In a significant ruling by the Delhi High Court, the case of Dr. Rakesh Kumar HUF vs M/s Gardenia India Ltd & Ors has been resolved. The petitioners, including a body corporate (Petitioner No.1) and its chairman (Petitioner No.2), were involved in a complaint case under Section 138 of the Negotiable Instrument Act. The court allowed the compounding application, with the petitioners depositing the full payment of the dishonored cheques and interest. Find out more about the judgement in this detailed summary. #DelhiHighCourt #LegalCase #JudgementSummary
Facts
- The matter was listed for another date, being 06.12.2018.
- The address of the petitioners mentioned in the notice is the same as in the present suit.
- Copy of notice issued to petitioners in the complaint case under Section 138 Negotiable Instrument Act is on record.
- Steps were not taken by the petitioners on 29.01.2018.
- Fresh summons were not ordered for petitioner nos. 1 and 2 as respondent kept taking adjournments.
- No one appeared on behalf of petitioners on the subsequent date of hearing which was listed for 07.06.2018.
- Summons and notice of interim application ordered to be served on petitioners on 29.09.2017.
- Service report with respect to petitioners 1 and 2 was not received.
- Fresh service was directed but respondent did not take steps to serve them afresh.
- Original postal receipts dated 26.12.2017 filed by respondent, showing service on petitioners.
- Mr. Sanjeev Sharma, defendant no. 2, being Managing Director of petitioner no. 1, was served on first occasion but failed to get petitioner no. 1 represented in court.
- Cost of Rs. 30,000 ordered to be paid to respondent by petitioners on next date of hearing.
- The petition along with pending application is allowed.
Arguments
- Petitioner no.1 is a body corporate. Petitioner no.2 is the chairman of summons of the suit and notice of the interim application against the petitioners returnable on 26.09.2017.
- Respondent instituted a complaint case under Section 138 of the Negotiable Instrument Act titled as “Dr. Rakesh Kumar HUF vs M/s Gardenia India Ltd & Ors.
Decision
- Compounding application allowed
- Petitioners deposited full payment of dishonored cheques amounting to Rs. 26,68,150/-
- Interest rate of 9% per annum applied to the payment
- Litigation cost of Rs. 25,000/- also deposited
Case Title: M/S GARDENIA INDIA LTD & ANR Vs. DR RAKESH KUMAR (HUF) (2024:DHC:3905)
Case Number: CM(M)-137/2020
