Bangalore District Court
M/S Klenkraft Corp vs M/S Jain Housing And Constructions Ltd on 15 March, 2025
Com.OS.No.263/2024
KABC170004852024
IN THE COURT OF LXXXV ADDL. CITY CIVIL & SESSIONS
JUDGE, AT BENGALURU (CCH-86) (Commercial Court)
THIS THE 15th DAY OF MARCH 2025
PRESENT:
SRI.ARJUN. S. MALLUR. B.A.L.LL.B.,
LXXXV ADDL. CITY CIVIL & SESSIONS JUDGE,
BENGALURU.
Com.OS.No.263/2024
BETWEEN:
M/S Klenkraft Corp
A Registered Partnership Firm,
Represented by its Partners,
A) Sri. Alkesh Maganlal Jain
S/O Late. Maganlal Jain,
Aged 35 years,
B) Smt. Komal Dushyanth,
W/O Sri.Dushyanth,
Aged 45 years,
2nd Floor, No.3, (Old No.23),
2nd Cross, Marenhalli Village,
21st Main Road,
J.P. Nagar, 2nd Phase,
Bengaluru - 560078
: PLAINTIFF
(Represented By Sri.H J Sanghvi , Advocate.)
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Com.OS.No.263/2024
AND
1. M/S Jain Housing
By Its Directors,
Ashok Mehta And Others
No.36,Jubilee Hills,
Hydrabad-500030
2:M/s. Jain Housing,
By Its Directors,
Ashok Mehta And Others,
No.98/99, Habibulla Road,
T. Nagar, Chennai-600017.
: DEFENDANTS
(Represented By Sri.Y.V. Prakash , Advocate)
Date of Institution of the suit 15-02-2024
Nature of the suit (suit on
pronote, suit for declaration & Suit for recovery
Possession, Suit for injunction
etc.)
Date of commencement of 08-07-2024
recording of evidence
Date on which judgment was 15-03-2025
pronounced
Total Duration Year/s Month/s Day/s
01 01 0
(ARJUN. S. MALLUR)
LXXXV Addl.City Civil & Sessions Judge,
Bengaluru.
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Com.OS.No.263/2024
JUDGMENT
Suit for recovery of a sum of Rs.14,66,157/-(Rupees Fourteen Lakhs Sixty Six Thousand One Hundred and Fifty Seven Only) with interest at 18% p.a. from the date of suit till realization.
2. The case of the plaintiffs in brief is as under:-
The plaintiff is a registered partnership firm carrying on business in hardware products, reputed metal brands, luxurious locks, door fittings, furniture and construction goods for the period from 01.04.2019 to 31.01.2024. The defendants have purchased goods on credit basis for a sum of Rs.21,25,451/- and made a part payment of Rs.13,63,256/-. The defendants were due in a sum of Rs.7,62,195/- as on 31.03.2020. The defendants inspite of repeated demands had not paid the balance amount of Rs.7,62,195/- on which they are also liable to pay 18% interest. The plaintiff issued a legal notice dated 04.05.2022 calling upon the defendants to make good the payments for which the defendants gave an untenable reply. The plaintiff initiated PIM proceedings under Sec.12A of the Commercial Courts Act 2015 in PIM 3 Com.OS.No.263/2024 No.724/2023 in which the defendants failed to participate and the same was closed as a non-starter. Hence the suit.
3. On service of summons the defendants filed written statement contending that the plaintiff has received entire amounts due from the defendants in respect of the transactions between them and the present suit is filed only to make an unlawful gain by fabricating false and baseless documents and the present suit claim is without any basis what so ever. It is further submitted that the defendant No.2 has been wrongly made as party and no cause of action lies against defendant No.2 and that the claim of the plaintiff which is with respect to the transactions made in the year 2019 and the suit being filed in 2024 is hopelessly barred by time. The defendants have denied all other plaint averments and contended that only to unjustly enrich themselves and make an unlawful gain the present false and frivolous suit has been filed and that the defendants have suitable replied to the legal notice sent by the plaintiff and absolutely no cause of action arose for the suit and on these grounds the defendants have sought for dismissal of the suit with costs.
