Bangalore District Court
Value Point Systems Pvt.Ltd vs ) M/S.Cusset Info Tech Pvt. Ltd on 29 September, 2021
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: 29th September 2021
Com.O.S.No.34/2020
PLAINTIFF : VALUE POINT SYSTEMS PVT.LTD.,
A Company incorporated under the
Companies Act, 1956,
Having its Registered Office
At No:66, 4th Cross,
Kaveri Layout (Opp: Oracle Lexington),
Tavarekere Main Road,
Koramangala, Bengaluru 560 029.
(M/S.RAWLEY 7 Associates Law,
Bengaluru)
-Vs-
DEFENDANTS : 1) M/S.CUSSET INFO TECH PVT. Ltd.,
A Company incorporated under the
Companies Act, 1956,
Represented by its directors,
2). Mr.Manjunath Vidya,
Director & Chief Education Officer,
3). Supriya Arun Chopade,
Director,
All have a common address,
SF 206, 2nd Floor, Marvel Signet,
Shirur Park, Vidya Nagar,
Hubli, Dharwad-580 021.
And also at:
Cusset Info Tech Pvt.Ltd.,
IndiQube-Omega Graphite India Main
Road, BEML Layout, Brookfield,
BENGALURU-560 066.
(Exparte)
/2/
Com.O.S.No.34/2020
Date of Institution of : 10-01-2020
suit
Nature of suit : Money Suit
(suit on pronote, suit
for declaration and
possession suit for
injunction, etc.,)
Date of : 17.09.2021
commencement of
recording of evidence
Date of judgment : 29.09.2021
Total duration : Year/s Month/s Day/s
01 08 19
(S.J.KRISHNA)
LXXXIX ADDL.CITY CIVIL &
SESSIONS JUDGE, BENGALURU.
(CCH-90)
JUDGMENT
The plaintiff has filed this suit against the defendants for the following reliefs:
1). Decree directing the defendants to pay a sum of ₹.4,10,522/- together with interest at 18% p.a. from 18.08.2017 till the date of decree;
2) Decree directing the defendants to pay interest on ₹.4,10,522/- at 18% p.a. from the date of decree till the date of payment;
3) Costs and such other reliefs.
/3/ Com.O.S.No.34/2020 The summary of the case of the plaintiff is as follows:
2. The Plaintiff is a company incorporated under the provisions of Companies act, 1956 and engaged in the business of providing end to end IT infrastructure Solutions and Services with best in class technology partnership for the past 27 years, having its registered office in the cause title mentioned address.
3. The defendant is a company incorporated under the provisions of Companies Act, 1956 and is involved in the business of Software publishing, consultancy and supply (software publishing includes production, supply and documentation of ready made (non-customized) software, operating systems software business and other applications software, computer games, software for all platforms). The second and third defendants are the Directors of the First defendant Company and are engaged in the day today affairs of the first defendant Company.
4. On 21.02.2017 and on 22.02.2017, the defendants had placed a Purchase Order for Lenovo laptops on rental basis and instructed the plaintiff to supply the said laptops to the shipping address at Bengaluru as mentioned in the cause title.
/4/ Com.O.S.No.34/2020 The invoices were raised on a periodic basis against the laptops supplied on rental basis. The defendants had paid an amount of ₹.1,23,224/- towards the rental amount on the movables. Till March 2018, the rental amount was raised on the movables. The defendants were supplied with 17 laptops and in possession and use since 2017, upon confirmation by the second defendant the plaintiff has agreed to sell those laptops to the defendants. As per the mutual understanding the defendants had agreed to pay ₹.6,490/- (₹.5,500+18% GST) per laptop and raised the last invoice on 16.05.2018.
5. The details of Invoices for which the payment is outstanding till today are as follows:
Sl.No. Invoice No. Date of Invoice Amount in (₹.)
