Delhi District Court
Hello Verify India Pvt. Ltd vs Adecco India Private Limited on 8 July, 2024
IN THE COURT OF RAJESH KUMAR GOEL
District Judge (Commercial Court) -02,
Central, Tis Hazari
CS (COMM.) No. 1158/2022
CNR No. DLCT01030162022
Hello Verify India Private Ltd
Regd. Office B-44, Block B
Sector 57, Noida
Uttar Pradesh-201301 ......Plaintiff
Versus
1. Adecco India Private Limited
Brigade Metropolis, B-9, 13th Floor
ITPL Main Road, Gurudachar Palya
Mahadevpura, Bengaluri 560048
Karnataka, India
Also at
Samyak Tower, 39, Ist Floor
Pusa Road, Opp. Metro Pillar No.120
Karol Bagh,
New Delhi 110005
2. Mr. Ian Lee
3. Mr. Vincent Lopez Ane Soumya
Defendant No.2 and 3 are the Directors of
Defendant no.1 ......Defendants
Date of filing of suit : 27.04.2022
Date of Argument : 08.07.2027
Date of Judgment : 08.07.2024
Hello Verify India Pvt. Ltd
Vs Adecco India Pvt. Ltd & ors Date of Judgment 08.07.2024 (page 1 of 14 )
JUDGMENT
1. Vide this judgment, I shall dispose of the present suit for recovery of Rs.6,91,657/- (Rs Six Lakh Ninety One Thousand Six Hundred and Fifty Seven only) filed by Hello Verify India Private Ltd (herein after referred to as "Plaintiff company") against the defendant Adecco India Private Limited. Defendant no.2 Mr. Ian Lee and defendant no.3 Mr. Vincent Lopex Ane Soumya are stated to be directors of defendant no.1.
FACTUAL MATRIX
2. The brief facts of the case, as mentioned in the plaint are that plaintiff company is duly incorporated company in India having expertise in providing background-screening and KYC verification services; the services rendered by plaintiff company are very useful to its clients as the background checks and verifications of the candidate/employees/customers conducted by the plaintiff company help its clients in building Hello Verify India Pvt. Ltd Vs Adecco India Pvt. Ltd & ors Date of Judgment 08.07.2024 (page 2 of 14 ) successful relationship with their prospective employees/customer/clients.
3. It is the case of the plaintiff company that defendant no.1 company is incorporated under the Companies Act,1956 and is involved in assisting people in finding jobs ; defendant no.2 and 3 are directors of defendant no.1 company; somewhere in the month of February2020, defendant approached the plaintiff company and it was mutually agreed that the plaintiff company shall provide the services in respect of detailed, thorough and complete background verification check of existing employees of the defendant as well as the prospective candidates for employment sent by the defendant; plaintiff company started providing the said services to the defendant w.e.f February 2020; the service agreement between the parties was executed on 20.07.2020; plaintiff company used to issue invoices for the services rendered to the defendant and against the same the defendant used to make regular payments.
Hello Verify India Pvt. Ltd Vs Adecco India Pvt. Ltd & ors Date of Judgment 08.07.2024 (page 3 of 14 )
4. It is averred that the defendant has failed to make the payments against the following invoices:-
Sl. No Invoice No. Invoice date Total amount including GST ( in Rs)
1. EBS -2109 17.03.2020 Rs 1,652/-
2. EBS-2110 17.03.2020 Rs 11,564/-
3. EBS-2908 17.07.2020 Rs 29,913 /-
4. EBS-3284 31.08.2020 Rs 2,02,606/-
5. EBS-4198 06.01.2021 Rs4,45,922/-
Total Rs 6,91,657/-
5. It is further averred that despite various reminders including emails, telephonic messages and calls including letter dated 11.01.2021 of the plaintiff company, defendant failed to make the outstanding payment of Rs 6,91,657/- despite having availed the services duly provided to them by the plaintiff company as per agreement dated 20.07.2020; legal notice dated 14.07.2021 was sent to the defendant but outstanding amount was not paid.
6. The plaintiff company is said to have filed a pre-litigation mediation application before the Delhi Legal Services Authority, Central District, Tis Hello Verify India Pvt. Ltd Vs Adecco India Pvt. Ltd & ors Date of Judgment 08.07.2024 (page 4 of 14 ) Hazari Court against the defendants and the DLSA has released a non-starter report dated 10.02.2022.
Since, the outstanding payment was not cleared by the defendants, hence, the present suit was filed.
