TaxTMI 
TaxTMI 
2017 (3) TMI 1271
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....rchase goods from the respondent No.1/defendant No.1 Company from time to time. Respondents No.2 and 3 are the Directors of the respondent No.1/Company. The appellant/plaintiff has pleaded that in the month of October, 2011 the respondents No.2 and 3 had approached him with a request to lend them some money with an assurance that they would give him a high rate of interest on the loan amount. It was orally agreed that the period of investment would be six months and the interest payable on the loan amount was 18% per annum. Relying on the said oral assurance given by the respondents/defendants, the appellant/plaintiff issued cheque No. 511237 dated 09.11.2011 for a sum of Rs. 10 lakhs, in favour of the respondent No.1/Company drawn on Deuts....
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.... of the Company, the respondents/defendants encashed the aforesaid cheque and gave due adjustment to the Company in their ledger account. The respondents stated that after adjusting the sum of Rs. 10 lakhs, as on 10.11.2011, the Company owed a sum of Rs. 99,30,545.44 to them. 5. It was further pleaded that admitting their liability to pay the outstanding amounts, the appellant and the other Directors of the Company issued eight cheques amounting to Rs. 78,57,431/- in favour of the respondents/defendants towards discharge of their liability, between April, 2012 to June, 2012. All the aforesaid cheques on being presented by the respondents/defendants, were dishonoured in terms of the Return Memo dated 21.6.2012. This had compelled the respon....
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....for a loan when the turnover of the respondent No.1/Company in the year 2011-12, was in crores of rupees. 8. After issues were framed in the suit on 27.5.2014, the parties were directed to lead evidence. The appellant/plaintiff examined himself as PW-1 and filed his evidence by way of affidavit (Ex.PW-1/A). On their part, the respondents/defendants examined respondent No.2 as DW-1 who filed his evidence by way of affidavit (Ex.DW-1/A). 9. On examining the pleadings in the suit, the documents and the evidence produced by the parties, the learned trial court dismissed the suit instituted by the appellant holding inter alia that he had failed to prove that an amount of Rs. 10 lakhs was given by him to the respondents as a personal loan or th....
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.... the liability of the Company, as it was facing a severe financial crunch. 13. The appellant/plaintiff miserably failed to rebut the aforesaid document; nor was he able to elicit anything material from DW-1 during his cross examination, for throwing any shadow of doubt on the said letter. Further, the respondents have filed certified copies of the entire proceedings of the complaint case filed by them against the Company, the appellant/plaintiff and the other Directors under Section 138 of NI Act. The said documents have been referred to and dealt with at some length in para 27 of the impugned judgment wherein the learned trial court has observed that the complaint case was settled between the parties after the accused persons including th....