Bangalore District Court
M/S.Strides Pharma Science Limited vs To Pay on 31 January, 2023
IN THE COURT OF LXXXIX ADDL.CITY CIVIL & SESSIONS
JUDGE, BENGALURU. (CCH-90)
Present: Sri.S.J.Krishna, B.Sc., LL.B.,
LXXXIX Addl.City Civil &
Sessions Judge, Bengaluru.
Dated: 31st JANUARY 2023
Com.O.S.No.354/2020
PLAINTIFF : M/s.Strides Pharma Science Limited, R
(formerly known as .
M/s Strides Emerging Markets Limited),
Having its registered office at:
"Strides House", Bilekahalli,
Bannerghatta Road,
Bangalore-560 076,
Karnataka.
And its factory at:
No.19/1, 19/3, Alibommasandra,
Muthanallur Post,
Anekal Taluk, Sarjapur,
Hobli-560 099,
Bengaluru,
India.
(By Sri.Jidesh Kumar.M.D, Advocate)
-Vs-
Sri.Ram Enterprises,
Represented by its Proprietor,
Mr.Muralidhar
No.6, Alibommasandra,
Bengaluru-560 099,
Karnataka.
(By Smt.N.S.Ashtalakshmi, Advocate)
Com.OS.354/2020
Date of Institution of : 23.11.2020
suit
Nature of suit : Recovery of money
(suit on pronote, suit
for declaration and
possession suit for
injunction, etc.,)
Date of : 17.03.2022
commencement of
recording of evidence
Date of judgment : 31.01.2023
Total duration : Year/s Month/s Day/s
02 02 08
(S.J.KRISHNA)
LXXXIX ADDL.CITY CIVIL &
SESSIONS JUDGE, BENGALURU.
(CCH-90)
JUDGMENT
The plaintiff has filed this suit against the defendant praying the Court to pass a Judgment and decree directing the defendant to pay
a) directing the defendant to pay the plaintiff a sum of ₹.3,28,000/- along with interest at 18% p.a. from the date of suit till the date of realization and allow the plaintiff to realize the same from the assets of the defendant; costs and such other reliefs.
Com.OS.354/2020 The summary of the case of the plaintiff is as follows:
02. The plaintiff is a Company registered under the provisions of Companies Act, 1956. The defendant is the sole proprietor of the proprietorship concern Sri Ram Enterprises.
03. The plaintiff through Purchase Orders Bg.No:4190009953 and 4190009954 dated:12.01.2017 had placed an order for the delivery and erection of the Movable Racking System for Tablets within the period of 15.10.2017.
04. The defendant accepted the order placed by the plaintiff through mail/letter dated:14.01.2017 and thereby the Plaintiff towards Purchase Order dated:12.01.2017 has made a payment of ₹.3,28,000/- vide cheque No.078792 dated:09.02.2017 drawn on Yes Bank Ltd., Kasturba Road Branch to the defendant towards token advance, which was encashed by the defendant on 13.02.2017.
05. The plaintiff in spite of making advance payment to the defendant did not receive the delivery of the materials within the stipulated time or any time there after till date. The defendant failed to deliver the same within the stipulated period as mutually agreed between the parties.
Com.OS.354/2020
06. The plaintiff abiding by the terms and conditions of the Contract has made the payment of advance amount of ₹.3,28,000/- under the Trust of the defendant performing their part of the contract by way of the delivery/installation. Even after receiving half of the amount well in advance the defendant evaded from rendering of their part of the contract.
07. The plaintiff vide e-mail dated:25.09.2017 clearly enumerated the events leading to the issuance of the 50% advance payment on 09.02.2017 to the defendant with respect to purchase Orders for supplying the goods on or before 30/06/2017. In the said e-mail it was stated that the 50% of the balance payment was to be done after delivery of the materials. The defendant through his e-mail dated:13.10.2017 has stated that the material is ready for dispatch but the same will be delivered only receipt of balance payment, which was totally against the agreed terms of the contract between the plaintiff and defendant.
