Sant Chit and Finance Pvt. Ltd. vs G.D. Textiles and Others

Mohd. Shamim, J.

(1) This is a suit for recovery of Rs. 2,28,900.00 together with pendents lite and future interest at the rate of 12% per annum. Briefly stated the

case of the plaintiff is that the plaintiff is a private limited company duly incorporated under the Companies Act, 1956 with its registered office at

16/2704, Ajmal Khan Road, Karol Bagh, New Delhi. Shri Sant Lal Arora is the Director of the company. He is fully authorised to institute the

present suit vide resolution No. 2 dated May 13,1991. He is thus competent to sign and verify the plaint and to file the present suit. The defendant

No. 1 is a partnership firm. Defendants No. 2 and 3 are the partners thereof. The plaintiff is running chit and finance business in Delhi and Haryana.

The plaintiff was the Foreman responsible for the conduct of Chit no. BGF-5. Defendant No. 1 is a subscriber i.e. a person holding a ticket under

the chit. The ticket number allotted to defendant No. 1 was 7. Defendant No. 1 became a prized subscriber of the above said Chit in the second

draw held on May 31,1988. In this he offered the highest discount for that draw. The prized amount was Rs. 1,58,500.00 . The prized amount

was paid vide crossed cheques bearing .No. 666923 dated June 4, 1988 and No. 666922 dated June 11,1988 for Rs. 58.500.00 and Rs.

1,00,000.00 respectively drawn on Bank of Rajashtan, Karol Bagh, New Delhi. The partners of defendant No. 1 executed a receipt dated June

11,1988 in token of having received the above said amount. The aforesaid cheques were duly encased by defendant No. 1. The partners of

defendant No. 1 executed a pronote dated June 11,1988 in the sum of Rs. 2,80,000.00 as the amount of future subscriptions payable by

defendant No. 1. A joint promissory note dated June 11,1988 for Rs. 2.80.000.00 was also executed by all the defendants in favor of the plaintiff

being the amount payable as further subscriptions for the period April, 1988 to December, 1988. However, he failed to pay any amount thereafter.

The defendants are liable under the above said promissory note dated June 11,1988. The defendants were served with legal notices whereby they

were required to pay Rs. 2,28,500.00 . The notices were returned with the remarks"" No such firm existed at the given address"". The registered

notices issued to defendants No. 2 and 3 were returned with the endorsement of refusal. The defendants are thus liable to pay jointly and severally

the above said amount. A sum of Rs. 2,28,900.00 is due to the plaintiff from the defendants which the defendants have failed to pay despite

repeated demands and requests.

(2) The defendants were served on August 23, 1991 yet they neither put in appearance within ten days from the date of service of summons nor

have they applied for leave to defend. Hence, the plaintiffs are entitled to a decree under Order 37 Rules 2 and 3 CPC .

(3) The plaintiffs are thus entitled to succeed. The suit for recovery of Rs.2,28,900.00 is hereby decreed with costs against all the defendants. The

plaintiff shall be entitled to pendents lite and .future interest at the rate of 12% per annum.