Delhi District Court
M/S A R Contractors And Suppliers vs Skyline Engineering Contracts on 4 September, 2024
IN THE COURT OF SH. GORAKH NATH PANDEY
DISTRICT JUDGE (COMMERCIAL COURT),
NORTH DISTRICT, ROHINI COURTS: DELHI.
CS (COMM.) 02/2021
CNR NO.DLNT010082842020
M/S. A. R. CONTRACTORS & SUPPLIERS
THROUGH ITS AR
SH. DEEPAK BASNAL
35, LUCKY HOME APARTMENT,
SECTOR - 13, ROHINI, DELHI - 110085
....Plaintiff.
VERSUS
SKYLINE ENGINEERING
CONTRACTS (INDIA) PVT. LTD.
THROUGH ITS CHAIRMAN/MANAGING DIRECTOR
HAVING ITS REGISTERED OFFICE AT
PLOT NO.4, GROUND FLOOR, KESHAR SINGH ESTATE
WESTED MARG, SAID-UL-AJAB,
M.B. ROAD, NEW DELHI - 110030.
........Defendant.
Date of Institution : 18.04.2023
Date of final arguments : 04.09.2024
Date of decision : 04.09.2024
Decision : Decreed.
J U D G E M E N T:-
1. This suit has been filed by the Plaintiff against the defendant for recovery of Rs.3,17,569.67 alongwith the pendente-lite and future interest @ 18% p.a. CS (COMM.) 02/2021 M/S. A. R. CONTRACTORS AND SUPPLIERS VS. SKYLINE ENGINEERING CONTRACTS Page no. 1 of 7
2. As contended, the plaintiff is engaged in construction and building works. The defendant approached the plaintiff for getting construction of building at one of its projects situated at 52 Avenue Noida, Plot No.E-1, Sector - 52, Noida, U.P. Work order was also executed between the parties and later on certain changes were made in the said agreement as per the requirements. As per Clause 15 (iv) of the agreement, the defendant had deducted 5% of the retention amount from every bill to an upper extent of Rs.3 lacs for the defect liability period. The said retention amount was payable by the defendant to the plaintiff after 6 months of completion of work. The plaintiff completed the work in the month of June, 2017 and raised final bill on 21.06.2017 for a sum of Rs.3,97,214/- which was duly paid by the plaintiff. After the expiry of defect liability period on 25.01.2018, the plaintiff asked the defendant to release the retention amount but in vain. The plaintiff also issued legal notice dated 13.10.20 calling upon the defendant to pay the retention amount which was neither replied nor the amount was paid. As per the plaintiff, the defendant is liable to pay Rs.2,12,412.28 towards the retention amount. Since the defendant has not paid the said amount, it is liable to pay interest thereon i.e. Rs.1,05,148.39 for the period January, 2018 till October, 2020 @ 18% per annum. The plaintiff also moved an application for pre- institution mediation before NDLSA. Since the defendant did not show interest in the pre-institution mediation, Non Starter Report dated 07.12.2020 was issued. Hence, the present suit CS (COMM.) 02/2021 M/S. A. R. CONTRACTORS AND SUPPLIERS VS. SKYLINE ENGINEERING CONTRACTS Page no. 2 of 7
3. The Defendant failed to appear despite being served with the summons nor filed written statement within the stipulated period as per Commercial Courts Act, 2015 and hence the defence of the defendant was struck off vide order dated 07.07.2023.
4. The Plaintiff examined its AR Sh. Deepak Bansal as PW1 to prove the case. The witness was not cross-examined on behalf of the Defendant. No evidence was led by the Defendant as well.
5. I have heard Learned Counsel for the Plaintiff and have perused the plaint, documents filed alongwith the same and the evidence led by the Plaintiff.
6. The brief and relevant facts for filing the present suit has been mentioned at the outset. The plaintiff examined its AR Sh. Deepak Bansal as PW1 to prove the case. He deposed by way of affidavit Ex.PW1/A reiterating the contents of the plaint. He has also proved the following documents:-
(1) Copy of GST Registration of Plaintiff Firm as Ex.PW1/1.
(2) Original authorization letter in favour of the AR as Ex.PW1/2.
(3) Original agreement between the Plaintiff Firm and Defendant Firm as Ex.PW1/3.
(4) Copy of last/final bill dated 21.06.2017 raised by the Plaintiff Firm to the Defendant Company as Ex.PW1/4.
CS (COMM.) 02/2021 M/S. A. R. CONTRACTORS AND SUPPLIERS VS. SKYLINE ENGINEERING CONTRACTS Page no. 3 of 7 (5) Copy of Bank Statement of Account of the Plaintiff Firm as Ex.PW1/5.
