Delhi District Court
Vasudha Enviroaction Llp Through Its Ar vs M/S Green Waves Environmental ... on 29 October, 2024
IN THE COURT OF SANJEEV KUMAR MALHOTRA
DISTRICT JUDGE (COMMERCIAL COURT)
NORTH EAST: KARKARDOOMA COURTS: DELHI
CS (Comm.) 62/2023
CNR No.DLNE01-001888-2023
Vasudha Enviroaction LLP
Through its AR Vipin Kumar Upadhyay
R/o A-275, Kn. No.222, Part-1, Gali no.6,
Sonia Vihar, Karawal Nagar,
North-East, Delhi-110094.
Also at:-
Kh. No.13, 15/1, Thana Road, Karawal Nagar
Balaji Dharm Kanta, Delhi-110094. .....Plaintiff
Versus
1. M/s Green Waves Environmental Solutions
R/o 43/1, Mindhi Village, Gajuwaka, Vizag,
Andhra Pradesh-530012.
Also at:-
3/F-3, Models Millennium Vistas,
Caranzalem, Panaji, Goa-403002. .....Defendant no.1
2. Anil Chowdary Potluri
R/o Besides 14, NRI College Road,
Hi-Rise Colony Line, Nizampet,
Hyderabad-500072.
Also at:-
R/o Plot no.167C, Western Hills,
Addagutta Society, Opposite JNTU,
Kakatpally, Hyderabad-500072. ... Defendant no.2
3. Sayana Sai Brahmani
R/o Besides 14, NRI College Road,
Hi-Rise Colony Line, Nizampet,
Hyderabad-500072. ....Defendant no.3
4. Kunnaparaju Pranesh Varma
S/o Prabhakar Soma
R/o Flat no.1402, Block-A, Aspire Apartments
CS (Comm.) 62/2023 Vasudha Enviroaction LLP
vs.
M/s Green Waves Environmental Solutions and Ors. Page 1 of 14
Digitally signed
SANJEEV by SANJEEV
KUMAR
KUMAR MALHOTRA
MALHOTRA Date: 2024.10.29
15:39:20 +0530
Sy. No.18, 19 & 48, Inorbit Mall Road
Madhapur, Serillingampally Rangareddy
District, Telangana. ....Defendant no.4
Date of Institution : 03.07.2023
Date of Arguments : 25.09.2024
Date of Judgment : 29.10.2024
JUDGMENT
1. This is a suit for recovery of Rs.48,23,899/- (Forty Eight Lakh Twenty Three Thousand Eight Hundred Ninety Nine Only) alongwith pendente lite and future interest @ 18 % per annum, as filed by plaintiff against the defendants.
2. In brief, facts of the case as made out in the amended plaint are that plaintiff is a company duly established under the Companies Act having its registered office at A-275, KH 222, Part-1, Gali no.6, Sonia Vihar, Karawal Nagar, North-East, Delhi and authorized Mr. Vipin Kumar Upadhyay vide resolution passed by Board of Directors dated 04.07.2022 to sign and file the present suit on behalf of plaintiff company. It is stated that plaintiff is running the business of selling E-waste material like fridge, printer, LED/LCD, compressor, key board and supplying the same as per demand. It is stated that defendant no.1 is a partnership firm and operate its business through its partner Anil Chaudhary Potluri and Sayana Sai Brahmani i.e. defendant no.2 and 3 respectively. It is further stated that the line of works of defendants are of collecting e-waste material/damaged material and process the electronic waste and recycle or refurbish the same to make it useful. The CS (Comm.) 62/2023 Vasudha Enviroaction LLP vs. M/s Green Waves Environmental Solutions and Ors. Page 2 of 14 Digitally signed SANJEEV by SANJEEV KUMAR KUMAR MALHOTRA MALHOTRA Date: 2024.10.29 15:39:26 +0530 defendants had incorporated two companies, one Pure Earth Recyclers Private Limited and another Pure Earth Refub Private Limited, but the second one was closed wherein the defendant no.2 was a director and approached the plaintiff and fixed the deal.
3. It is case of the plaintiff that defendant no. 2 had approached the plaintiff and Vipin Kumar Upadhyay, representative of plaintiff through Online and started chatting on Whatsapp and shown interest to look e-waste material physically and on 05.02.2022, a meeting for inspection of e-waste material at Khasra no.13, 15/1, Thana Road, Karawal Nagar, Balaji Dharm Kanta, Delhi was fixed. It is stated that after inspection defendant no.2 and Pranesh Verma i.e. defendant no.4 took several photos of compressor e-waste, laptop etc. and convinced the plaintiff for supply of e-waste material and defendant no.2 also assured on behalf of defendant no.1 that bills will be cleared immediately, the moment it will be raised.