01. 291700402 18.08.2017 33,984-00
02. 291700403 18.08.2017 41,536-00
03. 291700926 25.09.2017 20,768-00
04. 291701012 29.09.2017 11,328-00
05. 291701013 29.09.2017 20,768-00
06. 291701342 31.10.2017 20,768-00
07. 291701343 31.10.2017 11,328-00
08. 291701714 29.11.2017 32,096-00
09. 291703610 28.03.2018 62,304-00
10. 291703611 28.03.2018 45,312-00
11. 291801145 16.05.2018 1,10,330-00 Total 4,10,522-00 /5/ Com.O.S.No.34/2020
6. The Plaintiff approached the defendants to clear the outstanding invoice amount. Accordingly, the defendants had issued a cheque Bg.No:184542 dated:15.04.2019 drawn on ICICI Bank, Hubli for a sum of ₹.4,10,522/- towards the outstanding amount.
7. The Plaintiff presented the cheque for encashment through its banker Axis Bank Ltd., Service Branch, Bengaluru. The said cheque returned unpaid with an endorsement "funds insufficient" on 17.04.2019, 04.06.2019 and 04.07.2019.
8. The Plaintiff issued a notice dated:07.06.2019 to the second defendant demanding the payment of cheque amount. The said notice was served on defendant No:2. The defendant No:2 has not replied the said notice.
9. The plaintiff made a series of e-mail correspondences with the defendants demanding the payment of outstanding invoice amount of ₹.4,10,522/-. In spite of several reminders, the defendants have not cleared the outstanding invoice amount.
10. The defendants have categorically admitted their liability of ₹.4,10,522/- under the invoices by issuing cheque Bg.No:184542 dated:15.04.2019 drawn on ICICI Bank Hubli for ₹.4,10,522/-.
/6/ Com.O.S.No.34/2020
11. The plaintiff has issued notice dated:12.09.2019 calling upon the defendants to clear the outstanding invoice amount. The notice sent to Bengaluru address of the defendant returned with an endorsement stating that 'addressee left before 4 to 5 months witness" and the legal notice sent to Hubli address returned unserved with an endorsement "left". Hence, the plaintiff has filed this suit against the defendants.
12. In spite of paper publications in Times of India, Hubli Edition dated:26.04.2021, E Sanje Bengaluru and Hubli edition dated:26.04.2021 and Bangalore Mirror dated:26.04.2021, the defendants remained absent and are placed exparte.
13. Mr.Amit.U, authorized signatory of the plaintiff Company has adduced his evidence as PW1. The PW1 has exhibited Ex.P1 to Ex.P32(a). The plaintiff closed its evidence.
14. After the conclusion of trial, I have heard the arguments of learned advocate for the plaintiff. The Plaintiff has also filed written arguments. I have gone through the materials available on record.
/7/ Com.O.S.No.34/2020
15. The following points arise for my determination:-
(1) Whether the plaintiff proves that the defendants are liable to pay ₹.4,10,522/- to the plaintiff? (2) Whether the plaintiff proves that the defendants are liable to pay interest at 18% p.a. from 18.08.2017 till the date of suit on ₹.4,10,522/-?
(3) Whether the plaintiff proves that the defendants are liable to pay interest at 18% p.a. from the date of suit till the date of realization?
(4) What Order/decree?
16. My findings on the above points are as follows:-
POINT No.1 : IN THE AFFIRMATIVE; POINT No.2 : IN THE AFFIRMATIVE; POINT No.3 : IN THE AFFIRMATIVE; POINT No.4 : As per final Order for the following;
REASONS
17. Point No.1 to 3: These points are taken together for discussion to avoid repetition of facts. The plaintiff has filed this suit against the defendants for the following reliefs:
1). Decree directing the defendants to pay a sum of ₹.4,10,522/- together with interest at 18% p.a. from 18.08.2017 till the date of decree;
2) Decree directing the defendants to pay interest on 4,10,522/- at 18% p.a. from the date of decree till the date of payment;
3) Costs and such other reliefs.
/8/ Com.O.S.No.34/2020
18. Mr.Amit.U, authorized signatory of the plaintiff Company has adduced his evidence as PW1. The PW1 has exhibited Ex.P1 to Ex.P32(a) as under:
Sl. Particulars of documents Ex.P No.
