Financial statements acknowledging liability serve as sufficient proof for court's directive to enforce payment without a genuine dispute raised by the garnishee.

JUDGMENT :

ABHAY AHUJA, J.

1. This Interim Application filed by the Judgment Creditor inter alia seeks an order and direction against the Respondent, who is stated to be a Garnishee owing Rs. 17,40,82,984/- to the Judgment Debtor, of attachment and of deposit of the said amount in this Court under Order XXI Rules 46 and 46-A of the Code of Civil Procedure, 1908 (“CPC”) towards execution of decree drawn up pursuant to final order and judgment dated 10^th September, 2018.

2. Mr. Bharucha, learned Counsel for the Applicant has submitted that since the Judgment Debtor failed and neglected and refused to comply with the decree and make payment of the decretal amount of Rs. 64,11,78,970.50 along with interest of Rs. 9,63,32,603.43 and with further interest at the rate of 12% per annum from 11^th September, 2018, the Applicant was compelled to file Commercial Execution Application. Thereafter, pursuant to an order passed by this Court in the Chamber Summons taken out in the said Commercial Execution Application, the Judgment Debtor was directed to make disclosures. Mr. Bharucha would further submit that although the Judgment Debtor failed to make timely disclosures, however, from the affidavit dated 22^nd June, 2020 filed by the Judgment Debtor, the Applicant became aware that amongst several entities to whom loans and advances were advanced by the Judgment Debtor, a sum of Rs. 17,40,82,984/- was advanced to the Respondent. That from the provisional balance sheet annexed by the Judgment Debtor for financial year 2017-18, 2018-19 and 2019-20 with the affidavit dated 8^th March, 2021, it was found that a sum of Rs. 17,40,82,984/- was outstanding from the Respondent. Thereafter, due to persistent non-compliance of the Judgment Debtor, the directors of the Judgment Debtor, who were directed to remain present for oral examination in terms of Section 51 read with Order XXI Rule 41 of the CPC, that on 1^st September, 2021, Mr. Rajesh Duggal, Director, was present and during the course of Mr. Duggal’s cross- examination, he admitted that the sum of Rs. 17,40,82,984/- as reflected in the provisional balance sheet of the Judgment Debtor for the financial year 2019-20 was yet to be repaid by the Respondent and was due and recoverable by the Judgment Debtor. Mr. Bharucha would submit that the disclosure affidavits, the provisional balance sheet of the Judgment Debtor for the financial year 2019-20 and the submissions made by Mr. Rajesh Duggal in his deposition on 1^st September, 2021, conclusively revealed that the Respondent owed a sum of Rs. 17,40,82,984/- to the Judgment Debtor and is a Garnishee of the Judgment Debtor. Not only that, Mr. Bharucha submits that even the Respondent’s financial statements confirm an amount of Rs. 17,40,82,984/- as being due from the Respondent to the Judgment Debtor. Mr. Bharucha would submit that the financial statements of the Respondent for the year ended 31^st March, 2023, reflects the amount of Rs. 17,40,82,984/- under Note 5 as other current liabilities towards the Judgment Debtor.

3. Mr. Bharucha, learned Counsel appearing for the Applicant draws the attention of this Court to the notes forming integral part of the provisional balance sheet as at 31^st March, 2020 of the Judgment Debtor as well as notes forming part of the financial statement for the year ended 31^st March, 2023 of the Respondent in support of his contentions, which indicates that a sum of Rs. 17,40,82,984/- is due from the Respondent to the Judgment Debtor.

4. Mr. Bharucha has relied upon the decision of the Hon’ble Supreme Court in the