No amount was paid by the appellant, whereupon the respondent filed a suit inter alia claiming the delivery of the units in respect of which the payment had been made.
Costs of Rs.27,87,000/ were also awarded.
Briefly stated the facts are that the respondent paid Rs.26,82,00,000/ to the appellant on 10th September , 1991 for purchase of 2 crore units of the Unit Trust of India at the rate of Rs.13.41p.
As already indicated herein above by the impugned judgment dated 11th March, 1996 the Special Court, Bombay granted the relief of specific performance which required the appellant to buy 7.5 companye units for which payment had been made and in addition thereto it was also required to purchase and sell to the respondent the units representing the right issue which the respondent was deprived of availing of because of the number delivery of the units.
An alternative prayer which was made was for damages for a sum of Rs.
Prior to the issuance of this letter, companyrespondence between the parties showed that the appellant was promising to give the delivery of the units but by this letter of 1st July, 1992 the respondents claimed companypensation of the claim was given according to which the respondent treated the breach of the companytract to have taken placed on 30th May, 1992 and on that basis it claimed difference in price between the rate what was paid and the rate of the Unit Trust of India as on 30th of May, 1992.
134.42 crores by 3rd July, 1992.
According to the said bankers receipts the units were to be delivered by the appellant to the respondent against the discharge in the said receipts.
per unit Subsequently, on 23rd October, 1991 it paid further sum of Rs.
249, 19,00,549 plus further interest at the rate of 17.5 per cent per annum on the said sum till the date of payment.
In respect of the aforesaid two transactions the appellant issued to the respondent two bankers receipts one bearing No.53 dated 10th September, 1991.
By this order the appellant was directed to pay to the respondent bank Rs.
Considerable companyrespondence was exchanged between the parties but what is of relevance is a letter dated 1st July, 1992 whereby the respondent asked the appellant to pay to it sum of Rs.
It is an admitted case of the parties that the units in respect of which payment was received by the appellant were never delivered to the respondent.
75,83,12,500/ as companysideration for the purchase of 5.50 crore units at the rate of Rs.13.7875 per unit.
It was further stated that any delay in payment would then attract interest at the rate of 24 per cent per annum or cll money rate whichever was higher.
During the pendency of the appeal at the time of admission an interim order was passed on 8th May, 1996.
We have heard the companynsel for the parties at length.
Hence this appeal.
Kirpal, J. This is an appeal filed against the judgment of the Special Court companystituted under the Special Court Trial of Offences relating to Transactions in securities Act, 1992 whereby the suit filed by the respondent was decreed and it was inter alia ordered that the appellant herein should purchase units which had been agree to be sold to the respondent and deliver the same to it.
