JUDGMENT

The suit was filed for recovery of a sum of Rs.3,91,08,708/-, jointly and severally, from the first and second defendants with interest thereon at 12% per annum from the date of suit till the date of realization. In addition, the plaintiff has prayed for a direction to the first defendant to pay a sum of Rs.56,18,000/- along with interest thereon at 12% per annum from the date of plaint till the date of realization. In the plaint, the plaintiff stated that it is a subsidiary of Volex PLC (UK). The plaintiff was engaged in the manufacturing and assembling of medical and telecommunication cable assemblies and power cords. The first defendant was appointed as the Financial Manager of the Indian Operations of the plaintiff. As the Financial Manager, it is stated that he was solely responsible for banking, non-

banking and other financial transactions of the plaintiff.

2. According to the plaintiff, during a routine check carried out in

2018, various discrepancies in the accounts of the plaintiff were noticed, especially in the form of transfers to third parties and cash withdrawals. Therefore, the plaintiff engaged in correspondence with the first defendant in this regard. Upon further enquiry, it was discovered that the first defendant had misappropriated an aggregate sum of Rs.4,47,26,708/-. Hence this suit.

3. The first defendant was set ex parte on 26.09.2022 and the second and third defendants were set ex parte on 26.08.2022. Thereafter, the matter was posted for recording the ex parte evidence of the plaintiff.

4. The plaintiff examined Mr.A.Velmurugan, its authorized representative, as P.W.1. In course of the examination in chief of P.W.1, the 35 documents listed at the foot of this judgment were exhibited as Exs.P1 to P35.

5. Learned counsel for the plaintiff invited my attention to Exs.P2 to P16 and pointed out that these exhibits evidence the payments made by the first defendant acting purportedly for and on behalf of the plaintiff to various third parties. By turning to paragraph 23 of the plaint, he pointed out that the details of these transactions are set out therein. In addition, he pointed out that the first defendant made withdrawals from the bank account by drawing self cheques for such purpose. The details of such withdrawals are set out at paragraph 27 of the plaint and are corroborated by Ex.P35, which is the bank statement in relation to the account maintained by the plaintiff with Axis Bank. Since it is a commercial transaction, learned counsel states that the interest claim is reasonable.

6. On the basis of the evidence recorded by the plaintiff in order to establish this claim and taking into account that no contra evidence was adduced, the plaintiff is entitled to the decree prayed for albeit only against the first defendant. Although it is pleaded that the second defendant colluded with the first defendant, it was the first defendant who made both the electronic money transfers (NEFT) and withdrawals. Hence, only the first defendant is liable for the suit claim. As the successful party the plaintiff is also entitled to costs.

7. Accordingly, the suit is decreed by directing the first defendant to pay the plaintiff:

(i) a sum of Rs.3,91,08,708/- with interest thereon at 12% per annum from the date of plaint till the date of realization.

(ii) a sum of Rs.56,18,000/- to the plaintiff with interest thereon at

12% per annum from the date of plaint till the date of realization.

(iii) the costs of the suit.

23.01.2023 rna Index : Yes / No Internet : Yes / No Plaintiff's witness:

P.W.1 - Mr.A.Velmurugan Documents exhibited by the plaintiffs: