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Bangalore District Court

M/S Intech Solutions vs M/S 3S Technologies & on 30 November, 2019

  Form
   No.9
  (Civil)
   Title
  Sheet
    for
Judgmen
   t in     PRESENT: SMT. PRASHANTHI G,
                                       B.A.(Law) LL.B.,
                     XXVII Additional City Civil Judge.

            Dated this the 30 th day of November 2019




     PLAINTIFF:            M/S INTECH SOLUTIONS
                           2nd Floor, L.N. Complex,
                           Opp: Adiga's Nalapak,
                           Opp: HSBC, Arekere,
                           Bannerghatta Road,
                           Bangalore-560 076.
                           Represented by its Proprietor
                           Sri Raghavendra Bhat
                           S/o Late Manjunath Bhat,
                           Aged about 44 years.

                      [By Sri Santhosh Shetty.S., Advocate]

                          /v e r s u s/

     DEFENDANT:              M/S 3S TECHNOLOGIES &
                             AUTOMATION PVT. LTD.,
                             #2, 100 ft Ring Road, BTM
                             II Stage, Near Udupi Garden,
                             Bangalore.
                             Represented by its Director
                             Sri Anish Gopal.


                           [By Sri MP, Advocate]


 Date of institution of the :             22/06/2017
 suit
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  CT0028_O.S._4190_2017_Judgment_.doc

Nature of the suit         :     For recovery of money
Date of commencement of :             6/10/2018
recording of the evidence
Date    on    which    the :          30/11/2019
Judgment               was
pronounced.
                           : Year/s Month/s Day/s
Total duration
                               2         5          8


                                      (Prashanthi. G)
                                     XXVII ACCJ: B'LORE.




       The plaintiff filed this suit against the defendants

  directing the defendant to pay a sum of Rs.2,19,479/-

  (Rupees two lakh nineteen thousand four hundred

  seventy nine only) with       interest at 18% per annum

  from the date of plaint till the date of realisation of the

  amount to the plaintiff and for the cost of the suit.

       2.    The brief facts of the case are as follows:

       The plaintiff submits that the plaintiff has been

  carrying on the business in dealing in computer/

  networking/    UPS/     CCTV/      Telecom    /   EPABX/

  ACCESS card/ Bio-metric and other allied works

  under the name and style known as Intech Solutions

  for the last several years.
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    CT0028_O.S._4190_2017_Judgment_.doc

         Plaintiff further submits that during the course

    of business the defendant had placed orders by mail

    for supply of various materials on the condition of

    issuing post dated cheque/s of 21 days immediately

    after delivery of materials and subsequent to that the

    plaintiff had supplied the materials to the defendant

    against the invoices raised in the name of the

    defendant   as per list of the bills mentioned in the

    plaint.

         Plaintiff submits that at the instructions of the

    defendant, all the materials are delivered to the

    defendant at their office situated at No.2, 100 feet ring

    road, BTM II stage, near Udupi Garden, Bangalore

    with brand new warranty. That the plaintiff submits

    that all the above materials are deliverd to the

    defendant on condition of 21 days PDC (Post dated

    cheque) payment against delivery of material as per

    the purchase order of the defendant. Initially, on two

    occasions the defendant had issued the post dated

    cheque in respect of the items supplied and latter, as

    the concerned person was not there to sign the
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CT0028_O.S._4190_2017_Judgment_.doc

cheque, the defendant had not issued the post dated

cheque to the plaintiff on receipt of the materials from

the plaintiff and the person who received the materials

at the defendant's office informed that they will hand

over the cheque as soon as the concerned (signing

authority) person comes to the office, as he was out of

station at that particular point of time.

     Plaintiff further submits that for the goods

supplied the defendant was required to pay a sum of

Rs.4,25,811/- under the aforesaid invoices /bills to it

and as against the same the defendant had paid a

sum of Rs.2,84,271/- to the plaintiff and the details of

the said payment is Rs.1,36,987/- is paid through

NEFT on 5/7/2014 (cheque issued by the defendant

bounced and as against the same NEFT done). Rs.

42,206/- paid through cheque No.515388 dated

29/7/2014 and Rs.1,05,078/- paid through cheque

No.406807 dated 9/10/2014. After deducting the

payment made the defendant is due a sum of

Rs.1,41,540/- to the plaintiff and inspite of plaintiff's

repeated    requests,   demands,      telephonic   calls,
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    CT0028_O.S._4190_2017_Judgment_.doc

    personal wish to the defendant's office, the defendant

    has not paid the remaining payment of Rs.1,41,540/-.

    The defendant has been postponing the payment on

    one or the other reasons and the defendant has

    withheld the said amount illegally to enrich its

    business at the cost of the plaintiff. The plaintiff had

    trusted the defendant very much and as such

    extended credit facility to the defendant without any

    second thout, but the defendant had taken undue

    advantage of the said faith reposed on the defendant

    by the plaintiff and misused the same for unlawful

    enrichment and illegal gain.