4Com.OS.No.263/2024
4. On the basis of the above pleadings the following issues and additional issues have been framed:
ISSUES
1) Whether the plaintiff proves that defendants are liable to pay sum of Rs.14,66,157/- with interest @ 18% per annum with respect to the amount due under the goods supplied to them?
2) Whether the defendants substantiate that the claim of the plaintiff is based on fabricated and concocted invoices and they are not liable to pay the suit claim?
3) Whether the suit of plaintiff is barred by limitation?
4) Whether the plaintiff is entitled for the suit claim as prayed?
5) What order or decree?
5. The partner of the plaintiff examined himself as P.W.1 and has got marked documents at Ex.P-1 to Ex.P-15. The authorized signatory of the defendant examined himself as D.W.1 and got marked documents at D.1 to D.9.
5Com.OS.No.263/2024
6. Heard the learned counsel appearing for the plaintiff and the defendant. Perused the entire material on record.
7. My answer to the above issues are as under:-
Issue No.1 : Partly in the Affirmative. Issue No.2 : In the Negative.
Issue No.3 : In the Negative.
Issue No.4 : Partly in the Affirmative. Issue No.5 : As per final order for the following.
REASONS
8. ISSUE NOs.1 and 4: These issues being interlinked with each other to avoid repetition of facts and evidence there are taken up together for answering.
The plaintiff has filed the suit claiming a sum of Rs.14,66,157/- with interest at Rs.18% p.a. The claim includes the balance amount due as on 31.03.2020 amounting to Rs.7,62,195/-, interest at 18% p.a. on the said amount from the date of invoice till date of suit at Rs.6,77,962/-, notice charges at Rs.25,000/- and PIM charges of Rs.1,000/-. It is the specific case of the plaintiff that as per the running account statement as on 31.03.2020 the defendant were due in a sum of 6 Com.OS.No.263/2024 Rs.7,62,195/- towards the purchases made by them under the credit invoices. Per contra the defendant contends that whatever the amounts that was payable to the plaintiff has been duly paid and there is no amount due left and that the claim of the plaintiff is based on fabricated and concocted documents only to make an unlawful gain.
9. The partner of the plaintiff firm has examined himself as P.W.1 reiterating the averments made in the plaint. He has got marked documents at Ex.P.1 to P.15. Ex.P.1 is the non-starter report in PIM No.724/2023. Ex.P.2 is the legal notice sent to the defendants with respect to the suit claim. In the said notice the suit claim is with respect to the goods supplied under invoice Nos. 12/2019-20, 13/2019-20, 20/2019-20, 23/2019/20, 24/2019-20, 33/2019-20 totaling a sum of Rs.21,25,451/- with respect to which part payment of Rs.13,63,256/-paid. Ex.P.3 is the reply to the said notice in which except stating that the defendants are shocked on receiving the notice with respect to the outstanding amount and calling upon the plaintiff to share the relevant purchase orders, delivery challans, invoices and bills for further processing there is 7 Com.OS.No.263/2024 no specific denial regarding the amount due claimed under the said notice. Ex.P.4 is the certificate of registration of plaintiff firm. Ex.P.5 is the account statement extract and the ledger extracts showing the outstanding dues as on 31.01.2024. Ex.P.6 to Ex.P.8 are the invoices under which the claims have been made with respect to the balance due. Ex.P.9 is the certificate under Indian Evidence Act. Ex.P.10 to P.12 are the emails carrying the purchase order and the delivery challan along with e-way bills with respect to supply of goods on credit basis under the invoices at Ex.P.6 to P.8. Ex.P.13 is the mails sent by the defendants. Ex.P.14 is the whatsapp communications regarding the admission of outstanding dues. Ex.P.15 is the certificate under Sec.63(4) of BSA 2023.
