Delhi District Court
Sandeep Enterprises vs M/S Light & Glaze Profile Pvt. Ltd on 19 July, 2021
IN THE COURT OF SH. DEVENDER KUMAR GARG,
ADDL. DISTRICT JUDGE-03, NORTH-WEST DISTT.,
ROHINI COURTS, DELHI
CS No. : 575679 of 2016
CNR No. : DLNW01-000311-2014
In the matter of:
Sandeep Enterprises
(A Proprietorship firm of
M/s Vishion Vanijya Pvt. Ltd.)
Having its Head Office at:
11-B, Big Jo's Tower,
A-8, Netaji Subhash Place,
Pitampura, Delhi-110034.
Through Shri Sandeep Jain, Director
........ Plaintiff
VERSUS
M/s Light & Glaze Profile Pvt. Ltd.
152/1, NR Phillips India Pvt. Ltd.,
Village Kural, District Vadodara-391440,
Gujarat,
through its Managing Director.
........ Defendant
Date of institution : 10.05.2014
Date on which judgment was reserved : 19.07.2021
Date of pronouncement of the judgment : 19.07.2021
SUIT FOR RECOVERY OF RS.7,51,280/- (RUPEES
SEVEN LAKHS FIFTY ONE THOUSAND TWO
HUNDRED AND EIGHTY ONLY) TOGETHER
WITH PENDENTE LITE AND FUTURE
INTEREST AND COSTS
CS No. 575679/16 Sandeep Enterprises vs. M/s Light & Glaze Profile Pvt. Ltd. Page No. 1 of 9
EXPARTE JUDGMENT
1.Arguments have been heard in the present matter through video conference on Cisco Webex Meetings App.
2. By this judgment, I shall decide the present suit for recovery of amount of Rs.7,51,280/- (Rupees Seven Lacs Fifty One Thousand Two Hundred and Eighty only) together with pendente-lite and future interest and costs, filed by plaintiff firm.
3. In brief, the case of the plaintiff as per plaint is that "the plaintiff M/s Sandeep Enterprises is a proprietorship firm of M/s Vision Vanijya Pvt. Ltd. of which Sh.Sandeep Jain is one of the Directors and he has been authorized to verify and sign the plaint and to file the present suit vide Board Resolution dated 28.04.2014. The plaintiff is engaged in the business of steel trading (tool, alloy and constructional steel) and supplies alloy steel bars to various customers and is having its head office at 11-B, Big Jo's Tower, A-8, Netaji Subhash Palace, Pitampura, Delhi-110034. The defendant contacted the plaintiff firm at its Head Office at Delhi showing its interest in purchasing steel bars and the plaintiff agreed to supply the goods on the assurance from the defendant that the payment against the supply of goods shall be made smoothly at Delhi. As per requirements of the defendant from time to time, the plaintiff supplied the goods worth Rs.5,26,087/- to the defendant on various occasions through invoices/ cash memo/bills. The plaintiff maintains an account in its normal course of business reflecting the goods supplied to the defendant and CS No. 575679/16 Sandeep Enterprises vs. M/s Light & Glaze Profile Pvt. Ltd. Page No. 2 of 9 amount received. Out of total debit amount of Rs.5,26,087/- against the supply of the goods on various dates, the defendant had not paid any amount and thus, leaving amount of Rs.5,26,087/- as outstanding against the defendant. The plaintiff is, therefore, entitled to recover an amount of Rs.5,26,087/- towards the principal amount against the supply dated 14.07.2012 and since the defendant has not made this payment and has withheld it without any reasonable cause. The plaintiff is also entitled to claim an interest on the outstanding principal amount @ 24% p.a. as per market usage and customs and also as per agreed terms between the plaintiff and the defendant. The defendant issued cheque no.315271 dated 6.4.2013 for Rs.5,26,087/- drawn on Indian Overseas Bank, Baroda payable at par. On presenta- tion of the said cheque, the same got dishonoured for the reasons "Exceeds Arrangement". The plaintiff sent legal notice dated 28.5.2013 to the defendant to clear the outstanding amount, however, even after receipt of notice, the defendant had not paid the outstanding amount/dues. The plaintiff filed complaint u/s 138 of N.I. Act against the dishonoured cheque. Thereafter, the plaintiff sent an email in June, 2013 wherein the defendant admitted its liability and sought sometime to clear the outstanding amount/dues, however, he failed to clear the same. The plaintiff vide legal notice dated 28.05.2013, which was sent through registered A.D. Post as well as speed post, called upon the defendant to clear the outstanding amount and the same was duly served upon the defendant, but the defendant has not paid any amount. Now a total sum of Rs.7,51,280/- which includes the CS No. 575679/16 Sandeep Enterprises vs. M/s Light & Glaze Profile Pvt. Ltd. Page No. 3 of 9 principal amount of Rs.5,26,087/- and interest of Rs.2,25,193/- calculated @ 24% p.a. from 14.07.2012 to 25.4.2014 has become due against the defendant which the defendant is liable to pay to the plaintiff alongwith pendente lite and future interest @ 24% p.a. till its realization. Hence, this suit."
