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2007 Supreme(Bom) 1480

BOMBAY HIGH COURT
Before : J.H.BHATIA, J.
Mr.Pradeep Sadashiv Pavgi and others ..Petitioners
v.
R.S.Luth Education Trust and others …Respondents
Writ Petition No.3391 of 2007,
decided on 12th October, 2007

Advocates appeared
Mr. A.A. Kumbhakoni i/b T.D. Deshmukh, advs. for the Petitioner.
Mr. M.M. Sathaye, adv. for the Respondent No.1.
Mr. R.A. Thorat, adv. for the Respondent No.2.

Headnote:Civil Procedure Code, 1908 - Section 115, Order XXXVII, Rules 1 and 2-Summary suit for recovery of certain amount-On the basis of cheque, written contract and bills etc.-An application to seek leave to defend-As Respondent/Defendant No. 2 had no privity of contract-Unconditional leave granted-Writ against-Opposed as availability of Revision remedy-Held -Petition is tenable.-From the proviso, it is clear that the High Court shall not in exercise of revisional jurisdiction vary or reverse any order made or any order deciding an issue in the course of suit or other proceeding except where the order if it had been made in favour of the party applying for the revision, would have finally disposed of the suit or other proceedings.

       Civil Procedure Code, 1908 - Order XXXVII, Rules 1 and 2-Negotiable Instruments Act, 1881, Section 6-Cheque issued for steel supplied to trust respondent No. 1-By respondent No. 2 firm-Summary suit-Leave to defend-Granted unconditionally-Challenged-Held-Defence raised by respondent/defendant in illusory, sham, and ordered to deposit 4801029/as condition to lease.-Order XXXVII, Rule 1 sub-rule (2) of the Code of Civil Procedure makes it clear that summary suit can be filed on the basis of (a) bills of exchange, hundies and promissory notes; (b) suits in which the plaintiff seeks only to recover a debt or liquidated demand in money payable by the defendant, with or without interest arising, (i) on a written contract; etc. In the present case, suit is based not only on the cheque, which is a bill of exchange, but also on the written contract. There is sufficient record to show that the contract about supply of steel was entered into in writing in form of a number of letters exchanged between the parties, setting the terms of the contract.

ORAL JUDGMENT:

1. Rule.

2. Rule made returnable forthwith. With consent of the learned counsel for the Parties, matter is taken up for final hearing.

3. To state in brief, the petitioner filed summary suit no.33 of 2006 against the respondents for recovery of certain amount. According to the petitioner, the respondent no.1 is a education trust of which the respondent no.3 is a chairman and the respondent no.2 is a partnership firm of which the respondent no.3 is a partner. The respondent nos.1 and 2 are under the control and management of the Respondent No.3. All activities including financial activities of the respondent nos.1 and 2 are exclusively run and conducted by the respondent no.3. For raising constructions of a huge project at village: Dugaon, Taluka and District: Nashik for the purpose of school and educational academy, Respondent No.3 for the Respondent No.1 approached the Petitioner for purchase of steel. Petitioner according supplied the steel at the site of the defendants from November, 2004 to March, 2005. It was agreed between the parties that bill raised by the petitioner has to be cleared and paid within thirty days and in case of delay in payment by the respondents, delay charges of Rs.500/- per tonne per month would be paid by the respondents. Total supplies under 55 different bills were worth Rs.1,96,10,431/-. Debit notes were also issued for delay payment for an amount of Rs.15,76,645/-. The respondents made payment of Rs.1,48,64,483.00 by different cheques towards price of steel. The respondent no.2 issued a cheque no.167547 dated 25.4.2005 for amount of Rs.48,01,029.00 drawn against Punjab National Bank branch towards the payment dues on account of supply of steel. Cheque was signed by the respondent no.3 as a partner of the respondent no.2 and the respondent no.1 confirmed, by the letter dated 2.5.2005, also issued under the signature of the respondent no.3, that the said cheque was issued for the payment due for the supply of steel at their Dugaon site. Initially, the respondent no.1 had some doubts about the delay payment charges but after some correspondence, the respondent no.1 confirmed that rate of delay payment charges should be at the rate of Rs.500/- per ton for delay of every thirty days. By letter dated 2.5.2005, the respondent no.1 informed the petitioner that the date when the cheque may be presented for the encashment would be informed on 4th May, 2005 latest by 2.30 p.m. By letter dated 4-5-2005, the respondent no.1 requested the petitioner to deposit the said cheque with bank for payment. According to the petitioner, the cheque was presented but was dishonoured. Thereafter, again it was presented on 25.10.2005 but again it was dishonoured for want of sufficient funds. On 23.11.2005 petitioner issued notice to the respondents in this respect and the said notice was replied on behalf of all the respondents but as the respondents failed to make the payment, Summary Suit No.33 of 2006 was filed, which is based on the said cheque, written contract, orders and correspondence and bills in writing.

4. In response to the notice, the respondent no.2 appeared and made an application seeking leave to defend the suit contending that the defendant/respondent no.2 had no privity of contract as far as the contract for supply of steel is concerned and it would not be liable to pay the amount to the petitioner. Defendants/respondent nos.1 and 3 also moved an application seeking leave to defend the suit. According to them, the suit is based on the cheque, which was allegedly issued by the respondent no.2 and, therefore, they have been unnecessarily impleaded in the suit. Besides this, the respondents have contended that the suit is not tenable as summary suit. It was also contended that the petitioner claims to be Hindu Undivided Family but it has not disclosed the names of members of Hindu Undivided Family and on






























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