Bangalore District Court
M/S Lcl Logistics (India) Pvt.Ltd vs M/S M/S United Electotex Pvt Ltd on 30 April, 2016
IN THE COURT OF LXV ADDL CITY CIVIL AND
SESSIONS JUDGE; BANGALORE CITY
(CCH.NO 66)
PRESENT
SRI.N.R.CHENNAKESHAVA B.A.,LL.B.,
LXV ADDL CITY CIVIL & SESSIONS JUDGE,
BANGALORE
O.S.No.6585/2015
Dated this the 30th day of April, 2016
Plaintiff: M/s LCL Logistics (India) Pvt.Ltd.,
(Formerly known as LCL Agencies
(India) Pvt.Ltd. No.24/171A, Ground
floor, Hina House, K.P.K.Menon Road,
Willington Inland, Cochin.
Rept by its authorised signatory
Shreyank M.B, S/oBhadrish Krishnan,
Aged 31 years.
-Vs-
[By Sri Dinesh K.B., Adv.]
Defendants: M/s M/s United Electotex Pvt Ltd.,
No.72/1A, Nagavara Main road,
Arabic college Post, Thanisandra,
Bengaluru.
Reptd by its Managing Directors
2) Ballapuram Susainathan Peter,
Managing Director.
3) Anantharam.S. Director.
(Defendants: Placed Ex-parte)
2 O.S.No.6585/2015 .
Date of Institution 28.07.2015
Nature of the suit Suit for Recovery of Money
Date of recording 1 21.04.2016
of evidence
Date of Judgment 30.04.2016
Total Duration Days Months Years
04 09 00
JUDGMENT
Plaintiff filed this suit against defendants, for recovery of money of Rs.8,96,009/-, together with current and future interest at 18% P.A., with cost of suit.
2. Brief plaint averments are as follows:
Plaintiff is a Private Ltd company, registered under Companies Act, 1956, engaged in the business of Sea freight and Air freight, container freight station warehousing services, project logistics and other similar business relating to air freight, maritime and logistics industry, having 30 branch offices throughout India and also at Canada and USA. Defendant No.1 is a company 3 O.S.No.6585/2015 . registered under companies Act, engaged in manufacturing & Exports of readymade garments. Defendant No.2 is the Managing Director and Defendant No.3 is the Director. Defendants approached the plaintiff for availing logistic services rendered by the plaintiff. Defendants entrusted goods for consignment to be delivered to France. After receiving the consignment, plaintiff rendered the services by delivering the consignments to its destination. Upon accepting the consignment of defendants, plaintiff delivered the goods to France. Plaintiff raised the invoice bearing Nos. DNS /AIR/Aug/677/2013 for a sum of Rs.4,51,739 and DNS/AIR/Sep/161/2013 for a sum of RS.6,46,911 dt.23/8/2013 and 7/9/2013 respectively. As per the said invoices total sum of RS.10,98,650/- was outstanding towards logistic services rendered by the plaintiff. After several reminders to clear the said invoices, defendants issued three cheques in favour of plaintiff, bearing Nos.332591 dt.23/8/2013, for a sum of Rs.4,39,221, 332641 dt/11/10/2013 for a sum of Rs.6,31,332/- and bearing No.332669, dt.11.10.2013 for a sum of 2,641/- 4 O.S.No.6585/2015 . and all the cheques drawn on Canara Bank. On presentation of said cheques through plaintiff's banker, it was dishonoured for want of funds in the bank Account of defendants. However, on 26.11.2013, defendants paid a sum ofRs.2,00,000/- to the plaintiff by way of NEFT/RTGS. After deducting the said sum, defendants still due in a sum of RS.8,96,009/-. Plaintiff has initially filed proceedings under N.I Act against defendants in respect of chque baring No.332641 dt.11.11.2013 drawn on Canara Bank, for a sum of RS.6,31,332/-, before JMFC, Cochin and in pursuance of order passed by Apex court, the said case was returned to plaintiff, to present the same before the court at Bengaluru. However, plaintiff could not represent the said complaint within the time stipulated. As per trade customs and traditions, defendants suppose to discharge the Invoices within 15 days from the date of invoice. However defendants failed in honouring of its obligations and hence, defendants liable to pay interest @ 18% PA and the same is engrossed on the Invoices. Inspite of repeated demands, defendants failed to discharge the aforesaid invoices, nor 5 O.S.No.6585/2015 . taken any steps to clear outstanding amount of Rs.8,96,009/-. Very transaction is commercial in nature. Defendants so far not made any payment as agreed and they are liable to pay interest 18% P.A, as per trade usage customs and provisions of Sale of Goods Act. Inspite of demands and causing of legal notice dt.8.2.2014, defendants failed to repay the said sum. Hence, the suit.
