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Showing contexts for: zoom developers in M/S Engineers India Ltd vs Zoom Developers Pvt. Ltd on 14 December, 2018Matching Fragments
1. This is a suit for recovery of Rs.42,13,419/ filed by the plaintiff against the defendant.
2. The case of the plaintiff, in brief, is that plaintiff is a Government company registered under the Companies Act, 1956 and is engaged in the business of rendering consultancy services M/s Engineers India Ltd. Vs. Zoom Developers Pvt. Ltd. Page No.1 of 11 for setting up large scale projects, designing and consultancy in various fields including engineering, heavy industry, etc. The defendant is a company incorporated under the Companies Act. On 21.07.2008 the plaintiff received an email from the defendant requesting the plaintiff to provide Techno Economic Feasibility Report (in short "TEFR") for setting up a integrated aluminimum complex in Orissa and requested the plaintiff to forward its Techno Commercial proposal for preparation of TEFR for setting up the aluminimum complex in Orissa. On 04.08.2008, the plaintiff submitted to the defendant its Techno Commercial Proposal for preparation of the TEFR and as per clause 8 of the same, the plaintiff quoted its professional fees of Rs.47.60 lakhs. On 08.10.2008 an agreement was arrived whereunder the plaintiff agreed to provide TEFR for various segments of the projects viz. Recovery of ore from bauxite mines, alumina refinery, aluminium smelter, captive power plant etc. At the request of the defendant, the plaintiff agreed to reduce the lump sum price for its services by Rs.1.00 lakhs to Rs.46.60 lakhs. It was also agreed that the plaintiff shall stand committed and be bound to the agreed terms till 31.10.2008. Pursuant to the agreement arrived between the parties, the plaintiff received a letter of intent (in short 'LOI') dated 10.10.2008 from the defendant requesting the plaintiff to provide TEFR as per the scope of service in the said LOI of the defendant. It was agreed that out of the total remunerations of the plaintiff, M/s Engineers India Ltd. Vs. Zoom Developers Pvt. Ltd. Page No.2 of 11 40% of the total lump sum price was payable as down payment alongwith LOI while the balance 60% of the lump sum payment was payable with 100% taxes and duties before the submission of the draft feasibility report. The balance fee was payable by the defendant to the plaintiff through an irrevocable letter of credit of a bank to be nominated by the plaintiff. On receipt of 40% payment of the total lump sum price, the plaintiff performed its part of the contract and prepared the feasibility report/TEFR. Vide its email dated 11.08.2009 the Metallurgy Division of the plaintiff intimated the defendant of the readiness of the draft report for the assignment. On 31.12.2008 the plaintiff raised upon the defendnat its invoice bearing no.6983HL002 dated 31.12.2008 for a sum of Rs.31,41,585/ towards the balance 60% of the professional remunerations as per agreed terms, so as to enable the plaintiff to issue the draft report. Vide email dated 21.07.2009 the plaintiff informed the defendant that draft report was lying ready for issue. It is averred that despite several reminders sent by the plaintiff to the defendant, the defendant failed to pay the balance 60% of the plaintiff's remunerations which, as per the agreed terms, was a condition precedent for the plaintiff to submit its draft TEFR to the defendant. It is averred that the defendant is liable to pay to the plaintiff the balance amount of Rs.31,41,585/ in terms of the invoice dated 31.12.2008, mentioned above. Besides the above, the defendant is M/s Engineers India Ltd. Vs. Zoom Developers Pvt. Ltd. Page No.3 of 11 also liable to immediately deliver to the plaintiff the TDS certificate for the sum of Rs.2,15,722/ or in lieu thereof, the amount of TDS. It is averred that a sum of Rs.42,13,419/ is due and payable by the defendant which the defendant has failed to pay despite service of demand notice dated 10.03.2010. The plaintiff has prayed the suit of the plaintiff be decreed.
