Bangalore District Court
Capricot Technologies Private Limited vs M/S. Sycone Cpmc Pvt. Ltd on 10 November, 2020
IN THE COURT OF THE LVI ADDL. CITY CIVIL &
SESSIONS JUDGE, BENGALURU (CCH 57)
:Present :
Sri.G.L.Lakshminarayana, B.Com, LL.B.,
LVIII Addl. City Civil & Sessions Judge,
C/C LVI Addl. City Civil & Sessions Judge,
Bengaluru.
Dated this the 10th day of November, 2020
O.S.No.1249/2018
PLAINTIFF : Capricot Technologies Private Limited
A company registered under the
Companies Act, 1956,
Having its registered office at
No.6, 2nd Floor, Service Road,
2nd Stage, WOC Road,
Mahalakshmipuram,
Bangalore560086
Represented by its
General Manager Finance
Sri.Raghavendra K.S.
(By Sri. Dhirendra N. Katti, Advocate)
Vs.
DEFENDANTS 1. M/s. Sycone CPMC Pvt. Ltd.
A company registered under the
companies act,
Having its office at Ramanuja Road,
Ramachandra Agrahara JSS
Hospital Opp Main Road,
Mysore570004.
Also at
M/s SYConE CPMC Pvt. Ltd.
A company registered under the
companies act,
O.S.No.1249/2018
2
Having its office at 36, 20th Main,
West of Chord Road,
2nd Block Rajajinagar,
Bangalore560010.
Represented by its director
Sri.Yashwanth.
2. Sri.Yashwant
Director of M/s SYCONE
CPMC Pvt. Ltd.
Having its office at 36, 20th Main,
West of Chord Road,
2nd Block Rajajinagar,
Bangalore560010.
( By Sri.H.P.M., Advocate)
Date of institution of the : 14.02.2018
suit
Nature of the suit : Recovery of money
Date of commencement of : 14.11.2018
recording of the evidence
Date on which the : 10.11.2020
Judgment was
pronounced.
: Year/s Month/s Day/s
Total duration
02 08 27
*******
JUDGMENT
This suit is filed by the plaintiff against the defendants for recovery of money.
2. The brief facts of the plaintiff's case is that, plaintiff is company registered under the provisions of O.S.No.1249/2018 3 Companies Act of 1956 and having its registered office at No.6, 2nd Floor, Service Road, 2nd Stage, WOC Road, Mahalakshmipuram, Bangalore, engaged in the business as dealers distributors and agents for sales and support of IT Software and Hardware Products (including 3D Printers, consumables and accessories), providing training and engineering services etc. The plaintiff company has duly authorized Sri.Raghavendra K.S., S/o Late Srinivas, General ManagerFinance and or Sri.Anand M. to represent before this court. The 1 st defendant is a private limited company and having its offices at Ramanuja Road, Ramachandra Agrahara JSS Hospital Opp Main Road, Mysore and also at West of Chord Road, 2nd Block Rajajinagar, Bangalore, and the defendant No.2 is the Director and he is responsible for the day to day affairs of the defendant No.1. The defendant has placed an order for purchase of various software and hardware products under the purchase order dated 11.09.2015. Accordingly, plaintiff supplied O.S.No.1249/2018 4 and delivered the software and hardware products and raised the various invoices dated 30.09.2015, 31.10.2015, 09.11.2015 and 28.12.2015 for Rs.15,28,694/. The defendants on receipt of the aforesaid invoice has paid part payment of Rs.10,16,428/ on various date and the defendants have failed to pay the balance amount of Rs.5,12,266/, inspite of giving several oral, written remainders and personal visits to defendant company, the defendant company has failed to take any step to discharge the debts to plaintiff company. The defendants have jointly and severally liable to discharge the outstanding amount due to the plaintiff. The transaction between the plaintiff and the defendants arise under commercial terms and conditions. Hence the plaintiff is entitled to the interest at the rate of 15% per annum on the aforesaid outstanding dues. The plaintiff got issued a legal notice dated 31.03.2017 through its advocate to the defendant through RPAD, calling upon the defendants to pay the O.S.No.1249/2018 5 outstanding dues along with interest of as on date to the plaintiff. The defendants have intentionally avoided receiving the said notice and the defendants instead of the payment of outstanding dues as demanded in the notice have failed to pay the same. Hence plaintiff has filed the suit.