01. Purchase Order dated:20.02.2017 Ex.P1
02. Purchase Order dated:21.02.2017 Ex.P2
03. E-mail correspondence (4 Nos.) Ex.P3(a) to(d)
04. Tax Invoice dated:16.05.2018 (2 pages) Ex.P4
05. E-mail correspondence (5 Nos.) Ex.P5(a) to
(e)
06. Tax Invoice No:291700402/18.08.2017 Ex.P6
07. Tax Invoice No:291700403/18.08.2017 Ex.P7
08. Tax Invoice No:291700926/25.09.2017 Ex.P8
09. Tax Invoice No:291701012/29.09.2017 Ex.P9
10. Tax Invoice No:291701013/29.09.2017 Ex.P10
11. Tax Invoice No:291701342/31.10.2017 Ex.P11
12. Tax Invoice No:291701343/31.10.2017 Ex.P12
13. Tax Invoice No:291701714/29.11.2017 Ex.P13
14. Tax Invoice No:291703610/28.03.2018 Ex.P14
15. Tax Invoice No:291703611/28.03.2018 Ex.P15
16. Tax Invoice No:29101145/16.05.2018 Ex.P16
17. Ledger Extract Ex.P17
18. 65B Certificate issued by AGM of Ex.P18 Finance & Accounts of Plaintiff Company
19. 65B Certificate signed by me in the Ex.P19 capacity of Operations Manager of Plaintiff Company
20. Non-starter report issued by DLSA Ex.P20 Bengaluru district (City) in PIM 267/2019
21. The Times of India, English Daily News Ex.P21 /9/ Com.O.S.No.34/2020 Paper dated:26.04.2021 Hubli Edition
22. E Sanje Kannada Daily News Paper Ex.P22(a) & dated:26.04.2021, Hubli & Bengaluru (b) Edition
23. Bengaluru Mirror English Daily News Ex.P23 paper dated:26.04.2021
24. Chequ Bg.No:184542 dated:15.04.2019 Ex.P24 drawn on ICICI Bank for ₹.4,10,522/-
issued by the defendants in favour of the plaintiff
25. Cheque dishonor memo Ex.P25 dated:04.07.2019 issued by Axis Bank
26. Office copy of legal notice Ex.P26 dated:07.07.2019
27. Postal receipts (2 Nos.) Ex.P27(a) &
(b)
28. Postal acknowledgement Ex.P28
29. Undelivered Postal cover addressed to Ex.P29 defendant No:1
30. Notice sent through Ex.P29 (Opened in Ex.P29(a) the Court)
31. Undelivered Postal cover addressed to Ex.P30 defendant No:2
32. Notice sent through Ex.P30 (Opened in Ex.P30(a) the Court)
33. Undelivered Postal cover addressed to Ex.P31 defendant No:3
34. Notice sent through Ex.P31 (Opened in Ex.P31(a) the Court)
35. Undelivered Postal cover addressed to Ex.P32 defendant No:1(Bengaluru Address)
36. Notice sent through Ex.P32 (Opened in Ex.P32(a) the Court)
19. The PW1 has reiterated the plaint averments in his affidavit evidence. It is the case of plaintiff company that it is a /10/ Com.O.S.No.34/2020 company incorporated under the provisions of Companies act, 1956 and engaged in the business of providing end to end IT infrastructure Solutions and Services with best in class technology partnership for the past 27 years, having its registered office in the cause title mentioned address.
20. The defendant is a company incorporated under the provisions of Companies Act, 1956 and is involved in the business of Software publishing, consultancy and supply (software publishing includes production, supply and documentation of ready made (non-customized) software, operating systems software business and other applications software, computer games, software for all platforms) The second and third defendants are the Directors of the First defendant Company and are engaged in the day today affairs of the first defendant Company.
