Delhi District Court
M/S. Scj Plastics Ltd. vs . M/S. Vimal Plast (I) Pvt. Ltd. on 11 September, 2012
M/s. SCJ Plastics Ltd. vs. M/s. Vimal Plast (I) Pvt. Ltd.
IN THE COURT OF INDER JEET SINGH, ADDL. DISTRICT JUDGE03,
ROOM NO. 308, SOUTH DISTRICT, SAKET COURTS, NEW DELHI
In the matter of
CS No. 89/2012
M/s. SCJ Plastics Ltd.,
F3/1011, Okhla Industrial Area,
PhaseI, New Delhi110020.
.....Plaintiff
Versus
M/s. Vimal Plast (I) Pvt. Ltd.
Regd. Office At -
B104/3, Naraina Industrial Area,
PhaseI, New Delhi110028.
Works At
Plot No. 3, Udyog Vihar,
Greater Noida (U.P).
.....Defendant
Plaint Presented on : 28.04.2012
Date of Institution : 01.05.2012
Decision Reserved on : 25.08.2012
Date of Decision : 11.09.2012
CS No. 89/2012 Page 1 of 6
M/s. SCJ Plastics Ltd. vs. M/s. Vimal Plast (I) Pvt. Ltd.
JUDGEMENT
(on Suit for Recovery of Rs. 8,09,950/ under order XXXVII CPC)
1. Plaintiff M/s. SCJ Plastics Ltd. is a company incorporated under the Companies Act, registered with the Registrar of Companies (Delhi & Haryana). The defendant M/s. Vimal Plast (I) Pvt. Ltd., is also a company incorporated, registered with the Registrar of Companies, Delhi. Both the plaintiff and the defendant have registered office in Delhi. Shri Deepak Kumar, Marketing Executive of the plaintiff has been authorized, by Resolution dated 30.12.2011, to sign and verify the plaint and to institute the suit on behalf of plaintiff.
2. The plaintiff deals in master batches and compounds. The defendant is a customer / client of plaintiff. The plaintiff maintains books of account and there is an open running account of defendant with the plaintiff. As per books of account, the defendant was to pay balance amount of Rs. 16,74,863.47p as on 01.10.2007. From 05.10.2007 to 05.11.2009, the defendant purchased master batches worth of Rs. 18,74,297/ per invoices (enumerated in paragraph 5 of the plaint) from the plaintiff on credit of 60 days and subject to issuance of sale tax Form C and Delhi jurisdiction. The CS No. 89/2012 Page 2 of 6 M/s. SCJ Plastics Ltd. vs. M/s. Vimal Plast (I) Pvt. Ltd. defendant always received and accepted the goods on FIFO basis. The defendant had issued a credit note number 73/0809 dated 28.03.2009 for Rs. 16,561/. As on 01.04.2008, 01.04.2009 and 01.04.2010, as per books of account maintained, there is debit balance of Rs. 11,06,437/, Rs. 9,90,340/ and Rs. 7,01,591/ in the account of defendant, which is still due and recoverable from the defendant. The payments tendered by the defendant from time to time were reflected in the books of account and last part payment was made on 30.05.2010 by cheque No. 804293 and there is outstanding balance amount of Rs. 5,13,125/. As per Section 61(2) of the Sale of Goods Act, the plaintiff is entitled for interest @ 24% per annum on the delayed payments. The outstanding amount has accumulated to Rs. 8,09,950/ (i.e. Rs. 5,13,125/ + interest i.e. Rs. 2,96,825/). Hence, the suit under order XXXVII CPC duly supported by Resolution dated 30.12.2011, invoices and photocopies of Form C, statement of account and today, original copies of invoices and Form C have been placed on record.
3. The summons on the prescribed form were sent to the defendant as per provisions of Rule 2 of Order XXXVII CPC by registered cover and by ordinary way. The ordinary summons and registered cover sent at Delhi address were served on 28.05.2012 and the summons sent at CS No. 89/2012 Page 3 of 6 M/s. SCJ Plastics Ltd. vs. M/s. Vimal Plast (I) Pvt. Ltd. other address were not received back. The service at Delhi address was sufficient service on the defendant, which was recorded in the proceedings dated 10.07.2012.