3. After service of suit summons defendants appeared before the court and filed written statement. Defendant No.2 in the written statement contended that, the suit of the plaintiff is not maintainable and it is liable to be dismissed. Defendant in the written statement denied the allegation as contended in the plaint, further stated that plaintiff has suppressed the real facts and concocted the imaginary and fabricated documents to suit its whims and fancies. 2 Nd defendant is one of the Directors of M/s SYConE CPMC Private Limited and its registered office is at No.36, 20 th Main, West of Chord Road, 2nd Block, Rajajinagar, Bangalore and it is carrying on business in Bangalore since from July 2004. There is O.S.No.1249/2018 6 no any other branch of M/s SYConE CPMC Private Limited either in Bangalore or elsewhere. This defendant further submits that by misrepresenting the facts, the plaintiff has arrayed M/s SYConE CPMC Pvt. Ltd. showing the address as if there is another branch at Mysore. The correct name of the firm which is run by defendant is M/s SYConE CPMC Pvt. Ltd. But not M/s Sycone CPMC Pvt. Ltd. The plaintiff has arrayed the improper parties to the suit. This defendant is in no way concerned or connected with M/S Sycone CPMC Pvt. Limited at Mysore. The plaintiff has done business with M/s Sycone CPMC Pvt. Ltd. Mysore. By suppressing the real facts, the plaintiff has filed this suit. This defendant had business transaction with the plaintiff during the year 2015 for supply of HP DNG 5 120 Plotter 24". At that point of time, one Mr.Madhava Rao was working as DGM - Finance & Admin at M/s SYConE CPMC Private Limited has subsequently resigned the company. He was well acquainted with the plaintiff company. By taking O.S.No.1249/2018 7 advantage of the same, he has created and concocted several documents as if it belongs to M/s SYConE CPMC Pvt. Ltd., he might have kept in his custody the printed formats of M/s SYConE CPMC Pvt. Ltd. and might have misused the same after his resignation from M/s SYConE CPMC Pvt. Ltd. This defendant while working with M/s SYConE CPMC Pvt. Ltd., He has raised purchase order in respect of software in excess of the actual requirement with the plaintiff company behind the back of this defendant and also paid the annual subscription which the 2nd defendant had not asked for. Therefore, this defendant requested with the plaintiff company to revise the invoice on par with the materials actually supplied and to submit the same. But, the said revised invoice was not submitted by the plaintiff company to this defendant. Hence, he prayed to dismiss the suit of the plaintiff with cost.
4. On the basis of the above pleadings my learned predecessor has framed the following issues.
O.S.No.1249/2018 8
1. Whether the plaintiff proves that, the defendants were purchased software and hardware products worth Rs.15,28,694/?
2. Whether the plaintiff proves that the defendants were failed to pay Rs.5,12,266/ out of Rs.15,28,694/?
3. Whether the plaintiff proves that, the defendants are jointly and severally liable to pay the suit claim with interest?
4. Whether the plaintiff is entitled to recover the suit claim with interest?
5. What order or decree?
5. In order to prove the case of the plaintiff, the General Manager of plaintiff company got examined himself as P.W.1 by filing his affidavit evidence and got marked documents Ex.P.1 to P.16. On behalf of the 1 st defendant the Director of the 1 st defendant company got examined himself as DW.1, but no documents are marked. That on 11.02.2020 D.W.1 not tender for cross examination, hence D.W.1 evidence is discarded.
6. Heard arguments of plaintiffs side and defendants filed written argument.
O.S.No.1249/2018 9
7. My finding to the above issues are as follows:
Issues No.1 to 4 : In the Affirmative
Issue No.5 : As per my final order for
the following:
REASONS
8. ISSUES NO.1 TO 4 : Since these four issues are interconnected to each other, they have been taken together for my discussion in order to avoid repetition of the same.