08. The defendant through e-mail dated:09.01.2018 specifying the materials being ready for dispatch, however after the revert of the plaintiff to the mail to have the materials delivered at the earliest, there was no response whatsoever from the defendant.
Com.OS.354/2020
09. The plaintiff through e-mail dated:16.01.2018 requested the defendant to deliver the materials and collect the balance amount. The defendant on 20.08.2018 agreed to make the delivery of the materials to the plaintiff on or before 15/03/2918 upon the receipt of confirmation mail from the plaintiff as to the payment of money on delivery only and not on erection. The plaintiff has issued a reply vide e-mail dated:22.02.2018 that as agreed between the parties the payment of balance amount can be done within 21 days of the delivery of the materials, which was promised to be done by the defendant on or before 15/03/2918.
10. The plaintiff on 22.03.2018 reminded the defendant to deliver the materials on or before 23.03.2018 failing which they will be constrained to initiate legal action against them. The defendant has reverted in the affirmative to deliver the materials on urgent basis. However the defendant has not delivered the materials till date.
11. The plaintiff having not received any materials from the defendant requested the defendant to refund ₹.3,28,000/- advance amount. Even after sending multiple reminders and telephonic conversation to render the services the defendant has failed to do so. The plaintiff sent an e-mail on 04.212.2018 stating that 'We have given you enough time to repay the Com.OS.354/2020 amount but you have failed to complete your commitment. Hence hereby we are giving last chance to you to repay the amount within 15 days from today, i.e. on or before 20.12.2018 else we will initiate legal action to recover'.
12. The plaintiff filed an application before the District Legal Services Authority, Bengaluru Urban on 07.12.2020 for mediation. In spite of service of notice the defendant remained absent. The respondent thorough a mail denied the claim raised by the plaintiff. Hence the DLSA has issued non- starter report on 16.09.2020.
13. As on 24.09.2020 the outstanding balance payable by the defendant was ₹.5,42,000/- subject to change based on the date of payment, to be recovered from the defendant. The defendant with a mala fide intention has not made payments due and legally recoverable by the plaintiff till date in illegal and arbitrary manner. The plaintiff has made repeated and continuous efforts to recover the due sum from the defendant. Hence left with no other alternate the plaintiff has filed this suit.
Com.OS.354/2020 After the service of summons the defendant appeared through the advocate and has filed written statement as under:
14. The suit filed by the plaintiff is vexatious, misconceived based on misrepresentation of facts and is not maintainable in law against defendant and is liable to be dismissed in limine.
15. The defendant has denied all allegations made in the plaint except those specifically admitted by him.
16. The defendant has denied the averments made in paragraph No:3 to 16 as false and put the plaintiff to strict proof of the same.
17. The present suit is an abuse of process of law as there is no deficiency in service provided by defendant nor has the defendant indulged in any unfair trade practices. The repudiation on the part of defendant is valid and in consonance with terms and conditions of the agreement. Therefore the present plaint being devoid of any cause of action may be dismissed with exemplary costs.
Com.OS.354/2020
18. On the basis of rival pleadings the following Issues are framed.
ISSUES
01. Whether the Plaintiff proves that the defendant is liable to refund ₹.3,28,000/- paid by the plaintiff as advance amount towards delivery and erection of movable rocking system for tablets?
02. Whether the Plaintiff is entitled to recover interest at 18% p.a. on ₹.3,28,000/- from the defendant?
03. Whether the plaintiff is entitled for suit reliefs?
04. What Order/decree?
19. The plaintiff has examined its authorized signatory Sri.Varun S Jatti as PW1. The PW1 has exhibited Ex.P1 to Ex.P11. In spite of granting opportunities, the defendant has not adduced his evidence. Hence, the evidence of defendant is taken as nil. After the conclusion of the recording of evidence, the learned counsel for the plaintiff addressed arguments on merits. The defendant remained absent and has not addressed any arguments.
