Delhi District Court
M/S Scj Plastics Ltd vs M/S Sriniwas Cable Components on 23 November, 2015
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IN THE COURT OF SHRI RAJ KUMAR CHAUHAN : ADDITIONAL DISTRICT
JUDGE04 : SOUTH DISTRICT : SAKET COURTS : NEW DELHI
Suit No. 387/14
In the matter of:
M/s SCJ Plastics Ltd.
F3/1011, Okhla Industrial Area
PhaseI
New Delhi110020 ...................Plaintiff
Versus
M/s Sriniwas Cable Components
7E, Industrial Area
Malanpur477117 (MP)
Also at:
C/o Sriniwas Synthetic Packers Pvt Ltd.
7B, Industrial Area
Malanpur477117 (MP)
Also At:
Through Mr. Vijendra Kumar Bhuraria, Director
Sriniwas Synthetic Packers Pvt Ltd.
Saboo Bhavan, Naya Bazar,
Gwalior474009 (MP)
Also At:
Through its authorized person
Mr. Mukesh Khandelwal
River View Colony
Morar, Gwalior (MP) ...............Defendant
Date of institution of the suit:19.09.2009
Date reserved for judgment:20.11.2015
M/s SCJ Plastics Ltd. Vs. M/s Sriniwas Cable Components ....1 of 7
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Date of pronouncement of judgment: 23.11.2015
Suit for recovery of Rs. 3,00,550/ under order XXXVII CPC.
EXPARTE J U D G M E N T :
1.The plaintiff has instituted the present suit for recovery of Rs. 3,00,550/ alongwith pendente lite and future interest interalia alleging that defendant is a partnership firm and had purchased from plaintiff master batches worth Rs. 1,65,708/ for which plaintiff raised two bills dated 20.09.2006 and 16.10.2006 respectively as under: Bill No. Date Amount (in Rs.) 3017 20.09.2006 84,792/ 3440 16.10.2006 80,916/
2. The defendant has also issued two road permits as detailed in bills and the material as detailed in the said two bills was sent to the defendant by the plaintiff from Delhi through transporter "Sri Mohan Road Lines"; the defendant has not made payment to the plaintiff of said purchase of material against the said two bills despite repeated demands by the plaintiff and repeated assurance by the defendant to make the payments alongwith interest.
3. The material was supplied to the defendant subject to issuance of Sale Tax Form "C" certificate which defendant failed to issue to the plaintiff, therefore, defendant was liable to pay additional sale tax @ 06% alongwith penalty @ 18% per annum. Thus, a sum of Rs. 5,546/ was due from the defendant to the plaintiff on account of said additional sale M/s SCJ Plastics Ltd. Vs. M/s Sriniwas Cable Components ....2 of 7 : 3 :
tax of Rs. 10,100/ and penalty of Rs. 5,546/. The defendant was therefore liable to pay total sum of Rs. 3,00,550/. The plaintiff has sent a legal notice dated 14.09.2009 to the defendant by way of registered post which was not received back and has been served upon the defendant but the defendant did not make the payment of the due amount. Hence, the present suit has been instituted by the plaintiff for recovery of the suit amount of Rs. 3,00,550/ alongwith interest @ 24% per annum.
4. The defendant remained unserved and were ordered to be served in "Jan Jan Jagran" Gwalior edition by way of publication. However, the defendant was served through publication in the newspaper "Rashtriya Sahara" Gwalior edition dated 18.04.2014, but no one appeared and accordingly on 29.04.2014, the defendant was proceeded exparte.
5. The plaintiff has examined Sh. Deepak Kumar, AR for plaintiff company as PW1 who has filed his affidavit Ex.PW1/A.
6. PW1 has also filed written arguments.
7. PW2 Sh. Biju Chacko has filed additional affidavit with regard to certificate under section 65B Indian Evidence Act.
8. I have perused the written arguments and affidavit of witnesses.
9. PW1 Sh. Deepak Kumar has proved authorized resolution dated 15.09.2009 in his favour as Ex.PW1/1, registration certificate of the company as Ex.PW1/2. He has proved the statement of account of defendant maintained by plaintiff as Ex.PW1/5, legal notice dated M/s SCJ Plastics Ltd. Vs. M/s Sriniwas Cable Components ....3 of 7 : 4 :
14.09.2009 as Ex.PW1/6, registered AD post Ex.PW1/7. He has proved two bills as Ex.PW1/3 and Ex.PW1/4.
10. In affidavit Biju Chacko has proved the certificate under section 65B Indian Evidence Act as Ex.PW2/1. The said certificate is with regard to the statement of account which is computerized and proved as Ex.PW1/5.
