Delhi District Court
Sarens Heavy Lift India Pvt Ltd vs Ahluwalia Erectors And Fabricators Pvt ... on 12 March, 2025
IN THE COURT OF SH.RAJ KUMAR TRIPATHI:
DISTRICT JUDGE (COMMERCIAL COURT)-08
SOUTH-EAST DISTRICT, SAKET COURTS, NEW DELHI
CS (COMM.) No.3816/2024
(M/s Sarens Heavy Lift India Pvt. Ltd. vs. M/s Ahluwalia
Erectors And Fabricators Pvt. Ltd.)
CNR No. DLSE01-011235-2024
M/s Sarens Heavy Lift India Private Ltd.
370, Mandawali, Fazalpur,
Near Janta Cycle, Santi Marg Road
Delhi-110 092.
........Plaintiff
Through: Mr. Sanjeev Kumar Gupta, advocate
Versus
M/s Ahluwalia Erectors and Fabricators Private Limited @
Erectors & Fabricators
E-77, Road No.4, Indraprastha Industrial Area,
Jhalawar Road, Kota, Rajasthan-324 007.
Also at:-
Dashmesh Tower, 108,
Shopping Center, Jhalawar Road, Kota
Rajasthan-324 007.
....... Defendant
Date of filing : 24.10.2024
Final arguments heard on : 11.02.2025
Date of Judgment : 12.03.2025
Raj
Kumar JUDGMENT:
Tripathi
Digitally signed
by Raj Kumar
(1) This is a suit for recovery filed by plaintiff against
Tripathi
Date: 2025.03.12
12:37:26 +0530 CS (COMM.) No.3816/2024
(M/s Sarens Heavy Lift India Pvt. Ltd. vs. M/s Ahluwalia Erectors And Fabricators Pvt. Ltd.)
Page No. 1 of 9
defendant for seeking recovery of an amount of Rs.90,78,222/-
(Rupees ninety Lakhs seventy eight thousand two hundred twenty
two only) (Rs.67,06,299/-Principal + Rs.23,71,923/-interest)
along with pendente lite and future interest @ 18% per annum
from the date of filing of the suit till actual realization of the
amount and cost of the suit.
Factual Matrix of Case
(2) Plaintiff is a private limited company registered
under The Companies Act, 1956 having its registered office at
370, Mandawali Fazalpur, Near Janta Cycle Santi Marg Road,
Delhi-110 092. The old registered office of plaintiff company was
F-90/25, Okhla Industrial Area, Phase-1, New Delhi-110 020,
where transactions took place between the parties.
(3) Plaintiff is a leading company and is in the business
of providing crane rental services, heavy lifting and engineered
transport for construction industry and related services. The
present suit has been filed by plaintiff through its Authorized
Representative Mr. Arindam Gon, who has been authorized vide
Board Resolution dated 18.10.2023 passed by board of directors
to sign the pleadings, institute the suit and do all other acts as
necessary on behalf of plaintiff company.
(4) Defendant company through its Directors approached
the plaintiff to provide its services and accordingly hired 320 MT
Hydraulic Crane at ACC Cement Plant, Kymore, MP vide Work
Orders dated 10.06.2021 and 04.07.2022. Plaintiff mobilized its
machinery at the defendant's project and had raised the
Raj
Kumar bills/invoices from time to time towards the work done by it.
Tripathi
Defendant made part payment of the same. As on 31.03.2023, a
Digitally signed
by Raj Kumar
Tripathi
Date: 2025.03.12
12:37:35 +0530 CS (COMM.) No.3816/2024
(M/s Sarens Heavy Lift India Pvt. Ltd. vs. M/s Ahluwalia Erectors And Fabricators Pvt. Ltd.)
Page No. 2 of 9
total amount of Rs.67,06,299/- is due towards defendant.
