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2016 (8) TMI 1549 - HC - Indian LawsDishonor of Cheque - insufficiency of funds - whether cheque was issued as a guarantee to make payment or not - section 138 of the Negotiable Instruments Act - HELD THAT:- The transaction between the plaintiff and the defendants was an illegal transaction. If the plaintiff has not disclosed these amounts in his Income Tax Returns, if the cheques given by defendant No. 2 had been honored, the Income Tax Authorities would have asked the plaintiff to explain the source of that money and if necessary would have taxed the plaintiff. The defendant No. 2 having not denied the fact that the defendant No. 2 had issued cheques for ₹ 1 crore towards repayment of the amount of ₹ 1 crore that the plaintiff had given, the defendant No. 2 not having denied the promissory notes or the memorandum of settlement and the fact that the defendant Nos. 2 and 3 have admitted their liability when their anticipatory bail application was being heard by this Court, the amount of ₹ 1 crore with interest as mentioned in the memorandum of settlement, is payable to the plaintiff. The defences raised by the defendants are nothing but after thoughts. Once having admitted before this Court, they cannot take a contrary view - Admission is the best form of evidence and an admission does not require any proof. The admission made by the defendant Nos. 2 and 3 as recorded in the orders passed by this Court that they owed money to the plaintiff and they are trying to settle the claim with the plaintiff, is an admission of fact which requires no proof. The defendant Nos. 2 and 3 cannot take the defences which they have raised in their affidavit in reply. The defendant Nos. 2 and 3 are granted a chance to defend the suit but subject to a condition that defendant Nos. 2 and 3 jointly or severally deposit a sum of ₹ 1 crore with the Prothonotary and Senior Master, High Court, Bombay, within six weeks from today and the Prothonotary and Senior Master will invest the same in fixed deposit with a nationalised bank initially for a period of one year and renew it year to year until the hearing and final disposal of this suit - If this amount is deposited, leave to defend to defendant Nos. 2 and 3 is granted. If this amount is deposited, then the defendant Nos. 2 and 3 to file their written statement within two weeks of depositing the said amount. Within one week thereafter, parties will file and exchange affidavit of documents and within one week thereafter complete discovery and inspection and file and exchange and their statement of admission and denial with reasons for denial. The suit be listed for issues 12 weeks thereafter. The summons for judgment stand disposed.
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