JUDGEMENT
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(1.) This appeal is the glaring example of
misuse and abuse of process of law at the
instance of the appellant-plaintiff,
whereby the appellant has not only taken
the High Court and the trial court for a
ride but has also misled the courts by
suppressing the material facts for
obtaining the ex-parte ad-interim orders
against the respondent Nos. 2 and 3,
tentamounting to playing fraud on Court.
(2.) The present appeal filed under Or. XLIII
Rule 1(r) of C.P.C. arises out of the
order dated 11.4.2012, passed by the
Additional District Judge No. 9, Jaipur
Metropolitan City, Jaipur,(hereinafter
referred to as the trial court) in Civil
Misc. Application No. 1/2011, whereby the
trial court has rejected the said
application of the appellant-plaintiff
seeking temporary injunction against the
respondents-defendants with costs of Rs.
1100/-. This Court had called for the
record of the case from the trial court
and also the record of the writ petition
being No. 11970/2011, filed by the
appellant earlier, which have been perused
by the Court.
(3.) At the out-set, it is necessary to mention
the chronological dates and events of the
case, which have constrained the Court to
come to the conclusion that there was
gross misuse and abuse of process of law
at the instance of the appellantplaintiff.
3(i) In response to the proposal made by
respondent No.3- Company to the appellantcompany
for appointment of Super
Distributor for the supply of patented
Fire Killers for the State of Rajasthan ,
the appellant had accepted the said
proposal as per the terms and conditions
mentioned in the letter dated 24.1.2011.
Accordingly the respondent No.3, appointed
the appellant company as the Distributor
for the supply of patented Fire Killers
for the State of Rajasthan. The appellant
company also got issued an irrevocable
letter of credit dated 6.5.2011, for Rs.
1,22,50,000/-, in favour of the respondent
No.3- company through the respondent No. 1
Bank as desired by the respondent No. 3.
The said letter of credit was valid for 90
days from invoice date, which was extended
till 5.9.2011. The respondent No. 2 was
the banker of the respondent No.3 and also
the negotiating bank. It appears that the
respondent No. 3 Company pursuant to the
said agreement supplied the goods to the
appellant and submitted the
Bills/documents to the respondent No. 2
bank for payment. The said Bills/documents
were further sent to the respondent No. 1
Bank for confirmation. On 30.7.2011, the
respondent No. 1 Bank issued
confirmation/acceptance to the respondent
No.2 Bank and also accepted the documents
presented by the respondent No. 3. The
respondent No. 1 Bank also undertook to
make payment to the respondent No.2 under
the letter of credit on the due date i.e.
on 5.9.2011. Accordingly, the respondent
No. 2 Bank negotiated the documents and
made payment to the respondent No. 3
company.
3(ii)The appellant company filed the writ
petition being No. 11970/2011 against the
respondents on 6.9.2011, seeking issuance
of appropriate writ, order or direction
against the respondent No.1 bank not to
transfer the amount of Rs. 1,22,50,000/-,
mentioned in the letter of credit dated
6.5.2011 to the respondent No. 2 bank, and
against the respondent No. 2 bank to take
immediate action regarding extension of
time limit of the letter of credit dated
6.5.2011. In the said writ petition, the
Court passed following order on 9.9.2011:-
"It is contended on behalf of the
petitioner that petitioner as
well as respondent No. 3 Darvesh
Fire @ Safety Industries Pvt.
Ltd. Company have agreed for the
extension of letter of credit for
90 days, which is clear from
email message dated 5th September,
2011 (Annexure-6) and petitioner
has already issued instructions
to his Banker-Oriental Bank of
Commerce-respondent No.1, vide
letter dated 5th September, 2011
(Annexure-9),but respondent No. 1
is not extending the letter of
credit and is adamant to send
amount in question to respondent
No. 3.
Issue Notice to
respondents, returnable on 19th
September, 2011 and the same may
be given 'Dasti' to learned
counsel for petitioner. Till then,
parties shall maintain status-quo
as it exists today in respect of
letter of credit referred in writ
petition.
The stay order will come into
effect only after service of
notice upon respondents."
3(iii)The respondent No. 2 and 3, having been
served with the notices in the writ
petition, filed the applications under
Art. 226(3) of the Constitution seeking
vacation of the ex-parte ad-interim order
dated 9.9.2011 passed by the Court. On
21.12.2011, the Court interalia passed
following order on the said applications
of the respondents under Art. 226(3) of
the Constitution.
"The matter has come up on
application filed by the
respondent No. 2 u/Art. 226(3) of
the Constitution for vacation of
the Ex-parte interim order dated
09.09.2011.
Counsel for respondent No. 2
submits that the last date of
letter of credit was 05/09/2011
and the petitioner sought
extension for three months(90days)
which has been noticed by the
Court while granting ex-parte
order dated 09/09/2011 and that
too expired on 06/12/2011. Counsel
seeks permission to invoke the
letter of credit and submits that
if there is any inter-se dispute
between the petitioner and
respondent No. 3, they are always
at liberty to resolve the same by
the mechanism provided under the
law but the respondent No. 2
cannot be held responsible for
such inter-se disputes.