9. The case of the plaintiffs is that, plaintiff is company registered under the provisions of Companies Act of 1956 and having its registered office at No.6, 2 nd Floor, Service Road, 2nd Stage, WOC Road, Mahalakshmipuram, Bangalore, engaged in the business as dealers distributors and agents for sales and support of IT Software and Hardware Products (including 3D Printers, consumables and accessories), providing training and engineering services etc. The plaintiff company has duly authorized Sri.Raghavendra K.S., S/o Late Srinivas, General ManagerFinance/ and or O.S.No.1249/2018 10 Sri.Anand M. to represent before this court. The 1 st defendant is a private limited company and having its offices at Ramanuja Road, Ramachandra Agrahara JSS Hospital Opp Main Road, Mysore and also at West of Chord Road, 2nd Block Rajajinagar, Bangalore, and the defendant No.2 is the Director and he is responsible for the day to day affairs of the defendant No.1. The defendant has placed an order for purchase of various software and hardware products under the purchase order dated 11.09.2015. Accordingly, plaintiff supplied and delivered the software and hardware products and raised the various invoices dated 30.09.2015, 31.10.2015, 09.11.2015 and 28.12.2015 for Rs.15,28,694/. The defendants on receipt of the aforesaid invoice has paid part payment of Rs.10,16,428/ on various date and the defendants have failed to pay the balance amount of Rs.5,12,266/, inspite of giving several oral, written remainders and personal visits to defendant company, the defendant O.S.No.1249/2018 11 company has failed to take any step to discharge the debts to plaintiff company. The defendants have jointly and severally liable to discharge the outstanding amount due to the plaintiff. The transaction between the plaintiff and the defendants arise under commercial terms and conditions. Hence the plaintiff is entitled to the interest at the rate of 15% per annum on the aforesaid outstanding dues. The plaintiff got issued a legal notice dated 31.03.2017 through its advocate to the defendant through RPAD, calling upon the defendants to pay the outstanding dues along with interest of as on date to the plaintiff. The defendants have intentionally avoided receiving the said notice and the defendants instead of the payment of outstanding dues as demanded in the notice have failed to pay the same.
10. Defendants in the written statement denied the allegation as contended in the plaint, further stated that plaintiff has suppressed the real facts and concocted the imaginary and fabricated documents to suit its O.S.No.1249/2018 12 whims and fancies. 2Nd defendant is one of the Directors of M/s SYConE CPMC Private Limited and its registered office is at No.36, 20th Main, West of Chord Road, 2nd Block, Rajajinagar, Bangalore and it is carrying on business in Bangalore since from July 2004. There is no any other branch of M/s SYConE CPMC Private Limited either in Bangalore or elsewhere. This defendant further submits that by misrepresenting the facts, the plaintiff has arrayed M/s SYConE CPMC Pvt. Ltd. showing the address as if there is another branch at Mysore. The correct name of the firm which is run by defendant is M/s SYConE CPMC Pvt. Ltd. But not M/s Sycone CPMC Pvt. Ltd. The plaintiff has arrayed the improper parties to the suit. This defendant is in no way concerned or connected with M/S Sycone CPMC Pvt. Limited at Mysore. The plaintiff has done business with M/s Sycone CPMC Pvt. Ltd. Mysore. By suppressing the real facts, the plaintiff has filed this suit. This defendant had business transaction with the plaintiff during the year O.S.No.1249/2018 13 2015 for supply of HP DNG 5 120 Plotter 24". At that point of time, one Mr.Madhava Rao was working as DGM
- Finance & Admin at M/s SYConE CPMC Private Limited has subsequently resigned the company. He was well acquainted with the plaintiff company. By taking advantage of the same, he has created and concocted several documents as if it belongs to M/s SYConE CPMC Pvt. Ltd., he might have kept in his custody the printed formats of M/s SYConE CPMC Pvt. Ltd. and might have misused the same after his resignation from M/s SYConE CPMC Pvt. Ltd. This defendant while working with M/s SYConE CPMC Pvt. Ltd., He has raised purchase order in respect of software in excess of the actual requirement with the plaintiff company behind the back of this defendant and also paid the annual subscription which the 2nd defendant had not asked for. Therefore, this defendant requested with the plaintiff company to revise the invoice on par with the materials actually supplied and to submit the same. But, the said revised invoice O.S.No.1249/2018 14 was not submitted by the plaintiff company to this defendant.
