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Judgment
This is an application filed by the defendant for return of the plaint and alternatively for rejection of the suit.
Although this matter was heard on 9th July, 2021 at some length, learned counsel appearing for the applicant seeks to withdraw the application on the
ground that the applicant/defendant has recently come to know of an order passed by the National Company Law Tribunal, Hyderabad on 28th April,
2021 initiating Corporate Insolvency Resolution Process against the defendant. Counsel submits that the said order was stayed by an order of the
National Company Law Appellate Tribunal on 5th July, 2021. It is submitted that the present application which was filed on 30th April, 2021 could not
have been filed since the order of the NCLT was subsisting as on that date. Counsel seeks to withdraw and file the application afresh.
Learned counsel appearing for the plaintiff resists the prayer for withdrawal on the ground that the defendant has suffered an order of injunction
which was preceded by other orders passed by a learned Single Judge of this Court in an application for interim relief filed by the plaintiff. By an order
dated 23rd December, 2020, the defendant was restrained from alienating its assets and the parties were directed to file their affidavits. On 3rd
February, 2021, the learned Single Judge passed a further order directing the defendant to furnish cash security of Rs. 64,50,000/- to the Registrar,
Original Side as security for the claim of the plaintiff. The cash security was to be deposited within a period of two weeks from the date of the order.
Counsel submits that none of these facts have been disclosed in the application.
Although the prayer is for withdrawing the application simpliciter, the conduct of the defendant should be taken note of. Admittedly, the defendant has
not filed its written statement or the affidavit-in-opposition to pending applications including in an application for summary judgment. The fact of the
CIRP proceedings do not find place in the application. The defendant has failed to comply with the orders of Court including furnishing of security as
directed in the order dated 3rd February, 2021. The alleged miscommunication between the defendant and its advocate-on-record is wholly incredible
in the facts as stated above and the excuse given of the pandemic cannot be believed at this stage.
The defendant can therefore only be permitted to withdraw the application on terms. The defendant shall accordingly pay costs assessed at Rs.
25,000/- to the State Legal Services Authority towards financial assistance of women who have lost the sole earning member of their families in the
pandemic.
The costs shall be paid within a period of a week from date.
IA No.GA/3/2021 is dismissed as withdrawn with liberty to file afresh on the self-same cause of action.