3. Suit summons issued to defendants have been published in 'Hosadigantha' Kannada Daily, Bengaluru Edition, dt.23.2.2016. Inspite of due publication of Summons of suit summons in the said Kannada Daily, defendants did not appeared before the court. Hence, defendants placed exparte.
4. Sri Shreyank.M.B, authorised representative of plaintiff , examined himself as PW1. He got exhibited 15 documents at Ex.P.1 to Ex.P.15. After conclusion of evidence, heard argument. I have perused the available materials on record.
6 O.S.No.6585/2015 .
5. Now the points that arise for my consideration are as under:-
1. Whether the suit is to be decreed as prayed?
2. What decree or order?
6. My findings on the above points are as under:-
Point No.1: In the Affirmative Point No.2: As per final order For the following :-
REASONS
7. Point No.1:- PW1 files his affidavit by way of oral evidence. Plaint averments are all reiterated by PW1 in his affidavit way of oral evidence. In support of oral evidence, PW1 got exhibited documents at Ex.P.1 to Ex.P.15. Ex.P.1 is the private complaint in CC.No.796/2014 filed before JMFC-I, Cochin. Ex.P.2 is the order passed by the said court in the said case. Ex.P.3 is the Authorisation letter issued to PW1, by the plaintiff. Ex.P4 is the Credit Agreement entered into between plaintiff and defendants. Ex.P.5 and Ex.P.6 are the certified copies of invoices, 7 O.S.No.6585/2015 . evidencing about providing services to the defendants, like the services of logistics i.e. accepting the consignment of defendants to deliver the goods to France, to the tune of RS.4,51,739/- and 6,46,911/- respectively. Ex.P.7 is the Account Extract pertains to defendants. Ex.P.8 and Ex.P.9 are the cheques issued by the defendants, to the plaintiff, pertains to invoice at Ex.P.5 and Ex.P.6, raised by plaintiff, in favour of defendants. Ex.P.10 and Ex.P.11 are bank endorsements. Ex.P.12 is the legal notice, caused by plaintiff, to the defendants, demanding repayment of amount of Rs.8,96,009/-. Ex.P13 and Ex.P.14 are the postal receipts for having sent Ex.P.12 to the deft No.1 and No.2, through RP&AD, evidencing service of notice to the defendants. Ex.P.15 is the postal acknowledgement, for having sent Ex.P.12 to Deft No.3, which is evidencing that Defendant No.3 has refused to receive the legal notice.
8. I have carefully gone through oral evidence, coupled with documentary evidence placed by the plaintiff. It is pertinent to note that oral evidence coupled with documentary evidence placed by the plaintiff, which are 8 O.S.No.6585/2015 . remained unchallenged. More so, evidence placed by the plaintiff which clearly establishes that plaintiff has raised the invoices at Ex.P.5 and Ex.P.6, for having accepting the consignment of defendants, to deliver the goods to France. However, to repay the said sum, defendants issued cheques at Ex.P.8 and Ex.P.9. However, said chques were dishonoured for want of funds in the Bank Account of defendants. In pursuant to dishonour of said chques, defendants paid a sum of Rs.2,00,000/- to the plaintiff through NEFT/RTGS. Hence, defendants liable to pay a sum of Rs.8,96,009/- to the plaintiff, towards balance. Therefore, I am of the considered view that certainly, plaintiff is entitled to recover the amount under Ex.P7,..i.e. Account extract, from the defendants. Further it is the case of plaintiff that very transaction being commercial in nature and that apart, defendants have not made any payment as agreed towards services under Ex.P.4 and Ex.P.5. Hence under such circumstances, certainly defendants are liable to pay interest at 18% P.A, as per trade usage and customs and also under the provisions of Sale of Goods Act. Plaintiff contends that it has incurred cost in filing this suit. Hence, 9 O.S.No.6585/2015 . plaintiff is also entitled to get the cost of the suit from the defendants. Terefore defendants shall pay total sum of Rs.8,96,009/- to the plaintiff. Hence, I am of the considered view, that plaintiff is entitled to get a decree against defendants, as prayed. For the foregoing reasons I answer the above point in the 'Affirmative'.
