1. On or about 15-6-1996 the Punjab Urban Planning and Development Authority instituted a suit for the recovery of Rs. 65,58,981.00 with future interest at the rate of 17% per annum and for declaration that the agreement/waiver letter dated 7-7-1993 written by the plaintiff to the defendant was not binding on the plaintiff. Upon service of summons, the defendant filed an application under Order 7, Rule 11 read with Sec. 151 of the Code of Civil Procedure for rejection of the plaint in the above suit on 26-9-1996. In this application, the defendant had taken the following grounds for substantiating its plea of rejection of the plaint :-

"2. Suffice it for the purpose of this application to state that the plaintiffs suit is in essence for a declaration that the settlement recorded in a letter dated July 7, 1993 addressed by the Housing Commissioner on behalf of the Punjab Housing Development Board of the Government of Punjab to the Defendant Bank is void, as having been procured by coercion as defined in Sec. 15 of the Indian Contract Act, and claiming consequential relief of damages amounting to Rs. 65,58,981.04 (Rupees sixty five lacs fifty eight thousand nine hundred eight