JUDGMENT - G.H. GUTTAL, J.:---In this Summons for Judgement, the defendants seek leave to defend. The question is whether the amount agreed to be underwritten under an underwriting contract represents a liquidated demand of money within the meaning of sub-rule (1) of Rule 2 of Order XXXVII of the Code of Civil Procedure. The facts out of which this Summons for Judgement arises are in paragraphs 2 and 3 below.

2. Starvox Electronics Ltd., a Joint stock Company, decided to bring out a public issue of 6,50,000 equity shares, each of Rs. 10/- aggregating to Rs. 6,50,000/-. The plaintiff, a Nationalised Bank, agreed to underwriters underwrite 50,000 equity shares of the Company. On 8th June, 1987, the plaintiffs entered into a subsidiary underwriting agreement with the defendants. Defendants are the plaintiffs sub-underwriters of the Company. The defendants agreed to “sub-underwrite 20,000 equity shares of the face value of Rs. 2,00,000 out of the public issue agreed to be underwritten by the plaintiffs. The defendants were to be discharged of their obligations under the agreement if the issue of equity shares was fully subscribed by the public on the closing date and the application m

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