21. On 21.02.2017 and on 22.02.2017, the defendants had paced a Purchase Order for Lenovo laptops on rental basis and instructed the plaintiff to supply the said laptops to the shipping address at Bengaluru as mentioned in the cause title as per purchase orders Ex.P1 and Ex.P2. The invoices were raised on a periodic basis against the laptops supplied on rental basis. The defendants had paid an amount of ₹.1,23,224/- towards the rental amount on the movables. Till /11/ Com.O.S.No.34/2020 March 2018, the rental amount was raised on the movables. The defendants were supplied with 17 laptops and in possession and use since 2017, upon confirmation by the second defendant the plaintiff has agreed to sell those laptops to the defendants. As per the mutual understanding the defendants had agreed to pay ₹.6,490/- (₹.5,500+18% GST) per laptop and raised the last invoice on 16.05.2018.
22. The details of Invoices for which the payment is outstanding till today as per Ex.P6 to Ex.P16 as follows:
Sl.No. Invoice No. Date of Amount in (₹.) Invoice
01. 291700402 18.08.2017 33,984-00
02. 291700403 18.08.2017 41,536-00
03. 291700926 25.09.2017 20,768-00
04. 291701012 29.09.2017 11,328-00
05. 291701013 29.09.2017 20,768-00
06. 291701342 31.10.2017 20,768-00
07. 291701343 31.10.2017 11,328-00
08. 291701714 29.11.2017 32,096-00
09. 291703610 28.03.2018 62,304-00
10. 291703611 28.03.2018 45,312-00
11. 291801145 16.05.2018 1,10,330-00 Total 4,10,522-00
23. The Plaintiff approached the defendants to clear the outstanding invoice amount. Accordingly, the defendants had issued a cheque Bg.No:184542 dated:15.04.2019 drawn on ICICI Bank, Hubli for a sum of ₹.4,10,522/- towards the outstanding amount as per Ex.P24.
/12/ Com.O.S.No.34/2020
24. The Plaintiff presented the cheque for encashment through its banker Axis Bank Ltd., Service Branch, Bengaluru. The said cheque returned unpaid with an endorsement "funds insufficient" on 17.04.2019, 04.06.2019 and 04.07.2019/Ex.P25.
25. The Plaintiff issued a notice dated:07.06.2019 to the second defendant demanding the payment of cheque amount as per Ex.P26. The said notice was served on defendant No:2. The defendant No:2 has not replied the said notice.
26. The plaintiff made a series of e-mail correspondences with the defendants demanding the payment of outstanding invoice amount of ₹.4,10,522/- as per Ex.P3(a), (b) and (c). In spite of several reminders as per Ex.P5(a) to 5(e), the defendants have not cleared the outstanding invoice amount.
27. The defendants have categorically admitted their liability of ₹.4,10,522/- under the invoices by issuing cheque Bg.No:184542 dated:15.04.2019 drawn on ICICI Bank Hubli for ₹.4,10,522/-.
28. The plaintiff has issued notice dated:12.09.2019 as per Ex.P.29(a) calling upon the defendants to clear the outstanding invoice amount. The notice sent to Bengaluru address of the /13/ Com.O.S.No.34/2020 defendant returned with an endorsement stating that 'addressee left before 4 to 5 months witness" and the legal sent to Hubli address returned unserved with an endorsement "left".
29. The Plaintiff Company has filed the suit under Order XXXVII Read with Order VII Rule 1 and Section 26 of CPC, as a summary suit. On 23.11.2020 this Court passed an order to treat the suit as a regular suit as the plaintiff has failed to take steps as contemplated under Order XXXVII Rule 2 CPC at the appropriate time. Thereafter the proceedings in the present suit continued as a regular suit.
30. The materials available on record show that the defendants have purchased 17 laptops from the plaintiff as per Ex.P6 to Ex.P16. The defendants have failed to pay the invoice amount to the plaintiff Company. The defendants have issued a cheque as per Ex.P24 to pay the outstanding invoice amount. By issuing the said cheque the defendants have admitted their liability towards the purchase of laptops from the plaintiff. The said cheque Ex.P24 returned unpaid for want of sufficient funds in the account of the defendants as evidenced by Ex.P25. Thereafter, the plaintiff company got issued legal notice to the defendants as per Ex.P26. However, the legal notice dated 12.09.2019 sent to the defendants /14/ Com.O.S.No.34/2020 returned unserved as per Ex.P29, Ex.P30, Ex.P31 and Ex.P32. The evidence adduced by the PW1 remains unchallenged as the defendants remained exparte. The Plaintiff Company has established that the defendants are liable to pay ₹.4,10,522/- towards purchase of 17 laptops.
