEF JUSTICE
AND
THE HON'BLE MR.JUSTICE P.D.AUDIKESAVALU
O.S.A. (CAD)No.114 of 2021
and C.M.P.Nos.18939 and 18941 of 2021
1. M/s.Annai Steels,
Rep. by its Authorised Signatory,
Mr.E.Sevvel, 37/1A, Melveeranam Road,
Walajah Tk., Melveeranam,
Vellore District 632 508.
2. Kalaivani
3. Rajesh .. Appellants
vs
S.P.Chandrasekar
Proprietor, M/s.Lotus Trading Company,
No.L-7, 1st Main Road, SIDCO
Industrial Estate, Kodungaiyur,
Chennai 600 118. .. Respondents
Prayer: Appeal filed under Section 13 of the Commercial Courts Act,
2015 against the order dated 02.09.2021 in Application No.1585 of
2021 in C.S.No.151 of 2021 on the file of original side of this Court.
For the Appellants : Mr.S.Veeraraghavan
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O.S.A. (CAD) No.114 of 2021
JUDGMENT
(Judgment of the Court was delivered by
the Hon'ble Acting Chief Justice)
By this appeal, challenge is made to the order dated 02.09.2021
for attachment of the property in respect of a claim of
Rs.1,30,31,282/-. By order dated 04.08.2021, in A.No.1585 of 2021,
the learned Single Judge directed the appellants to furnish security on
or before 01.09.2021, failing which attachment of the property was
ordered. The aforesaid order was passed since the appellants failed to
file a counter-affidavit in the application and keeping in mind the
nature of the suit, being one for recovery of money. The learned Single
Judge passed the said order to ensure that if the suit is decreed, the
plaintiff may be able to get the fruits of the decree. The appellants
failed to comply with the direction of the learned Single Judge by
furnishing security before the specified dated i.e. on 01.09.2021.
Accordingly, the order for attachment of the property was made on
02.09.2021.
2. Learned counsel for the appellant submitted that the suit was
preferred by the plaintiff only as a counter-claim of the appellants/
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O.S.A. (CAD) No.114 of 2021
defendants claim and thus, direction to furnish security or attachment
should not have been passed by the learned Single Judge. It is more
so when the written statement to the suit was filed, though
subsequent to the order dated 04.08.2021. The prayer is accordingly
to set aside the order dated 02.09.2021. The order dated 04.08.2021
was also sought to be challenged before the learned Single Judge.
3. We have considered the submissions made on behalf of the
appellants. We find that the order dated 02.09.2021 is literally a
consequential order to the earlier order passed on 04.08.2021. The
appellants/ defendants were directed to furnish security, keeping in
mind the nature of the suit as well as their failure to file a counter-
affidavit in the application. Since it is a suit for recovery, the learned
Single Judge passed the order of attachment to safeguard the interest
of the plaintiff on failure of the appellant to furnish security. Hence,
we do not find any illegality in the order passed by learned Single
Judge.
4. The contention of learned counsel for the appellant that the
suit was filed only as a counter to the claim made by the appellants is
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O.S.A. (CAD) No.114 of 2021
to be ignored since we are not inclined to deal with the said aspect of
the matter at this stage and in absence of material for it. We do not
find any ground to interfere with the order dated 02.09.2021.
5. Accordingly, the appeal fails and the same is dismissed. There
will be no order as to costs. Consequently, C.M.P.Nos.18939 and
18941 of 2021 are closed.
(M.N.B., ACJ.) (P.D.A., J.)
07.01.2022
Index : Yes/No
tar
To:
The Sub Assistant Registrar
Original Side, Madras High Court,
Chennai.
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https://www.mhc.tn.gov.in/judis
O.S.A. (CAD) No.114 of 2021
M.N.BHANDARI, ACJ.
AND
P.D.AUDIKESAVALU, J.
(tar)
O.S.A. (CAD) No.114 of 2021
07.01.2022
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