(6) Copy of Request Letter dated 25.01.2018 issued by the Plaintiff Firm to the Defendant Company as Ex.PW1/6.
(7) Carbon copy of legal notice as Ex.PW1/7.
(8) Original postal receipt as Ex.PW1/8.
(9) Statement of Account of the Defendant Company duly maintained in the ledger books of the Plaintiff Firm in ordinary course of business as Ex.PW1/9.
(10) Certificate u/s 65B of Indian Evidence as Ex.PW1/10.
(11) Office copy of mediation application with the office of DLSA, North District, Rohini Courts, Delhi on 12.11.2020 as Ex.PW1/11.
(12) Certificate of Non Starter Report dated 07.12.2020 as Ex.PW1/12.
7. As already noted hereinabove, PW-1 was not cross- examined on behalf of the Defendant. Hence, his testimony as well as the documents proved by him have remained uncontroverted. I see no reason to disbelieve his deposition as well as the documents proved by him. Considering the testimony of PW-1 and the documents proved by him, it is evident that the Plaintiff has proved his case against the defendant towards the CS (COMM.) 02/2021 M/S. A. R. CONTRACTORS AND SUPPLIERS VS. SKYLINE ENGINEERING CONTRACTS Page no. 4 of 7 principal amount of Rs.2,12,412.28. The issue no.(i) is decided accordingly.
The plaintiff has also claimed Rs.1,05,148.39 towards interest from January, 2018 till October, 2020 on the principal amount as well as pendente-lite and future interest @ 18% per annum from the date of filing of the suit till realization. The interest is payable as per Section 34 CPC. For ready reference, Section 34 CPC is reproduced hereunder:
Section 34 CPC: Interest
(i)"Where and in so far as a decree is for the payment of money, the Court may, in the decree, order interest at such rate as the Court deems reasonable to be paid on the principal sum adjudged, from the date of the suit to the date of the decree, in addition to any interest adjudged on such principal sum for any period prior to the institution of the suit, with further interest at such rate not exceeding 6% per annum as the Court deems reasonable on such principal sum from the date of the decree to the date of payment, or to such earlier date as the court thinks fit.
(ii).Provided that where the liability in relation to the sum so adjudged had arisen out of a commercial transaction, the rate of such further interest may exceed 6% per annum but shall not exceed the contractual rate or interest or where there is no contractual rate, the rate at which moneys are lent or advanced by national- ized banks in relation to commercial transactions.
Explanation (i) In this sub-section, "nationalized bank" means a corresponding new bank as defined in the Banking Companies (Acquisition and Transfer of Un- dertakings) Act 1970. Explanation (ii) For the purposes of this section, a transaction is a commercial transaction, if it is connected with the industry, trade or business of the party in - curring the liability. Where such a decree is silent with respect to the payment of further interest (on such principal sum) from the date of the decree to the date of the payment or other earlier date, the Court shall be deemed to have refused such interest, and a separate suit therefore shall not lie". (Emphasis Supplied).
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8. Section 34 CPC provides that plaintiff will be entitled the interest at the rate at which Court finds reasonable. For a general suit, the rate of interest prescribed is 6% and for commercial suit, the Parliament promulgates that rate of interest may increase from 6% to a rate which is found reasonable. Plaintiff is accordingly entitled to only the rate at which RBI has issued Circular for Commercial suits.
9. As far as the interest is concerned, rate applicable to Commercial transaction shall be payable. As per RBI notification dated 30.08.2022 issued vide Press Release no.2022-2023/794 whereby advisory issued by RBI to Schedule Commercial banks of accepting deposit rates @ 9.05% per annum.
In view of the above discussions, the plaintiff is also entitled to pendentelite and future interest @ 9% per annum on the principal amount of Rs.2,12,412.28 per annum. The issue no.
(ii) stands decided accordingly.
Relief:
10. In view of the above, the suit of plaintiff is accordingly decreed in favour of the plaintiff and against the defendant for a sum of Rs.2,12,412.28 alongwith pendentelite and future interest @ 9% per annum. The Plaintiff shall be entitled to the costs of the suit also. Decree sheet be prepared accordingly.
11. Judgment be uploaded on the Server.
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12. File be consigned to Record Room after necessary Digitally signed by GORAKH compliance. GORAKH NATH PANDEY NATH PANDEY Date: 2024.09.10 12:50:42 +0530 Announced in the open court (GORAKH NATH PANDEY) th on 04 September, 2024. District Judge (Commercial Court) North: Rohini:Delhi.
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