(5) Plaintiff demanded the outstanding amount several
times from defendant but the defendant delayed the outstanding
payment by raising frivolous issues. Despite various efforts made
by plaintiff, defendant intentionally and deliberately did not make
payment of the outstanding amount. Plaintiff has claimed interest
@ 18% per annum being normal and prevalent commercial rate of
interest on the balance outstanding amount. Details of claims
made by plaintiff are as under:-
S. No. Details Amount
1.Total Balance Outstanding towards 67,06,299/-
defendant company.
2. Interest @ 18% per annum on balance 23,71,923/-
outstanding till the institution of present suit, for the sake of accounting convenience, interest is being reckoned with effect from 08/09/2022 till 08/10/2024, the daily rate at which the interest accrues thereafter is again 18% the same aggregates to about Rs.3,120/-
(per day).
TOTAL 90,78,222/-
(6) Plaintiff sent a legal notice dated 10.03.2023 to
defendant demanding outstanding amount along with interest but to no avail.
(7) Constrained by the acts of defendant, plaintiff filed an application for Pre-Institution Mediation before South-East Delhi Legal Services Authority on 02.12.2023, in terms of section 12A Raj of The Commercial Courts Act, 2015, where defendant despite Kumar Tripathi issuance of two notices, did not participate in mediation Digitally signed proceedings held on 05.01.2024 and 02.02.2024. Therefore, the by Raj Kumar Tripathi Date: 2025.03.12 12:37:43 +0530 CS (COMM.) No.3816/2024 (M/s Sarens Heavy Lift India Pvt. Ltd. vs. M/s Ahluwalia Erectors And Fabricators Pvt. Ltd.) Page No. 3 of 9 process of mediation was treated as non-starter vide report dated 24.02.2024. Thereafter, plaintiff filed the present suit against defendant.
(8) Plaintiff had initially filed the present suit for recovery under Order XXXVII of The Code of Civil Procedure, 1908. However, on request of counsel for plaintiff, the instant suit was directed to be treated as an ordinary civil suit vide order dated 10.01.2025. Thus, the procedure for trial of an ordinary civil suit has been followed in the present proceedings. Defence of defendants (9) Pursuant to summons issued to defendant, defendant was served through speed post (as noted in order dated 20.11.2024). The defendant was also served through mail. However, despite service of summons, defendant chose not to contest the suit by way of filing written statement. (10) As defendant did not file written statement to the suit within stipulated time, opportunity given to defendant for filing of written statement was closed on 10.01.2025. Defendant was also directed to be proceeded ex parte.
Evidence of parties (11) In support of its case, plaintiff has examined its AR Mr.Arindam Gon as PW1. He filed his evidence by way of affidavit, Ex.PW1/A, wherein he has reiterated and reaffirmed the same facts as stated in the plaint.
(12) Before coming to the testimony of plaintiff's witness, the documents relied upon by PW1 are hereby put in a tabulated Raj Kumar form as under:-
Tripathi S.No. Detail of documents Exhibit Mark Digitally signed by Raj Kumar Tripathi Date: 2025.03.12 CS (COMM.) No.3816/2024 12:37:49 +0530 (M/s Sarens Heavy Lift India Pvt. Ltd. vs. M/s Ahluwalia Erectors And Fabricators Pvt. Ltd.) Page No. 4 of 9
1. Affidavit under Order XI Rule 6 (3) of Ex.PW1/B The Commercial Courts Act, 2015
2. Original Authorization letter in his favour Ex.PW1/1
3. Copy of details of directorship of Ex.PW1/2 defendant company downloaded from Ministry of Corporate Affairs website
4. Printout of work order dated 10.06.2021 Ex.PW1/3
5. Printout of work order dated 04.07.2022 Ex.PW1/4
6. Printout of monthly bills/invoices raised Ex.PW1/5 by plaintiff against defendant (colly.)
7. Downloaded printouts of e-mail Ex.PW1/6 communications exchanged between plaintiff and defendant
8. Attested copy of ledger account Ex.PW1/7
9. Original legal notice along with postal Ex.PW1/8 receipts (colly)
10. Original Non-Starter Report Ex.PW1/9 Findings and Observations (13) I have heard and considered the submissions advanced by learned counsel for plaintiff and perused the material on record.