31. The plaintiff Company has prayed for decree directing the defendants to pay a sum of ₹.4,10,522/- together with interest at 18% p.a. from 18.08.2017 till the date of decree. The materials available on record show that the plaintiff Company has raised invoice as per Ex.P6 on 18.08.2017 for ₹.33,984/- and another invoice as per Ex.P7 on 18.08.2017 for ₹.41,536/-. As per Ex.P6 to Ex.P16 the total liability of the defendants works out at ₹.4,10,522/- on and from 16.05.2018, the date on which the last invoice Ex.P16 was raised by the plaintiff Company. The plaintiff Company has accepted Ex.P24 cheque for ₹.4,10,522/- dated:15.09.2019. In such circumstances the liability of the defendants to pay interest on the outstanding liability of ₹.4,10,522/- starts from 15.04.2019 and not before, as the plaintiff Company had accepted Ex.P24 cheque without any conditions. The transaction between the plaintiff Company and defendants is a commercial transaction and the invoice amount remains unpaid causing financial loss to the plaintiff. Hence, the plaintiff Company is entitled to recover interest at 18% p.a. on ₹.4,10,522/- from 15.04.2019 /15/ Com.O.S.No.34/2020 till the date of filing the suit i.e. 10.01.2020. The plaintiff Company is entitled to recover current and future interest at 18% p.a. on ₹.4,10,522/- from the date of suit till the date of payment of entire decreetal sum.
32. In this case the plaintiff Company has not quantified the quantum of interest from 15.04.2019 till 09.01.2020, a day before the filing of suit and has not paid requisite Court fee on the said amount. The Court has an option either to reject the claim of the plaintiff Company to award interest for the period from 15.04.2019 till 09.01.2020 or direct the plaintiff to quantify the interest and pay requisite Court fee within the stipulated period. Instead of rejecting the claim of the plaintiff Company for award of interest, it is expedient to direct the plaintiff Company to pay requisite Court fee on the plaint. The interest for the period from 15.04.2019 to 09.01.2020 on ₹.4,10,522/- at 18% p.a. works out to ₹.41,874/- The Plaintiff Company has valued the suit relief for ₹.4,10,522/- only. The above said interest of ₹.41,874/- has to be added to ₹.4,10,522/- which comes to ₹.4,52,395/-. The Court fee for ₹.4,52,395/- works out at ₹.30,280/- The plaintiff Company has already paid Court fee of ₹.27,600/-. Hence, the Plaintiff Company is required to pay deficit Court fee of ₹.2,680/- on the plaint.
/16/ Com.O.S.No.34/2020
33. The evidence adduced by the PW1 remains unchallenged. The defendants by not participating in PIM proceedings and in the present proceedings have tacitly admitted the suit claim of the plaintiff Company. The suit is filed well within the period of limitation. In the absence of legal impediments to entertain the suit claim, the plaintiff is entitled for the suit reliefs. Accordingly, I answer Point No:1 to 3 in the AFFIRMATIVE subject to above observations.
34. Point No.4: In view of the findings on the above point, I pass the following:
ORDER The suit filed by the plaintiff Company is hereby decreed with costs on the following terms:
1) The defendant No.1 Company represented by defendants No:2 and 3 is directed to pay a sum of ₹.4,10,522/- (Rupees Four lakhs ten thousand five hundred and twenty two only) to the Plaintiff Company along with interest at 18% p.a. on ₹.4,10,522/- (Rupees Four lakhs ten thousand five hundred and twenty two only) from 15.04.2019 till the date of realization of entire decreetal amount;
2) The Plaintiff Company is directed to pay deficit Court fee of ₹.2,680/- (Rupees Two thousand six hundred and eighty only) within 15 days from the date of this order:
Draw decree accordingly.
