M/s. Narang Motors vs M/s. Deep Auto Works

Surjit Singh, Judge

Heard and gone through the record.

Respondent-plaintiff has filed a suit for recovery of certain amount of money against the present petitioner-defendant. Petitioner filed an application, under Order 23 Rule 3 of the Code of Civil Procedure, for recording compromise and passing a decree, on the basis of that compromise. Respondent-plaintiff contested the application. That application has been dismissed, vide order dated 14th June, 2011. Petitioner-defendant has filed the present petition, under Article 227 of the Constitution of India, for setting aside the said order and allowing his application, under Order 23 Rule 3 of the Code of Civil Procedure.

According to the petitioner-defendant, compromise was arrived at between the parties and reduced into writing, in the form of minutes of the meeting, dated 27th February, 2010, copy whereof is Annexure P-3. As per this compromise, petitioner-defendant was to pay a sum of Rs. 80,000/-, on account of the money found due from him, on settlement of accounts and in addition to that he was to have purchased 16 vehicles from the defendant, at the purchase price, within a month of the recording of the aforesaid minutes Annexure P-3. Petitioner went with two cheques, one for Rs. 80,000/- and another for Rs. 4,37,997/- to the respondent, on 16th March, 2010. Respondent allegedly accepted the cheques, but refused to deliver the vehicles. Petitioner then required his bankers not to make the payment of the cheques. Petitioner, however, withdrew certain complains, under the Negotiable Instruments Act, filed by him, pursuant to Annexure P-3. He filed application, under Order 23 Rule 3 of the Code of Civil Procedure, alleging that since he had withdrawn the complaints, u/s 138 of the Negotiable Instruments Act, respondent-plaintiff was also bound to withdraw the suit.

Respondent-plaintiff took the plea that he had handed over ten vehicles, the purchase price of which was equivalent to the amount of second cheque ( Rs. 4,37,997/-), as the remaining six vehicles had already been sold by him, but the petitioner instructed his bankers not to pay the cheques and, therefore, he is not bound to withdraw the suit. Petitioner denies having been delivered ten vehicles.

Question, whether the respondent-plaintiff delivered ten vehicles to the petitioner-defendant, can be determined only after evidence is adduced by the parties. Therefore, the present petition is allowed, impugned order is set aside and the trial Court is directed to decide application, under Order 23 Rule 3 of the Code of Civil Procedure, afresh, after holding enquiry, with respect to the plea of the respondent-plaintiff that he has delivered ten vehicles to the petitioner-defendant against cheque for Rs. 4,37,997/-, the payment of which has been stopped by the petitioner-defendant.

Petition stands disposed of. Pending application also stands disposed of. Parties are directed to appear before the trial Court on 11th January, 2012.