4. It is further case of the plaintiff that plaintiff started supply of e-waste material to the defendants and also received partial payment from the defendants, but thereafter defendants stopped making payment after receiving e-waste material. It is stated that as per ledger account of the plaintiff, a sum of Rs.48,23,899/- is due against the defendants for supplied e-waste materials. It is further stated that several times plaintiff approached the defendants and requested to clear the dues but the defendants avoided the same on one or other pretext.
CS (Comm.) 62/2023 Vasudha Enviroaction LLP
vs.
M/s Green Waves Environmental Solutions and Ors. Page 3 of 14
Digitally signed
by SANJEEV
SANJEEV KUMAR
KUMAR MALHOTRA
MALHOTRA Date:
2024.10.29
15:39:32 +0530
5. The plaintiff filed an application before mediation center for pre-institution mediation and a Non-Starter report dated 11.05.2023 was issued. Hence, the present suit.
6. Defendants contested the present suit by filing written statement while submitting that defendant company is an authorized E-waste recycler in Andhra Pradesh and is a zero waste management company which deals with flower waste, paper waste, coconut waste, fishing net etc. converting them into eco-friendly products i.e. dhup, sticks, soaps, candles, seed papers, seed pen, seed pencils, coconut key chains, coconut coffee cups, coconut phone stand etc. and serving in Telangana, Goa and Kerala since 2015. It is further submitted that Sh. Harshad Gupta invited the defendant for guest lecture in e-waste management in the month of July, 2022 and after few months, on Whatsapp plaintiff shared some photographs of e-waste material and both the parties mutually agreed for proper conversation of the e-waste material. It is submitted that in the month of February, 2022, defendant came to Delhi and visited the warehouse of plaintiff. It is further submitted that both the parties agreed to run the business in the field of e-waste of computer and its components and plaintiff started supplying the materials i.e. keyboards to the defendants and the defendants used to recycle it to extract useful material from the same. The understanding between the parties run smoothly until 12.02.2022, till then defendant cleared all the payments without any delay and thereafter defendant stopped the payment when the plaintiff supplied defective CS (Comm.) 62/2023 Vasudha Enviroaction LLP vs. M/s Green Waves Environmental Solutions and Ors. Page 4 of 14 Digitally signed by SANJEEV SANJEEV KUMAR KUMAR MALHOTRA MALHOTRA Date:
2024.10.29 15:39:38 +0530 laptop e-waste inspite of showing the good laptops in the photographs sent through Whatsapp. It is submitted that due to said reason, the vehicle from which the material was transported was stranded at Delhi for three days as no buyers were interested to buy the said material and due to this, defendant suffered huge loss and same was also intimated/communicated to the plaintiff, who promised to compensate the defendant. It is further submitted that plaintiff in his whatsapp chat/emails kept claiming total balance outstanding is Rs.61 lac without any proper evidence, but in both the suit total amount claimed is Rs.54 lac, therefore the present suit is liable to be rejected on this contradictory ground.
7. On merits, the contents of plaint have been denied as wrong. It is admitted that plaintiff and defendants were having business relationship since 06.02.2022, which was closed/ended when plaintiff supplied waste laptops to the defendants on 17.02.2022. Thus, it is prayed that suit of plaintiff is liable to be dismissed.
8. Replication to the written statement of defendant was filed on behalf of plaintiff, wherein plaintiff denied the facts as mentioned in written statement while re-affirming the facts as mentioned in the plaint.
9. From the pleadings of the parties, following issues were framed vide order dated 20.01.2024:-
1. Whether plaintiff is entitled for a decree for sum of Rs.48,23,899/-? OPP CS (Comm.) 62/2023 Vasudha Enviroaction LLP vs. M/s Green Waves Environmental Solutions and Ors. Page 5 of 14 Digitally signed by SANJEEV SANJEEV KUMAR KUMAR MALHOTRA MALHOTRA Date:
2024.10.29 15:39:45 +0530
2. Whether plaintiff is entitled for any interest, if yes, at what rate and for which period? OPP
3. Whether plaintiff supplied defective laptop e-
waste inspite of showing the good laptops in the photographs sent through Whatsapp? OPD
4. Relief.
10. In support of its case, plaintiff examined Sh. Vipin Kumar Upadhyay, AR as PW-1 and Sh. Harshad Gupta, PW-2. They both tendered their examination in chief by way of affidavit i.e. Ex.PW1/A and Ex.PW2/A. PW-1 has relied upon following documents:-
(i) Original Board Resolution dated 04.07.2022 i.e. Ex.PW1/1.
