IN THE HIGH COURT OF JUDICATURE AT CALCUTTA
SANJIB BANERJEE, SABYASACHI BHATTACHARYYA, JJ.
SESA INTERNATIONAL LIMITED – Appellant
VERSUS
AVANI PROJECTS AND INFRASTRUCTURE LIMITED AND OTHERS – Respondent
APO No. 439 of 2017, GA No. 3144 of 2017 with CS No. 113 of 2017
Decided On : 16-11-2017
ABUSE OF PROCESS - MONEY CLAIM - [Order XXXVIII Rule 5, Order XXXIX Rule 1(b)] - The judgment discusses the abuse of process by the plaintiff in obtaining an undeserving ex parte order, the collusion between the plaintiff and the third defendant, and the attempt to obtain an unworthy order. The court affirms the vacating of the ex parte ad interim order and dismisses the plaintiff's interlocutory application.
Fact of the Case:
The plaintiff invested Rs.21 crore in a real estate project and sought repayment, alleging delay and dishonoured cheques. The plaintiff obtained an ex parte ad interim order, but the court found collusion and abuse of process.
Finding of the Court:
The court found the plaintiff's actions to be an abuse of process, collusive, and an attempt to obtain an unworthy order. The court affirmed the vacating of the ex parte ad interim order and dismissed the plaintiff's interlocutory application.
Issues: Abuse of process, collusion, unworthy order, ex parte ad interim order, repayment claim, dishonoured cheques.
Ratio Decidendi: The court emphasized the importance of preventing unworthy claims and false defenses, and the need to appropriately deal with vexatious litigants. The court affirmed the vacating of the ex parte ad interim order and dismissed the plaintiff's interlocutory application.
Final Decision: The judgment and order impugned dated September 5, 2017 stand affirmed insofar as the ex parte ad interim order of May 17, 2017 was vacated thereby. In view of the submission on behalf of the appellant that it did not seek any order of attachment in respect of Avani Aspires, the order impugned is set aside in such regard. The receiver appointed by the order impugned stands discharged. The plaintiff’s interlocutory application, GA 1705 of 2017, stands dismissed.
SANJIB BANERJEE, J.
1. It was probably worth a try, but the appellant’s endeavour to stretch the bizarre to absurd cannot be appreciated. The appeal is directed against a rather lengthy judgment of September 5, 2017 passed on an interlocutory petition in a money claim. An initial order of May 17, 2017 was vacated by the order impugned and a different form of security afforded to the appellant. The appellant completely disowns such order and says that it did not seek an order of the kind that it has obtained.
2. The facts as innocently presented in course of the opening of this appeal justified a degree of indignation at the appellant’s case not being accepted by the interlocutory court. But as the more complex facts pertaining to the matter unfolded, even before the respondents had a say in the matter, it was evident that the action was instituted with sinister motive and oblique purpose.
3. The simple case of the plaintiff-appellant that was initially presented was that the appellant had invested a sum of Rs.21 crore in a real estate project undertaken by the third defendant (also the third respondent here) through the instrumentalities of the first and second defendant companies (again the first and second respondents, respectively, in this appeal) which were owned and controlled by the third defendant and his men and agents. It is best that some of the key averments in the plaint are noticed at this stage as they form the fulcrum of the plaintiff’s claim:
“2. In or around January 2014, the defendant nos.1 and 2, through the defendant no.3, their authorized person and Director represented to the plaintiff followings amongst others:
(a) Defendant no.2 (previously named as “DLF Hilton Hotels Ltd.” and thereafter “DLF Hotels & Hospitality Ltd.”) is a long term lessee under Kolkata Municipal Corporation (“KMC”) in respect of a large plot of land (5.59 acres approx) being premises No.8, JBS Haldane Avenue, Kolkata-700 105 which was being developed through the defendant No.1. The said lease hold land and premises is more fully described in a schedule annexed hereto and marked with the letter “A”.
(b) KMC have sanctioned a building Plan (“the plan”) for construction of two towers comprising service apartments at the said premises. The project was named “Avani Grand”.
(c) For the purpose of undertaking development of the service apartment area within the said premises, defendant No.2 has entered into a term sheet/Agreement in or about June 2012 with the defendant No.1 whereby, the defendant No.1 has agreed to undertake construction, erection and completion of the new buildings in the service apartment area.
(d) KMC in December 2012 has granted the right to Defendant No.2 to sublease the service apartments, with proportionate share in the land.
(e) The work of construction would commence within August 2014 and the “Avani Grand” project would be completed in December, 2016.
(f) The defendants needed funds for development of the said property.
“3. The Defendant nos.1 and 2 through their Managing Director the Defendant No.3, on the basis of aforesaid representations, approached the plaintiff at their registered office within the jurisdiction aforesaid. Replying on the aforesaid representation and being induced thereby the plaintiff agreed to take allotment of 21000 sq.ft. of super built up area in service apartment in the project “Avani Grand” located at No.8, JBS Haldane Avenue, Kolkata –700 105 and the defendants agreed to allot the same at a price of Rs.10,000/- per sq.ft. aggregating Rs.21 crores. The plaintiff agreed to take allotment as aforesaid on the faith that the said construction of work would commence within August, 2014 and would be completed by December, 2016. The aforesaid agreement was entered into orally between Mr. Shankar Lal Bagri, director of the plaintiff on the one hand and defendant no.3 on the other hand for self and on behalf of defendant companies sometime in or around the first week of March 2014 which would
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