Bangalore District Court
M/S Savex Technologies Pvt Ltd vs M/S C-Store on 18 April, 2024
KABC170028962023
IN THE COURT OF LXXXV ADDL. CITY CIVIL & SESSIONS
JUDGE, AT BENGALURU (CCH-86) (Commercial Court)
THIS THE 18TH DAY OF APRIL 2024
PRESENT:
SMT. LATHAKUMARI M. M.A., LL.M.,
(CCH-86)
Com.OS.No.1362/2023
BETWEEN:
M/s.Savex Technologies Pvt.Ltd.,
No.755/9, 13th Cross,
7th Block, Jayanagar,
Bangalore-560082,
Rep.by its branch
Consultant Mr.Mahesh Shekar,
Aged about 61 years,
S/o.Late M.R.Narasimhaiah.
: PLAINTIFF
(Represented by S.M., Advocate)
AND
1.M/s.C-STORE,
Represented by its Proprietor
NAVEEN KUMAR RAMALINGAM
Office Address:
#39, 80ft Road, HAL 3rd Stage,
Indiranagar,
Bengaluru-560075.
Accused No.1
2 Com.O.S.No.1362/2023
2.NAVEEN KUMAR RAMALINGAM.
Office Address:
#39, 80ft Road, HAL 3rd Stage,
Indiranagar,
Bengaluru-560075.
Residence Address:
#398, 5th Main, 12th Cross,
Mahalakshmipuram Layout,
Bengalure-560086.
: DEFENDANTS
(Represented by V.S., for D-1, and
C.J.M., for D-2 Advocates)
Date of Institution of the 29.11.2023
suit
Nature of the suit (suit on
pronote, suit for
declaration & Possession, Suit for recovery of money
Suit for injunction etc.)
Date of commencement of
recording of evidence ---
Date on which judgment 18.04.2024
was pronounced
Total Duration Year/s Month/s Day/s
00 04 19
(LATHAKUMARI M.),
LXXXV Addl.City Civil & Sessions Judge,
Bengaluru.
3 Com.O.S.No.1362/2023
JUDGMENT
This is plaintiff's suit to pass judgment and decree against the defendant to pay the sum of Rs.2,66,61,125.93/- with future interest @18% p.a from the date of suit till realization of the amount with cost and to grant such other reliefs as this court may deem fit to grant in the interest of justice and equity.
2. The brief facts of the plaintiff's case is that, 2nd defendant is the proprietor of defendant No.1, responsible for the conduct of the business, its day to day affairs, administration and functioning at all relevant times and at the time of commission of the offence. The plaintiff is engaged in business of distributions, imports and re-sale of note books, desktops, smart phones, inkjet and laser printers, all in one printers, plotters, servers, storage products, TFT and LCD monitors, Cartridge toners, Mic key boards, Hard Disk Drives, Mouse Webcam, Multi media speakers, and other computer peripherals IT and telecom products. It is plaintiff's further case that, on a request made by the defendants the plaintiff has supplied and delivered various types of computers and their peripherals, under various invoices during 24.02.2020 to 19.02.2020 for total amount of Rs.1,53,37,370.68/-. Against said outstanding amount the defendants issued cheque bearing No.456838 dated 29.07.2020. As per the instructions of 4 Com.O.S.No.1362/2023 2nd defendant when plaintiff presented the said cheque through their bankers it was returned unpaid on 30.07.2020 as "payment stopped by drawer." Plaintiff got issued legal notice dated 11.08.2020 to the defendants calling upon them to remit the cheque amount within 15 days from the date of receipt of notice. Said notice was duly served on defendants. Inspite of the same, defendants neither paid the amount nor replied to the legal notice. Defendants are liable to pay the amount due along with interest at the rate of 18% + GST at the rate of 18% in all amounting too Rs.2,66,61,125.93/-. The cause of action for the suit arose on 21.11.2023 when the plaintiff received the PIM certificate from the District Legal Service Authority. Again on 11.08.2020 when plaintiff got issued legal notice to the defendants, plaintiff has also filed cheque bounce case against defendant in C.C.No.127800/2020 before 36th ACMM, Bengaluru. In the said case, defendants were convicted vide judgment dated 14.03.2023. they have preferred criminal appeal before sessions court in Cr.App.No.478/2023. Inspite of plaintiff initiated mediation process vide PIM.No.1445/2023, defendants failed to settle the amount. Hence, this suit for the reliefs mentioned supra.
