Delhi District Court
F3/10 vs M/S Vimal Moulders (I) Ltd on 5 July, 2012
IN THE COURT OF MS. ARCHANA BENIWAL
CIVIL JUDGE05 (SOUTH), SAKET COURTS, NEW DELHI
CS No. 276/11
Unique Case ID No. 02406C0101852011
M/s SCJ Plastics Ltd.
F3/1011, Okhla Industrial Area,
PhaseI, New Delhi110020. ...PLAINTIFF
VERSUS
M/s Vimal Moulders (I) Ltd.
Having their regd. office at:
B104/3, Naraina Industrial Area,
PhaseI, New Delhi110028.
Having Works At:
90C, HUDA, Sector18,
Gurgaon (Haryana) ...DEFENDANT
Date of institution : 29.04.2011
Date of reserving : 21.04.2012
Date of pronouncement : 05.07.2012
Suit No. 276/11 Page 1 of 5
JUDGMENT
1. The plaintiff has filed the present suit under Order 37 of the Code of Civil Procedure, 1908 (hereinafter referred to as the 'CPC.') for recovery of Rs.84,950/ (Rupees Eighty Four Thousand Nine Hundred and Fifty only) along with pendentelite and future interest at the rate of 24% per annum and the costs of the suit from the defendant.
2. The case of the plaintiff is that the plaintiff is a Limited Company duly incorporated under the Companies Act, 1956 and registered with the ROC (Delhi and Haryana). The plaintiff deals in Master Batches and Compounds. The defendant is a limited company duly registered with ROC, Delhi. The defendant had a running account with the plaintiff. On 01.03.2008 and 29.06.2009 and vide the invoices No. 6245 and 1662, the defendant had purchased Master Batches worth Rs.48,248/ on credit of 60 days from the plaintiff along with invoices and subject to issuance of Sales Tax FormC and Delhi jurisdiction as detailed on the said invoices. These orders were received and accepted by the plaintiff from the defendant at their said office at New Delhi and the payment was to be made to the plaintiff at their said office at Delhi. It is further submitted that as per the Suit No. 276/11 Page 2 of 5 condition stated on the aforesaid invoices, market custom and usage and also as per Section 61 (2) of the Sale of Goods Act, on delayed payment the defendant were and are still liable to pay to the plaintiff company interest also @ 24% p.a. from the date the said payment became due till realisation. It is further submitted that on the said outstanding payment of Rs.48,248/ the defendant is liable to pay to the plaintiff company a sum of Rs.34,397/ as interest at the rate of 24% per annum from the date the said outstanding payment became due till date. Additionally, the defendant is also liable to pay to the plaintiff company a sum of Rs.1,954/ as additional sales tax at the rate of 08% and also a sum of Rs.351/ as penalty thereon at the rate of 18% per annum till realisation as till date the defendant has failed to issue the Sales Tax FormC in respect of purchase of goods from the plaintiff vide invoices No. 1662, 6525 and 6589. The plaintiff company had sent to the defendant at their works address a legal notice dated 27.12.2010 by speed post. Till date the defendant has failed to reply to the said legal notice. Hence, the present suit has been filed by the plaintiff.
3. The defendant was duly served on 19.10.2011 at the Naraina Industrial Area address and the defendant already stood served on Suit No. 276/11 Page 3 of 5 16.08.2011 through registered AD. However, despite service of summons the defendant company failed to enter its appearance through any representative on their behalf.
4. The plaintiff has filed with the plaint, a photocopy of certificate of incorporation of the plaintiff company with ROC, resolution dated 26.02.2011 in original, office copy of invoices No. 6245 and 1662 in original, true copy of statement of accounts of the defendant, true copy of legal notice dated 27.12.2010 and postal receipt dated 28.12.2010 in original along with delivery report on the basis of which the suit has been filed and the liability of the defendant company is based.
5. In view of Order 37 Rule 2(3) of the CPC as the defendant had committed a default in entering his appearance, the allegations in the plaint are deemed to be admitted if substantiated by the material placed on record and the plaintiff is entitled to a decree for any sum, not exceeding the sum mentioned together with interest, if any, upto the date of the decree and the costs of the suit.
6. However, the plaintiff has prayed for pendentelite and future interest at the rate of 24% per annum. As per the provisions of Order 37 Rule 2(3) of the CPC, the plaintiff is entitled to interest only upto Suit No. 276/11 Page 4 of 5 the date of decree and there is no provision for future interest. Further, the interest is claimed at the rate of 24% per annum, which in view of this Court is exorbitant keeping in view that the principal amount/outstanding payment in the present case was Rs.48,248/ to which the plaintiff has already added interest at the rate of 24% per annum till the date of institution of the suit which comes to Rs. 34,397/. Hence, this Court is of the view that the ends of justice would be met if the plaintiff is awarded interest at the rate of 09% per annum upto the date of the decree.
7. Hence, the plaintiff company is entitled to a decree for a sum of Rs.84,950/ (Rupees Eighty Four Thousand Nine Hundred and Fifty only) along with interest at the rate of 09% per annum upto the date of decree and the costs of the suit.
8. Decree sheet be prepared accordingly. File be consigned to record room.
Announced in open Court on 05.07.2012.
(Archana Beniwal) CJ05 (South), New Delhi 05.07.2012 Suit No. 276/11 Page 5 of 5