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Delhi District Court

The National Small Industries ... vs M/S. Baroda Electro Engineering ... on 21 September, 2017

         IN THE COURT OF SH. GURVINDER PAL SINGH
        ADDITIONAL DISTRICT JUDGE 01 ­ SOUTH EAST
           DISTRICT, SAKET COURTS, NEW DELHI.


CS - 661/17 

The National Small Industries Corporation 
Limited, having its Registered office at 
NSIC Bhawan, Okhla Industrial Estate
Okhla, New Delhi - 110020 
through Sh. Hem Raj Deputy General 
Manager and duly constituted Attorney. 
                                                                            ............Plaintiff 

                 VERSUS
 
1.      M/s. Baroda Electro Engineering Products
        Private Ltd. Through its Principal Officer/
        Company Secretary, 77, Haribhakti Colony
        Extension, Old Padra Road, Vadodra - 390015. 

2.      Shri Vipula Pran Lal Vohra (Guarantor)
        R/o. 36, Charotar Society, Old Padra Road
        Vadodra - 390015. 

3.      Maharashtra State Electricity Board
        Central Purchase Agency, Plot no. G­9,
        1st Floor, Prakashgad, Aliyavar Jung Marg
        Bandra (East), Mumbai - 400 051. 
                                                                            .........Defendants


CS - 661/17   The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors.   page 1 of 19
                  Date of Institution                    :         31.05.2003
                 Date of Arguments                      :         11.08.2017
                 Date of Judgment                       :         21.09.2017 


                                         JUDGMENT

1.  Plaintiff filed the suit for recovery  of Rs. 30,70,149.17P with pendentelite and future interest and cost from defendants.  

2. Adumbrated in brief the facts of the case of plaintiff are : 

Plaintiff is a Government Company under the provisions of the Companies   Act,   1956   engaged   in   the   promotion   and development   of   Small   Scale   Industry   and   thereby,   provides financial   support   in   terms   of   raw   material   assistance   /Bills Finance and Working Capital Assistance/ Export Development Assistance.   Defendant no.1 is also a duly registered company carrying on the business of Galvanizing.  The defendant no.2 is the director of the defendant no.1 and the Guarantor who stood as personal  guarantor, thereby guaranteeing the repayment of the   dues   outstanding   from   the   defendant   no.1   together   with interest and other charges.  Defendant no.3 is Maharashtra State Electricity Transmission Company Ltd. at Mumbai. 

3. It   is   averred   that   the   defendant   no.1   through   its   Directors approached the plaintiff company in January 1998 for grant of CS - 661/17 The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors. page 2 of 19 Financial Assistance in the nature of Raw Material Assistance. The plaintiff and the defendant no.1 entered into an agreement on   25.02.1998   for   the   grant   of   financial   assistance   to   the defendant no.1.   The defendant no.1 agreed and undertook to repay the amounts due from them with interest and in the event of   default   the   defendant   no.1   was   required   to   pay   additional interest.   The defendant no.1 made supplies to the defendant no.3 under various bills/invoices, the payment in respect of the supplies made to the defendant no.3 have not been received by the plaintiff either from defendant no.3 or from defendant no.1. Defendant   no.2   executed   a   guarantee   deed   dated   11.02.1998 guaranteeing the repayment of the dues outstanding from the defendant   no.1   together   with   interest   and   other   charges. Defendant no.1 appointed the plaintiff as the Power of Attorney holder on its behalf authorizing the plaintiff to receive and/or collect   payments   from   the   defendant   no.3   in   relation   to   the orders placed by the defendant no.3 on the defendant no.1.   The defendant no.3 accepted the authority given by the defendant no.1 to the plaintiff to receive/collect payment directly to the plaintiff in respect of the orders placed by the defendant no.3 on the defendant no.1 and agreed to make the payment due to the defendant no.1 directly to the plaintiff as the financial assistance in the nature of Raw­material Assistance had been granted to the defendant no.1 by the plaintiff from time to time.   At the CS - 661/17 The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors. page 3 of 19 request   of   the   defendants,   the   plaintiff   company   granted financial assistance against the supplies made to Maharashtra State Electricity Board under various bills/invoices.   

