IN THE HIGH COURT OF BOMBAY
S.S. Nijjar, J.
Aviat Chemicals Private Limited..... Applicants.
Versus
Jagmohansingh Arora others..... Respondents.
Judge’s Summons No. 224 of 1999 in Company Application No. 152 of 1999, decided on
24-1-2000.
Advocates appeared :
Janak Dwarkadas with Kamal Khatu i/b Dhru Co., for the applicants in support. V. Krishna i/b Apex Juris, for the respondents.
2.Aroras had filed a Company Application being Company Application No. 152 of 1999 inter alia for setting aside of the order dated 17th December, 1998. This application was taken out by Aroras on the ground that Aviat had obtained the order dated 17th December, 1998 from the Company Court by suppressing material facts and by playing a fraud on the Court. On 4th February, 1999 Aroras were granted ad interim relief whereby Aviat was restrained from alienating or encumbering immovable property of Aviat and from carrying out production activities from the formulation unit which was set up by Aviat. An undertaking in terms of Rule 148 of the Bombay High Court (O.S.) Rules was furnished by Aroras in March 1999. Subsequently, the Company Application was heard on 23rd March, 1999, 24th March, 1999 and on 26th March, 1999. The application was dismissed on 9th April, 1999. It was held that the application made by Aroras was not bona fide. It was also held that the application is merely speculative in nature. The application had been disguised as a demonstration against a party who is said to have defrauded the Court .
3.It is submitted by Mr. Dwarkadas that Aviat had set up a state of the art formulation unit, for the manufacture of multivitamin drops/multivitamin syrups. An order for purchase of 16,00,000 15ml Multivitamin drops of the value of Rs. 1,51,68,000/- and 7,00,000 200ml Multivitamin Surup of the total value of Rs. 1,26,70,000/- for the months of February 1999 and March 1999 had to be aborted in view of the ad interim order. It is stated that as a direct consequence of the ad interim order, Aviat had suffered a tremendous loss of profit which is estimated at Rs. 87,77,000/-. The particulars of claim are attached to the affidavit in support of the Application at Exhibit G. The loss of reputation and goodwill is valued at Rs. 25 lacs. The legal costs are estimated at Rs. 10 lacs.
4.At the threshold the learned Counsel Mr. V. Krishna for Aroras has submitted that this Judge's Summons deserves to be dismissed in limine. He submits that even if the undertaking is given under Rule 148, the quantification of the damages can only be done by the Civil Court. For that purpose, Aviat will have to take out necessary legal proceedings in the Civil Court. Aroras cannot be made to pay the amount claimed by way of a summary procedure in the present Judge's Summons. On the other hand, Mr. Dwarkadas has submitted that the only appropriate remedy is to refer the disputed amounts to the Commissioner for taking accounts. The learned Counsel has relied upon a judgment of this Court in the case of (Haji Abdul Rehman Haji Mahomed Kadwani v. Munjibhai Khatao Company)1, reported in Vol. XXVIII Bom.L.R. 1077. After considering the provisions of Rule 329 of the Bombay High Court (O.S.) Rules, it is held by Mirza, J., that "No limit is placed to the quantum of damages to be awarded by the Court under the aforesaid Rule". The learned Single Judge had also negatived the submission that the damages are limited by section 95 of the Civil Procedure Code, on the basis that the limit contained in section 95 would apply only to mofussil courts and would not apply to High Court whilst exercising its jurisdiction under the Letters Patent. Thereafter the learned Judge made a reference to the Commissioner of the Court to ascertain and report what damages are to be paid. Mr. V. Krishna the learned Counsel appearing for Aroras had tried to distinguish the aforesaid authority on the ground that the facts in that case were not similar to the facts in the present case. That, according to the
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