2008 (12) TMI 797 - HC - Indian Laws

Summary

Issues involved: Dispute over dishonoured cheques, liability under Section 138 of the Negotiable Instruments Act, 1881, decree under Order XXXVII of the CPC.

Summary:
1. The case involved the appellants purchasing Carbon Black from the respondents on credit, leading to a dispute when cheques worth &8377; 31,25,398 were dishonoured due to insufficient funds.
2. Legal notice and proceedings under Section 138 of the NI Act were initiated by the respondents after the dishonoured cheques.
3. The respondents filed a suit under Order XXXVII of the CPC claiming a total amount of &8377; 30,62,949 with interest, including an additional amount for 'C' Forms not supplied.
4. The learned Single Judge passed a decree in favor of the respondents for &8377; 30,62,949 along with interest, as the appellants admitted liability for a portion but disputed the rest.
5. The appellants' request for time to file a written statement was denied as per the proviso to Order XXXVII Rule 2 Sub-rule (3) of the CPC, leading to the grant of the decree in favor of the respondents.
6. Despite considering granting limited leave to defend upon depositing a portion of the amount, the appellants expressed inability to comply, resulting in the dismissal of the appeals.

Conclusion: The appeals were dismissed, upholding the impugned judgment of the learned Single Judge based on the dishonoured cheques and the legal provisions of the CPC.