Supreme Court Judgement [Hongkong & Shanghai Banking Corporation Ltd. Vs. Canbank Financial Services Ltd. & ANR.] dated JULY 15, 2013 [Civil Appeal No.5281 of 2004] CHANDRAMAULI KR. PRASAD,J. Defendant No. 1, the Hongkong & Shanghai Banking Corporation Ltd., a Company incorporated under the laws of Hong Kong, aggrieved by the judgment and decree dated 30th of June, 2004 passed by the Special Court (Trial of Offences relating to Transaction in Securities), Bombay in Suit No. 11 of 2002 decreeing the plaintiff’s suit for a sum of Rs. 18,59,71,808.22/- along with interest at the rate of 15% has preferred this appeal. Plaintiff Canbank Financial Services Ltd., respondent no. 1 herein filed the suit seeking a decree directing defendant no. 1 to pay to the plaintiff a sum of Rs.33,13,42,781.62/- with further interest thereon at the rate of 24% per annum compounded quarterly from the date of the suit till realization. According to the plaintiff, it is a Company incorporated under the Companies Act and a subsidiary of Canara Bank. Plaintiff has averred that it is engaged in the business of providing financial and management consultancy services and trading in Government and public sector securities and bonds. In course of business the plaintiff buys and sells Government and public sector bonds and securities in accordance with the guidelines issued from time to time by the Reserve Bank of India. The plaintiff’s case is that on 24th of June, 1991, it purchased from defendant no. 1, through a broker M/s. Naresh K. Aggarwala, Coal India bonds of the face value of Rs. 18 crores. The broker issued a contract note of the same date. The plaintiff, in order to obtain from bank a pay order in favour of the seller, gave a cheque in favour of the said bank. Accordingly, the Canara Bank issued a pay order favouring defendant no. 1, for a sum of Rs. 18,59,71,808/- specifically mentioning that the pay order is on account of the plaintiff Canbank Financial Services Ltd. The plaintiff’s case further is that during the reconciliation of the securities account in or about September, 1994, the plaintiff found that the Coal India bonds purchased by it from defendant no. 1 on 24th of June, 1991 have not been received by them. Accordingly, plaintiff wrote a letter dated 1st of October, 1992 to defendant no. 1 for delivery of the bonds or to refund the amount paid by it. See full Judgement: lawintellectindia/supreme-court-judgement-hongkong-shanghai-banking-corporation-ltd-vs-canbank-financial-services-ltd-anr-dated-july-15-2013/
Posted on: Tue, 23 Jul 2013 10:32:31 +0000
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