         The plaintiff further submits that the defendant

    after getting the above materials supplied intentionally

    in order to defraud the plaintiff had not made the

    payment to the plaintiff. The defendant instead of

    making the payment now on one or the other reasons

    postponing the same. Therefore, the plaintiff caused

    legal notice calling upon the defendant to make the

    payment and inspite of receipt of the said notice, the

    defendant either not replied to the notice nor had
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CT0028_O.S._4190_2017_Judgment_.doc

made the payment. Under the above circumstances,

plaintiff once again caused another notice dated

12/8/2015 calling upon the defendant to make the

due amount and inspite of receipt the same, the

defendant had not made the payment.

      The plaintiff further submits that the defendant

is due a sum of Rs.1,41,540 as on 14/8/2014 and the

defendant had purchased the above materials for

business as such the defendant is required to pay

interest   at    18%   per   annum   on   the   amount

outstanding to the plaintiff. The plaintiff submits that

the defendant is due a sum of Rs.1,41,540/- towards

principal amount and Rs.67,939/- towards interest at

18% per annum from 14/8/2014 to uptodate, legal

notice charges of RS.5000/- each amounting to

Rs.10,000/- and in all amounting to Rs.2,19,479/- to

the plaintiff.

      The cause of action for the above suit had arised

on various dates of supply of materials referred to

above, on various dates of demands, personal visits to

the defendant office, on 12/8/2015 the date on which
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    CT0028_O.S._4190_2017_Judgment_.doc

    legal notice came to be issued and served on the

    defendant and on all subsequent date of demands

    within the jurisdiction of this court. Hence this suit.

         3.    The    summons      is   duly   served   to   the

    defendant. Defendant appeared through his counsel

    and filed written statement.

         4.    The main contentions of the defendant in

    the written statement are as under:

         The suit of the plaintiff is not maintainable either

    under law or under facts and hence liable to be

    dismissed in limine with exemplary costs. The plaintiff

    has not approached the court with clean hands.

         The defendant denies the averments stated in

    para no.4 of the plaint that during the course of

    business of plaintiff, the defendant had placed orders

    by mail for supply of various materials on the

    condition of issuing post dated cheque/s of 21 days

    immediately      after   delivery    of    materials     and

    subsequent to that the plaintiff had supplied the

    materials to the defendant against the invoices raised

    in the name of the defendant. Further, the contentions
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CT0028_O.S._4190_2017_Judgment_.doc

of the invoices mentioned in para no.4 are also

denied.

     Further the averments in para      no.5 regarding

delivery of materials to the defendant at their office

situated at no.2, 100 feet ring road, BTM II stage, near

Udupi Garden, Bangalore with brand new product

with company packing with manufacturing company's

direct warranty are false and far from truth. Further

averments about delivery of materials to defendant on

condition of 21 days PDC (Post Dated Cheque)

payment as per the Purchase Order and that on two

occaasions the defendant had issued the post dated

cheque in respect of the items supplied and later the

defendant had not issued the post dated cheque to

the plaintiff on receipt of the materials and that the

person who received the materials informed the

plaintiff that cheque will be handed over as soon as

the signing authority person comes to the office are all

denied as false, baseless and concocted story and also

the contents of the bills referred in para no.5 are not
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    CT0028_O.S._4190_2017_Judgment_.doc

    admitted by the defendant and as such the plaintiff is

    put to strict proof of the same.

         Further the averments in para no.6 regarding

    personal visits, repeated requests, demands and

    telephonic   calls are all hereby denied. Defendant

    denies that it has been postponing the payment and

    with held the defendant due payment illegally. Further

    averments in the same paragraph to the effect that

    the total due amount of Rs.1,41,540/- is payable are

    denied.

         Further the averments in para no.7 that the

    defendant    after   getting   the   materials   supplied

    intentionally in order to defraud the plaintiff had not

    made the payment and postponing the payment on

    one or the other reasons are denied. Further the

    averments in para     no.8 regarding issuance of legal

    notice are not within the knowledge of the defendant

    and as such plaintiff is put to strict proof of the same.

    Further the averments made in para no.9 are all false

    and baseless and all not admitted by this defendant

    and hence this defendant.
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CT0028_O.S._4190_2017_Judgment_.doc

     The defendant submits that they had purchased

two laptops from the plaintiff. However the said

laptops were defective and the defendant sent them to

the plaintiff for service. However till this date, the

plaintiff has   neither returned them or serviced the

same and the said laptops are still in the custody of

the plaintiff. The plaintiff is liable to pay the cost of

the said two laptops to the defendant which amounts

to Rs.52,539/-.