(14) PW1 Mr.Arindam Gon, AR of plaintiff in his affidavit of evidence, Ex.PW1/A has deposed and corroborated about the facts as mentioned in the plaint. He has proved the documents as mentioned in para no.12 of the judgment. (15) Ex.PW1/3 and Ex.PW1/4 are the work orders placed by defendant upon plaintiff for availing its services. Ex.PW1/5 (colly.) are the monthly bills/invoices raised by plaintiff against defendant towards the work done by it. Ex.PW1/6 are the e-mail communications exchanged between the parties. As per ledger Raj account, Ex.PW1/7, an amount of Rs.67,06,299.81 is due and Kumar Tripathi payable by defendant to plaintiff as on 31.03.2023.
Digitally signed by Raj Kumar TripathiDate: CS (COMM.) No.3816/2024
2025.03.12 (M/s Sarens Heavy Lift India Pvt. Ltd. vs. M/s Ahluwalia Erectors And Fabricators Pvt. Ltd.)
12:37:56 +0530
Page No. 5 of 9
(16) The deposition of PW1 as mentioned in his affidavit
of evidence, Ex.PW1/A has gone unrebutted and unchallenged as defendant did not turn up to cross-examine plaintiff's witness in respect of the deposition and averments made by him. The case of plaintiff is based on documentary evidence. The documents proved by PW1 Mr. Arindam Gon have not been disputed and denied by defendant and thus, they remained unchallenged. In view of uncontroverted and unrebutted testimony of PW1, there is no reason to doubt his version as deposed by him in his evidence affidavit, Ex.PW1/A and the documents proved by him. (17) Plaintiff has claimed interest @ 18% per annum on the outstanding amount. There is clear stipulation in the tax invoices, Ex.PW1/5 (colly.) that interest @ 18% per annum will be charged on delayed payments from the due date. (18) In the case of Varinder Jeet Singh vs. Municipal Corporation of Delhi (2013) 134 DRJ 284, Hon'ble Delhi High Court held as under:-
"15. It is settled law that if a person is deprived of the use of money to which he is legitimately entitled, he has a right to be monetarily compensated for the said deprivation. (Ref: (1992) 1 SCC 508) Secretary, Irrigation Deptt Govt. of Orissa vs. G.C. Roy; (2004) 5 SCC 65: Ghaziabad Development Authority v Balbir Singh, and (2009) 8 SCC 507: Sri. Venkateswara Syndicate v. Oriental Insurance Company Ltd.). The object behind awarding interest to a party, who has suffered loss, due to a legitimate deprivation of the enjoyment of the use of money that he was entitled to rightfully, is to balance the equities and while doing so, the facts involved in Raj Kumar each case must be examined by the Court, Tripathi 16. The statutory provisions with regard to payment of interest are laid down in Section 3 of the Interest Digitally signed by Raj Kumar Tripathi Act, 1978, that provides that in any proceedings for Date: 2025.03.12 the recovery of any debt or damages or in any 12:38:02 +0530 proceedings in which a claim for interest in respect CS (COMM.) No.3816/2024 (M/s Sarens Heavy Lift India Pvt. Ltd. vs. M/s Ahluwalia Erectors And Fabricators Pvt. Ltd.) Page No. 6 of 9 of any debt or damages already paid is made, the court may, if it thinks fit, allow interest to the person entitled to the debt or damages or to the person making such claim, as the case may be, at a rate not exceeding the current rate of interest, if the proceedings do not relate to a debt payable by virtue of a written Instrument at a certain time, from the date mentioned in this regard in a written notice given by the person entitled or the person making the claim to the person liable, then interest will be claimed, till the date of institution of the proceedings.