11. In the written arguments plaintiff has reiterated the averments which are mentioned in the plaint and are part of their affidavit stating that there are stipulation on all the invoices with regard to the payment of interest @24% at the delayed payment. He further argued that the transaction between the parties was commercial in nature, therefore, plaintiff is entitled to the interest at the same rate which is mentioned in the stipulation on the invoices. It is also argued that in view of law laid down by Hon'ble High Court of Delhi, in 119 DLT 442(DB), the plaintiff is entitled to claim 06% Central Sales Tax claim on account of inability of defendant to supply form C despite repeated payments.
12. With regard to the territorial jurisdiction it is argued that the purchase orders were received and accepted by the plaintiff in their office at New Delhi and the goods were dispatched by the plaintiff to the defendant from Delhi through transporter and the same were sent subject to Delhi jurisdiction and the defendant was required to make the payment at New Delhi and as such cause of action has arisen in Delhi within the M/s SCJ Plastics Ltd. Vs. M/s Sriniwas Cable Components ....4 of 7 : 5 :
jurisdiction of the present court.
13. Lastly, it is argued that evidence of the plaintiff is unchallenged therefore, in view of the unrebutted evidence the plaintiff is entitled to claim the suit amount alongwith interest stating that the suit be decreed alongwith interest @12% per annum from the date of filing of the present suit till realization of the decreetal amount.
14. I have considered the submissions as mentioned in the written arguments and carefully examined the evidence on record. The plaintiff has succeeded in proving from evidence the supply of goods to the defendant vide bills Ex.PW1/3 and Ex.PW1/4. The statement of account Ex.PW1/5 shows that the account of the defendant maintained by plaintiff in its books of accounts is showing debit against the defendant for a sum of Rs.1,65,708/. The legal notice Ex.PW1/6 has been proved to have been sent through registered post vide Ex.PW1/7 dated 14.09.2009. In view of the contents of the invoices Ex.PW1/3 and Ex.PW1/4 which is raised from Delhi office and further the evidence of plaintiff remained unrebutted, the court in Delhi has jurisdiction to entertain the present suit.
15. The invoices are dated 20.09.2006 and 16.10.2006 and the suit has been instituted on 23.09.2009 i.e. within three years of raising of invoice and is found to be within the period of limitation. In the suit amount the plaintiff has included the invoice amount of Rs. 1,65,708/. The plaintiff has M/s SCJ Plastics Ltd. Vs. M/s Sriniwas Cable Components ....5 of 7 : 6 :
included sum of Rs. 1,19,196/ as interest amount from the date of said payment became due till the filing of the present suit @24% per annum. The plaintiff has included Rs. 15,646/ as the additional sale tax @ 06% alongwith pendente lite alongwith interest which includes penalty of Rs. 5,546/. The plaintiff has claimed Rs. 3,00,550/ in total as suit amount. Admittedly, the plaintiff has not filed on record any proof of payment of sale tax on the invoices raised for the goods supplied to the defendant.
16. In the absence of any evidence on record with regard to payment of sale tax, the plaintiff is not entitled to claim sale tax amount alongwith penalty and interest therein.
17. With regard to the interest @24% per annum on the delayed payment, there is a stipulation on the invoices Ex.PW1/3 and Ex.PW1/4 in that regard. That stipulation is being claimed as an agreement by the plaintiff towards payment of interest by the defendant. The plaintiff has neither alleged nor proved in evidence that the said invoices has been duly accepted by signing of the same by the defendant or authorized representative of the defendant. In the absence of any acceptance of these invoices by the defendant, this stipulation with regard to interest @ 24% could not be considered to be a valid agreement in that regard between the parties. However, after raising of invoices it has been proved by the plaintiff in evidence that the defendant was bound to make the payment of invoice amount and the same is not paid by the defendant as M/s SCJ Plastics Ltd. Vs. M/s Sriniwas Cable Components ....6 of 7 : 7 :
such it has become a sum due against the defendant from the plaintiff and is covered by definition of debt as provided in the Interest Act, 1978. The plaintiff is therefore entitled to claim interest on the said debt @ 12% per annum from the date of invoice till the filing of the present suit. Since the nature of transaction is commercial, end of justice shall be met if pendente lite and future interest is allowed at the same rate on the decreetal amount.
18. In view of the abovesaid discussion, the plaintiff is accordingly entitled to a sum of Rs. 1,19,196/ alongwith interest @12% per annum from the date of invoice i.e. 16.10.2006 till realization of the decreetal amount. Cost of the suit is also allowed in favour of plaintiff and against the defendant.
19. Decree sheet be prepared accordingly after filing of deficient court fees, if any, by the plaintiff.
20. File be consigned to record room after due compliance. Dictated and announced in the open court on 23.11.2015 (RAJ KUMAR CHAUHAN) ADJ04 (South) Saket Courts / New Delhi 23.11.2015 M/s SCJ Plastics Ltd. Vs. M/s Sriniwas Cable Components ....7 of 7