     There is no cause of action as alleged in the

plaint and the averred cause of action is a concocted

one for the purpose of the suit, and present suit is

barred by limitation. The suit is not properly valued

and court fee paid by the plaintiff is insufficient.

Hence, plaintiffs are not entitled any reliefs. Therefore,

defendant prays to dismiss the suit.

      5.   On the basis of the pleadings of the parties,

my predecessor in office has framed the following

issues for consideration:
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     CT0028_O.S._4190_2017_Judgment_.doc

          (1)    Whether the plaintiff        proves that he has
                 supplied goods to the defendant as per his
                 instructions?
          (2)    Whether plaintiff proves that cheque given
                 by the defendant towards the supply of
                 goods was bounced? [Deleted]
          (3)    Whether plaintiff proves that defendant is
                 liable to pay interest at the rate of 18% on
                 the principal amount?
          (4)    Whether plaintiff is entitled for the reliefs as
                 sought for in the suit?
          (5)    What order or decree?



          6.     Plaintiff in order to prove its case,          the

     proprietor of the plaintiff is       examined as PW.1 and

     got marked Ex.P1 to Ex.P17 and closed its side of

     evidence.    On     behalf   of   the    defendant,     neither

     examined     nor produced any documents and closed

     his side of evidence.


          7.     Heard     both   sides      and   perused    entire

     records of the case.

          8.     My findings on the above issues are as

     under:
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CT0028_O.S._4190_2017_Judgment_.doc

     Issue No. 1) ............In the affirmative;
     Issue No. 2) ............    deleted.
     Issue No. 3) ............In the affirmative;
     Issue No. 4) ............In the affirmative;
     Issue No. 5) ............As per final order for
                              the following:




     9.   ISSUE NO.1 : It is the specific case of the

plaintiff that the defendants had placed orders by mail

for the supply of the various materials on the

condition of issuing the post dated cheques within 21

days after the delivery of the same. In this regard, the

plaintiff had supplied the materials and against which

the invoices are raised in the name of the defendant.

In order to substantiate the claim of the plaintiff,

plaintiff has produced Ex.P1 to Ex.P14 invoices. I

have carefully gone through all the invoices produced

by the plaintiff wherein the defendant had put

signature after affixing the seal for delivery of the

goods. Further Ex.P17 is the E-mail issued by the

defendant to the plaintiff stating that considering the

mail as an order of confirmation for the following,
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     CT0028_O.S._4190_2017_Judgment_.doc

     deliver the materials at the earliest. It is also further

     agreed between the parties that payment term is 21

     days PDC from the date of supply. So, from Ex.P17, it

     is clear that by sending this email the defendant has

     offered the orders to the plaintiff and confirmed the

     same. One of the main contention taken by the

     defendant in the above case is that there is no

     purchase order with regard to the entire goods

     supplied by the plaintiff. Moreover, the defendant has

     denied each and every allegations of the plaint

     averments. When there is no purchase order from the

     side of the defendant, there is no liability to the

     defendant to pay the amount to the plaintiff. However,

     this contention of the defendant is not correct because

     in the Ex.P17 itself the defendant agreed to supply the

     materials to him at the earliest and he is also ready to

     make the payment within 21 days from the date of

     delivery of such materials. On perusal of entire

     invoices produced by the plaintiff, it is clear     that

     every invoice has been signed by the defendant and he

     has affixed the seal on the documents. This itself
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CT0028_O.S._4190_2017_Judgment_.doc

shows that the plaintiff has supplied the goods to the

defendant as per his instructions. There is no

explanation from the side of the defendant for the

Ex.P17 as well as the seal and signature of the

defendant in the invoices produced by the plaintiff.

Nowhere in the written statement he has commented

upon the invoices produced by the plaintiff and also

the email issued by the defendant in favour of the

plaintiff confirming the order. The only contention of

the defendant is with regard to the rate of interest on

the principal amount is highly exorbitant. The rules of

the pleadings specifically says, it is not only sufficient

to deny the averments of the plaint mechanically

rather than the written statement has to be filed by

denying the pleadings specifically. In the present

context, except denying the rate of interest as

exorbitant, nothing is pleaded by the defendant

denying the transaction of plaintiff. Further, merely by

denying the written statement he indirectly admits the

transactions of plaintiff by admitting the pleadings.

An adverse inference can be drawn against the
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     CT0028_O.S._4190_2017_Judgment_.doc

     defendant    in   this   regard.    From    the   documents

     submitted by the plaintiff and also from the pleadings,

     it is clear that the plaintiff has successfully proved

     that he has supplied the materials to the defendant as

     per   the   instructions    of     the   defendant   himself.

     Accordingly, I answer issue no.1 in the affirmative.