/17/ Com.O.S.No.34/2020 The office is hereby directed to send a copy of the judgment to the plaintiff through email 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 29th September 2021) (S.J.KRISHNA) LXXXIX ADDL.CITY CIVIL & SESSIONS JUDGE, BENGALURU.
(CCH-90) ANNEXURES List of witnesses examined for the plaintiff:
P.W.1 Sri.Amit.U List of documents exhibited on behalf of the plaintiff:
Sl.No Particulars of documents Ex.P .
01. Purchase Order dated:20.02.2017 Ex.P1
02. Purchase Order dated:21.02.2017 Ex.P2
03. E-mail correspondence (4 Nos.) Ex.P3(a) to(d)
04. Tax Invoice dated:16.05.2018 (2 Ex.P4 pages)
05. E-mail correspondence (5 Nos.) Ex.P5(a) to
(e)
06. Tax Invoice No:291700402/18.08.2017 Ex.P6
07. Tax Invoice No:291700403/18.08.2017 Ex.P7
08. Tax Invoice No:291700926/25.09.2017 Ex.P8
09. Tax Invoice No:291701012/29.09.2017 Ex.P9
10. Tax Invoice No:291701013/29.09.2017 Ex.P10
11. Tax Invoice No:291701342/31.10.2017 Ex.P11 /18/ Com.O.S.No.34/2020
12. Tax Invoice No:291701343/31.10.2017 Ex.P12
13. Tax Invoice No:291701714/29.11.2017 Ex.P13
14. Tax Invoice No:291703610/28.03.2018 Ex.P14
15. Tax Invoice No:291703611/28.03.2018 Ex.P15
16. Tax Invoice No:291801145/16.05.2018 Ex.P16
17. Ledger Extract Ex.P17
18. 65B Certificate issued by AGM of Ex.P18 Finance & Accounts of Plaintiff Company
19. 65B Certificate signed by me in the Ex.P19 capacity of Operations Manager of Plaintiff Company
20. Non-starter report issued by DLSA Ex.P20 Bengaluru district (City) in PIM 267/2019
21. The Times of India, English Daily News Ex.P21 Paper dated:26.04.2021 Hubli Edition
22. E Sanje Kannada Daily News Paper Ex.P22(a) & dated:26.04.2021, Hubli & Bengaluru (b) Edition
23. Bengaluru Mirror English Daily News Ex.P23 paper dated:26.04.2021
24. Chequ Bg.No:184542 Ex.P24 dated:15.04.2019 drawn on ICICI Bank for ₹.4,10,522/- issued by the defendants in favour of the plaintiff
25. Cheque dishonor memo Ex.P25 dated:04.07.2019 issued by Axis Bank
26. Office copy of legal notice Ex.P26 dated:07.07.2019
27. Post receipts (2 Nos.) Ex.P27(a) &
(b)
28. Postal acknowledgement Ex.P28
29. Undelivered Postal cover addressed to Ex.P29 defendant No:1
30. Notice sent through Ex.P29 (Opened in Ex.P29(a) the Court) /19/ Com.O.S.No.34/2020
31. Undelivered Postal cover addressed to Ex.P30 defendant No:2
32. Notice sent through Ex.P30 (Opened in Ex.P30(a) the Court)
33. Undelivered Postal cover addressed to Ex.P31 defendant No:3
34. Notice sent through Ex.P31 (Opened in Ex.P31(a) the Court)
35. Undelivered Postal cover addressed to Ex.P32 defendant No:1(Bengaluru Address)
36. Notice sent through Ex.P32 (Opened in Ex.P32(a) the Court) List of witnesses examined for the defendants:
NIL List of documents marked for the defendants:
NIL (S.J.KRISHNA) LXXXIX ADDL.CITY CIVIL & SESSIONS JUDGE, BENGALURU.
(CCH-90)
****
Digitally signed
by S J KRISHNA
SJ Date:
KRISHNA 2021.09.29
21:51:32 +0530