Plaintiff contended defendants have no real prospect of ...

Plaintiff claims defendants can't defend suit. Court says limitation issue needs examination. First defendant defaulted on Rs. 70L payment.

Case Laws     Insolvency and Bankruptcy

August 1, 2024

Plaintiff contended defendants have no real prospect of successfully defending suit claim. Court held limitation issue raised by defendants requires further examination and cannot be decided in Interlocutory Application as plea cannot be held moonshine. First defendant defaulted on Rs.70,00,000 payment to plaintiff under Memorandum of Compromise. Cheque issued by first defendant got dishonoured. Plaintiff contends no necessity to withdraw suit per Memorandum since right to restore suit on breach. Defendants 2 to 4, being directors of first defendant company, not parties to contracts including construction contract and Memorandum of Compromise. Their liability can be adjudicated only after trial. First defendant made out probable case for defending suit on ground of limitation as amendment applications filed beyond three years from Memorandum date. Court directed first defendant to deposit Rs.70,00,000 within two weeks, failing which summary judgment for the amount in plaintiff's favour. Application against defendants 2 to 4 dismissed as suit claim against them to be adjudicated after trial.

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