3. On issuance of suit summons to the defendants through court and RPAD, summons issued to defendants through 5 Com.O.S.No.1362/2023 RPAD served on 2nd defendant on 09.12.2023. 2nd defendant is the proprietor of 1st defendant company. Defendants 1 and 2 though appeared through their counsel failed to file their written statement either within 30 days or within 120 days as provided u/O 8 Rule 1 of Commercial Courts Act. Though this court allowed application filed by defendants u/sec.148 of CPC on 04.03.2024 and fixed the date for written statement of defendants by 16.04.2024 by imposing cost, defendants failed to file their written statement and again filed similar application u/sec.148 of CPC. Considering that 120 days already exhausted from the date of service of summons and also relying upon the decision reported in M/s SCG Contracts India (P) Ltd., V/s K.S.Chamankar Infrastructure (P) Ltd and others of Hon'ble Supreme Court rejected the application filed by the defendants as per order dated 15.04.2024, Further considering that plaint averments are consistent with the documents produced and relied upon by the plaintiff, plaintiff's evidence came to be dispensed with as per order 8 Rule 10 of CPC.
4. I have carefully scrutinized the entire records. Heard arguments. When the matter was posted for judgment the learned counsel for plaintiff filed advancement application along with memorandum of facts stating that non filing of written statement is for the reason and beyond the control 6 Com.O.S.No.1362/2023 of the defendant and defendant has not cross examine the plaintiff and thereby irreparable injury will caused to defendants. Since this court dispensed with plaintiff's evidence as per order dated 15.04.2024, question of defendants cross examine PW.1 does not arise. That apart inspite of service of copy of plaint and also documents, defendants failed to furnish their statement of admissions and denials of documents. Since 120 days already completed from the date of service of summons, as I have already stated defendant forfeit his right to file written statement and also statement of admission and denial of documents. Under such circumstances the documents produced by the plaintiff along with the plaint amounts to deemed admission. Thereby the plaintiff's evidence was dispensed by disposed.
5. Now the points that arise for my consideration are:
1) Whether plaintiff is entitled to recover an amount of Rs.1,53,37,370.68/- along with interest at 18% up to filing of suit with GST at 18% in all amounting to Rs.2,66,61,125.93/- with future interest at the rate of 18% p.a from the date of suit till realization of the amount with cost as claimed ?7 Com.O.S.No.1362/2023
2) What order or decree?
6. My answers to the above Points are as under:
Point No.1 :- In the Affirmative Point No.2 :- As per the final Order for the following;
REASONS
7. Point No.1 :- It is the case of plaintiff that, defendants purchased various types of computers and peripherals worth Rs.1,53,37,370.68/- under various invoices as mentioned in para 4 of the plaint, later failed to pay the amount towards such purchase. Further the cheque issued by the defendants for the said amount of Rs.1,53,37,370.68/- was also returned unpaid as payment stopped by drawer. Plaintiff has also initiated criminal case against defendant u/sec.138 of NI Act, though defendants were convicted in the said case they preferred Cr.Appeal before sessions court and failed to respond to the legal notice issued by the plaintiff and also PIM process initiated by the plaintiff against them before District Legal Service Authority (DLSA). In support of these contention along with the plaint, plaintiff has produced as many as 9 documents. Document No.1 is the certified copy of the cheque issued by defendants for said amount of 8 Com.O.S.No.1362/2023 Rs.1,53,37,370.68/-. Document No.2 is the Invoice for having supplied the materials to the defendants herein through transport on road on various dates. Document No.3 is office copy of legal notice dated 11.08.2020. In this legal notice plaintiff has specifically mentioned the amount due from defendants towards supply of various materials with details of invoice date, cheque number, cheque date, cheque amount. It is also mentioned that, cheque issued by the defendants was dishonored as payments stopped by drawer. Inspite of receipt of this notice as per document No.5 & 6 defendants failed to reply to the said notice. Another vital document is the document No.8 which is judgment passed in criminal case with regard to dishonour of cheque against defendants herein. As per this judgment dated 14.03.2023 in C.C.12800/2020 defendants are convicted for the offences punishable u/sec.138 of NI Act. Document No.9 is the PIM report issued by DLSA. As per this report