20. I have gone through the materials available on record. My findings on the above Issues are as under:
ISSUE No.1 : IN THE AFFIRMATIVE
ISSUE No.2 : IN THE AFFIRMATIVE
ISSUE No.3 : IN THE AFFIRMATIVE
ISSUE No.4 : As per final order
for the following
Com.OS.354/2020
REASONS
21. ISSUE No.1 to 3 : The plaintiff has filed this suit
against the defendant praying the Court to pass a Judgment and decree directing the defendant to pay
a) directing the defendant to pay the plaintiff a sum of ₹.3,28,000/-along with interest at 18% p.a. from the date of suit till the date of realization and allow the plaintiff to realize the same from the assets of the defendant; costs and such other reliefs.
22. The plaintiff has examined its authorized signatory Sri.Varun S Jatti as PW1. The PW1 has exhibited Ex.P1 to Ex.P11 as under:
Sl. Particulars of documents Ex.P. No.
1. Certified Copy of the Resolution of the Board Ex.P.1 dated:28.09.2021
2. Copy of purchase order dated:12.01.2017 Ex.P.2 Bg.No:4190009953 and 4190009954 & Ex.P3
3. Copy of Bank Statement-YES Bank Ex.P.4
4. Copies of E-mails dated:25.09.2017, Ex.P.5 22.03.2018 and 04.12.2018
5. Non-starter Report issued in PIM 66/2020 Ex.P.6
6. Certificate under Section 65B(4) of Evidence Ex.P.7 Act
7. Copy of proforma Invoice No:SREE/SAEPL/16- Ex.P8 17/214 dated:31.07.2017 Com.OS.354/2020
8. Copy of proforma Invoice No:SREE/SAEPL/16- Ex.P9 17/214 dated:31.07.2017
9. Copy of e-mail communication Ex.P10 dated:26.04.2017, 13.03.2017
10. 65-B Certicate Ex.P11
23. In spite of granting opportunities, the defendant has not adduced his evidence. Hence, the evidence of defendant is taken as nil.
24. The PW1 has reiterated the plaint averments in his affidavit evidence. It is the case of the plaintiff that the plaintiff has placed purchaser order as per Ex.P1 and Ex.P2 with the defendant for the purpose of purchase of Movable Rocking System for Tablets. As per the terms and conditions agreed upon by the parties has paid 50% advance amount of ₹.3,28,000/- vide cheque Bg.No:07892 dated:09.02.2017 drawn on YES Bank Ltd., The defendant has encashed the said cheque on 13th February 2017 as evidenced by Bank Statement/Ex.P4. In spite of repeated requests, e-mail correspondence and telephonic conversation the defendant has failed to deliver and erect Movable Rocking System for Tablets at the place of plaintiff. Hence, the plaintiff demanded the defendant to refund advance amount of ₹.3,28,000/-. The defendant has failed to refund the advance amount. Hence, the plaintiff has filed the present suit. In support of its Com.OS.354/2020 contentions the Plaintiff has exhibited Ex.P1 to P5, Ex.P8 to Ex.P10.
25. The PW1 in his cross examination deposed that the defendant was associated with the plaintiff as a supply contractor. He has admitted that the plaintiff used to place orders for supply of materials with the defendant. The defendant has supplied materials on one or two occasions. The defendant had issued quotation for Movable Rocking System for Tablets with all specifications. Based on the quotation of the defendant the plaintiff has issued purchase order. The plaintiff has paid 50% of the cost as advance. He denied that the defendant had kept ready the Movable Rocking System and the plaintiff has failed to procure the same in spite of defendant sending several e-mails requesting the plaintiff to take delivery of the equipment. He has denied that on account of negligence of the plaintiff to take delivery of the equipment the defendant has suffered loss.