11. P.W.1 in his chief examination reiterated the facts as alleged in the plant and produced Ex.P.1 to Ex.P.16. In his crossexamination deposed that he was working in the plaintiff's company from past 15 years, and he was doing business with the defendant No.2 on behalf of the plaintiff's company since 2015 and he has produced documents to show that he was doing the business with the 2nd defendant, and he further stated that he also send invoices about the goods being supplied to the defendant company. Cheque was sent to the company on the basis of invoices. Defendant never paid cash with regard to supplying materials, defendants has sent Rs.10,00,000/ after suppling goods by him. Further denied the suggestions that there is no connection with the Ex.P.4 to D.W.2. Further confronted the Ex.P.13 to Ex.P.16 by the defendants. Further P.W.1 denied the suggestions that one Madava Rao doing the O.S.No.1249/2018 15 business on behalf of the 2 nd defendant. Further P.W.1 denied the suggestions that after resignation he never made any transaction with plaintiff company and Ex.P.4 is created with colluding with the Madava Rao to file the false case. Defendant No.2 has examined himself as D.W.1. D.W.1 is not crossexamined by the counsel for plaintiffs, D.W.1 is absent he is not tender for cross examination by the plaintiff, hence D.W.1 evidence is discarded. Therefore D.W.1 evidence is noway helpful to the defendant.
12. Ex.P.1 it reveals that plaintiff company is registered under Companies Act. Ex.P.2 is the certificate of Incorporation 'Ministry of Corporate Affairs Registrar of Companies, Karnataka'. Ex.P.3 and Ex.P.4 are purchase orders. Ex.P.5 to Ex.P.8 are inovices. E.xP.9 is the Ledger statement it reveals that defendant is due to Rs.5,12,266/. Ex.P.10 is the copy of legal notice. Ex.P.11 is the postal cover. Ex.P.12 is the postal receipt. Ex.P.13 to Ex.P.16 are copies of the invoices.
O.S.No.1249/2018 16
13. The Learned counsel for the defendant in the crossexamination of P.W.1 put the suggestions that after resignation of Madava Rao, plaintiff company colluding with Madava Rao created the documents and defendant company has not done business transaction with plaintiff company, this suggestion is denied by the P.W.1. Further the Learned counsel for the defendant in the cross examination of the P.W.1 put the suggestion that Ex.P.4 is created for the purpose of file the false case. This suggestion is also denied by the P.W.1.
14. 1st defendant is M/s SYConE CPMC Pvt. Ltd., 2nd defendant is Director of the said company. Defendant No.1 and 2 approached the plaintiff company and placed an order for purchase of various software and hardware products under the purchase order dated 11.09.2015, in this regard plaintiff produced the Ex.P.3 and Ex.P.4 based on the requirement of the defendants the plaintiff company supplied the products under the various invoices dated 30.09.2015, 31.10.2015, 09.11.2015 and O.S.No.1249/2018 17 28.12.2015. The said products supplied by the plaintiff to the defendants company with consideration of Rs.15,28,694/. In this regard there is a clear recital in the Ex.P.9 and in this regard invoices have been marked as Ex.P.13 to Ex.P.16. Out of Rs.15,28,694/ outstanding the defendants have paid part payment of Rs.10,16,428/ in various dates on 19.10.2015, 21.12.2015, 11.01.2016 and 16.03.2016. In this regard plaintiff produced Ex.P.9 and same is accepted by the defendants. During the stage of crossexamination of D.W.1, D.W.1 is not tender for crossexamination by the plaintiff, hence D.W.1 evidence is discarded. Defendants remaining balance is due of Rs.5,12,266/, in this regard there is a clear recitals in the Ex.P.9. Thereafter, plaintiff has issued legal notice through RPAD to the defendant company to pay the remaining amount on 31.03.2017, but defendants have avoided to receiving the notice sent by the plaintiff. The said legal notice along with postal receipt and postal cover have been marked as Ex.P.10 to O.S.No.1249/2018 18 Ex.P.12. The defendants willfully avoided the legal notice issued by the plaintiff and defendant failed to repay the remaining balance amount of Rs.5,12,266/. The defendants failed to crossexamining the plaintiff in several dates, finally on 08.07.2019 crossexamined the P.W.1, but defendants have failed to prove the invoices produced by the plaintiff are created one. To disprove the case of the plaintiff defendants adduced evidence as D.W.1, but D.W.1 evidence was discarded, hence D.W.1 evidence nowhere helpful to the case of the defendants.
