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Arihant Engineering Industries and Others V/S Leo Ispat Ltd. and Others.


Company & Directors' Information:- B S ISPAT LIMITED [Active] CIN = U27100MH1999PLC122856

Company & Directors' Information:- ARIHANT LIMITED [Amalgamated] CIN = L36900WB1998PLC087493

Company & Directors' Information:- LEO ISPAT LIMITED [Active] CIN = U27300DL1993PLC052874

Company & Directors' Information:- M B ISPAT CORPORATION LIMITED [Active] CIN = U27109WB2002PLC094878

Company & Directors' Information:- H R ISPAT PRIVATE LIMITED [Active] CIN = U27109WB2004PTC099672

Company & Directors' Information:- C P ISPAT PVT LTD [Active] CIN = U27109WB2006PTC109157

Company & Directors' Information:- H P ISPAT PRIVATE LIMITED [Active] CIN = U27109WB2004PTC100392

Company & Directors' Information:- M. P. K. ISPAT INDIA PRIVATE LIMITED [Active] CIN = U14100AS2009PTC009174

Company & Directors' Information:- ARIHANT CORPORATION LIMITED [Active] CIN = L00000PB1986PLC006798

Company & Directors' Information:- V G ISPAT PRIVATE LIMITED [Active] CIN = U27100MH2011PTC212537

Company & Directors' Information:- I C ISPAT PRIVATE LIMITED [Amalgamated] CIN = U27104WB1997PTC084835

Company & Directors' Information:- V S P ISPAT PRIVATE LIMITED [Active] CIN = U27109TG2007PTC055445

Company & Directors' Information:- G K ISPAT PRIVATE LIMITED [Active] CIN = U27109WB2005PTC106105

Company & Directors' Information:- S P ISPAT PRIVATE LIMITED [Active] CIN = U27104OR2005PTC008418

Company & Directors' Information:- T S ISPAT PRIVATE LIMITED [Active] CIN = U74899DL1995PTC073989

Company & Directors' Information:- S V ISPAT PRIVATE LIMITED [Active] CIN = U27106PN2007PTC129735

Company & Directors' Information:- M. M. ISPAT PRIVATE LIMITED [Active] CIN = U27101CT2009PTC021004

Company & Directors' Information:- R G ISPAT LIMITED [Active] CIN = U27107RJ1972PLC001467

Company & Directors' Information:- P. B. ISPAT PRIVATE LIMITED [Active] CIN = U27100WB2008PTC123510

Company & Directors' Information:- D P ENGINEERING INDUSTRIES LIMITED [Active] CIN = U27310DL2008PLC176856

Company & Directors' Information:- J D ISPAT PRIVATE LIMITED [Active] CIN = U27100MH2004PTC148798

Company & Directors' Information:- T K ISPAT PRIVATE LIMITED [Active] CIN = U27100PN1979PTC159002

Company & Directors' Information:- B H ISPAT PRIVATE LIMITED [Active] CIN = U27104WB2003PTC096031

Company & Directors' Information:- S A ISPAT PRIVATE LIMITED [Active] CIN = U02710CT2006PTC018612

Company & Directors' Information:- M A K ISPAT (INDIA) PRIVATE LIMITED [Active] CIN = U27109WB1991PTC053908

Company & Directors' Information:- G A ISPAT PRIVATE LIMITED [Active] CIN = U27100WB2007PTC114882

Company & Directors' Information:- A K ENGINEERING INDUSTRIES (INDIA) PRIVATE LIMITED [Active] CIN = U25206DL1997PTC085204

Company & Directors' Information:- G L ENGINEERING INDUSTRIES PRIVATE LIMITED [Active] CIN = U28920MH1981PTC023662

Company & Directors' Information:- R S ISPAT PRIVATE LIMITED [Active] CIN = U27109PB2000PTC023511

Company & Directors' Information:- U V ISPAT PRIVATE LIMITED [Active] CIN = U51909DL2004PTC123871

