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2014 Supreme(Bom) 732

High Court of Judicature at Bombay
R.D. DHANUKA, J.
Rajiv K. Mehta
Versus
Rekha H. Sheth & Others
Notice of Motion Nos. 368 of 2011, 3050 of 2008 In Suit No. 2521 of 2008
Decided on: 24-03-2014

Advocates Appeared:
For the Plaintiff:Anil Anturkar, Senior Advocate along with Atul Damle, Firoz Bharucha, Advocates.
For the Defendants:D1, Janak Dwarkadas, Senior Advocate, a/w. Snehal Shah, Jyoti Shah, Jesal Shah, i/b. Daru Shah & Co., D11, D13, D14 & D17, S.U. Kamdar, Senior Advocate, a/w. Prateek Sakseria, Nirav Shah, i/b. Little & Co., D15 & D16, Pradeep Sancheti, Senior Advocate, a/w. Sanjay Jain, Akshita Mehta, i/b. Kishore Thakordas & Co., D19, Nasir Ali Rizvi, i/b. Thakore Jariwala, D12, Diniar Madon, Senior Advocate, a/w, Sanjay Udeshi , Mahesh Londhe i/b. Sanjay Udeshi & Co., D20 & D21, D. Singh, i/b. Law Fin & Associates, Advocates.

JUDGMENT

1. By consent of parties, both these notice of motions were heard together and are being disposed of by a common order.

2. Notice of Motion No.368 of 2011 is filed by defendant no.1 inter alia praying for rejection of plaint in suit No.2521 of 2008 under the provisions of Order VII Rule 11 of Code of Civil Procedure, 1908 and also under the provisions of Order XXIII or any other applicable provisions of the Code of Civil Procedure, 1908. Defendant no.1 also seeks rejection of the plaint and/or for striking off the unnecessary and/or scandalous and/or frivolous and vexatious and seeks other reliefs. Notice of Motion No.3050 of 2008 is filed by defendant no.13 inter alia praying for dismissal of the present suit on various grounds. Some of the relevant facts which emerged from the plaint and affidavits filed by the parties are summarized as under:-

3. The plaintiff claims to be a trustee of Lilavati Kantilal Mehta Medical Trust (hereinafter referred to as the 'said Trust'). According to plaintiff, defendant nos. 2 to 7 are the purported trustees of the said trust. Defendant nos. 8 and 9 are alleged to be the companies of defendant no.10 and are alleged to be the recipients of crores of rupees from the said trust. Defendant no.11 is a company alleged to have been formed by defendant nos. 12 and 13 at the instance of defendant no.7. Defendant nos.12 and 13 are the promoter directors of defendant no.11. Defendants nos.14 and 15 are the additional directors of defendant no.11. Defendant nos.15 and 16 are practicing advocates and are husband and wife. It is case of the plaintiff that defendant nos.19 to 22 are supporting the plaintiff. According to the plaintiff defendants nos.19 to 22 are the trustees of the said trust. Defendant nos.1, 19 and 20 are the permanent trustees of the said trust.

4. It is case of the plaintiff that defendant no.7 in collusion with defendant nos.1 to 6 and 8 to 18 have siphoned of crores of rupees from the funds of the said trust and the Lilavati Hospital in collusion with each other. It is the case of the plaintiff that defendant nos.1 to 7 in collusion with defendant nos. 10, 12, 13, 16, and 17 had advanced a sum of Rs.13,43,93,988/- to the defendant no.8 from the account of the said trust towards procurement of medical equipments by the said Lilavati Hospital and Research Centre. According to the plaintiff, the defendant no.8 company has still to pay a sum of Rs.13,43,93,988/- with interest thereon to the said trust. According to the plaintiff, the said amount was neither returned by the defendant no.8 to the said trust nor any equipments were supplied to the hospital. No proceedings were initiated by the said trust for recovery of the said amount from defendant no.8.

5. It is the case of the plaintiff that similarly a sum of Rs.2.30 crores was advanced to the defendant no.9 during the Financial Year 2001-2002. However, during the month of November, 2002, an amount of Rs.40 lacs was adjusted against transfer of property at Lonavala and the balance amount with interest has not been returned by defendant no.9 to the said trust. It is alleged that no steps have taken by those defendants against defendant no.9 for recovery of the said amount and accordingly the said trust is put to loss.

6. It is case of the plaintiff that the said trust had paid an amount approximately Rs.5 crores to defendant no.11 during the period between 2nd May, 2005 and 12th May, 2005. Though the said amount of Rs.5 crores was repaid by defendants no.11 on 7th July, 2006, no interest was paid though the said amount was used for about 14 months by the defendant no.11.

7. It is case of the plaintiff that during the period when these amounts were paid by way of advance or otherwise to defendant no.8, 9 and 11 by various defendants who acted as trustees, defendants nos. 12 to 17 acquired various properties in Mumbai and at other places. It is case of the plaintiff that during the period 2001 to 2006, the defendant nos. 1 to 17 ha









































































































































































































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