4. Summons of the suit were issued to the defendant, but as the same could not be served ordinarily, therefore, summons were ordered to be served through Ld. District Judge, Vadodara, Gujarat and also through publication in the newspaper 'The Hindu' vide order dated 07.04.2015. Thereafter, vide order dated 30.05.2015, it was ordered that the publication be effected in newspaper 'The Times of India' instead of 'The Hindu'. Accordingly, publication was effected in the newspaper 'The Times of India' dated 02.07.2015, but despite that the defendant failed to appear before the court and the defendant was proceeded exparte and the matter was adjourned for exparte evidence vide order dated 21.09.2015.
5. In its exparte evidence, the plaintiff examined two witnesses i.e. Sh.Sandeep Jain son of Late Sh.Satish Kumar Jain as PW-1 and Sh.Prabhat Srivastava son of Late Sh.Satyadeo Prasad as PW-2. PW-1 Sh.Sandeep Jain had tendered his evidence by way of affidavit which is Ex.PW1/A and he relied upon documents i.e. extract of the Board Resolution dated 28.4.2014 as Ex.PW1/1, Invoice/cash memo/bill no. 5917 dt. 14.7.2012 of Rs.5,26,087/- as Ex.PW1/2, cheque no.315271 dated 6.4.2013 as Ex.PW1/3, return memo dated 2.5.2013 of cheque no.315271 as Ex.PW1/4, email sent in June, 2013 as Ex.PW1/5, copy CS No. 575679/16 Sandeep Enterprises vs. M/s Light & Glaze Profile Pvt. Ltd. Page No. 4 of 9 of legal notice dated 28.5.2013 as Ex.PW1/6, original postal receipt of speed post as Ex.PW1/7, original postal receipt of registered A.D./post as Ex.PW1/8 and registered AD as Ex.PW1/9 and tracking report as Ex.PW1/10 & 11, certified copy of complaint under Section 138 of N.I. Act as Ex.PW1/12 and copy of ledger account for the period from 1.4.2013 to 25.4.2014 as Ex.PW1/13. PW-2 Sh.Prabhat Srivastava also tendered his evidence by way of affidavit Ex.PW2/B in the form of certificate u/s 65B of Indian Evidence Act and he relied upon the documents Ex.PW1/5 and Ex.PW1/13. Thereafter, exparte evidence of plaintiff was closed vide order dated 17.07.2017.
6. Thereafter, vide order dated 01.07.2019, application under Order 7 Rule 14 and Section 151 CPC of the plaintiff for filing some documents and another application for the plaintiff seeking permission to prove the said documents, were allowed. Thereafter, plaintiff had re-examined PW-1 Sh.Sandeep Jain on 16.09.2019 by filing additional affidavit as Ex.PW1/A1 and he also relied upon documents i.e. minutes of meeting dated 28.4.2014 as Ex.PW1/Z (OSR) and certificate of Importer Exporter Code (IEC) as Ex.PW1/D and also relied upon the documents i.e. agreement dated 31.3.2012 between M/ s Sandeep Enterprises and M/s Vision Vanijya Pvt. Ltd. as Mark-A and Memorandum & Articles of Association of M/s Vision Vanijya Pvt. Ltd. as Mark-B. Thereafter, evidence of the plaintiff was closed vide order dated 16.09.2019.
7. I have heard exparte arguments from Ms. Garima Bhardwaj, Ld. Counsel for plaintiff through video conference on Cisco Webex CS No. 575679/16 Sandeep Enterprises vs. M/s Light & Glaze Profile Pvt. Ltd. Page No. 5 of 9 Meetings App and I have also perused entire material available on record carefully.
8. The pleadings made in the plaint and deposition of PW-1 Sh.Sandeep Jain by way of his affidavit Ex.PW1/A and additional affidavit Ex.PW1/A1 and deposition of PW-2 Sh.Prabhat Srivastava have remained uncontroverted and this court has no reason to disbelieve the case of plaintiff. PW-1 Sh.Sandeep Jain by way of his affidavit Ex.PW1/A has deposed on the lines of the plaint and PW-2 Sh.Prabhat Srivastava has tendered his affidavit in form of certificate u/s 65-B of Evidence Act in support of the documents.
