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2014 (4) TMI 1273 - HC - Companies LawMaintainability of suit - whether the suit can be referred to arbitration or not - HELD THAT:- The Defendant No. 1 has defaulted in performing its obligations in respect of its trading on the Plaintiff Exchange. Detailed material has been produced with the Plaint, inter alia: Ledger accounts and Clearing Bank Statement of Defendant No. 1, wherein the transactions are reflected - 1st Defendant has clearly admitted its liability to the Plaintiff for a sum of ₹ 693 crores by its letter dated 1st August 2013 at Exhibit Y to the Plaint, and also agreed unconditionally to make payment by installments in 20 weeks. Some amounts were paid, but in view of subsequent defaults the Plaintiff addressed a notice dated 28th August 2013 at Ex "Z" to the Plaint, declaring Defendant No. 1 as a defaulter. The Plaint and the documents produced therewith show that criminal proceedings have been initiated against Defendant 1 and some of its directors. The EOW and ED have both initiated action in the course of which some arrests have also been made. Exhibits "BB" and "CC" are press reports which mention that the ED has attached properties of Defendant 1 and investigation has revealed that large amounts were siphoned off to invest in the real estate project of Defendant No 20. The Plaintiff has made out a strong case for being entitled at this stage to limited adinterim relief, interalia, in view of the averments made in the Plaint including the statements in paragraph 9,10, 18 to 21 thereof, and material placed on the record - It is not necessary to consider this question at this ad interim stage. As and when any application under section 8 of the Arbitration & Conciliation Act, 1996 is made by any party the same will be considered on its own merits. S.O. to 21st April 2014 for consideration of further ad interim relief/s.
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