9. POINT NO.2:- By answering point No.1, I have come to the conclusion that plaintiff is entitled to get a decree against defendants for a sum of Rs.8,96,009/-. Plaintiff also prayed this court to grant court cost and such other reliefs, since it has incurred costs in filing suit. That apart, plaintiff has claimed interest at 18 % P.A., towards current and future interest. In my view, claim of plaintiff towards current and future interest, is exorbitant. Hence having regard to the facts and circumstances of the case, if the plaintiff is awarded current and future interest at 12% P.A., it would met the ends of justice. Therefore, I hold that current and future interest is to be awarded 12% P.A. Therefore, defendants are jointly liable to pay the decreetal sum to the plaintiff. In my view, defendants are to be 10 O.S.No.6585/2015 . directed to satisfy the decree within stipulated time of 6 months, without default clause. In the result, I proceed to pass the following:
ORDER Suit is decreed for Rs.8,96,009/-, with cost.
Defendants jointly shall pay current & future interest at 12% P.A., towards decreetal sum and shall satisfy the decree within 6 months from the date of decree, failing which plaintiff is entitled to recover the decreetal sum from the defendants, in accordance with law.
Draw decree accordingly.
*** (Directly dictated to the stenographer on computer, corrected, signed and then pronounced by me in the open court on this the 30th day of April, 2016).
(N.R.CHENNAKESHAVA ) LXV Addl. City Civil & Sessions Judge, Bengaluru.
*ic 11 O.S.No.6585/2015 . ANNEXURE LIST OF WITNESSES EXAMINED FOR PLAINTIFF:
PW.1 : Shreyank M.B. LIST OF WITNESSES EXAMINED FOR DEFENDANTS:
- Nil -
LIST OF DOCUMENTS MARKED FOR PLAINTIFFS:
Ex.P.1 : Private complaint of C.C.No.796/14 Ex.P.2 : order passed by the JMFC-I, Cochin, Ex.P.3 : Authorisation Letter Ex.P.4 : Credit Agreement. Ex.P.5 : Invoice Ex.P.6 : Invoice Ex.P.7 : Statement of Accounts. Ex.P.8 : Cheque Ex.P.9 : Cheque Ex.P.10 : Bank Endorsement. Ex.P.11 : Bank Endorsement. Ex.P.12 : Legal Notice Ex.P.13 to15 : 3 Postal Acknowledgements
LIST OF DOCUMENTS MARKED FOR DEFENDANT:
- Nil -
(N.R.CHENNAKESHAVA ) LXV Addl. City Civil & Sessions Judge, Bengaluru.12 O.S.No.6585/2015 . 13 O.S.No.6585/2015 .
Judgment pronounced in the open court, vide separately ORDER Suit is decreed for Rs.8,96,009/-, with cost.
Defendants jointly shall pay current & future interest at 12% P.A., towards decreetal sum and shall satisfy the decree within 6 months from the date of decree, failing which plaintiff is entitled to recover the decreetal sum from the defendants, in accordance with law.
Draw decree accordingly.
(N.R.CHENNAKESHAVA ) LXV Addl. City Civil & Sessions Judge, Bengaluru.14 O.S.No.6585/2015 .
ANNEXURE LIST OF WITNESSES EXAMINED FOR PLAINTIFF:
PW.1 : Shabbir.P. LIST OF WITNESSES EXAMINED FOR DEFENDANTS:
- Nil -
LIST OF DOCUMENTS MARKED FOR PLAINTIFFS:
Ex.P1 & 2 : Photographs Ex.P.3 : C.D Ex.P.4 : Copy of the Sale deed Ex.P.5 : B-Katha registration form, Ex.P.6 to 13 : Tax paid receipt.
LIST OF DOCUMENTS MARKED FOR DEFENDANT:
- Nil -
(N.R.CHENNAKESHAVA ) LXV Addl. City Civil & Sessions Judge, Bengaluru.15 O.S.No.6585/2015 .
Judgment pronounced in the open court, vide separately ORDER Suit is decreed for a sum of RS.6,61,455.27/-, with costs.
Defendant Nos.1 and 2 shall jointly and severally pay the decreetal sum to the plaintiff bank, with current and future interest at the rate of 14.25% P.A. Defendants No.1 & 2 shall satisfy the decree within 6 months from the date of decree, failing which plaintiff Bank is entitled to recover the decreetal sum from the deft No.1 & 2, in accordance with law.
Draw Decree accordingly.
(N.R.CHENNAKESHAVA ) LXV Addl. City Civil & Sessions Judge, Bengaluru.16 O.S.No.6585/2015 .