10. Against the evidence of the plaintiff the defendant has examined its authorized signatory as D.W.1 who has reiterated the averments made in the written statement. He has got marked documents at Ex.D.1 to D.9. Ex.D.1 to D.5 are the authorization letters issued by defendant Nos. 1 and 2, certificate of registration of defendant No.1 and memorandum of association and articles of association of 8 Com.OS.No.263/2024 the defendants. Ex.D.6 to D.8 are the bank statements for the period 01.04.2019 to 31.03.2020 and 31.03.2019 to 25.09.2021 standing in the name of the defendants. Ex.D.9 is the certificate under Sec.63(4)(c) of BSA 2023.
11. As already mentioned above the defense of the defendant is a complete denial of the plaint averments. No specific defense has been put forth except stating whatever the amounts that were due to be paid to the plaintiff has already being paid and there is nothing left to be paid to the plaintiff. This is more in the nature of general defense. The defendant also does not specifically put forth any defense regarding fabrication and falsification of documents for making an unlawful gain. Except stating that the suit is based on fabricated documents nothing is elicited in the entire cross- examination of P.W.1 to infer that the documents on which the claim is based is fabricated and concocted. Prior to filing of the suit notice under Ex.P.2 has been sent to the defendants wherein it has been clearly explained with regard to the goods supplied under the credit invoices produced at Ex.P.6 to P.8 the part payments made under those invoices and the balance due under the said 9 Com.OS.No.263/2024 invoices. To the said amount interest has been levied together amounting to the suit claim. In the reply notice at Ex.P.3 except stating that the defendants were shocked on receiving the said notice of demand and calling upon the plaintiff to provide the required documents nothing has been specifically put forth. In fact in the reply notice there is nothing to say that the amounts claimed under the invoices of which details are given in the notice are false and fabricated documents. Only for the first time in the written statement such a defense has been raised which has no foundation what so ever and nothing is forthcoming in the cross-examination of P.W.1 to infer that the claim is based on fabricated and concocted invoices. Even in the defendant evidence also nothing is forthcoming to conclude that the claim of the plaintiff is based on concocted documents. The statement of accounts that has been produced at Ex.P.6 to P.8 only carry the transactions of the defendant and no where it shows regarding the payments that has been completely made towards the amounts claimed under the invoices at Ex.P.6 to P.8. The defendants have not bothered to get the relevant entries marked nor P.W.1 has been confronted those relevant entries to infer that amounts 10 Com.OS.No.263/2024 with respect to those invoices have been completely paid to the plaintiff and nothing due is left. Therefore under these circumstances it can be held without hesitation that the defendants are utterly failed to put forth any circumstances that would render the defense probable and acceptable and hold that the claim of the plaintiff is based on fabricated and concocted documents. On the other hand the invoices with respect to which the relevant purchase orders and the e-way bills produced at Ex.P.10 to P.14 clearly stipulates supply of the goods on credit basis to the defendants for a total sum of Rs.21,25,451/- and as per the statement of accounts the part payments of Rs.13,63,256/- has been paid by the defendants. There is a balance amount of Rs.7,62,195/- due to be paid which the defendant is liable to pay together with interest as claimed in the suit. In addition to the interest with respect to the amount due under the invoices the plaintiff also claims a sum of Rs.25,000/- towards notice charges and a PIM Charges of 1,000/-for which plaintiff would not be entitled and plaintiff would only be entitled to recover a sum of Rs.14,40,157/- which is the defendant is liable to pay with interest at 18% p.a. Accordingly I answer Issue No1 and 4 partly in the Affirmative.
11Com.OS.No.263/2024
12.Issue Nos.2 and 3:- The defendants have specifically contended in the written statement that the claim of the plaintiff is based on fabricated and concocted invoices and therefore they are not liable to make good the suit claim. As already held under issue Nos.1 and 4 the defendants have failed to put forth and substantively prove the cogent and satisfactory evidence regarding the credit invoices being concocted and fabricated. No iota of evidence or circumstances brought out to infer that the invoices produced at Ex.P.6 to P.8 are concocted documents. Even in its evidence the defendants have failed to prove that the suit claim is based on fabricated and concocted documents.