7. Summons of the suit were issued to the defendants but the defendants could not be served through ordinary process. Subsequently, on an application under order V rule 20 CPC moved on behalf of the plaintiff company, the defendants were served through publication in the newspaper namely 'Nav Bharat Times'( Delhi Edition in respect of Delhi address) dated 30.01.2024 and " Kannada Prabha" (Bengaluru Edition in respect of Bengaluru address) dated 30.01.2024 but despite the service through publication, defendants failed to appear therefore, defendants were proceeded exparte vide order dated 21.05.2024 and following issues were framed:--
1. Whether the plaintiff is entitled to the recovery of an amount of Rs 6,91,657/- as prayed for ? (OPP)
2. In case, if the issue no.1 is decided in affirmative, whether the plaintiff is entitled to the interest, as prayed for it he rate there off ? ( OPP)
3. Relief.
Hello Verify India Pvt. Ltd Vs Adecco India Pvt. Ltd & ors Date of Judgment 08.07.2024 (page 5 of 14 )
8. Thereafter, case was adjourned for exparte plaintiff evidence. In support of its case, plaintiff has examined one Himanshu Dawra, AR of the plaintiff company as PW1 and has filed his evidence by way of affidavit. PW1 has deposed on the lines of the averments made in the plaint in his evidence by way of affidavit Ex.PW1/A. He also relied upon / proved the following documents:-
S.no Document/Particulars Exhibit(s)
1. Resolution dated 25.06.2024 ExPW1/1 (colly) alongwith copy of employment ID and Aadhar Card of PW1 Himanshu Dawra
2. Service agreement dated ExPW1/12 20.07.2020 between the plaintiff and the defendant
3. Invoices ExPW1/3 (colly)
4. Letter dated11.01.2021 sent to ExPW1/4 the defendant seeking recovery of the outstanding dues
5. Legal notice dated 17.07.2021 ExPW1/5 6. Postal receipt ExPW1/6 7. Tracking report ExPW1/7
8. Certificate u/s 65 B of Indian ExPW1/8 Evidence Act
9. Non starter report dated ExPW1/9 10.02.2022 Hello Verify India Pvt. Ltd Vs Adecco India Pvt. Ltd & ors Date of Judgment 08.07.2024 (page 6 of 14 )
9. Vide order dated 08.07.2024, exparte plaintiff evidence was closed.
10. I have gone through the material available on record and heard the Ld. Counsel for the plaintiff .
Limitation
11. Section 3 of the Limitation Act,1963 requires that suits or the proceedings instituted after the prescribed period of limitation shall be dismissed. It is a statutory restriction of the right of action to certain periods of time, after the occurring of the cause of action beyond which, except in certain specific cases, it will not be allowed. The court is under a bounded duty to consider whether the suit is barred by limitation or not. Thus, firstly I shall deal with the issue of limitation.
12. The plaintiff company has filed the present suit for recovery of money, for which the limitation is three years from the date when the cause of action arises.
Hello Verify India Pvt. Ltd Vs Adecco India Pvt. Ltd & ors Date of Judgment 08.07.2024 (page 7 of 14 )
13. PW1 Himanshu Dawra in his affidavit ExPW1/A has categorically deposed that the service agreement dated 20.07.2020 ExPW1/2 between the parties, was duly signed and executed. The service agreement dated 20.07.2020 ExPW1/2 is on the record which appears to have been signed by the parties on 12.08.2020. Further, the last invoice is dated 06.01.2021. Therefore, the cause of action arose on all the aforesaid dates also . The present suit has been instituted on 27.04.2022, which is well within the period of limitation in all respects. The court is of the considered opinion that the plaintiff company has filed the present suit within the period of limitation as prescribed under the law.
Jurisdiction : Territorial as well as Pecuniary
14. Although, the defendant has already been proceeded exparte still it is the duty of the court to see whether this court has the jurisdiction to entertain and adjudicate the present dispute.
15. It is stated on behalf of the plaintiff company that office of the defendant no.1 is also situated at Hello Verify India Pvt. Ltd Vs Adecco India Pvt. Ltd & ors Date of Judgment 08.07.2024 (page 8 of 14 ) Karol Bagh, New Delhi which falls within the jurisdiction of this court. Further, the invoices ExPW1/3 (colly) would reveal that the address of the defendant mentioned in these invoices is of Karol Bagh, New Delhi, therefore, this court has territorial jurisdiction to try and entertain the present case.
16. Further, the Commercial Courts Act 2015 was amended on 03.05.2018 and by virtue of the amendment and by virtue of the notification, the pecuniary value of the Commercial Courts Act shall not be less than Rs.3,00,000/-. In the present case, the suit amount is Rs 6,91,657/- (Rs Six Lakh Ninety One Thousand Six Hundred and Fifty Seven only) and this Court is having the pecuniary jurisdiction also to adjudicate the dispute.
Entitlement Issue No.1 Whether the plaintiff is entitled to the recovery of an amount of Rs 6,91,657/- as prayed for ? (OPP)
17. Ld. Counsel for the plaintiff company submitted that the plaintiff company is entitled to Hello Verify India Pvt. Ltd Vs Adecco India Pvt. Ltd & ors Date of Judgment 08.07.2024 (page 9 of 14 ) the decree, as prayed for as the testimony of PW1 Himanshu Dawra has gone unchallenged and unrebutted. He has taken me to the averments made in the plaint and the evidence of the PW1 filed by way of the affidavit and submitted that PW1 Himanshu Dawra has proved all the relevant documents from ExPW1/1 to ExPW1/9. He further submitted that the defendants have chosen not to appear despite the service. Regarding the maintainability of the present case against the defendant no.2 and 3, Ld. Counsel for the plaintiff submitted that they have been made defendants as they are the directors of the defendant no.1 company.