9. Perusal of documents i.e. Board Resolution dated 28.4.2014 Ex.PW1/1 and extracts of meeting dated 28.4.2014 Ex.PW1/Z would show that Sh.Sandeep Jain has been duly authorized by the plaintiff firm to file the present suit and depose on behalf of the plaintiff. Hence, the present suit has been filed by a duly authorized person.
10. From the other documents including invoices/cash memos, transaction between the plaintiff and the defendant has been proved on record. The plaintiff has also placed on record affidavit/certificate u/s 65-B of Indian Evidence Act in support of documents Ex.PW1/5 and Ex.PW1/13. Perusal of the statement of account maintained by the plaintiff Ex.PW1/13 would show that a sum of Rs.5,26,087/- was due and outstanding against the defendant as on 03.05.2013. Thus, it is proved on record that an amount of Rs.5,26,087/- was due and outstanding against the defendant with respect to the transaction CS No. 575679/16 Sandeep Enterprises vs. M/s Light & Glaze Profile Pvt. Ltd. Page No. 6 of 9 between the parties and accordingly, the plaintiff is entitled to recover the same from the defendant. The present suit has been filed by the plaintiff within limitation period.
11. The plaintiff has also claimed interest @ 24% per annum total amounting Rs.2,25,193/- for the period w.e.f. 14.07.2012 to 25.04.2014 i.e. before filing the present suit. Ld. Counsel for plaintiff contended that as per terms and conditions mentioned in the invoices, the plaintiff is entitled to recover from the defendant an interest @ 24% per annum upon outstanding amount. The plaintiff has also claimed pendente-lite and future interest at the rate of 24% per annum.
12. The plaintiff has placed on record copy of legal demand notice dated 28.05.2013 as Ex.PW1/6 and its original postal receipts are Ex.PW1/7 & 8 and the plaintiff has also placed on record the registered AD as Ex.PW1/9 and internet generated tracking report as Ex.PW1/10 & 11. Ld. Counsel for plaintiff has contended that the said legal notice was duly served upon the defendant. Perusal of the tracking reports filed on behalf of the plaintiff would show that the legal notice was delivered to the defendant on 01.06.2013. In the present facts & circumstances, the plaintiff is entitled to get interest on the above said principal amount of Rs.5,26,087/- from the date of service of the legal notice i.e. 01.06.2013.
13. Perusal of the invoice/cash memo Ex.PW1/2 would show in which it is mentioned in the column of Terms & Conditions that 'Interest @ 24% p.a. will be charged if not paid within a week."
CS No. 575679/16 Sandeep Enterprises vs. M/s Light & Glaze Profile Pvt. Ltd. Page No. 7 of 9 However, the said rate of interest is very high and it would be appropriate, if interest at the rate of 12% per annum is granted to the plaintiff on the principal amount of Rs.5,26,087/- for the period w.e.f. 01.06.2013 (i.e. the date of service of the legal notice) till the date of filing of the present suit i.e. 10.05.2014.
14. In the interest of justice and as transaction between the parties is commercial one, this court deems it appropriate if pendente- lite interest on the principal sum adjudged (i.e. principal amount of Rs.5,26,087/- plus interest @ 12% per annum for the period w.e.f. 01.06.2013 till the date of filing of the present suit) at the rate of 12% per annum is given to plaintiff from the date of filing of the present suit till the date of this judgment and future interest is given to the plaintiff at the rate of 9% per annum till realization of the above said amount, U/s 34 of CPC.
15. Taking into consideration all the above said facts and circumstances, suit of the plaintiff is decreed with costs for recovery of principal sum adjudged i.e. Rs.5,26,087/- (Rupees Five Lacs Twenty Six Thousand and Eighty Seven only) plus interest @ 12% per annum for the period w.e.f. 01.06.2013 till the date of filing of the present suit i.e. 10.05.2014. The defendant is further directed to pay pendente-lite interest on the above said amount of principal sum adjudged @ 12% per annum from the date of filing of the present suit till the date of this judgment and future interest @ 9% per annum till final realization of the above said such amount.
CS No. 575679/16 Sandeep Enterprises vs. M/s Light & Glaze Profile Pvt. Ltd. Page No. 8 of 9
16. Decree sheet be prepared accordingly subject to deposit of deficient court fees, if any.
17. File be consigned to Record Room.
Announced in open court through video conferencing on Cisco Webex Meetings App on 19.07.2021 DEVENDER Digitally signed by DEVENDER KUMAR GARG KUMAR GARG Date: 2021.07.19 16:13:58 +05'30' (DEVENDER KUMAR GARG) Addl. Distt. Judge-03, North-West Distt., Rohini Courts, Delhi. This judgment contains 9 pages and each page is checked and signed by me. CS No. 575679/16 Sandeep Enterprises vs. M/s Light & Glaze Profile Pvt. Ltd. Page No. 9 of 9