Sat Pal - (1.)In this case vide order dated 3/05/1993, thedefendants were granted leave to defend under Order XXXVII Rule 3(5)subject to the following conditions:"(a) Defendants shall renew the bank guarantee for half of thesuit amount and keep the same alive, during the pendency ofthe suit;(b) The remaining half of the amount shall be deposited in theform of Fixed Deposit Receipt for a period of one year, whichshall be renewed from time to time during the pendency of thesuit. The said amount shall be deposited in a NationalisedBank and the FDR be furnished to the Registrar of thisCourt."
(2.)It was further stated in the said order dated 3/05/1993 thatthe conditions mentioned here in a bove shall be complied with by the defendants within two months from the date of the order. Since the conditionshave not been complied by the defendants within the stipulated time, thecase was listed before the Court on 28/09/1993. On the said date anaffidavit was filed on behalf of the defendants wherein it has been stated thatthe defendants could not comply with the conditions mentioned in the orderdated 3/05/1993 as the bankers of the defendants had committedcriminal breach of trust and misappropriated the amount deposited by thedefendants. It was further stated in this affidavit that further time of twomonths may be granted to the defendants to make necessary arrangementsfor compliance of those conditions.
(3.)The arguments were heard in this case on 8/10/1993.During the course of the arguments, Mr. Sarin, learned Counsel appearing onbehalf of the plaintiff drew my attention to the letter dated 6/07/1993addressed by the defendants to the Manager, Indian Bank, NDSE Part-1,New Delhi, copy of which has been annexed alongwith the affidavit filed onbehalf of the defendants on 28/09/1993. The said letter reads asunder:"Dear Sir,This has reference to our Bank Guarantee for Rs. 24,20,000.00(Rupees twenty four lacs twenty thousand only) in favour ofHon'ble High Court, New Delhi in the case of B. B. Patel v. NeximExports Pvt. Ltd.As per the order of, copy attached, you are requested to renew theBank Guarantee for half the amount, and the balance half amountshould be converted into a Fixed Deposit for I (one) year andboth are to be submitted to the Registrar of,the Court.Thanking you,Yours faithfully,Sd/-(Mohan Murti)"