Counsel for petitioner, on the
other hand, submits that copy of
the application was made available
to him on 09/12/2011. He wants
some time to file counter.
At the same time, counsel for
respondent No. 1 represented by
Mr. MA Khan submits that since the
period of letter of credit expired
and at least the respondent No. 1
may be discharged and any order
passed by this Court may not cause
prejudice so far as the rights of
the respondent No.1 are concerned.
Although the request made by
counsel for petitioner for granting
time has been seriously opposed by
all the counsel appearing for the
respondents, however, in the
interest of justice, this Court
considers it appropriate to grant
reasonable time to the petitioner
for doing the needful but for the
delay which has been caused after
expiry of 90 days, the respondent
No. 2 will be entitled to charge
interest at the rate of 18% per
annum.
List the matter on 04/01/2012."
3(iv)On 4.1.2012, the learned counsel for the
appellant-petitioner sought permission to
withdraw the said writ petition and the
Court passed following order:-
"Counsel for petitioner on
instructions wants to withdraw
the writ petition.
The writ petition stands
dismissed as prayed for."
3(v)In the meantime, on 2.1.2012 the appellant
filed the suit being No. 2/2012 against
the respondents-defendants before the
trial court seeking the same reliefs as
prayed for in the writ petition, for
permanent injunction restraining the
respondent No.1 (defendant No.1),from
making the payment to the respondent No. 2
Bank of Rs.1,22,50,000/-, pursuant to the
letter of credit dated 6.5.2011 and
seeking direction against the respondentdefendant
No. 2 for taking action with
regard to the extension of time limit of
the said letter of credit. The appellantplaintiff
also filed an application being
T.I. Application No. 1/2001, seeking
temporary injunction of the similar nature
pending the suit. Neither in the plaint
nor in the T.I. Application did the
appellant-plaintiff mention that the writ
petition was already filed by it and the
same was pending before the High Court. On
3.1.2012, the trial Court issued notices
to the respondents-defendants and kept the
matter on 4.1.2012.
3(vi)On 4.1.2012, the learned counsel for the
respondent No. 1-defendant No. 1 Bank
appeared and sought time for filing the
Vakalatnama. On the same day the
appellant- plaintiff by submitting a handwritten
application sought amendment in
the plaint under Or. VI R. 17 of C.P.C.
for incorporating the fact that the writ
petition being No. 11970/2011, filed by
the appellant-plaintiff has been withdrawn
on 4.1.2012. The trial court in the said
order dated 4.1.2012, recording noobjection
of the learned counsel appearing
for the respondent No. 1 (though there was
no Vakalatnama on record), allowed the
said amendment and ordered to keep the
matter on the next day i.e. 5.1.2012 for
producing the amended copy of the plaint
and the T.I. Application.
3(vii)On 5.1.2012, the learned counsels for the
appellant-plaintiff and for the respondent
No. 1-defendant No.1 bank remained present
before the trial court with the amended
copy of the plaint and T.I. Application.
The trial court taking into consideration
the order dated 9.9.2011 and 4.1.2011,
passed by the High Court in the writ
petition observed that the order dated
9.9.2011 was continued till 4.1.2012. The
trial Court therefore, restrained the
respondent No. 1-defendant No. 1 from
making any payment to the respondent Nos.
2 and 3(defendant Nos. 2 and 3) in respect
of the letter of credit dated 6.5.2011 and
directed to maintain status-quo in that
regard. The appellant-plaintiff neither
mentioned in the amended plaint about the
order dated 21.12.2011 passed by the High
Court in the writ petition, nor produced
the copy of the said order on record. The
trial court thereafter directed to place
the matter on 22.2.2012 for the service of
notices to the respondent Nos. 2 and 3
(defendants Nos. 2 and 3).
3(viii)The respondents Nos. 2 and 3 (defendant
Nos. 2 and 3) on having been served with
the said notices and the ad-interim exparte
order passed by the trial court,
filed detailed replies and requested the
trial court for preponing the hearing of
T.I. Application. The trial court,
therefore, fixed the hearing of T.I.
Application on 11.2.2012 instead of
22.2.2012 vide order dated 7.2.2012 and
directed the parties to file necessary
reply/rejoinder during this period. It
appears that thereafter the hearing was
adjourned for one reason or the other and
ultimately the trial court heard the T.I.
Application on 29.3.2012, and passed the
impugned order dated 11.4.2012 dismissing
the said T.I. Application of the
appellant-plaintiff with costs of Rs.
1100/-, holding that the plaintiff had not
only failed to establish any prima facie
case, but had suppressed material facts
from the Court at the time of filing of
the suit. Being aggrieved by the said
order, the appellant plaintiff has filed
the present appeal.
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