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2018 (7) TMI 2283 - HC - Indian LawsDishonor of Cheque - insufficient funds - parties entered into a settlement on two occasions but the appellants did not comply with the terms of settlement - HELD THAT:- In the present case, the appellants (defendants in the suit) were duly served with the summons for judgments and admittedly the appellant did not file the leave to defend within the prescribed period of ten days. Surprisingly, the Joint Registrar, without any application on behalf of the appellants granted further time beyond ten days prescribed to the defendants to file leave to defend by an order dated 15.11.2016. When the matter was listed on 28.11.2016, it was noticed that leave to defend had not been filed. No time was extended and thereafter the matter was adjourned from time to time to enable the parties to resolve the matter. The provisions of the Order XXXVII of the Code are no doubt extremely stringent. The same are to be followed strictly, as the suits falling in this Chapter, as the heading suggests, are Summary suits, based on a written contract or dishonour of cheque etc. It may be noted that the parties entered into a settlement on two occasions but the appellants did not comply with the terms of settlement. The matter was listed before the Single Judge on 10.1.2018, when the same was adjourned at the request of the counsel for the appellants, it was made clear that no adjournment would be granted on the next date. Despite an express direction having been given, no steps were taken by the counsel of the appellants to ensure that the applications were placed on record. Sequence of events narrated hereinabove would show the conduct of the appellants as to how the appellants have succeeded in delaying the matter, which is evident from the facts that the appellants did not fulfil their financial liability; the cheques issued by the appellants to secure the loan were dishonoured; the appellants thereafter entered into an amicable settlement with the respondent and offered to pay Rs.3,22,02,660/- along with pendente lite interest and future interest at the rate of 24%, per annum; deed of compromise was executed and again post-dated cheque was handed over by the appellant to the respondent, which was also dishonoured due to insufficient funds. Since the settlement was not honoured by the appellants, the respondent was forced to file a suit under the provisions of Order XXXVII of the Code. In the suit, the appellants again entered into a settlement with the respondent vide Compromise/Settlement deed dated 23.12.2016, and agreed to pay the sum of Rs.2,38,61,907/- by way of two post-dated cheques, which cheques were also dishonoured on account of insufficient funds. There are no infirmity with the view taken by the Single Judge that in the absence of leave to defend objection, with regard to jurisdiction and the plaintiff being a money lender, could not have been considered - once the appellant had entered into a settlement with the plaintiff and no plea of jurisdiction was raised at that point of time, the appellant cannot be allowed to raise the same at this stage. Appeal dismissed.
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