26. From the above evidence and the exhibits it is evident that the defendant had supplied materials to the plaintiff. The Plaintiff has issued purchase orders as per Ex.P1 and Ex.P2 and the defendant has raised Proforma Invoice as per Ex.P8 and Ex.P9 in respect of Movable Rocking Systems for Tablet. The e-mail correspondence exhibited by the plaintiff Com.OS.354/2020 corroborates the contention of the plaintiff regarding issuance of purchase order and payment of ₹.3,28,000/- as advance being 50% of the cost to the defendant. The defendant in his written statement has denied all the plant averments as false and contended he has repudiated the contract with the plaintiff. There is no dispute between the parties regarding issuing of Purchase orders and payment of ₹.3,28,000/- by the plaintiff to the defendant. The defendant has made vague and generalized denial of the plaint averments. The defendant has not specifically stated his case except stating that he has repudiated the contract with the plaintiff. The defendant has not adduced any evidence. The Cross examination of PW1 shows that the defendant has not denied the suit transaction or suggested that the defendant has repudiated the contract with the plaintiff. The evidence adduced by PW1 and e-mail correspondence between the parties corroborates the case of the plaintiff.
27. The plaintiff is claiming interest at 18% p.a. on ₹.3,28,000/-. The plaintiff has not furnished any materials to establish the liability of the defendant to pay interest at 18% p.a. The transaction between the plaintiff and defendant is a commercial transaction. In the absence of proper materials placed on record, the Court has to take judicial notice of the rate of interest charged by the scheduled banks on the Com.OS.354/2020 commercial loans. The rate of interest on commercial loan varies from time to time. In these circumstances if the rate of interest is fixed at 18% p.a. no prejudice will be caused to the plaintiff or defendant. Accordingly the defendant is liable to pay interest at 18% p.a. from the date of suit till the date of realization.
28. The plaintiff has exhibited Ex.P6/Non-starter report dated:16.09.2020 to evidence that it has followed mandate of Law as per Section 12A of Commercial Courts Act, 2015. The suit is filed within the period of Limitation. In the absence of legal impediments the plaintiff is entitled for suit reliefs. Accordingly, ISSUE No.1 to 3 are answered in the AFFIRMATIVE.
29. ISSUE No.4: In view of above discussion and findings on Issue no;1 to 3 I pass the following ORDER The suit filed by plaintiff is hereby decreed in part with costs.
The defendant is liable to pay the plaintiff ₹.3,28,000/- (Rupees Three Lakhs Twenty Eight Thousand only) along with interest at 18% p.a. on ₹.3,28,000/- (Rupees Three Lakhs Twenty Com.OS.354/2020 Eight Thousand only) from the date of suit till the date of realization of entire decreetal sum. Draw decree accordingly.
The office is hereby directed to send a copy of the judgment to the plaintiff and defendant through e-mail as per Order XX Rule 1 CPC as amended by Section 16 of Commercial Courts Act, 2015.
(Dictated to the Stenographer, corrected, signed and then pronounced by me in the open court on 31st day of JANUARY 2023) (S.J.KRISHNA) LXXXIX ADDL.CITY CIVIL & SESSIONS JUDGE, BENGALURU.
(CCH-90) ANNEXURES List of witnesses examined for the plaintiff:
P.W.1 : Sri.Varun S. Jatti.
List of documents exhibited on behalf of the plaintiff:
Sl. Particulars of documents Ex.P. No.
1. Certified Copy of the Resolution of the Board Ex.P.1 dated:28.09.2021
2. Copy of purchase order dated:12.01.2017 Ex.P.2 Bg.No:4190009953 and 4190009954 & Ex.P3 Com.OS.354/2020
3. Copy of Bank Statement-YES Bank Ex.P.4
4. Copies of E-mails dated:25.09.2017, Ex.P.5 22.03.2018 and 04.12.2018
5. Non-starter Report issued in PIM 66/2020 Ex.P.6
6. Certificate under Section 65B(4) of Evidence Ex.P.7 Act
7. Copy of proforma Invoice No:SREE/SAEPL/16- Ex.P8 17/214 dated:31.07.2017
8. Copy of proforma Invoice No:SREE/SAEPL/16- Ex.P9 17/214 dated:31.07.2017
9. Copy of e-mail communication Ex.P10 dated:26.04.2017, 13.03.2017
10. 65-B Certificate Ex.P11 List of witnesses examined for the defendant/s:
NIL List of documents exhibited on behalf of the plaintiff:
NIL (S.J.KRISHNA) LXXXIX ADDL.CITY CIVIL & SESSIONS JUDGE, BENGALURU.
(CCH-90) ****