TaxTMI 
TaxTMI 
2013 (9) TMI 421
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....ized/govt. agencies and others, for and on behalf of the SSU by making payment directly to the supplier and delivering the said raw material to the said SSU as per their requirement. 3. The defendant no. 1, M/s. Myson Electronics Pvt. Ltd., an SSU requested the plaintiff for financial assistance under the RMAS, vide its letter dated March 2, 1989. The plaintiff submits that it considered the request and agreed to grant the said assistance under the RMAS. Accordingly, an agreement dated March 8, 1989 was executed between the plaintiff and defendant no. 1.Thereafter, a subsequent agreement dated December 5, 1989 was also executed between the parties, as well as defendant no. 2. The plaintiff submits that as per the terms of the said agreements, along with the terms and conditions of the RMAS, the plaintiff was required to procure and/or purchase and supply the raw materials as was to be communicated by defendant no. 1 and take other essential steps for the said purpose. 4. The plaintiff submits that defendants no. 2 to 4 along with Late Sh. P. C. Manchanda executed Guarantee Deeds dated March 8, 1989 whereby they guaranteed to pay the dues in the event of a default by defendant....
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....; 2. That the amount of interest shall be paid after the recovery of said amount of Rs. 27,24,945.59. The party of first part may consider the request of party of second part for waiver of interest or allow concession thereon on recovery of the said amount of Rs. 27,24,945.59 in terms of this agreement. 3. That in case of breach of any of the terms of this agreement including the default in payment of down payment of Rs. 1.50 lakhs or any of the Installment as agreed herein, the entire amount shall become due and payable along with the interest by the party of second part. In that event the party of the first part shall be at liberty to take all necessary action to recover its dues forthwith. 6. That all personal guarantees furnished from time to time on behalf of the party of the second part for availing Raw Material Assistance from the party of first part shall remain valid till entire payment under this agreement is received by party of first part." 7. The plaintiff submits that the defendant no. 1 defaulted in the performance of the abovementioned agreement, an....
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....nd Paise Fifty Nine only) as on March 31, 1992, was the outcome of fraud and manipulation. They allege that the plaintiff took undue advantage of the signatures on blank stamp papers and other plain papers and prepared three agreements dated June 25, 1999 and misused them against defendant no.1 and two of its sister concerns. 11. They further submit that all the liabilities of defendant No.1 company were taken over by M/s. Morgan Tectronics Pvt. Ltd. in the year 1992 with the consent and permission of the plaintiff and that the plaintiff has already filed a suit for recovery against the said company. And that the CBI has also registered a case against some officials of the plaintiff and the management of M/s. Morgan Tectronics Pvt. Ltd. Defendants no. 1 and 3 also submit that the plaintiff has nowhere stated in the plaint as to how much financial assistance was given to defendant No.1 and at what time. Further, the plaintiff has also failed to file a proper statement of accounts to show the amount recoverable from the defendants. Therefore, the defendants no. 1 and 3, vehemently challenge the suit amount as well as the charges and interests thereupon. 12. In response to this ....
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....etween the plaintiff and defendant no. 1 at any point of time. And that the plaintiff had wrongly filed the present suit impleading her as one of the defendants, that too when the plaintiff had already entered into another agreement with defendant no.1 in the year 1999. 16. In response to the application of defendant no. 4, the plaintiff submits that the agreement dated June 25, 1999 executed between the plaintiff and defendant no. 1 was in the nature of acknowledgment of debt amounts due under the initial agreement of 1989. And that by way of this acknowledgment, the terms and conditions of the earlier agreement were neither changed nor substituted by any other terms and conditions, whereas defendant no. 1 merely acknowledged and accepted its liability towards the plaintiff. The plaintiff further submits that as per terms of clause 6 of the acknowledgment dated June 25, 1999, all the personal guarantees furnished on behalf of defendant no. 1 were to remain valid till the plaintiff received the payment due. With regard to the contention that the suit is time barred, the plaintiff submits that although the guarantee deed was executed in 1989, even then this suit is well within th....
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....s of the Agreement, and this shall not affect the 'Guarantors' liability under these presents." 20. Clause 6 of the Agreement dated June 25, 1999 further stipulates: "All personal guarantees furnished from time to time on behalf of the party of the Second Part, for availing Raw Material Assistance, from the party of the First Part, shall remain valid till entire payment under this Agreement is received by party of First Part." 21. Regarding the defense of defendant no. 5, Clause 5 of the Bond of Guarantee dated March 8, 1989 clearly stipulates that the said Guarantee shall not expire with the death of the Guarantor. The relevant Clause 5 is reproduced as under: "That the 'GUARANTEE' herein contained shall not be revoked or affected by the death of any of the 'GUARANTORS' herein but shall continue to be binding and operative in respect of all liabilities which may have arisen upto the date of death as well as the liabilities which may arise thereafter in all respects and for all purposes until the terms of the Agreement have been fully complied with." 22. It i....
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.... of each case. But wherever the Court finds and satisfied (sic.) that there is absence of substantial defense or that the defense is frivolous or vexatious, the Court would decline leave to defend to the applicant. The use of the expression good defense must be understood so as to include in its ambit reasonable triable issue and a bonafide stand. The good defense of the defendant has not to be a defense which is illusory or shown to be ex facie unbelievable. Grant of leave to defend thus would be relatable to the content and value, in terms of law of the defense put forward by the defendant. The legislative intention in introducing the word 'good' is to emphasise the need of a bonafide defense which is acceptable within the afore (sic.) corners of law. A dispute raised for the sake of dispute or denial for the sake of denial with intent to delay the proceedings would be a category of cases which cannot fairly fall under this category. It is the duty of Court to amplify act of justice rather than jurisdiction or authority. It is a matter of common knowledge that denial by a party is the easiest method of delaying the proceedings before the Court and in fact without being subjected ....
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....code, the claim of the plaintiff for the grant of interest wholly depends upon the terms of the agreement between the parties. The rate of interest as provided for in the agreement dated December 5, 1989 was to be 16% from the date of the debit of the amount till reimbursement. Clause 7 which is relevant reads as follows: "That the amount(s) advanced, paid or incurred by the party of the First Part towards remittances for payment of material to the canalized/govt. agencies and other for storage, insurance charges, freight, for movement of material, clearance charges, charges for transporting the material, expenses for storing the material in godown, postal expenses, and all other charges and expenses incurred by the party of the First Part in connection with the procurement/purchase of the material will be debited to the account of the party of the Second Part and it agrees and undertakes to repay or reimburse the amount(s) so debited its accounts with interest @ 16% per annum, from the date of debit of such amount(s) till reimbursement. The party of the Second Part agree that such repayment of or reimbursement of the ....