4. A letter dated 30.03.2000 was written by the defendant no.3 to the defendant no.1with copy to plaintiff informing that bills had not been paid as the supplier had not submitted the Material Receipt Information (MRI) and Stores Receipt Number (SRN) with bills.  For settlement of the claim, the plaintiff approached defendant   no.1   to   complete   the   formalities   so   that   the   bills pending with the defendant no.3 could be passed.  Though the defendant no.1 completed the formalities required for passing of the bills by defendant no.3 for settlement of the claim, however, the   defendant   no.3   has   failed   to   make   the   payment   of   the pending   bills   despite   repeated   reminders   and   despite   having completed all formalities required by it and as such defendants no.   1,   2   and   3   are   jointly   and   severally   liable   to   pay   the outstanding dues to the plaintiff.  

5. The defendant no.3 made part payments i.e. a sum of Rs. 8219/­ vide cheque no. 279943 dated 31.03.2000 and Rs. 14,104 vide cheque no. 299292 dated 09.06.2000.  Plaintiff sent  legal notice dated 14.09.2001 to defendants no.1,2 and 3 calling upon them to   make   payment   of   the   dues   outstanding   with   interest, CS - 661/17 The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors. page 4 of 19 however, despite service of the notice, the defendants failed and neglected to make the outstanding payment; hence this suit.  

6. As no representation was received on behalf of defendant no.2, therefore   he   was   proceeded   ex­parte   vide   Order   dated 20.09.2004.   The     process   was   issued   to   defendant   no.1   on several dates, but defendant no.1 could not be served through ordinary process and therefore the defendant no.1 was served through   publication   and   since   none   appeared   on   behalf   of defendant   no.1   despite   publication,   defendant   no.1   was   also proceeded ex­parte vide Order dated 19.09.2006. 

7. Defendant no.3 filed written statement denying the averments of the   plaint   and   submitted   that   defendant   no.3   is   neither   a necessary nor a property party to the suit.  It is averred that there is   no   privity   of   contract   between   the   plaintiff   and   defendant no.3.  All amounts have been paid by defendant no.3 arising out of Order no. SP/T/809/594/7836 dated 13.06.1995 and that the defendant   no.3   is   not   a   party   to   the   purported   agreement between the plaintiff and defendant no.1. Further, the present suit is barred by the law of limitation qua defendant no.3 and deserves to be dismissed.   

CS - 661/17 The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors. page 5 of 19

8.   It is averred in the Written Statement filed by defendant no.3 that in order to accommodate  defendant no.1 to obtain financial assistance   from   the   plaintiff,   defendant   no.3   agreed   with defendant   no.1   to   make   payments,   which   were   without prejudice to the other terms and conditions of the orders placed by defendant no.3 on defendant no.1. The defendant no.3 was entitled to adjust payment for  the supply made by defendant no.1   to   it   on   account   of   any   of   the   following   reasons;   (i) liquidated damages for delay in supply; (ii) damages for breach;

(iii) claim for rejected goods and ;(iv) to adjust dues under one order from other orders placed upon defendant no.1. 

9. It is further averred that there is no outstanding amount was due and payable by defendant no.3 to the plaintiff. The following payments have already been made by defendant no.3 arising out of Order dated 13.06.1995:

Invoice No. Date of Invoice Amount paid in Rupees 124/97-98 and 2/2/1998 125/97-98 3/2/1998 5,19,046.04 9/98-99 18/7/1997 3,75,790 10/98-99 17/5/1998 1,95,410 12/98-99 1/8/1998 3,23,179 3/98-99 7/5/1998 6,01,264 5/98-99 13/5/1998 7,18,780 Total 27,33,469.04   CS - 661/17 The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors. page 6 of 19

