Delhi District Court
M/S Preciours Techno Engineering ... vs Mep Industries Through Its Proprietor ... on 24 December, 2024
IN THE COURT OF SH. GAURAV SHARMA
JSCC-CUM-ASCJ-CUM-GUARDIAN JUDGE, EAST
KARKARDOOMA COURTS/DELHI
CNR No. DLET03-001416-2023
Civ Suit No. 748/2023
Precious Techno Engineering
Through It's Proprietor
Mrs. Indira Singh, W/o Sh. Barnam Singh,
F-73, West Jawahar Park, Laxmi Nagar,
Shakarpur, Delhi-110092
......Plaintiff
Versus
MEP Industries
Through It's Proprietor
Mr. Nikhil R Upadhyay,
1st Floor, 102, Nirmal Apartment, Silvassa Road,
St Marry School, Chanod Colony, Vapi,
Valsad, Gujarat-396195
Also At:
B-201, Sneh Sudha Tower, Nr. Bright School,
Amit Nagar, Vadodara-390002
......Defendant
Date of Institution : 23.09.2023
Judgment reserved on : 10.12.2024
Judgment pronounced on : 24.12.2024
Civ Suit No. 748/2023
M/s Precious Techno Engineering Through Its Proprietor Mrs. Indira Singh
Vs.
MEP Industries Through Its Proprietor Mr. Nikhil R Upadhyay Pg. No. 1/6
JUDGMENT
24.12.2024
1. Suit Decreed.
2. Far from putting forth any credible defense, it is seen that the opposing side did not appear in the court altogether. Despite being served, no appearance was entered into by the defendant, paving way for the plaintiff evidence adduced on record to remain unrebutted, entitling it to the relief sought.
3. Pithily put, the case of the plaintiff is that it is a proprietorship firm and is engaged in the business of manufacturing and supplying of scientific and industrial equipments. As per the plaintiff, the defendant is also a proprietorship firm and is engaged in the business of manufacturing of pharma equipments, lab furniture, clean rooms doors, partition & selling etc. It is averred that the defendant firm had been dealing with the plaintiff since long and used to place orders for supply of various kinds of products / materials from time to time. Several orders used to be placed by the defendant against which invoices were duly raised. For the circumstances qua the instant suit, it is claimed that as againat the invoices raised, an amount of Rs. 1,40,396/- has remained unpaid till date. It is stated that the defendant had undertaken to pay interest @ 18% per annum as well in case it failed to make the payment from the date of issuance of invoice. Despite repeated requests & reminders sent by the plaintiff, payment has not been cleared by the defendant. Legal notice dated 10.08.2023 was also served upon the defendant by the plaintiff, but things did not Civ Suit No. 748/2023 M/s Precious Techno Engineering Through Its Proprietor Mrs. Indira Singh Vs. MEP Industries Through Its Proprietor Mr. Nikhil R Upadhyay Pg. No. 2/6 change. Given such a scenario, the present suit came to be filed wherein which the following reliefs were sought:
a) Decree of a sum of Rs. 1,40,396/- in favour of plaintiff and against the defendant alongwith pendente-lite & future interest @ 18% p.a. on the said amount from the date of filing till its realization.
b) Award a sum of Rs. 9,800/- towards interest calculated @ 18% p.a. from the default till the date of this suit.
c) Litigation costs like legal notice charges, costs of the suit and pleader's fee in favour of plaintiff.
4. The defendant was served through speed post as well as electronically on 10.02.2024, 12.02.2024 & 13.04.2024. Despite the same, it never appeared in Court and vide order dated 27.08.2024, right of the defendant to file WS was closed and it was proceeded ex-parte.
