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2003 (5) TMI 529 - SC - Indian Laws

Issues Involved:
The issues involved in this case include non-return of leased containers, outstanding rental payments, application of Order 12 Rule 6 of Civil Procedure Code, 1908, and the direction for deposit of a specific amount by the defendant.

Non-Return of Leased Containers:
The plaintiff, a private limited company, supplied containers to the defendant under a lease agreement which expired but was extended. Despite multiple communications and bounced cheques, the containers were not returned by the defendant. The plaintiff filed a suit seeking payment for the non-returned containers and outstanding rental charges. The defendant failed to return the containers and pay the lease charges, leading to the legal dispute.

Outstanding Rental Payments:
The plaintiff sought payment for the outstanding rental charges as per the lease agreement, emphasizing that the rental charges were to be paid until the containers were returned. The defendant disputed the claim, arguing that the plaintiff was not entitled to any relief beyond the arrears of rentals. The legal battle revolved around the interpretation of the lease agreement and the obligation to pay rental charges.

Application of Order 12 Rule 6 of Civil Procedure Code, 1908:
The plaintiff invoked Order 12 Rule 6 of the Civil Procedure Code, 1908, seeking a decree on admission regarding the rental arrears. However, the court held that Section 151 of the Code was not applicable in this case, leading to a challenge by the plaintiff before the Division Bench.

Direction for Deposit by Defendant:
The Division Bench directed the defendant to deposit a specific amount towards arrears of rental within a specified period in a nationalized bank. The plaintiff challenged this direction, arguing that such a deposit was not warranted in a commercial suit with disputed liabilities. The legal battle extended to the interpretation of relevant legal provisions and the factual background of the case.

Conclusion:
The Supreme Court, after considering the arguments presented, declined to interfere with the interim order directing the deposit by the defendant. While acknowledging some legal flaws, the Court found no substantial injustice warranting interference under Article 136 of the Constitution. The appeal was disposed of, with the defendant directed to deposit a reduced amount by a specified date, emphasizing the equitable considerations and the peculiar facts of the case.

 

 

 

 

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