10. Plaintiff   did   not   file   replication   to   written   statement   of defendant no.3.

11.  Admission/denial of documents was carried out on 19.02.2009 whereby   the   defendant   no.3   admitted   three   documents   of plaintiff viz. (i) Letter of defendant no.3 to defendant no.1 dated 30.03.2000 as Ex. P1/D3, (ii) letter dated 23.06.2000 issued to the   plaintiff   as   Ex.   P2/D3   enclosing   cheque   of   Rs.   14,104/­ dated 09.06.2000 and (iii)  AD card Ex. P3/D3 for  receipt of letter dated 02.11.2000 of plaintiff. 

         The plaintiff also admitted 2 documents of defendant viz.

(i) Letter of defendant no.3 dated 09.09.1997 to defendant no.1 as Ex. D1 and (ii) Letter of defendant no.3 dated 29.01.1998 to defendant no.1 as Ex. D2.   

12. From the pleadings of the parties, following issues were framed:

(i)  Whether this suit is barred by limitation? OPD3 
(ii) Whether this Court has no territorial jurisdiction to try and entertain the present suit? OPD3 
(iii)   Whether   there   was   no   privity   of   contract   between   the plaintiff   and   defendant   no.3   as   alleged   in   the   written statement of defendant no.3 ? OPD3 
(iv) Whether the defendants are jointly and severally liable to CS - 661/17 The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors. page 7 of 19 pay the suit amount to the plaintiff?  OPP.
(v)   To  what   amount   the  plaintiff   is  entitled  to  recover   and against which defendant/defendants? OPP. 
(vi) Whether the plaintiff is entitled to any interest and if so, at what rate , on what amount and for which period? OPP. 
(vii)  Relief. 

13. In evidence, plaintiff examined Sh. K.L. Shah, Deputy General Manager of plaintiff company as PW1 vide affidavit Ex PW1/A. PW1   relied   upon   documents   viz.,   (1)   General   Power   of Attorney   dated   03.09.2002   as   Ex.   PW1/1;   (2)   Extract   of   the Board   meeting   held   on   07.02.1998   as   Ex.   PW1/2;   (3) Agreement dated 25.02.1998 as Ex. PW1/3; (4) Guarantee Deed dated 11.02.1998 as Ex. PW1/4; (5) Copy of power of Attorney as Ex. PW1/5; (6) Another copy of power of attorney as Ex. PW1/6;   (7)   Letter   of   defendant   no.1   dated   23.07.1997   to defendant   no.3   as   Ex.PW1/7;   (8)   Letter   of   plaintiff   dated 30.08.2000   to   defendant   no.3   as   Ex.   PW1/11;   (9)   Letter   of defendant   no.1   dated   15.05.2000   to   plaintiff   as   Ex.   PW1/12; (10) Letter of defendant no.1 dated 30.06.2000 to plaintiff as Ex.   PW1/13;   (11)   Letter   of   plaintiff   dated   02.11.2000   to defendant  no.3  as  Ex.  PW1/15; (12)  Letter  of   plaintiff   dated 16.06.2000   to   defendant   no.1   as   Ex.   PW1/16;   (13)   Letter   of plaintiff   dated   30.08.2000   to   defendant   no.1as   Ex.   PW1/17   ;

CS - 661/17 The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors. page 8 of 19 (14)  Notice  dated 14.09.2001 addressed  to defendants  as Ex. PW1/18   and   (15)   Statement   of   amount   recoverable   from defendant no.1 as Ex. PW1/19.  PW1 also relied upon admitted documents as aforesaid.  PW1 was cross­examined.  