4. The defendant was required to file appearance within 10 days from the date of service but it failed to file the appearance within statutory period. The ministerial staff has also furnished the report that no appearance has been filed.
5. Ld. Counsel Shri Pankaj Chaudhary, Advocate for plaintiff requests that the suit is based on invoices and Form C and defendant failed to pay the outstanding amount in respect of master batches and for want of appearance of defendant, the plaintiff is entitled for decree of suit amount along with interest. The original invoices / official copy has been placed on record today.
6. FINDINGS The record is assessed. The plaintiff filed suit for recovery of balance amount based on invoices and statement of account. The statement of account reflects the entries with regard to the goods supplied CS No. 89/2012 Page 4 of 6 M/s. SCJ Plastics Ltd. vs. M/s. Vimal Plast (I) Pvt. Ltd. visavis the payment received by the plaintiff.
As per Rule 2(3) of Order XXXVII CPC, in case the defendant does not file appearance within the stipulated period of 10 days from the date of service, the allegations in the plaint shall be deemed to be admitted by the defendant and plaintiff shall be entitled for judgment. The defendant has failed to file appearance, despite service of summons on prescribed form under Rule 2 of Order XXXVII CPC. Therefore, the plaintiff is entitled for judgment for the sum mentioned in the prescribed summons i.e. Rs. 8,09,950/.
The invoices do not mention any rate of interest, therefore, considering the nature of transaction and there was open and running account maintained and considering the provisions of Section 34 CPC, interest @ 10% per annum will meet both ends of justice. The plaintiff is held entitled for interest @ 10% per annum from the date of suit till the date of decree.
Accordingly, the plaintiff's suit is decreed for a sum of Rs. 8,09,950/ (i.e. Rs. 5,13,125/ + interest i.e. Rs. 2,96,825/) coupled with cost of suit along with interest @ 10% per annum from the date of suit till the date of decree (however, interest will be computed on the principal sum adjudged of Rs. 5,13,125/), in favour of plaintiff and against the defendant. CS No. 89/2012 Page 5 of 6 M/s. SCJ Plastics Ltd. vs. M/s. Vimal Plast (I) Pvt. Ltd.
Decree sheet be drawn accordingly.
File is consigned to record room.
Announced in the open Court (INDER JEET SINGH)
th
on 20 Bhadra, Saka 1934 Additional District Judge03,
South District, Saket Courts,
New Delhi / 10.09.2012
N
CS No. 89/2012 Page 6 of 6
M/s. SCJ Plastics Ltd. vs. M/s. Vimal Plast (I) Pvt. Ltd. CS No. 89/2012 11.09.2012 Appearance : Counsel Shri Pankaj Chaudhary, Advocate for plaintiff.
None for defendant.
Ld. Counsel for plaintiff seeks permission to place on record the invoices and Form C (official copy / original), as earlier, some of the invoices filed in original and remaining are the copies. The record is taken on file.
The service of summons on defendant has already been recorded in proceeding dated 10.07.2012. The ministerial staff also furnished the report on 25.08.2012 that no appearance has been filed by the defendant. However, in the proceeding dated 25.08.2012, there is some accidental slip in recording that summons were refused, which amounts to proper service, whereas as per record and proceeding dated 10.07.2012, the summons were served on the defendant by ordinary way and registered cover. The proceeding dated 25.08.2012 is to be construed accordingly.
Vide separate judgment, announced today, the plaintiff's suit is decreed for a sum of Rs. 8,09,950/ (i.e. Rs. 5,13,125/ + interest i.e. Rs. 2,96,825/) coupled with cost of suit along with interest @ 10% per annum from the date of suit till the date of decree (however, interest will be CS No. 89/2012 Page 7 of 6 M/s. SCJ Plastics Ltd. vs. M/s. Vimal Plast (I) Pvt. Ltd. computed on the principal sum adjudged of Rs. 5,13,125/), in favour of plaintiff and against the defendant.
Decree sheet be drawn accordingly.
File is consigned to record room.
(INDER JEET SINGH)
Addl. District Judge03, South District,
N Saket/11.09.2012
CS No. 89/2012 Page 8 of 6