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Shri Niwas Cloth Stores Vs. United Commercial Bank - Court Judgment

SooperKanoon Citation
SubjectCivil;Banking
CourtRajasthan High Court
Decided On
Case NumberS.B. Civil Revision Petition No. 246 of 1989
Judge
Reported in1992WLN(UC)589
AppellantShri Niwas Cloth Stores
RespondentUnited Commercial Bank
DispositionPetition dismissed
Cases Referred and Assunpeao Riberio and Ors. v. Elavano Begrentura Salvador Silveria and Ors.
Excerpt:
.....to be caused to the defendant while filing the written-statement then the proceedings in the civil suit for the recovery of such a huge amount cannot be stayed. the learned lower court has considered all the facts and circumstances of the case in the right perspective and rightly rejected the application filed by the petitioner under section 151 c.p.c. the discretion exercised by the learned lower court cannot be said to be, in any way, arbitrary or unjust and the order passed by the learned lower court does not require any interference.;revision dismissed - - the court in the facts and circumstances of the case can defer the civil proceedings awaiting the disposal of the criminal case, but if the court finds that the civil and criminal proceedings are separate and no..........other hand, has supported the order passed by the court below. his further submission is that the suit filed by the plaintiff is a plain and simple suit for the recovery of the amount and the subject matter in the criminal and civil proceedings is not one and the same and, therefore, there is no question of staying the proceedings in the present case.4. i have considered the rival submissions made by the learned counsel for the parties and perused the order passed by the court below.5. the relevant consideration for staying either of the proceedings when two parallel criminal and civil proceedings have been initiated against the petitioner, is whether any embarrassment will be caused to the petitioner in disclosing his case if he is required to file the written statement. it is,.....
Judgment:

B.R. Arora, J.

1. This revision petition is directed against the order dated April 28, 1989, passed by the District Judge, Merta, by which the learned District Judge dismissed the application under Section 151 C.P.C. filed by the defendant-petitioner and refused to stay the proceedings in the civil suit.

2. Plaintiff United Commercial Bank (UCO bank) filed a suit in the Court of the learned District Judge, Merta, against the defendant for the recovery of the amount of Rs. 14,08,500/-. The suit was filed on the basis of the Statement of the Bills Purchase Account and the amount of which was admitted by the defendant While confirming the balance on February 3, 1984. It was. also, stated In the plaint that this amount fell due against the defendant on account of Cash-credit facilities given to the defendant firm on September 20, 1978, and in pursuance of this Cash-credit facility, certain bills were purchased by the bank, which were not be honoured by the parties and the goods remained with the bank, against which the money was advanced to the defendant. After the service of the summons, the defendant filed an application under Section 151 C.P.C. for staying the proceedings in the suit. It was averred in the application that simultaneously a criminal proceeding with respect to this very transaction has been started against the proprietor of the firm, viz., Bhanwar Lal, and a case has been instituted against him, which is pending in the Court of the Special Judge, C.B.I, cases, Jodhpur, and the material facts of the criminal case pending in the Court of the Special Judge, C.B.I. Cases, Jodhpur, and that of the present civil suit are the same. It was, therefore, prayed that the simultaneous proceedings in the civil suit may be stayed so that no harassment may be caused to the defendant-applicant. This application was opposed by the plaintiff and the learned District Judge, by his order dated April 28, 1989, dismissed the application filed by the defendant-petitioner. It is against this order dated April 28, 1989, dismissing the application filed by the defendant that the petitioner has preferred this revision petition.

3. It is contended by the learned Counsel for the petitioner that continuation of the parallel proceedings in the civil and criminal Courts will cause unnecessary harassment and embarrassment to the petitioner and if the civil proceedings are allowed to continue, the petitioner will have to file his written statement and will have to disclose his defence in the civil suit. In support of its case the learned Counsel for the petitioner has placed reliance over M.S. Sheriff and Anr. v. The State of Madras : [1954]1SCR1144 , Nami Gopal Deb and Anr. v. Bhima Charon : AIR1956Cal32 and Assunpeao Riberio and Ors. v. Elavano Begrentura Salvador Silveria and Ors. AIR 1979 Goa, Daman and Diu 37. The learned Counsel for the non-petitioner, on the other hand, has supported the order passed by the Court below. His further submission Is that the suit filed by the plaintiff is a plain and simple suit for the recovery of the amount and the subject matter in the criminal and civil proceedings is not one and the same and, therefore, there is no question of staying the proceedings in the present case.

4. I have considered the rival submissions made by the learned Counsel for the parties and perused the order passed by the Court below.

5. The relevant consideration for staying either of the proceedings when two parallel criminal and civil proceedings have been initiated against the petitioner, is whether any embarrassment will be caused to the petitioner in disclosing his case if he is required to file the written statement. It is, therefore, necessary to see in the present case whether the continuation of the present civil proceeding and the pendency of the criminal proceeding will, in any way, embarrass the petitioner and if the answer is found in favour of the petitioner then the proceedings in the civil suit can be stayed till the criminal proceedings are concluded. But there is no legal bar for simultaneous proceedings being taken against an accused, against whom a criminal action for conspiring and cheating the bank of a huge amount is pending. The Court in the facts and circumstances of the case can defer the civil proceedings awaiting the disposal of the criminal case, but if the Court finds that the civil and criminal proceedings are separate and no embarrassment is to be caused to the accused in the continuation of the civil proceeding then both the civil as well as the criminal proceedings can continue simultaneously. In the present case, the suit filed by the plaintiff is plain and simple for the recovery of the amount of Rs. 14,08,500/- and is based upon a Statement of Accounts of the Bills admitted by the defendant vide its letter dated February 3, 1984, and on the basis of the Cash-credit facilities given to the petitioner firm on September 20, 1979, and under the Cash credit facility, certain Bills were purchased by the bank which were not honoured by the party and the goods remained with the bank, against which the money was advanced by the plaintiff bank to the defendant-petitioner, The petitioner, in the criminal case is being prosecuted for the offence that he conspired with Mr. P.K. Harsh the Manager of the Bank - and cheated the Bank with a huge amount. The proceedings can be stayed only in order to avoid prejudice and embarrassment but when no embarrassment is likely to be caused to the defendant while filing the written-statement then the proceedings in the civil suit for the recovery of such a huge amount cannot be stayed. The learned lower Court has considered all the facts and circumstances of the case in the right perspective and rightly rejected the application filed by the petitioner under Section 151 C.P.C. The discretion exercised by the learned lower Court cannot be said to be, in any way, arbitrary or unjust and the order passed by the learned lower Court does not require any interference.

6. In the result, I do not find any merit in this revision petition and the same is hereby dismissed.


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