(19) For ease of convenience, section 34 of The Code of Civil Procedure, 1908 which deals with interest is reproduced hereunder for ready reference:-
"34. Interest.- (1) Where and in so far as a decree is for the payment of money, the Court may, in the decree, order interest at such rate as the Court deems reasonable to be paid on the principal sum adjudged, from the date of the suit to the date of the decree, in addition to any interest adjudged on such principal sum for any period prior to the institution of the suit, with further interest at such rate not exceeding six per cent, per annum, as the Court deems reasonable on such principal sum, from the date of the decree to the date of payment, or to such earlier date as the Court thinks fit.
Provided that where the liability in relation to the sum so adjudged had arisen out of a commercial transaction, the rate of such further interest may exceed six per cent, per annum, but shall not exceed the contractual rate of interest or where there is no contractual rate, the rate at which moneys are lent or advanced by nationalized banks in relation to commercial transactions......".
(20) In State of Haryana & Others v. S.L. Arora & Company (2010) 3 SCC 690, it was observed that interest, unless otherwise specified, refers to simple interest and that interest is Raj payable only on principal amount and not on any accrued interest. Kumar It was further held that the compound interest can be awarded, if Tripathi Digitally signed there is a specific provision under the statute or in the contract for by Raj Kumar Tripathi Date: 2025.03.12 CS (COMM.) No.3816/2024 12:38:10 +0530 (M/s Sarens Heavy Lift India Pvt. Ltd. vs. M/s Ahluwalia Erectors And Fabricators Pvt. Ltd.) Page No. 7 of 9 compounding of interest but no general discretion lies with the courts or tribunals to award compound interest or interest upon interest.
(21) In the case in hand, the liability of defendant has arisen out of commercial transaction. Defendant has withheld the legitimate dues of plaintiff without any justifiable and sufficient reasons. In view of the same, plaintiff is entitled for grant of interest as agreed between the parties and clearly mentioned in tax invoices Ex.PW1/5 (colly.).
(22) In para no.22 of the plaint, it is stated that this court has territorial jurisdiction to try and entertain this suit as the work orders have been finalized and all communications took place between the parties within the jurisdiction of this court. It is also mentioned on the bills/invoices that in case of any dispute, Delhi Court will have jurisdiction. As per para no.3 of the plaint, the transactions between the parties is reported to have taken place at plaintiff's registered office at F-90/25, Okhla Industrial Area, Phase-I, New Delhi-20. Thus, on the principle of "debtor has to find the creditor", this court has territorial jurisdiction to entertain and decide the dispute between the parties. (23) For the foregoing reasons and discussions, I am of the view that on the basis of averments made in the plaint and the documents proved on record, plaintiff has succeeded to prove its case.
(24) Accordingly, suit of plaintiff is decreed with cost. Raj Kumar Defendant is directed to pay a sum of Rs.90,78,222/- to plaintiff. Tripathi Defendant is further directed to pay interest @ 18% per annum on Digitally signed by Raj Kumar the principal outstanding amount of Rs.67,06,299/- from the date Tripathi Date: 2025.03.12 12:38:18 +0530 CS (COMM.) No.3816/2024 (M/s Sarens Heavy Lift India Pvt. Ltd. vs. M/s Ahluwalia Erectors And Fabricators Pvt. Ltd.) Page No. 8 of 9 of filing of the suit i.e. 24.10.2024 till the date of realization of the amount.
(25) Decree Sheet be prepared accordingly.
(26) File be consigned to Record Room.
Digitally signed
Announced in the open court Raj by Raj Kumar
Tripathi
Dated: 12.03.2025 Kumar Date:
Tripathi 2025.03.12
12:38:23 +0530
(RAJ KUMAR TRIPATHI)
District Judge (Commercial Court)-08
South-East District, Saket Courts, New Delhi.
CS (COMM.) No.3816/2024(M/s Sarens Heavy Lift India Pvt. Ltd. vs. M/s Ahluwalia Erectors And Fabricators Pvt. Ltd.) Page No. 9 of 9