Delhi District Court
M/S Scj Plastics Ltd vs M/S Shree Rajventech Power Cab Ltd on 17 September, 2011
IN THE COURT OF SHRI RAJ KUMAR TRIPATHI,
ADDITIONAL SENIOR CIVIL JUDGE (SOUTH),
SAKET COURTS, NEW DELHI.
CS No. 518/2011
I.D No. 02406C0457672010
M/s SCJ Plastics Ltd.,
F3/1011, Okhla Industrial Area,
PhaseI,
New Delhi 110 020 Plaintiff
versus
M/s Shree Rajventech Power Cab Ltd.,
G954, RIICO Industrial Area,
PhaseIII, Bhiwadi
Alwar (Rajasthan)
Defendant
DATE OF INSTITUTION : 24.02.2010
DATE OF RESERVING JUDGMENT : Not Reserved.
DATE OF PRONOUNCEMENT : 17.09.2011
SUIT FOR RECOVERY OF RS. 76,600/ (RUPEES SEVENTY
SIX THOUSAND SIX HUNDRED ONLY) UNDER ORDER
XXXVII CPC
JUDGMENT
1. This is a suit filed under Order XXXVII of The Code of Civil Procedure (in short "CPC") by plaintiff for recovery of liquidated sum CS No. 518/2011 Page 1 of 5 of Rs. 76,600/ along with interest. After the summons of the suit were issued to defendant in the prescribed form as defined under Order 37 (2) (Sub Rule 2) CPC, defendant has not entered its appearance.
2. The defendant remained absent despite service of summons upon it at G954, RIICO Industrial Area, PhaseIII, Bhiwadi, Alwar (Rajasthan).
3. I have heard learned counsel for plaintiff at considerable length and have perused the record.
4. The suit has been filed through Shri Deepak Kumar who is duly authorized to sign, verify, institute and pursue the present suit against the defendant on behalf of plaintiff by means of a resolution dated 28.3.2009 passed by the Board of Directors of the plaintiff company in his favour. On 23.2.2007 vide bill No. 5491 the defendant purchased from the plaintiff master batches worth Rs. 45,325/ on credit of 45 days. The payment of said purchase of material was to be made by the defendant to the plaintiff at its office at F3/1011, Okhla Industrial Area, PhaseI, New Delhi 110 020 within the credit period of 45 days. The defendant has not made payment of the purchase of material till date. As per condition stipulated in the bill on delayed payment, the defendant is liable to pay to the plaintiff interest @ 24% per annum from the date the payment became due i.e 10.4.2007 till CS No. 518/2011 Page 2 of 5 realization. It is stated that defendant is liable to pay a sum of Rs. 31,275/ as interest on the bill amount after calculating the interest @ 24% per annum from the date the payment became due till date. The plaintiff sent a legal notice dated 28.7.2008 to defendant by registered post on their correct address and demanded the said payment with interest. The defendant despite service of legal notice neither replied to the legal notice nor made the payment. The suit is based on a bill no. 5491 of Rs.45,325/, which is placed on record by plaintiff hence the same is covered within the provisions of Order 37 CPC and is also tendered within limitation.
5. There is no relief claimed by plaintiff which does not fall within the ambit of the provisions of Order, 37 CPC.
6. It is useful to refer the relevant provisions of law which are as under: Order XXXVII Rule 3(1) CPC.
(1) In a suit to which this Order applies, the plaintiff shall, together with the summons under rule 2, serve on the defendant a copy of the plaint and annexures thereto and the defendant may, at any time within ten days of such services, enter an appearance either in person or by pleader and, in either case, he shall file in court an address for service of notice on him.
CS No. 518/2011 Page 3 of 5 Order XXXVII Rule 2(3) CPC.
(3) The defendant shall not defend the suit referred to in sub rule(1) unless he enters an appearance and in default of his entering an appearance the allegations in the plaint shall be deemed to be admitted and the plaintiff shall be entitled to a decree for any sum, not exceeding the sum mentioned in the summons, together with interest at the rate specified, if any, up to the date of the decree and such sum for costs as may be determined by the Hon'ble High Court from time to time by rules made in that behalf and such decree may be executed forthwith.
7. In view of the above mentioned provisions of law, it is clear that if the defendant makes default in entering its appearance within ten days from the date of service of summons upon him, the allegations as leveled in the plaint shall be deemed to be admitted and the plaintiff shall be entitled to a decree. As per record, the defendant stood served with the summons of the suit in prescribed proforma on 04.03.2011. Till date, no appearance has been entered into by the defendant and accordingly the allegations leveled in the plaint are deemed to be admitted by it, entitling the plaintiff to a decree straightway.
8. The plaintiff has placed on record board resolution dated 28.3.2009, bill/invoice no. 5491 of Rs. 45,325/, statement of account and notice U/S 433 and 434 of The Companies Act and also U/O 37 CPC. The documents placed on record by the plaintiff shows that CS No. 518/2011 Page 4 of 5 defendant entered in a commercial transaction with the plaintiff company. The defendant failed to pay the outstanding against it to the plaintiff company. The details of account of defendant shows that the defendant is liable to pay a sum of Rs.45,325/ as outstanding amount.
9. The plaintiff has claimed pendentelite & future interest @ 24% per annum. Plaintiff has produced nothing on record to show its entitlement for such exorbitant rate of interest i.e. 24% per annum. In these circumstances, the plaintiff is entitled for interest only at the prevailing bank rate. Since the defendant entered in a commercial transaction with the plaintiff company, therefore, in the facts & circumstances of the case, the defendant is directed to pay interest @ 12% per annum.
10. Hence, in the given circumstances as well as the submissions made by counsel for plaintiff, suit of the plaintiff is decreed with costs against defendant. Defendant is directed to pay a sum of Rs.45,325/ to the plaintiff with interest @ 12% per annum w.e.f 10.4.2007 till its realization. Decreesheet be prepared. File be consigned to record room.
(Announced in open Court (Raj Kumar Tripathi)
on 17.09.2011) Additional Senior Civil Judge (South)
Saket Courts, New Delhi.
CS No. 518/2011 Page 5 of 5