(ii) Computerized ledger from 01.04.2021 to 31.03.2022 i.e. Ex.PW1/2.
(iii) Computer generated account statement of plaintiff i.e. Ex.PW1/3 (colly).
(iv) Computer generated invoice no. VEA/03/2122 dated 06.02.2022, e-way bill, lorry receipt and weight slip i.e. Ex.PW1/4 (colly).
(v) Computer generated invoice no.VEA/04/2122 dated 06.02.2022, e-way bill, lorry receipt and weight slip i.e. Ex.PW1/5 (colly).
(vi) Computer generated invoice no.VEA/05/2122 dated 14.02.2022, e-way bill and weight slip i.e. Ex.PW1/6 (colly).
(vii) Computer generated invoice no.VEA/06/2122 CS (Comm.) 62/2023 Vasudha Enviroaction LLP vs. M/s Green Waves Environmental Solutions and Ors. Page 6 of 14 Digitally signed by SANJEEV SANJEEV KUMAR KUMAR MALHOTRA MALHOTRA Date:
2024.10.29 15:39:52 +0530 dated 17.02.2022, e-way bill and weight slip i.e. Ex.PW1/7 (colly).
(viii) Printout of Whatsapp chat, linkedin and text messages between plaintiff and defendant no.2 i.e. Ex.PW1/8.
(ix) Printout of e-mail chat, Whatsapp chat, text messages between plaintiff and defendant no.3 i.e. Ex.PW1/9.
(x) Printout of text messages between plaintiff and defendant no.4 i.e. Ex.PW1/10.
(xi) Computer generated flight tickets dated 05.02.2022 and 10.03.2022 i.e. Mark A and Mark B.
(xii) Copy of Adhaar Card of plaintiff i.e. Ex.PW1/11.
(xiii) Non-Starter Report dated 11.05.2023 i.e. Ex.PW1/12.
(xiv) Certificate u/s 65B of Indian Evidence Act i.e. Ex.PW1/13.
11. Defendants in support of their case examined Ms. Sayana Sai Brahmani as DW-1, who tendered her examination in chief by way of affidavit i.e. Ex.DW1/A. DW-1 has relied upon the copy of Whatsapp chat i.e. Mark A (colly).
12. Arguments have been advanced by Sh. Ankur Tripathi Ld. Counsel for plaintiff. None has appeared on behalf of defendants for advancing final arguments. I have given my thoughtful consideration to the submissions made by Ld. Counsel for plaintiff and also gone through the record. Issue CS (Comm.) 62/2023 Vasudha Enviroaction LLP vs. M/s Green Waves Environmental Solutions and Ors. Page 7 of 14 Digitally signed by SANJEEV SANJEEV KUMAR KUMAR MALHOTRA MALHOTRA Date:
2024.10.29 15:39:57 +0530 no. 3 is taken on at first instance as its finding would also have effect on other issues. My issue wise findings are as under:-
Issue no.3
3. Whether plaintiff supplied defective laptop e-
waste inspite of showing the good laptops in the photographs sent through Whatsapp? OPD
13. Onus to prove this issue was upon the defendants.
DW-1 Ms. Sayana Sai Brahmni in her affidavit of evidence Ex.DW1/A deposed that defendant no.1 company is an authorized e-waste recycler in Andhra Pradesh and is a zero waste management company and that in the month of February, 2022 defendant no.2 came to Delhi and visited the warehouse of the plaintiff and both the parties agreed to run the business in the field of e-waste of computer and its components. She further deposed that the understanding between plaintiff and defendant runs smoothly until 12.02.2022, however, the defendants stopped payment when the plaintiff supplied defective laptop e-waste inspite of showing the good laptops in the photographs sent through Whatsapp. As per affidavit of evidence of DW-1, the defendants stopped payment when the plaintiff supplied defective laptop e-waste inspite of showing the goods laptops in the photographs sent through Whatsapp and due to the reason, the vehicle from which the material was transported was stranded at Delhi for three days as no buyers were interested to buy the said material. However, in her cross examination, DW-1 deposed that she does not CS (Comm.) 62/2023 Vasudha Enviroaction LLP vs. M/s Green Waves Environmental Solutions and Ors. Page 8 of 14 Digitally signed by SANJEEV SANJEEV KUMAR KUMAR MALHOTRA MALHOTRA Date:
2024.10.29 15:40:02 +0530 know if the material supplied by plaintiff was sold at Delhi or taken to Andhra Pradesh and to a specific question, as put by Ld. Counsel for plaintiff, DW-1 deposed that she cannot affirm or deny that they sold the e-waste supplied by plaintiff on 13.02.2022 in Delhi itself. The claim of defendants is that the plaintiff supplied defective laptop e- waste inspite of showing the good laptops in the photographs through Whatsapp and on account of that they suffered huge loses but no fact is proved on record to show that the laptop/e-waste supplied by plaintiff were different from those which were shown to the defendants.
