1. By the above Summons for Judgment, the Plaintiff has prayed that the Judgment be entered in favour of the Plaintiff in the Suit against the Defendant for the sum of Rs. 15,37,70,000/as more particularly set out in the particulars of claim being Exhibit – I to the Plaint, along with further interest at the rate of 13% per annum on Rs. 11,10,00,000/from 24th March 2009 till payment and/or realization thereof and costs.

2. The Plaintiff is a Company registered under the Companies Act, 1956. The Defendant is also a Company registered and incorporated under the Companies Act, 1956. The Defendant is engaged in the business of providing cable television network to the subscribers in the State of Andhra Pradesh.

3. According to the Plaintiff, in or about March 2006, Mr. R.V.R. Chowdary (Managing Director of the Defendant) requested the Plaintiff for financial assistance by way of Inter Corporate Deposit (ICD). On 25th March 2006, an Inter Corporate Deposit Agreement was entered into between the parties whereunder the Plaintiff agreed to make ICDs to the tune of Rs. 33 crores in installments. It was agreed that each disbursemet of ICD would be designated as a separate inter corporate deposit and the same would be repayable after one year for which the Defendant would execute a Demand Promissory Note in respect of that particular ICD. Under the terms and conditions of the Agreement, interest at the rate of 13% per annum was payable to the Plaintiff by the Defendant every quarter. The entire ICD was to be secured by collateral security i.e. deposit of shares along with duly executed transfer deeds as detailed in Annexures I and II of the said Agreement. Annexure I sets out the details of the shares of the Promoters of the Defendant. Annexure II sets out the shares of one M/s. APAKsh Broadband Limited which were to be pledged.

4. Thereafter, the Defendant requested the Plaintiff to release an amount of Rs. 10 crores by way of an ICD. The Defendant by its letter dated 25th March 2006 forwarded the ICD Agreement, Board Resolution, certain Share Certificates, Transfer Forms, etc. to the Plaintiff. According to the Defendant the share certificates and transfer deeds of the shares of M/s. APAKsh Broadband Limited listed in Annexure II of the Plaint were not forwarded to the Plaintiff as the share certificates for the same were not issued to them. On the same day i.e. 25th March 2006, a demand promissory note of Rs. 10 crores and an ICD receipt of Rs. 10 crores were executed by the Defendant in favour of the Plaintiff.

5. The Defendant by its letter dated 31st March 2006 forwarded five cheques dated 31st March, 2006, 30th June 2006, 30th September 2006, 31st December 2006 and 31st March 2007, for Rs. 1,10,497/, Rs.25,13,794, Rs. 25,41,418/, Rs. 25,41,418/and Rs. 24,86,170/respectively, towards the payment of quarterly interest at the rate of 13% per annum on the ICD of Rs. 10 crores.

6. According to the Plaintiff, on 23rd May, 2006 a further sum of Rs. 1.10 crores was released to the Defendant as ICD. The Defendant executed a demand promissory note for a sum of Rs. 1.10 crores and also executed an ICD receipt acknowledging receipt of Rs. 1.10 crores from the Plaintiff.

7. According to the Plaintiff, out of the 5 post dated cheques, received from the Defendant towards interest on the ICD of Rs. 10 crores, only cheque bearing No. 528910 dated 31st March 2006 for a sum of Rs. 1,10, 496/was honoured. Initially, at the request of the Defendant, the remaining cheques were not deposited on their due dates. Subsequently, when the same were deposited, they were dishonoured by the bank on the ground ‘payment stopped by the Drawer’ and the cheques were returned to the Plaintiff on 27th December 2006 and 3rd January 2007.

8. The Plaintiff by its letter dated 24th August 2006 addressed to the Managing Director of the Defendant, inter alia recorded that the Plaintiff had not yet received the collateral security described in Annexure II of the