The Court can activate the process of law and direct authorities to investigate based on public policy.

JUDGMENT :

Harish Tandon, J.

1. The seminal point involved in the instant appeal is whether the Court can pass an order directing the Income Tax authority to make an investigation over the transactions between the parties to be unconscionable and opposed to public policy and submit the report for further course of action, in a suit simplicitor for recovery of money lent and advanced by the plaintiff to the defendant.

2. The plaintiff has approached the Division Bench with an Intra-Court appeal under Clause 15 of the letters patent assailing the said order primarily raising an above point and not on the ground of refusal to pass an appropriate interim orders which, according to the plaintiff may be dealt with at the time of final disposal of the interlocutory application. Therefore, the consideration is restricted to the above point and the competence and jurisdiction of the Court to embark its journey to such so-called difficult terrain beyond the conceivable limits and jurisdiction bestowed upon it under the law.

3. The prelude to the litigation is required to be adumbrated and ensued when the plaintiff-appellant advanced a sum of Rs. 65 lakhs through bank transactions in favour of the defendant-respondent with clear stipulation that the aforesaid amount is repayable together with an interest at the rate of 12 per cent per annum. The aforesaid amount was lent and advanced on diverse dates between 18th January, 2020 and 18th September, 2020 corroborated with the documentary evidence more particularly, the bank statement of the plaintiff’s bank account. It is undeniable that the part payment to the tune of Rs.1,37,650/- was made on 10th October, 2020 on account of the repayment of interest and the TDS was also deducted of the specified amount from time to time during the Financial Year 2019-2020 and 2020-2021. The suit was filed when the plaintiff-appellant demanded the return of the said amount together with an interest and the defendant neglected and failed to pay the said amount.

4. It is pertinent to record that the letter of demand for repayment of the amount together with an accrued interest thereupon was called upon the defendant-respondent which has been duly replied to. Interestingly, a plea was taken by the defendant-respondent in the said reply that the alleged transaction was not real but is an accommodated entry or “Jamma Kharji” and, therefore, the claim is fraudulent and fictitious as the plaintiff-appellant never actually gave the said amount from its own resources or the income but the unaccounted money in cash was given by the defendant-respondent to the plaintiff-appellant and, therefore, there was no real transactions entered into by and between the parties. Even the same defence has been projected and/or repleted in the written objection filed by the defendant-respondent to an application of the plaintiff-appellant under Order 39, Rule 1 and 2 read with Order 38, Rule 5 of the Code of Civil Procedure.

5. Such being the basic facts discerned from the restrictive pleadings of the parties, the Trial Court not only refused to pass an interim order on an application but upon noticing the startling facts emerged from the respective stands of the parties directed the member (investigation), Central Board of Direct Taxes to cause an investigation into the monetary dealing being the subject matter of the suit to file a report on the returnable date. The sole basis of passing the aforesaid direction as appeared from the findings returned in the impugned order that the parties have precipitated an illegal transaction expressly forbidden by law and the Court upon a prime facie finding cannot act as a mute spectator.

6. Ironically not only the plaintiff-appellant appears to be critical on the direction passed by the Trial Court in the impugned order but the defendant-respondent also, though feebly, accepted the stand of the plaintiff in supporting the arguments so advanced at the Bar.

7. Since the important and vital aspects ov