MMTC LIMITED v. M/S KASHISH ASSOCIATES & ORS

Delhi High Court · 18 Oct 2016 · 2016:DHC:7039
G.S. Sistani
CS(OS) 47/2013
2016:DHC:7039
civil other

AI Summary

The Delhi High Court admitted a summary suit filed by MMTC Limited under Order XXXVII CPC for recovery under valid bank guarantees securing gold loans against M/s Kashish Associates and Bank of India.

Full Text
Translation output
CS(OS).47/2013
HIGH COURT OF DELHI
JUDGMENT
Dated: 18th October, 2016
CS(OS) 47/2013
MMTC LIMITED ..... Plaintiff
Through Ms. Surekha Raman, Advocate
versus
M/S KASHISH ASSOCIATES & ORS ..... Defendants
Through Mr. Rishi Manchanda, Advocate for defendant no.1.
Mr. Jitendra Kumar, Mr. Ranjith Ramesh Nair, Advocates for defendants no.2 and 3 along with Mr. Pawan Kumar, Chief Manager.
CORAM:
HON'BLE MR. JUSTICE G.S.SISTANI G.S.SISTANI, J (ORAL)
(IA.10504/2013) under Order XXXVII Rule 3(5) CPC by defendant no.1) and IA.8128/2013 under Order XXXVII Rule 3(5) CPC by defendant no.2 and 3)

1. Plaintiff has filed the present suit under the provisions of Order XXXVII of the Code of Civil Procedure. The present suit is based on two bank guarantees which were furnished by the defendant no.1 in favour of the plaintiff. The plaintiff is a Government of India enterprise and claims to be one of the largest international trading company of India engaged inter alia in the manufacture, sale, import, export and marketing of ferrous and non-ferrous metal and minerals.

2. Defendant no.1 is a trading company and a partnership concern of which Mr. Kashish Kumar Rastogi is the proprietor. Defendant no.1 had approached the plaintiff in the year 2006 for drawal of gold under its 2016:DHC:7039 Open General License (OGL) Scheme on loan basis and outright sale schemes. The defendant no.1 has been lifting gold from time to time. Defendant no.1 had furnished amongst others the following financial bank guarantees issued by defendant no.2, Bank of India to secure the repayment of the gold loan that was being drawn:

┌────────────────────────────────────────────────────────────────────────────────────┐
│        Sl.No. Bank Guarantee No. Amount           Date     of Date of Validity     │
│                                  (Rs.)            Issue                            │
├────────────────────────────────────────────────────────────────────────────────────┤
│        1.     60247FIBGO80055 20,000,00           24.10.2008 20.04.2009            │
│                                                               extended from        │
│                                                               time to time, the    │
│                                                               last extension       │
│                                                               being issued on      │
│                                                               15.03.2011 with      │
│                                                               the       validity   │
│                                                               /claim     period    │
│                                                               upto                 │
│                                                               20.04.2012.          │
│        2.        60241FIBG110014     90,000,00    25.04.2011 24.04.2012            │
│        3.        60241FIBG110016     90,000,00    26.04.2011 25.04.2012            │
└────────────────────────────────────────────────────────────────────────────────────┘

21. List before the Joint Registrar for admission/denial of documents on 06.12.2016.

22. List before the Court for framing of issues on 02.02.2017. G.S.SISTANI, J OCTOBER 18, 2016 pst