Decided on April 30,2007

S.C. GUPTA Appellant
Allied Beverages Co. Pvt. Ltd Respondents


GITA MITTAL,J. - (1.) BY this order, I propose to dispose of this application which has been filed by the sole defendant under Order 37 Rule 3(5) of the Code of Civil Procedure, 1908 praying for leave to defend the present suit which has been filed under the summary procedure provided under Order 37 of the Code of Civil Procedure, 1908.
(2.) THE suit has been filed by the plaintiff on the averments that the plaintiff, Shri S.C. Gupta, was carrying on a business of interior contractors as a sole proprietor under the name and style of M/s. S.C. Gupta & Bros. The plaintiff had good relations with Shri Surender Sadhu, a Director in the defendant, a company incorporated under the provisions of the Companies Act, 1956. On account of such good relations, the plaintiff also remained as a Director in the defendant company with effect from 31st May, 2000 till 31st January, 2002. The plaintiff advanced to the defendant several amounts as loan account payee cheques or demand drafts between the period 16th December, 1998 to 13th September, 2000 totalling an amount of Rs. 41 lakh. The amount which was advanced by the plaintiff was duly reflected and acknowledged by the defendant as such loan in their books of account, balance sheets and profit and loss accounts, which were prepared and filed before the Registrar of Companies as well as the income tax authorities.
(3.) IN partial discharge of its liability, the defendant paid an amount of Rs. 4 lakhs by way of cheque in September, 2000 which was credited to the plaintiff's account on 16th September, 2000. Further loan was requested and between 21st September, 2000 and 25th April, 2001, the plaintiff advanced a further amount of Rs. 37,30,000/-. Details of payments made to the defendant by the plaintiff have been detailed in pars 5 of the plaint. Thereafter, the defendant repaid a sum of Rs. 1.50 lakh by two cheques dated 2nd March and 15th March, 2001, At the time of filing of the suit, the defendant was owing a sum of Rs. 72,80,000/- to the plaintiff for which the plaintiff filed the suit on 26th March, 2004.;

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