5. In order to prove its case, the AR of the plaintiff was examined as PW1 and he tendered his evidence by way of affidavit Ex. PW1/A. He also relied upon documents being:-
i) Copy of Aadhar Card : Ex. PW1/B (OSR)
ii) Copy of GST Registration Certificate of firm : Ex. PW1/1
iii) Copy of Aadhar Card of Proprietor : Mark PW1/2
iv) Authority letter in favor of PW1 : Ex. PW1/3
v) Copy of GST Registration Civ Suit No. 748/2023 M/s Precious Techno Engineering Through Its Proprietor Mrs. Indira Singh Vs. MEP Industries Through Its Proprietor Mr. Nikhil R Upadhyay Pg. No. 3/6 details of defendant : Ex. PW1/4
vi) Copy of GST Tax Invoices and e-way bills : Ex. PW1/5 (Colly.) (from page no. 26 to 32)
vii) Copy of Account ledger being maintained by plaintiff : Ex. PW1/6
viii) Copy of legal notice dated 10.08.2023 : Ex. PW1/7
ix) Postal receipts alongwith tracking report : Ex. PW1/8
x) Screenshot of Whatsapp chats, emails with the defendant : Ex. PW1/9 (Colly.) (from page no. 34 to 103)
xi) Certificate U/s 65B of Indian Evidence Act in support of GST registration certificate, GST details of defendants, ledger account, legal notice and other documents : Ex. PW1/10
6. Upon being examined as such, PE was closed and final arguments were advanced.
7. Submissions heard. Case file perused.
8. It is to be noted that the testimony of PW1 has gone entirely unrebutted / unassailed and there is nothing on record which casts a doubt on the same. Documents placed on record have been duly proved. The suit is seen to be filed within the period Civ Suit No. 748/2023 M/s Precious Techno Engineering Through Its Proprietor Mrs. Indira Singh Vs. MEP Industries Through Its Proprietor Mr. Nikhil R Upadhyay Pg. No. 4/6 of limitation as well. Considering the same and in view of the evidence led, suit of the plaintiff is entitled to be Decreed.
9. It is noted that the plaintiff has sought recovery of a total amount of Rs. 1,40,396/- alongwith sum of Rs. 9,800/- calculated towards interest and pendente-lite & future interest @ 18% p.a. Such rate of late payment interest however is not only unreasonable but also excessive. Superior courts have repeatedly laid down that high & unconscionable rates of interests / charges are in essence against public policy and by implication void under Section 23 of the Indian Contract Act, 1872 ("ICA"). Also, as per Section 74 of ICA as well, even in cases of stipulation by way of penalty provided for breach of any terms of contract, only reasonable compensation is liable to be awarded & not always the penalty amount, which may be exorbitant.
10. In this regard in fact, Section 34 CPC postulates the pendente- lite interest at a rate, not exceeding 6% and any other interest at a rate, not exceeding the rate, at which nationalized banks advance loan may be awarded.
11. Keeping the above statutory stipulations in mind, it shall be in fitness of things if plaintiff is granted pendente-lite simple rate of interest @ 6% per annum and rate of interest @ 9% per annum from 13.04.2023 (date of last sales booked as per ledger) till the date of filing of the suit as late payment interest / charges and future interest at such rate as well till its realization within the meaning of Section 74 of the Indian Contract Act, 1872.
Civ Suit No. 748/2023M/s Precious Techno Engineering Through Its Proprietor Mrs. Indira Singh Vs. MEP Industries Through Its Proprietor Mr. Nikhil R Upadhyay Pg. No. 5/6
12. No evidence has been led qua the relief sought for litigation costs like legal notice charges and pleader's fee. As such therefore, such relief is declined.
RELIEF
13. From the discussion as hereinabove, the following order is passed :
FINAL ORDER A. A decree of Rs. 1,40,396/- is passed in favor of the plaintiff and against the defendant. Together with the same, plaintiff is held entitled to pendente-lite simple rate of interest @ 6% per annum and rate of interest @ 9% per annum from 13.04.2023 (date of last sales booked as per ledger) till the date of filing of the suit as late payment interest / charges and future interest at such rate as well till its realization and the same is also payable by the defendant.
B. Costs of the suit are also awarded to the plaintiff, payable by the defendant.
Decree-sheet be prepared accordingly.
File be consigned to Record Room after necessary compliance.Digitally signed by GAURAV SHARMA
Announced in the open Court GAURAV Date:
SHARMA on 24.12.2024 2024.12.24 16:01:57 +0530 (Gaurav Sharma) JSCC-cum-ASCJ-cum-Guardian Judge East/KKD Courts/Delhi 24.12.2024 Civ Suit No. 748/2023 M/s Precious Techno Engineering Through Its Proprietor Mrs. Indira Singh Vs. MEP Industries Through Its Proprietor Mr. Nikhil R Upadhyay Pg. No. 6/6