18. At the outset, I may say that the present suit is not maintainable against the defendant no.2 and 3 as they are not personally liable for the acts of the defendant no.1 company. It is not the case of the plaintiff company that defendant no.2 and 3 were either the guarantors or some fraud has been played by them on the plaintiff company. Defendant no.1 being a corporate entity, has a separate legal entity and for the acts of the corporate entity the directors Hello Verify India Pvt. Ltd Vs Adecco India Pvt. Ltd & ors Date of Judgment 08.07.2024 (page 10 of 14 ) cannot be held personally liable, therefore, there is no cause of action as against defendant no.2 and 3.
19. The present case against the defendant no.2 and 3 fails for another reason also. The Non Starter report dated 10.02.2022 ExPW1/9 is on the record, which indicates that under the heading "name of the opposite party" at serial no.3, only the name of the defendant no.1 company has been shown and the said report is silent about the participation or the notice being given for pre-institution mediation to the defendant no.2 and 3. Therefore, the present case is hit by section 12 (A) of the Commercial Courts Act, 2015 as against the defendant no.2 and defendant no. 3.
20. As far as the case against defendant no.1 company is concerned, since, the defendants have chosen not to appear despite the service, therefore, the case of the plaintiff has gone unchallenged. The testimony of PW1 has gone un-rebutted and un- controverted and there is nothing on record to disbelieve the same. The plaintiff company has been able to establish on record that the plaintiff Hello Verify India Pvt. Ltd Vs Adecco India Pvt. Ltd & ors Date of Judgment 08.07.2024 (page 11 of 14 ) company and defendants entered into a service agreement ExPW1/2; plaintiff company raised invoices ExPW1/3 (colly) for a total sum of Rs 6,91,657/- for the services rendered to the defendant company which is still outstanding against the defendant but defendant has not paid any amount. Hence, the plaintiff company is entitled for recovery of Rs 6,91,657/- ( Rs Six Lakh Ninety One Thousand Six Hundred and Fifty Seven only) from defendant no.1. Issue no. 1 is answered accordingly.
21. Here it is pertinent to mention that plaintiff company has claimed the damages also in the sum of Rs 2,00,000/- but no evidence has been led by the plaintiff company in this regard. It has not been explained as to how the plaintiff company suffered the damages to the extent of Rs 2,00,000/-. Hence, the prayer of the plaintiff company qua the damages is declined.
Interest Issue No.2.
In case, if the issue no.1 is decided in affirmative, whether the plaintiff is entitled to the interest, as prayed for it he rate there off ? ( OPP) Hello Verify India Pvt. Ltd Vs Adecco India Pvt. Ltd & ors Date of Judgment 08.07.2024 (page 12 of 14 )
22. As regards the interest, the plaintiff company has claimed the interest @ 24 % p.a w.e.f 14.7.2021. Keeping in view the overall facts and circumstances of the case, Court is of the view that same is on higher side. Interest of justice would be met by awarding the interest @ 8% p.a. Accordingly, the plaintiff company is awarded the interest @ 8 % w.e.f 14.7.2021 till its actual realization.
Issue No.3 Relief
23. In view of my aforesaid discussion, the Court is of the view that the plaintiff company has been able to prove its case against the defendant no.1 . Thus, the suit is decreed in favour of plaintiff company and against the defendant no.1 and following reliefs are granted:-
(i.) The plaintiff company is entitled to recover Rs 6,91,657/- ( Rs Six Lakh Ninety One Thousand Six Hundred and Fifty Seven only) from the defendant no.1.
(ii.) The plaintiff company is also awarded the interest @ 8% per annum wef 14.07.2021 till actual realization.
Hello Verify India Pvt. Ltd Vs Adecco India Pvt. Ltd & ors Date of Judgment 08.07.2024 (page 13 of 14 ) (iii.) Cost of the suit is also awarded in favour of the plaintiff company.
24. Decree sheet be prepared accordingly after the payment of requisite court fees by the plaintiff company on the interest awarded for the period from 14.07.2021 to 27.04.2022 on the decreetal amount.
25. File be consigned to Record Room, after due compliance.
RAJESH Digitally signed by
RAJESH KUMAR GOEL
KUMAR Date: 2024.07.09
GOEL 15:19:56 +0530
(Rajesh Kumar Goel)
District Judge (Commercial)-02
Central, Tis Hazari Courts
08.07.2024
Announced in the Open Court
today i.e: 08.07.2024
Hello Verify India Pvt. Ltd
Vs Adecco India Pvt. Ltd & ors Date of Judgment 08.07.2024 (page 14 of 14 )