14.   Defendant  no.3 got examined Sh. Bhimrao Maroti Darunde, Executive   Engineer   (Store   VIII)   as   D3W1   who   relied   upon documents viz. (i) Letter of defendant no.3 dated 01.11.2011 to plaintiff as Ex. D3W1/5; (ii) Office note dated 23.12.2003 as Ex. D3W1/6.   D3W1 was cross­examined at length.   In cross­ examination of D3W1, documents were put to D3W1 viz. (i) Office   note   dated   15.04.2005   as   Ex.   D3W1/DX1;   (ii)   Office note   dated   07.10.2003   as   Ex.   D3W1/DX2;   (iii)   Office   note dated  19.03.2005  as  Ex.  D3W1/DX3;  (iv)  Letter  of   accounts department of defendant no.3 to plaintiff as Ex. D3W1/DX4; (v) letter dated 08.03.2000 as Ex. D3W1/PX1 and (vi) statement of account as Ex. D3W1/A1.  

15.   I  have heard arguments  addressed  by Sh. A.K. Thakur,  Ld. Counsel   for   plaintiff;   Ms.   Rashmi   Taneja,   Ld.   Counsel   for defendant   no.   3;   and   have   given   thoughts   to   the   rival contentions put forth,  pleadings of the parties, evidence, written arguments   filed   by   the   parties   and   have   also   examined   the record of the case.

CS - 661/17 The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors. page 9 of 19

16.  My issue wise findings are as under :

Findings on Issue no.(i)
(i)  Whether this suit is barred by limitation? OPD3 

17.  In para 14 of the plaint, it is the averment of plaintiff inter alia that   following   pending   bills   remained   unpaid,   payable   by defendants: 

S. Particulars Cost Interest Total Amount Balance No. (Rs.) (Rs.) amount Received (Rs.) (Rs.) (Rs.) a. ILC/75/98 1049950 840496.95 1938634.95 216193.23 1722441.72 Dt. 24.06.98 Dt. 28.09.98 b. ILC/142/98 697542 618223.90 1347707.45 -- 1347707.45 Dt. 02.12.99 Dt. 09.03.99 Total 3070149.17

18.   Ex. D3W1/5 is letter dated 01.11.2001 of defendant no.3 to plaintiff with reference to notice Ex. PW1/18 dated 14.09.2001 of plaintiff through counsel.  In Ex. D3W1/5, the defendant no.3 had asked plaintiff to give the complete particulars of (i) challan no. and date; (ii) Invoice no. and date (iii) Order no. & date placed   on   defendant   no.1   (iv)   S.R.   Note   No.   and   date   etc. against which payments are effected to defendant no.1; since it was   not   clear   from   notice   Ex.   PW1/18   as   to   against   which orders the payments are being demanded.  In notice Ex. PW1/18 as well, the demand was with respect to the particulars of the CS - 661/17 The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors. page 10 of 19 ILCs   referred   in   table   above.     Aforesaid   demanded   material particulars were not supplied by plaintiff to defendant no.3.

19.It is also the case of the plaintiff and PW1 that certain payments were made by defendants, as are described here under :­ Ex. P2/D3 is the letter of  defendant no.3 of  date 23.06.2000 enclosing cheque no. 299272 dated 09.06.2000 for Rs. 14104/­ in   payment   of   Bill   no.   012A/98­99/01.08.99   SP/65/7­0809/ 13.06.1995.   Ex.   PW1/15   is   the   letter   of   plaintiff   dated 02.11.2000   to   defendant   no.3   finding   mention   inter   alia   that cheque of Rs. 8219/­ bearing no. 279943 dated 31.03.2000 was received     as   payment   against   amount   of   outstanding   bills without details of bill for which it pertained. 