14. DW-1 admitted that they have not issued any legal notice to the plaintiff regarding any loss suffered by them on account of supply of defective laptop e-waste by plaintiff or filed any counter claim. It is also admitted by DW-1 that they asked the plaintiff to compensate them regarding the supply of defective laptop and servers and therefore, payment of some other invoices remained pending. However, defendants have not disclosed how much of the e-waste material was defective and about the loss assessed by defendants with regard to alleged supply of defective laptop/e-waste. It is also admitted by DW-1 that they were not authorized recycler and were having license for dismantling and that she does not know where they got dismantled the e-waste i.e. laptops. Thus, the defendants are neither aware whether the e-waste material i.e. laptops were sold on 13.02.2022 in Delhi or where they got dismantled the e-waste/laptops. There is no assessment CS (Comm.) 62/2023 Vasudha Enviroaction LLP vs. M/s Green Waves Environmental Solutions and Ors. Page 9 of 14 Digitally signed by SANJEEV SANJEEV KUMAR MALHOTRA KUMAR Date:
MALHOTRA 2024.10.29 15:40:07 +0530 of alleged damage caused to the defendants on account of sale of e-waste laptop supplied by the plaintiff. In view thereof, it is held that defendants have failed to prove that plaintiff supplied defective laptop e-waste inspite of showing the good laptops in the photographs sent through Whatsapp. Accordingly, this issue is decided against the defendants and in favour of plaintiff.
Issue no.1
1. Whether plaintiff is entitled for a decree for sum of Rs.48,23,899/-? OPP
15. Onus to prove this issue was upon the plaintiff. PW-1 in his affidavit of evidence Ex.PW1/A deposed that plaintiff supplied the laptop e-waste to the defendants vide invoices Ex.PW1/4 to Ex.PW1/7 (colly) and the defendants in discharge of their liability made partial payment of Rs.6,00,000/- and as per ledger account Ex.PW1/2, a sum of Rs.48,23,899/- is still due against supplied e-waste material to the defendants as closing balance on 17.02.2022. The fact that payment of some invoices remained pending is admitted by DW-1 in her cross examination while deposing that they asked the plaintiff to compensate them regarding the supply of laptops and servers and therefore, payment of invoices is pending.
DW1 has also deposed in para no.8 of her affidavit of evidence deposed that the defendant never refused to make payment to the plaintiff for the goods properly supplied and repeatedly requested that the plaintiff should also look CS (Comm.) 62/2023 Vasudha Enviroaction LLP vs. M/s Green Waves Environmental Solutions and Ors. Page 10 of 14 Digitally signed by SANJEEV SANJEEV KUMAR KUMAR MALHOTRA MALHOTRA Date:
2024.10.29 15:40:13 +0530 in to the losses incurred by the defendant and in her cross examination, admitted that they offered the plaintiff to compensate through providing business from Kia motors and Pet bottles on the condition that they will adjust the amount and to accept that the material supplied to them was not upto mark to certain extent. Admittedly defendants have not issued any legal notice to the plaintiff regarding any loss suffered by them on account of any supply of e- waste by plaintiff or filed any counter claim, therefore, in absence of any specific evidence that the e-waste laptops were not up to mark, defendants cannot withheld the outstanding amount of plaintiff regarding supply of goods.
16. PW-1 in his cross examination to a specific question, as put by Ld. Counsel for defendants deposed that presently he is Executive Director of plaintiff company, which was incorporated with Registrar of company on
13.03.2021. It is matter of record that plaintiff in para no.3 of the amended plaint has averred that defendant no.1 is a partnership firm and operate its dealing/business through its partner Anil Chaudhary Potluri/defendant no.2 and his wife Sayana Sai Brahmani/defendant no.3, which fact is not denied by the defendants in their written statement. There is no averment in the plaint as to how the defendant no.4 is liable to pay the suit amount when he is not partner of the defendant no.1 firm. Therefore, defendant no.4 is not liable to pay any amount to the plaintiff.
