In Brief
A private company sought declarations that a cheque for Rs 56 lakhs was handed over as security and not a debt to a co-business defendant under a Memorandum of Understanding. The defendant applied to reject the plaint, which the trial court dismissed; the revisional court allowed the application and rejected the plaint; the High Court set aside this order and remanded. The Supreme Court held the revisional court was justified in rejecting the plaint under Section 115 CPC (Orissa amendment). The declared reliefs sought were in substance disguised injunctions barring the defendant from prosecuting a cheque dishonour case under the Negotiable Instruments Act—prohibited under the Specific Relief Act. The plaintiff must pursue its MoU grievances through separate proceedings.
The lawyer headnote and full judgment text are available to registered users.