20.   Pleadings in the plaint and the averments in the affidavit Ex.

PW1/A of PW1 refer to making of certain payments made by plaintiff   as   financial   assistance   against   supplies   made   to defendant no.3 by defendant  no.1 under various bills/invoices. Evidence on record is shorn of any fact proved of the financial assistance provided by the plaintiff to defendant no.1 against supplies made by defendant no.1 to defendant no.3 under such various bills/invoices.  Even the afore elicited payments of Rs. 14,104/­   vide   Ex.   P2/D3   and   cheque   of   Rs.   8,219/­   dated 31.03.2000   vide   Ex.   PW1/12   dated   15.05.2000   could   not   be CS - 661/17 The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors. page 11 of 19 connected by plaintiff in evidence to the bills afore elicited and detailed in the table above.  No statement of ledger account of defendant no.1 or defendant no.3 in the books of plaintiff has been filed not proved detailing the transactions inter se parties to the lis.  Suit has been filed on 31.05.2003.  The particulars of the claimed unpaid bills/invoices pertain to year 1998 and 1999. Payments claimed afore elicited by plaintiff of Rs. 14,104/­ and Rs. 8,219/­ had not been connected to the claimed unpaid bills by   the   plaintiff.   There   is   no   acknowledgement   of   defendants borne   out   of   documents   proved   on   record   for   admission   of liability   with   respect   to   the   bills/invoices   detailed   in   elicited table   in   para   17   hereinabove   and   pertaining   to   year   1998­99 within   three   years   of   such   bills   to   come   under   the   ambit   of Section   18   of   the   Limitation   Act.     Letter   Ex.   PW1/13   dated 30.06.2000 of defendant no.1 to plaintiff enclosing cheque of Rs.   14,104/­   dated   09.06.2000   for   adjustment   against outstanding dues had contained the promise that they will clear all outstanding liabilities of plaintiff in due course on receipt of payment from MSES.  Ex. PW1/13 dated 30.06.2000 was with respect to letter Ex. PW1/16 dated 16.06.2000 of  plaintiff to defendant no.1 which contained no details of outstandings but was with reference to letter dated 08.03.2000 of plaintiff which letter   of   date   08.03.2000   was   neither   filed   nor   proved   but instead withheld.  Even demand letter Ex. PW1/17of plaintiff to CS - 661/17 The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors. page 12 of 19 defendant   no.1   with   respect   to   letters   dated   08.03.2000   and 16.06.2000 Ex. PW1/16 of plaintiff contained no details of bills. The above referred letter  of  08.03.2000 was not filed by the plaintiff not proved.  In  this fact of the matter the plaintiff has miserably failed to prove that the demand in legal notice Ex. PW1/18 dated 14.09.2001 and the sum claimed in the suit with respect to the particulars given of bills in table above  in para 17 was within three years of providing of financial assistance by plaintiff to defendant no.1 against supplies made by defendant no.1 to defendant no.3 under various bills/invoices and/or the afore elicited received payments of Rs. 14,104/­ vide Ex. P2/D3 by cheque dated 09.06.2000 and Rs. 8219/­ vide cheque dated 31.03.2000 enclosed with letter Ex. PW1/12 dated 15.05.2000 of defendant no.1 to plaintiff were in any way connected with the demanded payment for the elicited bills / invoices in table in para 17.  The suit of the plaintiff is hopelessly barred by period of limitation of three years.  Issue no.(i) is decided in favour of defendants and against the plaintiff.  

Findings on Issues no.(ii)

(ii) Whether this Court has no territorial jurisdiction to try and entertain the present suit? OPD3 

21.   Agreement   Ex.   PW1/3   dated   25.02.98   interse   plaintiff   and CS - 661/17 The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors. page 13 of 19 defendant   no.1   was   concluded   at   New   Delhi.     Payment   was being   made   to   defendant   no.1   at   New   Delhi   and   was   to   be repaid by defendants at New Delhi.   Clause 41 of Ex. PW1/3 also embodied that Courts at Delhi alone shall have exclusive jurisdiction   in   respect   of   any   dispute   arising   out   of   the agreement and also for the recovery of amounts due under said agreement. Ex. D2 is letter dated 29.01.98 of defendant no.3 to defendant no.1 embodying that in respect of the orders referred therein, the payment as per original terms of A/T will be made to plaintiff for which defendant no.1 had to discount all the bills through them only. 