Company & Directors' Information:- G AND G ISPAT PRIVATE LIMITED [Active] CIN = U27101CT2004PTC016842

Company & Directors' Information:- K L ISPAT PRIVATE LIMITED [Active] CIN = U27310PB2003PTC026554

Company & Directors' Information:- ARIHANT INDIA LIMITED [Active] CIN = U74210DL1991PLC019292

Company & Directors' Information:- L B ISPAT PRIVATE LIMITED [Active] CIN = U27100MH2004PTC149375

Company & Directors' Information:- S. L. ISPAT PRIVATE LIMITED [Active] CIN = U27100WB2008PTC122456

Company & Directors' Information:- K K ISPAT PVT LTD [Strike Off] CIN = U27100WB2006PTC107517

Company & Directors' Information:- ARIHANT INDUSTRIES LIMITED [Active] CIN = L17115PB1977PLC003726

Company & Directors' Information:- ARIHANT INDUSTRIES LIMITED [Dormant] CIN = U17115PB1977PLC003726

Company & Directors' Information:- ARIHANT LIMITED [Strike Off] CIN = U51909DL1985PLC022425

Company & Directors' Information:- B V M ENGINEERING INDUSTRIES LIMITED [Active] CIN = U28111DL1972PLC005983

Company & Directors' Information:- R. D. ISPAT PRIVATE LIMITED [Active] CIN = U27109GJ2009PTC058095

Company & Directors' Information:- P. R. ISPAT PRIVATE LIMITED [Active] CIN = U28112WB2006PTC111855

Company & Directors' Information:- G R ISPAT PRIVATE LIMITED [Active] CIN = U27100WB2009PTC137057

Company & Directors' Information:- K D ISPAT PRIVATE LIMITED [Active] CIN = U28120MH1998PTC112800

Company & Directors' Information:- D B ISPAT PRIVATE LIMITED [Strike Off] CIN = U27102WB2004PTC100878

Company & Directors' Information:- M. M. S. ISPAT PRIVATE LIMITED [Active] CIN = U27310WB2011PTC169162

Company & Directors' Information:- U. P. ISPAT PRIVATE LIMITED [Active] CIN = U27100CT2007PTC020396

Company & Directors' Information:- D P ISPAT PRIVATE LIMITED [Active] CIN = U27109MH1996PTC095910

Company & Directors' Information:- ISPAT INDIA LIMITED [Active] CIN = U27100DL1995PLC069878

Company & Directors' Information:- K N R ISPAT PVT LTD [Strike Off] CIN = U27109WB2006PTC109313

Company & Directors' Information:- J S ISPAT PRIVATE LIMITED [Strike Off] CIN = U27106DL1999PTC102859

Company & Directors' Information:- A. I. ISPAT PRIVATE LIMITED [Active] CIN = U27100GJ2011PTC067030

Company & Directors' Information:- L S ISPAT PRIVATE LIMITED [Active] CIN = U51909DL2010PTC207101

Company & Directors' Information:- ARIHANT ISPAT PRIVATE LIMITED [Active] CIN = U85110KA1982PTC004788

Company & Directors' Information:- B & J ISPAT PRIVATE LIMITED [Active] CIN = U27100UP2010PTC043027

Company & Directors' Information:- M. D. ISPAT PRIVATE LIMITED [Strike Off] CIN = U28112WB2010PTC142495

Company & Directors' Information:- R R R ENGINEERING INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U74899DL1993PTC055069

Company & Directors' Information:- A. V. ENGINEERING INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U99999DL1974PTC007360

Company & Directors' Information:- J P ISPAT PRIVATE LIMITED [Active] CIN = U27100WB2007PTC121102

Company & Directors' Information:- M P ISPAT PRIVATE LIMITED [Active] CIN = U27109WB2004PTC099341

Company & Directors' Information:- B. K. ISPAT PRIVATE LIMITED [Strike Off] CIN = U27100WB2010PTC148194

