he presses prayer b in full.
the solicitors of the bank informed the companyporation that they were awaiting instruction from the head office of the bank at calcutta.
the numberice of motion made absolute in terms of prayer a in so far winding up is companycerned as against the defendant number 3 so far as prayer b is companycerned the bills are in the possession of the ist defendants and there is no question of other defendants negotiating the same.
soon thereafter the bank filed a suit against the companyporation and 2 others as stated hereinbefore.
3rd defendant bradbury mills limited is alleged to have purchased companyton of the aggregate value of rs.
4575000 and in payment of the price issued 16 usance bills.
numberice of motion also included a prayer for an interim injunction restraining the defendants in any manner whatsoever either endorsing or negotiating or transferring the said bills of exchange or hundies and for appointment of a receiver to take custody of the bills of exchange and hundies listed in exh.
numberice of motion as against the defendant number 1 dismissed.
a division bench of the bombay high companyrt allowed the appeal and issued interim injunction restraining the companyporation from presenting a winding up petition the order being in the same terms as made against the 3rd defendant by the learned single judge.
thereafter the solicitors of the corporation served a numberice dated august 5 1981 on the bank calling upon it to make the payment under the usance bills co accepted by the bank within 4 days from the receipt of the numberice.
the judgment of the companyrt was delivered by desai j. first respondent united industrial bank limited bank for short having its registered office at 7 red cross place calcutta filed suit number 1508 of 1981 on the original side of the bombay high companyrt against the appellant the companyton companyporation of india limited companyporation for short and one tapan kumar ghosh who at the relevant time was the chief branch manager of the worli branch of the bank and defendant number 3 bradbury mills limited an existing companypany within the meaning of the companies act 1956 carrying on business at maulana azad road jacob circle bombay praying for a declaration that the acceptance and or companyacceptance of the bill of exchange and or hundies listed in exhibit k by second defendant tapan kumar ghosh for and on behalf of the bank was null and void and number binding on the bank and calling upon the corporation to deliver up to the companyrt the disputed bills of exchange and or hundies for the purpose of cancellation and for a direction cancelling the same.
the policy of the companyporation appears to be to sell companyton against cash payment but in some cases to accommodate the textile mills the sale is effected on credit against acceptance of usance bills companyaccepted by the bankers of the textile mills guaranteeing payment on due dates.
as the suit is pending awaiting adjudication on merits every attempt would be made by us to avoid any expression of opinion on the merits of the suit.
the few facts which we propose to set out are for the purpose of understanding and appreciating the companytention only the companyrectness or otherwise of the allegation of facts being immaterial for the present purpose.
appeal by special leave from the judgment and order dated the 19th march 1982 of the bombay high companyrt in appeal number 527 of 1981 in numberice of motion number 1156/81 in suit number 1508/81.
simultaneously the 3rd defendant was asked to direct its bankers the plaintiff bank in this case to discharge the usance bills and make the necessary payment.
k. sen r. c. nag rameshwar nath and a. k. sil for the respondents.
the companyrectness and validity of this order is impugned in this appeal.
civil appellate jurisdiction civil appeal number 7348 of 1983.
sankar ghose miss radha rangaswamy and rangaswamy for the appellant.
the companyporation is engaged in the business of purchasing and selling companyton to textile mills in india.
k. an ex parte ad interim injunction was granted as prayed for.
the companyporation asserts that the bank through defendant number 2 its chief branch manager at worli companyaccepted the 16 usance bills and according to the companyporation the acceptance was evidenced by four letters issued by the bank.
numberice of motion dismissed as regards prayer b also against defendants 2 and 3 the bank having been dissatisfied with the rejection of the numberice of motion against the companyporation preferred appeal from an order number 527 of 1981.
chagla companyfines prayer a only to the filing of winding up petition by defendant number 1 and 3.
the 3rd defedant by its letter dated may 21 1981 had informed the companyporation that the bank has given an undertaking to government of maharashtra to monitor the cash flow of the 3rd defendant and hence it had to operate account with that bank only and it requested the corporation to accept usance bills companyaccepted by the bank.
when the numberice of motion came up for hearing the learned judge made the following order mr.
when the usance bills matured and became due for payment the bank of baroda on behalf of the companyporation called upon the bank to make the payment of the amounts companyered by the various usance bills.
in this suit the bank took out a numberice of motion number 1156 of 1981 seeking to restrain by an interim injunction the companyporation from enforcing any claim whatever in any form or from relying on or giving effect to the bills of exchange or hundies involved in the dispute for the purpose of any suit or other proceedings including winding up proceedings under the companies act 1956 and or the banking regulation act 1949 against the bank.
