Bangalore District Court
Trigent Software Pvt. Ltd vs Technotree Convergence Pvt. Ltd on 9 June, 2022
1 1 Com.O.S.No.275/2021
In the Court of LXXXIV Addl. City Civil and Sessions
Judge (CCH-85) (Commercial Court), Bengaluru
Dated this the 9th day of June 2022
Present: Smt.H.R.Radha B.A.L., LL.M.
LXXXIV Addl. City Civil and Sessions Judge,
(CCH-85 Commercial Court) Bengaluru
Com.O.S.No.275/2021
Plaintiff: TRIGENT SOFTWARE Pvt. Ltd.
Formerly know as TRIGENT SOFTWARE Ltd, a
company registered under the Indian
Companies Act, 1956 having its registered
office at Khanija Bhavan, 1st Floor, 49 Race
Course Road, Bangalore-560 001,
represented by its Authorized Signatory
Mr.Joseph Jayachandran
(By Sri. S.A.H.Razvi, Advocate)
Vs
Defendant: TECHNOTREE CONVERGENCE Pvt. Ltd., a
company registered under the Companies
Act, 1956, having its registered office at
65/2, B-Block, 1st Floor, TRIDIB Building,
Bagmane Techpark, CV Raman Nagar,
Bangalore-560 093.
(Exparte)
Date of Institution 06.02.2021
Nature of the suit Recovery of money
2 2 Com.O.S.No.275/2021
Date of Commencement
08.03.2022
of recording of evidence
Date on which judgment
pronounced 09.06.2022
Total Duration Years Months Days
01 04 03
LXXXIV Addl. City Civil & Sessions Judge
(CCH-85 Commercial Court) Bengaluru
JUDGMENT
This is a suit for recovery of Rs.20,27,826/- from the defendant with interest at 14% p.a., from the date of suit till realization.
2. This case was transferred from CCH-22 to this court by notification dated 30-03-2021.
3. The plaintiff's case in brief is that it is a software service company engaged in the business of providing staffing services to other software companies. The defendant company having availed staffing services agreeing to pay service fee and other incidental charges within 30 days from the date of invoice, delayed the payment of Rs.13,60,188/- under 33 invoices starting from 3 3 Com.O.S.No.275/2021 31-07-2017 beyond the due date, affecting their business. Despite service of legal notice dated 09-10-2017, the defendant has failed to pay the same and therefore liable to pay it with interest at 14% p.a.; and the suit is within time.
4. The defendant is placed exparte.
5. The Authorized Signatory and HR Head of the plaintiff has filed affidavit in lieu of examination in chief, examined himself as Pw1 and got marked Ex.P1 to P75.
6. Heard arguments.
7. The points that arise for my consideration are:
1. Whether the plaintiff is entitled for Rs.20,27,826/- with interest at 14% p.a., from the defendant as claimed?
2. What order?
8. My findings on the above points are:
Point No.1: Partly in the affirmative Point No.2: As per final order for the following REASONS
9. Point No.1: Ex.P1 is the Board Resolution authorizing the HR Head of the plaintiff i.e. Pw1 to initiate legal action 4 4 Com.O.S.No.275/2021 against the defendant to recover the amounts due and also to give evidence before the court and he has filed affidavit reiterating that the defendant availed staffing services agreeing to pay the service fee i.e., employee's annual fixed pay plus 17% thereof on prorata basis every month within 30 days from the receipt of invoice, but failed to pay Rs.13,60,188/- towards 33 invoices from 31.07.2017 even after receiving the legal notice.
10. Ex.P38 is the Master Services Agreement dated 09-04-2014 and Ex.P39 to P41 are the Addendum thereto providing for extension of the term of the agreement. The plaintiff is described in these documents, as the the service provider for hiring technically qualified employees to work as contractors on the defendant's projects.
11. Under Clause-4 of Ex.P38 the service provider can charge service fee of 17% of the Annual Fixed Pay of the contract employees as paid by it and it does not include any performance pay/incentive, variable pay, bonus, gratuity and leave encashment etc., but to include the company contribution to provident fund and employees' state insurance etc. 5 5 Com.O.S.No.275/2021
12. Clauses 4.5 to 4.7 deal with invoicing for contract employees and invoicing for other services. Clause 4.5 of Ex.P38 requires the plaintiff to submit consolidated invoices to the defendant within 7 days of the end of every calendar month, consisting of the following details of the contract employees :
(a) Names of its employees working as contract employees at Technotree
(b) The start and end date in respect of each such employee
(c) The monthly fixed pay of the employee
(d) Number of days working
(e) Amount of service fee
(f) Proof of payment of Provident Fund and ESI as applicable and separate invoices in respect of the employees hired and for other services, along with original bills and invoices.
