UNION BANK OF INDIA Vs. ABCOM ENGINEERS
LAWS(DR)-2005-3-5
DEBTS RECOVERY APPELLATE TRIBUNAL
Decided on March 23,2005

Appellant
VERSUS
Respondents

JUDGEMENT

K.J.Paratwar, - (1.) THE partnership firm (defendant No. 1) and its partners (defendant Nos. 2 to 4) have been sued in this Original Application for recovery of Rs. 18,37,565/- with interest @ 21% p.a. with quarterly rests from the date of filing the Original Application till full realization.
(2.) The applicant's case is that on the defendants' request, it purchased two cheques as under: JUDGEMENT_692_TLDR0_20050.htm The applicant kept margin money of Rs. 20 lacs and allowed withdrawal of Rs. 20 lacs. The cheques returned dishonoured with 'Funds Insufficient' and 'Refer to the Drawer' respectively. The defendants repaid Rs. 5.50 lacs on 6.8.1996 and Rs. 2.50 lacs on 25.2.1997. Thus, principal amount of Rs. 12 lacs remained due and payable at the foot of the cheque purchase account. This original application is filed for recovery of said amount with the interest. The defendant Nos. 1 and 2 did not appear though served. They are, therefore proceeded ex parte.
(3.) THE defendant Nos. 3 and 4 in their common written statement (Exh. 15) have at the outset challenged pecuniary jurisdiction of this Tribunal. THEy have contended that there was a fraud by defendant No. 2 in connivance with the then Bank Officer of the Banks and the then concurrent auditor (Mr. Uttam Agarwal) whose address is the same as that of defendant No. 1. Mr. Uttam Agarwal had introduced defendant No. 2 to the then Chief Manager of the Bank Mr. H.M. Nagdev. THE defendant No. 2 had introduced himself as exporter for 12 years in Dubai with total assets of Rs. 3.70 crores. Mr. Uttam Agarwal told that defendant No. 2 was NRI and wanted to open current account in the three firms including defendant No. 1. It was on his recommendation that the current account was opened in the name of defendant No. 1 engaged in manufacturing of printing machinery and also dealing in export and import. THE Bank was informed that the defendant No. 1 was to supply machineries worth Rs. 2 crores (to be purchased from M/s. Globe Enterprises) to M/s. Sleek Comprint Forms Pvt. Ltd. of Lucknow who had been sanctioned loan of Rs. 2 crores by Uttar Pradesh Financial Corporation.;


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