17. The suit of plaintiff is also commercial in nature and squarely falls within the purview of Section 2 (1) (c) of the CS (Comm.) 62/2023 Vasudha Enviroaction LLP vs. M/s Green Waves Environmental Solutions and Ors. Page 11 of 14 Digitally signed by SANJEEV SANJEEV KUMAR KUMAR MALHOTRA MALHOTRA Date:
2024.10.29 15:40:18 +0530 Commercial Courts Act, 2015 and plaintiff has also duly complied with the mandatory provision of Pre-institution mediation and conciliation as provided in Section 12A of the Commercial Courts Act, 2015.
18. This court has territorial jurisdiction to try the present suit as part cause of action arose within the jurisdiction of this court as admittedly defendant no.2 visited the warehouse of the plaintiff in the month of February, 2022 to run the business in the field of e-waste of computer and its components as mentioned in affidavit of evidence of defendant i.e. Ex.DW1/A. This Court also has the pecuniary jurisdiction over the matter since the suit amount claimed by the plaintiff is more than the specified value of Rs.3 lacs of the Commercial Courts. As per ledger account Ex.PW1/2, the defendants made the last payment of Rs.40,000/- on 10.02.2022 and the present suit was filed on 03.07.2023 i.e. within the period of limitation.
19. The fact that defendants received the goods supplied by the plaintiff and the dues of all the invoices raised by plaintiff have not been cleared are not in dispute. Defendants have failed to prove that plaintiff supplied any defective laptop e-waste or that they suffered any loss or damage on account of said supply. As per ledger statement Ex.PW1/2, a sum of Rs.48,23,899/- is outstanding against the defendants. Thus, it is held that defendant no.1 being partnership firm and defendant no.2 and 3 being its partners are liable to pay the outstanding amount of Rs.48,23,899/- to the plaintiff for the goods received by CS (Comm.) 62/2023 Vasudha Enviroaction LLP vs. M/s Green Waves Environmental Solutions and Ors. Page 12 of 14 Digitally signed by SANJEEV SANJEEV KUMAR KUMAR MALHOTRA MALHOTRA Date:
2024.10.29 15:40:35 +0530 them. Accordingly, this issue is decided in favour of plaintiff and against the defendant no.1, 2 and 3.
Issue no.2
2. Whether plaintiff is entitled for any interest, if yes, at what rate and for which period? OPP
20. Onus to prove this issue was upon the plaintiff.
Plaintiff has claimed interest @ 18% per annum. However, there is no agreed rate of interest between the parties for any default made by the defendant in making the payment of invoices issued to him. Admittedly, the transactions between the parties are commercial in nature, therefore, as per Section 34 CPC, plaintiff is entitled to pendente lite and future interest at which moneys are lent by the nationalized bank in relation to commercial transactions i.e. @ 9% per annum from the date of filing of suit till realization. Accordingly, it is held that plaintiff is entitled to recover the suit amount i.e. Rs.48,23,899/- alongwith interest @ 9 % per annum from the defendant no. 1, 2 and 3 from the date of filing of suit till realization. Accordingly, this issue is decided in favour of plaintiff and against the defendant no. 1, 2 and 3.
Relief
21. In view of my findings on aforementioned issues, the suit of plaintiff is decreed for a sum of Rs.48,23,899/- (Rupees Forty Eight Lac Twenty Three Thousand Eight Hundred Ninety Nine Only) alongwith interest @ 9% per annum from the date of filing of suit till realization in CS (Comm.) 62/2023 Vasudha Enviroaction LLP vs. M/s Green Waves Environmental Solutions and Ors. Page 13 of 14 Digitally signed by SANJEEV SANJEEV KUMAR KUMAR MALHOTRA MALHOTRA Date:
2024.10.29 15:40:41 +0530 favour of plaintiff and against defendant no. 1, 2 and 3. Costs of suit are also awarded in favour of plaintiff. Decree sheet be prepared accordingly.
22. File be consigned to Record Room.
Digitally signed by SANJEEV SANJEEV KUMAR
KUMAR MALHOTRA
MALHOTRA Date:
Announced in the open court 2024.10.29
15:40:46 +0530
on 29th October, 2024 (Sanjeev Kumar Malhotra)
District Judge (Commercial Court)
North-East District
Karkardooma Courts, Delhi
CS (Comm.) 62/2023 Vasudha Enviroaction LLP
vs.
M/s Green Waves Environmental Solutions and Ors. Page 14 of 14