15. Perused the oral and documentary evidence placed by the plaintiff clearly discloses that defendants jointly and severally liable to pay the total sum of Rs.5,12,266/ with interest 15% per annum from 30.09.2015 to 20.01.2018 and cost of legal notice. The transaction between plaintiff and defendants arise under the commercial terms and conditions, hence plaintiff is entitled interest at the rate of 15% per annum on the outstanding dues. When defendants failed to pay O.S.No.1249/2018 19 balance amount of Rs.5,12,266/ to plaintiff then plaintiff has issued legal notice on 31.03.2017. After issuance of legal notice defendants failed to repay the balance amount to the plaintiff. Further defendants are jointly and severally liable to pay the suit claim with interest. Accordingly, I hold Issues No.1 to 4 in the Affirmative.
16. ISSUE NO.5: In view of any discussion to Issues No.1 to 4, I proceed to pass the following: ORDER The suit of the plaintiff is decreed with cost.
Further it is ordered that defendants are jointly and severally liable to pay the total sum of Rs.7,26,213/ to the plaintiff along with future interest thereon at the rate of 15% per annum from the date of suit till realization. In the event defendants failed to repay the amount, plaintiffs recovery the same from the O.S.No.1249/2018 20 defendants personally or from their movable and immovable properties for realization of the amount due.
Draw decree accordingly.
(Dictated to the Stenographer directly on the computer, then corrected and pronounced by me in the Open Court on this the 10 th Day of November, 2020) (G.L.Lakshminarayana) LVIII Addl. City Civil & Sessions Judge, C/C LVI Addl. City Civil & Sessions Judge, Bengaluru.
ANNEXURE
1. Witnesses examined on behalf of the plaintiffs.
P.W.1 : Raghavendra K.S.
2. Witnesses examined on behalf of the defendants.
D.W.1 : Yashvanth Anantharaj
3. Documents marked on behalf of the plaintiff.
Ex.P.1 : Board Resolution .
Ex.P.2 : Certificate of Incorporation
Ex.P.3 & 4 : Purchase orders
Ex.P.5 to 8 : Invoices.
Ex.P.9 : Ledger statement.
Ex.P.10 : Office copy of legal notice.
Ex.P.11 : RPAD Cover.
O.S.No.1249/2018
21
Ex.P.12 : Postal Receipt.
Ex.P.13 to 16 : Invoices.
Ex.P.13(a)
to 16(a) : Signature of 1st defendant.
4. Documents marked on behalf of the defendant.
NIL (G.L.Lakshminarayana) LVIII Addl. City Civil & Sessions Judge, C/C LVI Addl. City Civil & Sessions Judge, Bengaluru.
.
O.S.No.1249/2018 22 Order pronounced in open Court (Vide separate order) ORDER The suit of the plaintiff is decreed with cost.
Further it is ordered that defendants are jointly and severally O.S.No.1249/2018 23 liable to pay the total sum of Rs.7,26,213/ to the plaintiff along with future interest thereon at the rate of 15% per annum from the date of suit till realization. In the event defendants failed to repay the amount, plaintiffs recovery the same from the defendants personally or from their movable and immovable properties for realization of the amount due.
Draw decree accordingly.
LVIII Addl. City Civil & Sessions Judge, C/C LVI Addl. City Civil & Sessions Judge, Bengaluru.
O.S.No.1249/2018 24