3. Defendant has file the written statement and has contested the suit. Defendant has taken preliminary objections (i) that the present suit is not maintainable and (ii) that this court has no jurisdiction to try and entertain the present suit. On merits, it is averred that there is neither any agreement between the parties nor there is any amount due to the plaintiff, as claimed in the suit. The defendant has denied that the various emails, allegedly sent by the plaintiff to the defendant. It is specifically denied that on 21.07.2008 an email was sent to the plaintiff by the defendant to provide TEFR, as alleged. The defendant has also denied receiving any Techno Commercial Proposal on 04.08.2008. However, the defendant has admitted that one or two meetings were held between the parties in the month of August/September, 2008. The defendant has also denied issuance of any LOI, as alleged. As regards payment of Rs.18,64,000/ by the defendant to the plaintiff, the defendant has taken the stand that the said advance payment was made in terms of discussions and oral instructions of the plaintiff. It is averred that no work was started M/s Engineers India Ltd. Vs. Zoom Developers Pvt. Ltd. Page No.4 of 11 by the plaintiff though the plaintiff was obliged to give it's final report within twelve weeks. It is averred that the plaintiff failed to provide the final report within stipulated time scheduled as discussed between the parties. The defendant has denied that the abovesaid payment was made by the defendant in pursuance to invoice dated 17.10.2008. All other allegations have been denied. Defendant has prayed that the suit of the plaintiff be dismissed.
M/s Engineers India Ltd. Vs. Zoom Developers Pvt. Ltd. Page No.5 of 11 OPP.
(v) Whether the plaintiff is entitled to a decree of Rs.42,13,419/ as claimed in suit? OPP.
(vi) Whether plaintiff is entitled to interest, if so, at what rate and for which period? OPP.
(vii) Relief.
6. Plaintiff in support of his case has examined Sh. K.G.K Patro as PW1 and Sh. Manish Chandra Pathak as PW2. They have deposed on the lines of the averments made in the plaint.
14. From the testimony of PW1, it has been proved that the total remunerations settled between the parties for the preparation of TEFR was agreed at Rs.46.60 lakhs, out of which 40% of the total lump sum price/fee was payable as down payment along with the LOI, while the balance 60% of the lump M/s Engineers India Ltd. Vs. Zoom Developers Pvt. Ltd. Page No.9 of 11 sum fee was payable with 100% taxes and duties before the submissions of the draft TEFR. The defendant in the written statement has not denied the payment of Rs.18,64,000/ to the plaintiff. The defendant has taken the stand that the said amount was paid as an advance payment in terms of the oral instructions by the plaintiff to start the work. However, no evidence has been led by the defendant to prove its defence. As per PW1, the plaintiff raised its invoice for a sum of Rs.20,94,393/ representing 40% of the lump sum price. Had there been no such agreement between the parties as deposed by PW1, the defendant would not have made a payment of Rs.18,64,000/ to the plaintiff. No counter claim has been filed by the defendant to receive the said sum from the plaintiff. It is the case of the plaintiff that on receiving the abovesaid payment, the plaintiff proceeded to prepare the TEFR. The plaintiff prepared the TEFR and raised the invoice for the balance 60% of the professional remunerations amounting to Rs.31,41,585/. It has been proved that the TEFR had been prepared by the plaintiff for the specific requirements of the defendant as per its obligations under the contract. The plaintiff has produced before the court the said TEFREx.PW1/18. The TEFR prepared by the plaintiff has the value of Rs.46.60 lakhs. From the perusal of testimony of witnesses, it has been proved that plaintiff has performed its part of the obligations under the contract for preparing TEFR. The defendant has M/s Engineers India Ltd. Vs. Zoom Developers Pvt. Ltd. Page No.10 of 11 committed the breach of the contract by not making payment of the balance 60% of the price/lump sum fee as per the agreed terms. Therefore, the plaintiff is entitled to a decree of Rs.42,13,419/ as claimed in the plaint. Hence, these issues are decided in favour of the plaintiff and against the defendant.