Company & Directors' Information:- H M ISPAT PRIVATE LIMITED [Active] CIN = U27310UP2008PTC036238

Company & Directors' Information:- G D R ENGINEERING INDUSTRIES PVT LTD [Strike Off] CIN = U27109UP1971PTC003388

Company & Directors' Information:- L S ENGINEERING INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U74899DL1977PTC008484

Company & Directors' Information:- I B I ENGINEERING INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U45202PB1974PTC003422

Company & Directors' Information:- A H B ENGINEERING INDUSTRIES PVT LTD [Strike Off] CIN = U35999WB1988PTC044786

Company & Directors' Information:- O K ENGINEERING INDUSTRIES PRIVATE LTD [Active] CIN = U74899DL1987PTC027660

Company & Directors' Information:- J. J. ISPAT PRIVATE LIMITED [Strike Off] CIN = U28112MH2010PTC201810

Company & Directors' Information:- C. S. S. ISPAT PRIVATE LIMITED. [Active] CIN = U27310DL2006PTC152978

Company & Directors' Information:- R A S ISPAT PRIVATE LIMITED [Strike Off] CIN = U51420DL2005PTC132909

Company & Directors' Information:- LEO AND LEO (INDIA) PRIVATE LIMITED [Strike Off] CIN = U31900DL1985PTC022100

Company & Directors' Information:- S M ISPAT PVT LTD [Strike Off] CIN = U51909WB1996PTC080013

Company & Directors' Information:- N T ISPAT COMPANY PRIVATE LIMITED [Strike Off] CIN = U27104NL2001PTC006482

Company & Directors' Information:- R P ENGINEERING INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U99999DL1973PTC006781

Company & Directors' Information:- S J ISPAT PRIVATE LIMITED [Strike Off] CIN = U27100PB2009PTC033348

Company & Directors' Information:- M V ISPAT PRIVATE LIMITED [Active] CIN = U51420UP2007PTC034189

Company & Directors' Information:- S S G ISPAT PRIVATE LIMITED [Active] CIN = U27109DL2004PTC130623

Company & Directors' Information:- V S ISPAT PRIVATE LIMITED [Strike Off] CIN = U28115DL2001PTC110645

Company & Directors' Information:- V. V. ISPAT PRIVATE LIMITED [Strike Off] CIN = U27310TG2007PTC054459

Company & Directors' Information:- S V ENGINEERING INDUSTRIES PVT LTD [Under Liquidation] CIN = U74210TG1981PTC003174

    FAO (OS) (COMM) 75/2019 and C.M. Appl. 15888/2019

    Decided On, 24 April 2019

    At, High Court of Delhi

    By, THE HONORABLE JUSTICE: G.S. SISTANI AND THE HONORABLE JUSTICE: JYOTI SINGH

    For /Petitioner: K.G. Sharma, Advocate And For Respondents: Shakeel Sarwar Wani, Advocate



Judgment Text


1. Challenge in these appeals is to the order dated 30.01.2019 by which two separate applications filed in two separate suits seeking leave to defend have been allowed in part. The respondents/plaintiffs had instituted two suits for recovery. The learned Single Judge has granted conditional leave to defend subject to deposit of a sum of Rs. 1,16,98,138/- with interest @ 10% per annum from 30.04.2013 till the date of deposit within eight weeks from the date of the order. The reasons for grant of leave to defend find mentioned in paras 5 to 9 of the order 30.01.2019 passed in CS (OS).650/2016, which read as under:

"5. The counsel for the defendants has argued that the entire transaction took place at Faridabad, Haryana and this Court does not have territorial jurisdiction to entertain the suit. Attention in this regard is drawn to page 37 of Part-III file of CS (COMM.) No. 650/2016 being the purchase order dated 27th August, 2011 placed by the defendant No. 1 on the plaintiff. Therefrom, it is shown that the address of the defendant No. 1 as well as the plaintiff is of Faridabad and the purchase order on behalf of the defendant No. 1 was issued by Ajay Nahata who was then an employee of the defendant No. 1 and who is now no longer any employee of the defendant No. 1. It is argued that the said purchase order and other purchase order for recovery of amounts with respect whereto this suit is filed, were never issued.