13. Apart from the said defense another defense taken that is the suit is barred by limitation. According to the plaintiff the cause of action arose when the part payment was paid the defendant on 02.01.2020. On account of outbreak of Covid-19 the period from 01.03.2020 to 15.03.2021 has been excluded from the period of computing the limitation. Prior to filing of the suit the plaintiff initiated PIM proceedings and the application came to be filed on 21.03.2023 which is within the period 12 Com.OS.No.263/2024 of limitation after excluding the Covid period and therefore it is to be held that the suit is within the period of limitation also no evidence is lead before the Court by the defendants to infer that the claim is hopelessly time barred. Hence for the aforesaid reasons I answer Issue Nos.2 and 3 in the Negative.
14. ISSUE No.5:- For the aforesaid reasons, I pass the following.
ORDER Suit of the plaintiff is decreed in part with costs.
The defendants are jointly and severally liable to pay to the plaintiff a sum of Rs.14,40,157/-(Rupees Fourteen Lakhs Fourty Thousand One Hundred and Fifty Seven Only) with interest at 18% p.a. from the date of suit till realization Office to send soft copy of the judgment to respective parties on their email if furnished.
13Com.OS.No.263/2024 Draw decree accordingly.
[Dictated to the Stenographer Grade-III, transcribed by her, corrected and signed by me then pronounced in the Open Court, dated this the 15th day of March 2025] ARJUN Digitally signed by ARJUN SRINATH SRINATH MALLUR Date: 2025.03.17 MALLUR 13:14:40 +0530 (ARJUN. S. MALLUR) LXXXV Addl.City Civil & Sessions Judge, Bengaluru.
ANNEXURE LIST OF WITNESSES EXAMINED ON BEHALF OF PLAINTIFF:
PW-1 Sri.Alkesh Jain LIST OF DOCUMENTS EXHIBITED ON BEHALF OF THE PLAINTIFF Ex.P.1 Certified copy of non starter report in PIM 724/2023.
Ex.P.2 Copy of the legal notice dated 04.05.2022. Ex.P.3 Reply notice dated 19.05.2022. Ex.P.4 Partnership registration certificate.
Ex.P.5 Statement of accounts. Ex.P.6 to Credit invoices bearing Nos.33, 24 and 23. 8 Ex.P.9 Certificate u/S 65B of Indian Evidence Act.
Ex.P.10 to Email from defendant along with copy of 12 the purchase order and copy of e-way bill -
invoice No.23 dated 07.11.2019, invoice 14 Com.OS.No.263/2024 No.24 dated 07.11.2019, invoice No.33 dated 27.12.2019.
Ex.P.13 Email printout of the defendant dated 29.07.2020.
Ex.P.14 Printouts of watsapp communications exchanged between us.
Ex.P.15 Certificate u/S 63(4) of BSA and Certificate u/S 65B of Indian Evidence Act.
LIST OF WITNESSES EXAMINED ON BEHALF OF THE DEFENDANT D.W.1 Sri. Girish Jain LIST OF DOCUMENTS EXHIBITED ON BEHALF OF THE DEFENDANT Ex.D.1 & True copies of the authorization letters
2. issued by defendants 1 and 2.
Ex.D.3 True copy of the certificate of registration with respect to defendant No.1.
Ex.D.4 & True copy of Memorandum of Association 5 and Articles of Association of the defendants.
Ex.D.6 Bank statement for the period 01.04.2019 to 31.03.2020 with respect to account No.000105501078.
Ex.D.7 Bank statement for the period 01.04.2019 to 31.03.2020 with respect to account No.000905011434.
Ex.D.8 Bank statement for the period 31.03.2019 to 25.09.2021 with respect to account 15 Com.OS.No.263/2024 No.1213115000010201.
Ex.D.9 Certificate u/S 63(4)(C) of BSA, 2023 with respect to Ex.D.6 to D.8.
(ARJUN. S. MALLUR) LXXXV Addl.City Civil & Sessions Judge, Bengaluru.
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