22.   In   this   fact   of   the   matter,   this   Court   has   the   territorial jurisdiction to try and entertain the suit.  Issue no. (ii) is decided against the defendants and in favour of the plaintiff. 

Findings on Issues no. (iii)

(iii)   Whether   there   was   no   privity   of   contract   between   the plaintiff   and   defendant   no.3   as   alleged   in   the   written statement of defendant no.3 ? OPD3 

23.  Following   is   the   relevant   text   of   Ex.   D2,   letter   dated 29.01.1998 addressed by defendant no.3 to defendant no.1 : 

CS - 661/17 The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors. page 14 of 19 "   Sub   :   ­   Payment   to   NSIC   for   the material supplied by M/s. Baroda Electro Engg. Products (P) Ltd., change in terms of payment against A/T nos :­
1) SP/T­0809/0594/7836 dt. 23.06.95
2) SP/93/T­0811/0894/7840 dt. 8.6.95
3) SP/T­0810/0895/13693 dt. 05.10.96
4)   SP/232/T­0813/0994/Extn.order/912 dt. 18.10.17. 

Ref:   1)   Your   letter   No.   BEEP/MSEB/ TD(S)/T­0809/97­98/233 dt. 23.07.97.

2)   Your   letter   No.   BEEP/MSEB/ TD(S)/T­0810/97­98/234 dt. 23.07.97.

3)   Your   letter   No.   BEEP/MSEB/ TD(S)/T­0811/97­98/235 dt. 23.07.97.

4)   Your   letter   No.   BEEP/MSEB/ TD(S)/T­0813/(R)97­98/232 dt. 23.07.97.

5) Our letter No. SP/T­0809/0594/10711 dt. 9.9.97.

6) Your letter No. BEEP/MSE­T­0809 & T­0811/0810/0813/97­98/553 dt. 5.1.98.

                ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ Dear Sirs,         In supersession of our earlier letter no. SP/T­ 0809/0594/10711 dt. 9.9.97 referred above and in view   of   your   letter   dt.   5­1­98,   your   request   for making the payment through M/s. National Small Industries Corporation (A/C M/s. Baroda Electro Engg.   Products   Pvt.   Ltd.,   Baroda)   is   hereby considered.     Accordingly,   in   respect   of   above orders, the payment as per original terms of A/T will be made to M/s. NSIC for which you have to discount all the bills through them only. (A/c M/s. Baroda Electro Engg. Products (P) Ltd. Baroda). For the above arrangement of payment, you shall have to furnish a fresh Power of Attorney on a stamp paper of Rs. 100/­ if need be.  The power of Attorney submitted by you is  returned herewith. You are requested to contact our S.B. Section in the matter. 

 

CS - 661/17 The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors. page 15 of 19          This is issued without prejudice to all other terms and conditions of the A/T's. "

24.  It is the fact of the matter that no agreement interse plaintiff and  defendant   no.3  ever   came   into   existence   but  the   elicited averments   in   Ex.   D2   embody   that   in   respect   of   the   referred orders therein, the defendant no.3 had agreed to make payment to plaintiff for which defendant no.1 had to discount all the bills through plaintiff only.   Accordingly, issue no. (iii) is decided against defendant no. 3 and in favour of the plaintiff. 
Findings on Issues no. (iv) and (v) 
(iv) Whether the defendants are jointly and severally liable to pay the suit amount to the plaintiff?  OPP.
(v)   To  what   amount   the  plaintiff   is  entitled  to  recover   and against which defendant/defendants? OPP. 
25.  As has been made vivid in the findings on issue no. (i) above that   pleadings   in   the   plaint   as   well   as   documents   proved   on record by the plaintiff are bereft of necessary material facts with respect to  (i) challan no. and date; (ii) invoice no. and date; (iii) Order no. & date placed on defendant no.1 (iv) S.R. Note No. CS - 661/17 The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors. page 16 of 19 and date etc. against which payments are effected to defendant no.1; regarding which defendant no.3 had called upon plaintiff vide Ex. D3W1/5 to provide the necessary particulars as to what payments are sought with respect to the ILCs as detailed in para 17 hereinabove.   Details of material and necessary particulars sought   in   Ex.   D3W1/5   were   not   provided   by   plaintiff   to defendant no.3.  Case of the plaintiff has to stand upon its own legs for being entitled for the sum claimed from the defendants.

