Court affirmed lifting the corporate veil to address fraudulent schemes by defendants, affirming the maintainability of the plaintiff's suit for damages due to breach of contract.

JUDGMENT :

Krishna Rao, J.

1. The plaintiff has filed the suit against the defendants for decree a sum of Rs. 2,71,21,096/-, damages of Rs. 300 crores, decree for Rs.10 lacs and interest thereon.

2. CASE OF THE PLAINTIFF :

a. The plaintiff has applied for dealership of Hyundai Motors India at Howrah. The plaintiff has received a Letter of Intent from Hyundai Motor India Limited offering the plaintiff to establish a dealership at Howrah for sale of passenger range of cars and to provide after sales services and sale of genuine spares for such cars. As per Letter of Intent, 6000 sq.ft. of space required for showroom and about 12000 sq.ft. of space for workshop and also required that either showroom or workshop should be owned.

b. The defendant no.3 being aware of requirement of the plaintiff, has informed the plaintiff that:

“a. That the defendant no. 3 is developing a property of about 29 cottahs at Dag No. 260, JL No. 51, Mouza North Nibra, NH-6, P.O. Bankra, P.S. Domjur, Sub-Registry Domjur, District Howrah (hereinafter referred to as “the said property’).

b. That the defendant no. 3, through the defendant no. 1, being one of the companies controlled and managed by the said defendant No. 3 and the defendant no. 4 would purchase, develop and built a commercial space in the said property.

c. That after developing and erecting a commercial space in the said property, the said defendants shall sell 6000 square feet carpet area to the plaintiff in the said property for showroom and further grant a lease of a covered area of around 12000 square feet on the ground floor thereof for the purpose of service area of a car workshop.”

c. A Memorandum of Understanding was entered between the plaintiff and the defendant no.1 and the plaintiff agreed to pay Rs. 2.44 crores on diverse dates commensurate with different stages of construction as per the Third Schedule of the Memorandum of Understanding and as per terms and conditions of the Memorandum.

d. The defendants requested the plaintiff to provide financial assistance on the assurance that the commercial space shall be developed within six months from the date of purchase of the property. The defendant no.1 also assured that the sum of Rs. 2.00 crores which would be lent and advanced by the plaintiff would be secured by way of mortgage of another property which belong to the defendant no.2 being a company managed and controlled by the defendant nos. 3 and 4. The defendant nos. 3 and 4 agreed to mortgage the land about 14 cottahs at Mouza Nibra, District Howrah. The plaintiff has paid the amount of Rs. 2.00 crores to the defendant no. 1 by way of cheque No. 450807 dated 11th October, 2012. On 12th October, 2012, a Mortgage Deed was entered between the plaintiff and the defendant no.1 and defendant no. 2 to enable the plaintiff to secure the said amount.

e. The defendant no. 1 had purchased only 14.5 cottahs of land out of total 29 cottahs on 18th October, 2012. The defendant no.1 through the defendant no.3 requested the plaintiff that to expedite the construction in the property, the defendant no.1 required further funds and if the mortgaged property of the defendant no.2 is released, the said property could be utilized to arrange loan from any financial institutions by mortgaging the same as the said property fetched good rental income. The defendant no.3 further requested the plaintiff to release the mortgage property and assured that he will mortgage the port