           10. ISSUE NO.3:            One of the main contention

     taken by the plaintiff is that defendant by sending the

     email as per Ex.P17 confirm the order and received

     the materials supplied by the plaintiff. Even after

     supply of the materials in time as agreed the

     defendant did     not paid the amount within the 21

     days from the date of the supply as agreed between

     them.   Though     the     defendant     denies   the   plaint

     averments by affixing the seal and signature in the

     invoices he admitted the supply of the goods to him.

     So the contention that the defendant is not at all

     liable to pay the amount does not arise at all. Further,

     all the materials supplied by the plaintiff is for the

     business of the defendant. The entire transaction took
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CT0028_O.S._4190_2017_Judgment_.doc

place in the year 2014 itself and the last transaction is

on 14/8/2014. From that day, till filing of this date,

the defendant did not paid any amount to the

plaintiff. Even after the legal notice issued to the

defendant, as per Ex.P15, the defendant did not turn

up and paid the amount, rather than only after the

suit summons was served to him from this court, he

has appeared before the court and denied the

transactions. Since the defendant is completely aware

of all transactions by putting the signature on the

invoices, I am of the opinion that he has intentionally

evaded the liability of claiming suit claim to the

plaintiff. Under the above circumstances, I am of the

opinion that no harm will be caused to the defendant

if 18% interest is added to the principal sum as

claimed by the plaintiff. Accordingly, I answer issue

no.3 in the affirmative.


     11. ISSUE NO.4:       From the above reasonings

and discussions, it is clear     that the plaintiff has

supplied the materials to the defendants as he has
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     CT0028_O.S._4190_2017_Judgment_.doc

     pleaded in the plaint and in this regard he has

     produced the invoices as Ex.P1 to Ex.P14 and the

     defendant also put the signatures and seals to the

     same. Though defendant denied that there is no order

     from his side by accepting the delivery of the goods, he

     ratified the contract. Moreover, Ex.P17 is very clear

     stating that the defendant has confirmed the order of

     the plaintiff. Though defendant contended that the

     suit itself is barred by limitation,   on perusal of the

     documents, it is clear    that the last invoice as per

     Ex.P14 is on 14/8/2014. Further, the plaintiff issued

     the legal notice as per Ex.P15 is on 22/4/2016. The

     same was served to the defendant on 25/4/2016. The

     present suit is filed on 20/6/2017. No doubt, in the

     suit for recovery of money the limitation is 3 years. If

     at all calculated from the last invoice i.e, from

     14/8/2014 the suit is to be filed within 13/8/2017.

     However the present suit is filed in June 2017 itself is

     within limitation. Therefore, whatever the contentions

     taken by the defendant that the suit of the plaintiff is

     bad for limitation is not correct. From the pleadings
 18
CT0028_O.S._4190_2017_Judgment_.doc

and from the documents submitted by the plaintiff, I

am of the opinion that plaintiff is entitled to the relief

as sought for. Accordingly I answer issue no.4 in the

affirmative.


     12.    ISSUE NO.5: From my above discussions

and reasoning, the suit of the plaintiff deserves to be

decreed. In the result, I pass the following:



         The suit of the plaintiff is         hereby
           decreed.

         The plaintiff is entitled to recover a
           sum     of    Rs.2,19,479/-     from       the
           defendant with interest at the rate of
           18% per annum from the date of
           filing of the suit till the realisation.

         No order as to costs.
         Draw decree accordingly.
                           ***

[Dictated to the Judgment Writer directly on computer, Script corrected, signed and then pronounced by me, in the Open Court on this the 30 th day of November 2019.] [PRASHANTHI.G] XXVII Additional City Civil Judge.

BANGALORE.

19 CT0028_O.S._4190_2017_Judgment_.doc

1. List of witnesses examined on behalf of the Plaintiff/s:

PW.1 Raghavendra Bhat

2. List of witnesses examined on behalf of the Defendant/s:

NIL.

3. List of documents marked on behalf of the Plaintiff/s:

Ex.P1 to Invoices Ex.P14 Ex.P15 Office copy of the legal notice Ex.P16 Postal acknowledgement Ex.P17 E-mail dated 16/7/2014 (consisting of 42 pages)

4. List of the documents marked for the defendants:

Nil.
[PRASHANTHI.G] XXVII Additional City Civil Judge.
BANGALORE.
30/11/2019 P-SSS D-MP For Judgement...
Judgment pronounced in the Open Court....
(Vide separate detailed judgment)  The suit of the plaintiff is hereby decreed.
 The plaintiff is entitled to recover a sum of Rs.2,19,479/- from the defendant with interest at the rate of 18% per annum from the date of filing of the suit till the realisation.
 No order as to costs.  Draw decree accordingly.
[PRASHANTHI.G] XXVII Additional City Civil Judge.
BANGALORE.
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