6. I have already in the order dated 28th January, 2019 observed that the admitted factum of the defendants, in spite of pendency of complaint of offence under Section 138 of the Negotiable Instruments Act, 1881 issuing cheques in the total sum of Rs. 1,16,98,138/-, at least at this stage shows that the said cheques were given for consideration. The version set up by the defendants, of the said cheques having been given as security for fresh supplies to be made by the plaintiff, does not inspire confidence. When the disputes have already arisen between parties and cases are pending, it is unbelievable that cheques by way of security for payment of price of goods to be supplied in future, would be given, that too without any writing.

7. As far as the challenge to the territorial jurisdiction of this Court is concerned, admittedly the registered office of the plaintiff at all times has been at Delhi, within the territorial jurisdiction of this Court. The invoices raised by the plaintiff on the defendant No. 1 also contain a clause "subject to New Delhi jurisdiction". It is not as if, in spite of the plaintiff having registered office at Delhi, no part of the cause of action would accrue within the territory of Delhi. The Courts at Delhi would have territorial jurisdiction, also on the principle of 'debtor must seek the creditor'. Moreover the territorial jurisdiction clause on the invoices under which the goods are claimed to be supplied would be determinative. Reference in this regard may be made to Shradha Wassan Vs. Anil Goel and IUP Jindal Metals & Alloys Ltd. Vs. Conee Chains Private Ltd.

8. However, as far as the claim of the plaintiff for balance principal amount, on account of interest @ 4% per mensem is concerned, at least at this stage such claim appears to be unconscionable and neither can be decreed nor security can be directed to be furnished therefor.

9. Accordingly, leave to defend is granted to the defendants No. 1, 3 & 4, subject to the defendants No. 1, 3 & 4 depositing in this Court a sum of Rs. 1,16,98,138/- together with interest therein @ 10% per annum from 30th April, 2013 till the date of deposit, within eight weeks of today, as sought."

2. The learned Single Judge further observed that the reasons which prevailed in the order on leave to defend in CS (COMM.).650/2016 would apply to the present suit as well. Thus, leave to defend was granted to the defendants no. 1, 3 and 4, subject to the defendants no. 1, 3 and 4 depositing in Court a sum of Rs. 45,80,406/- with interest @ 10% per annum from 30.11.2013 till the date of deposit within eight weeks from the date of the order in the second suit. The only submission made before us by the learned counsel for the appellants is that the order is extremely harsh in nature. The learned counsel submits that the financial condition of the appellants is such that they are unable to deposit the amount and resultantly, the purpose of granting leave to defend would be lost. Counsel seeks modification of the order as far as it relates to deposit of the amounts with interest.

3. Learned counsel for the respondent no. 1 submits that he is the contesting party and has been pursuing the matters for recovery of money. He submits that complaints pertaining to Section 138 of the N.I. Act were filed in the year 2012 and the civil suits were filed in the year 2016 and till date he has not received any amount.

4. We have heard the learned counsels for the parties. Having regard to the financial condition of the appellants and to meet the ends of justice, we deem it appropriate to modify the order of the learned Single Judge as far as it relates to deposit subject to the defendants no. 1, 3 and 4 depositing in Court 50% of the principal amount in

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both the suits and a bank guarantee for the remaining amount. Subject to the above modification, leave to contest is granted as directed by the learned Single Judge. The order be complied with within six weeks from today, failing which the consequences will follow. 5. It is made clear that the order will apply to the present appellants alone and would not apply to defendant no. 2 in the suit as no appeal has been filed by him. 6. With these directions, both the appeals are disposed of. 7. All pending applications also stand disposed of.
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