V.K.JAIN, J.

1. This is a suit for recovery of Rs 49,56,195/-. The case of the plaintiff is that defendant No. 2 represented that defendant No. 1 was a company incorporated under Companies Act and she was its Chief Executive officer in-charge and responsible for day-to-day conduct of its business. In January, 2000, defendant No. 2 contacted the plaintiffs to seek some rooms for running her office. She also represented that US $200 million were being transferred as per the order of Folic holding Inc to Citibank, New York for credit to Citibank, N.A., New Delhi and the payment will be made on disbursements of this amount after receipt of payment by Citibank, New Delhi. Accordingly, rooms bearing No. 203, 101, 103, 104, 107, 108, 114, 3 and 5 in Hotel Diplomat were occupied by defendant No. 2 for staying there as also for running her office. The bills amounting to Rs 54,83,521/-were raised by the plaintiff for occupation of the above-referred rooms. The defendant made payment of Rs 11,85,500/-, leaving a balance of Rs 42,98,521/-. Believing the representation made by the defendants that US$ 2 million were being

transferred to Citibank, N.A., the plaintiff allowed them to va