13. The summary of invoice at Ex.P2 shows that the claim is in respect of the invoices Ex.P3 to P35 raised between 18th May 2017 and 30th June 2017. The emails were sent to the defendant between 18.05.2017 and 29-06-2017 with the above invoices and other particulars as attachment, as seen from Ex.P42 to Ex.P74; and Ex.P75 is the certificate U/s 65B of Indian Evidence Act.
6 6 Com.O.S.No.275/2021
14. In view of clause 4.8 of Ex.P38 the defendant ought to have paid the invoiced amount within 30 days from the date of receipt of the email. However, the suit for recovery of money under Ex.P3 to P35 filed on 06.02.2021 would still be within time by virtue of the order dated 08.03.2021 in Suo Motu Writ Petition (Civil) No.3 of 2020 (In Re:
Cognizance for extension of Limitation), which reads as under:
"1. In computing the period of limitation for any suit, appeal, application or proceeding, the period from 15.03.2020 till 14.03.2021 shall stand excluded. Consequently, the balance period of limitation remaining as on 15.03.2020, if any, shall become available with effect from 15.03.2021.
2. In cases where the limitation would have expired during the period between
15.03.2020 till 14.03.2021, notwithstanding the actual balance period of limitation remaining, all persons shall have a limitation period of 90 days from 15.03.2021. In the event the actual balance period of limitation remaining, with effect from 15.03.2021, is greater than 90 days, that longer period shall apply."
15. The amounts claimed under the invoices and the details furnished therein as also the evidence of Pw1 that 7 7 Com.O.S.No.275/2021 the defendant failed to pay the same despite service of notice at Ex.P36, has remained unchallenged. Because the defendant has failed to appear and contest the suit by filing written statement on service of summons and to cross examine Pw1 either to deny/dispute the liability to pay the fees in terms of the master service agreement.
16. However, Ex.P37 to P39 do not provide for levy of interest on delayed payments. Even the invoices do not specify the payment terms. Yet, considering the fact that the transaction is commercial in nature and the plaintiff has provided services of technically qualified employees to work as contractors on the defendant's projects, I am of the opinion that the defendant is liable to pay to the plaintiff, the invoiced amount of Rs.13,60,188/- together with cost, current and future interest at 10% p.a. Accordingly, the point for consideration is answered partly in favour of the plaintiff.
17. Point No.2: In the result, I pass the following :
ORDER Suit of the plaintiff is decreed in part with cost.8 8 Com.O.S.No.275/2021
The plaintiff is entitled to Rs.13,60,188/- with current and future interest at 10% p.a. from the defendant.
Draw decree accordingly.
Issue copy of the judgment to the parties through e-mail as provided U/o XX Rule 1 of CPC if mail ID is furnished.
(Dictated to the Stenographer, transcribed and typed by her, corrected and then pronounced by me in the open court on this the 9th day of June 2022) (H.R.Radha) LXXXIV Addl.City Civil and Sessions Judge, (CCH-85 Commercial Court) Bengaluru ANNEXURE List of witnesses examined for the Plaintiff:
Pw1 Joseph Jayachandran List of documents marked for the Plaintiff:
Ex.P1 Board resolution
Ex.P2 Summary of invoices
Ex.P3 to P34 Copies of invoices
Ex.P35 Legal notice dated 09-10-2017
Ex.P36 Postal receipt
9 9 Com.O.S.No.275/2021
Ex.P37 Master Services Agreement dt. 09.04.2014
Ex.P38 Addendum to Master Services Agreement
Ex.P39 to P74 Copies of emails with attachments Ex.P75 Certificate U/Sec.65B of Evidence Act List of witnesses examined for the defendant: NIL List of documents marked for the defendant: NIL (H.R.Radha) LXXXIV Addl.City Civil and Sessions Judge, (CCH-85 Commercial Court) Bengaluru