Plaintiff had to discharge its burden of proof to become entitled for any sums claimed from defendants, jointly or severally.

  

26. As is borne out from deposition of D3W1, following payments were   made   by   defendant   no.3   against   the   invoices   detailed therein :

S.No. Invoice No. Date of Invoice Amount paid (In Rupees)
1. 9/98-99 18.07.1997 3,75,790/-
2. 10/98-99 17.05.1998 1,95,410/-
3. 12/98-99 01.08.1998 3,23,179/-
4. 3/98-99 07.05.1998 6,01,264/-
5. 5/98-99 13.05.1998 7,18,780/-

Even the aforesaid payments were claimed to have been made by defendant no.3 for the Order no. SP/T/809/594/7836 dated 13.06.95.  No fact has been proved on record by plaintiff by any cogent   admissible   documentary   evidence   that   payment CS - 661/17 The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors. page 17 of 19 demanded in legal notice Ex. PW1/18 and the plaint as elicited in the table in para 17 above, was in any way connected with afore referred order no. 7836 dated 13.06.95.   It was for the plaintiff to prove that demanded / claimed sum was with respect to afore elicited Order no. 7836 dated 13.06.95. Nothing of the sort has been done.  The payment of Rs. 14,104/­ vide cheque dated 09.06.2004 vide Ex. P2/D3 and of Rs. 8,219/­ vide cheque dated 31.03.2000 vide letter Ex. PW1/12 have not been proved to   have   been   connected   with   ILC   number   75/98   and   ILC number 142/98, as claimed and referred in the table in para 17 above   for   the   sum   claimed   from   defendants   by   plaintiff. Needless   to   say   again   that   no   ledger   account   of   any   of defendants in the books of plaintiff had seen the light of the day nor proved by plaintiff, which would have demonstrated and in fact proved the complete vivid details of all transaction in the open, mutual and current account of defendants in the books of plaintiff   with   respect   to   financial   assistance   provided   by   the plaintiff to defendant no.1 against supplies made to defendant no.3 by defendant no.1 under various bills/invoices as well as of any payments received from either defendant no.1 or defendant no.3 or  interest  accrued or  sums  outstanding  and payable by defendants.     Accordingly,   plaintiff   has   failed   to   prove   to   be entitled  for  any  sum as  claimed from any  of   the  defendants. Issues   no.   (iv)   and   (v)   are   accordingly   decided   against   the CS - 661/17 The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors. page 18 of 19 plaintiff and in favour of defendants. 

 

Findings on Issue no. (vi)

(vi) Whether the plaintiff is entitled to any interest and if so, at what rate , on what amount and for which period? OPP. 

27.  In view of findings on issues no.(i), (iv) and (v), since plaintiff is not entitled for any principal sum claimed from any of the defendants;   plaintiff   is   also   not   entitled   for   any   interest whatsoever   from   any   of   the   defendants.     Issue   no.   (vi)   is decided against the plaintiff and in favour of the defendants.  

Relief

28. In view of my findings with respect to issues no. (i), (iv) to (vi), the suit of the plaintiff is dismissed.  Parties to bear their own costs.  Decree sheet be prepared accordingly.  File be consigned to record room.

        Announced in the open           GURVINDER PAL SINGH)          Court  on 21.09.2017.      Additional District Judge 01(SE)           Saket Courts, New Delhi. (sm) CS - 661/17 The NSIC Ltd. Vs. M/s. Baroda Electro Engineering Products Pvt. Ltd.& Ors. page 19 of 19