even though various dates were scheduled for appearance of defendants, they failed to appear before DLSA to settle the claim of plaintiff. It is not that defendants are not aware of the invoices raised against them and also amount payable by defendants to the plaintiff. Plaintiff has mentioned the details of various invoices with invoice No. date and amount in para 4 of the plaint and also in the legal notice issued by him as per document No.3. Inspite of service of 9 Com.O.S.No.1362/2023 legal notice and also PIM process defendants neither replied to the said notice nor appeared before DLSA to settle the claim. The issuance of cheque by defendants is not in dispute, the cheque which is as per document No.1 is for Rs.1,53,37,370.68/- Plaintiff is claiming very same amount in this suit along with interest at the rate of 18% p.a from the date of supply till the date of suit. The transaction between plaintiff and defendants being commercial in nature, 18% interest claimed by the plaintiff appears reasonable. Apart from interest, plaintiff is also claiming GST at the rate of 18% from the defendants herein. In all the invoices produced before this court there is reference about CGST and SGST amount which is all together 18% on the bill amount. Defendants having knowledge of these invoices purchased various software items from the plaintiff, now cannot evade payment. Inpsite of giving an opportunity of 120 days to file written statement defendants failed to resist the suit of the plaintiff. In M/s.SCG Contracts India (P) Ltd., Hon'ble Apex Court held that " the commercial court dealing with the commercial suit had no discretion to condone delay and could not allow the written statement to be taken on record beyond the mandatory period provided u/o 8 Rule 1 of CPC. Hon'ble Apex Court Further held as follows:- " A perusal of these provisions would show that ordinarily a written statement is to be filed within a period of 30 days.
10 Com.O.S.No.1362/2023However, grace period of a further 90 days is granted which the court may employ for reasons to be recorded in writing and payment of such costs as it deems fit to allow such written statement to come on record. What is of great importance is the fact that beyond 120 days from the date of service of summons, the defendant shall forfeit the right to file the written statement and the court shall not allow the written statement to be taken on record. The proviso in Order 8 Rule 10 also adding that the court has no further power to extend the time beyond this period of 120 days". Under these circumstances defendant has not made any ground either to adjourn the matter for his written statement or to cross examine PW.1. Defendants having not filed their statement of admission and denial of documents, inspite of service of copy of plaint and documents to the defendants, forfeit their rights to file written statement and also the documents produced by the plaintiff is deemed to have been admitted by the defendants herein. Defendants having availed goods from plaintiff is liable to pay the same not only with interest at the rate of 18% p.a but also with GST and cost and further with future interest at the rate of 18% on principal amount till realization of the same. The facts set out in the plaint even if treated to have been admitted, this court is satisfied that suit is required to be decreed in favour of the plaintiff without requiring defendant to prove any fact 11 Com.O.S.No.1362/2023 mentioned in the plaint. Considering these circumstances, this court proceed to pass the judgment as per the provisions of Order VIII Rule 10 CPC. Accordingly, I answer Point No.1 in the Affirmative.
8. Point No.2 : - In view of my findings on Point No.1, I proceed to pass the following;
ORDER
The Suit filed by the plaintiff for
recovery of a total sum of
Rs.2,66,61,125.93/- with future interest @ 18% p.a from the date of suit till realization of the amount is decreed with cost.
Plaintiff is entitled for future interest @ 18% p.a. only against principle amount.
Draw decree accordingly.
(Dictated to the Stenographer on the computer, corrected and then pronounced in the open court on 18th day of April 2024).
(LATHAKUMARI M.), LXXXV Addl. City Civil & Sessions Judge, Bengaluru.
12 Com.O.S.No.1362/2023ANNEXURE LIST OF DOCUMENTS PRODUCED ON BEHALF OF THE PLAINTIFF ALONG WITH PLAINT 01 Certified Copy of the Cheque bearing No.456838 drawn on Indusind Bank and Bank Endorsement dated 30.07.2020 02 Certified Copy of Invoices (4Nos) 03 Certified Copy of Legal Notice Dated 11.08.2020 04 Certified Copy of Postal Receipts Dated 11.08.2020 05 Certified Copy of Postal Tracking Letter issued by the Post Master, Banashankari Post Office, Bangalore (2Nos) 06 Certified Copy of the Letter Dated 1.9.2020 to the Post Master (2 Nos) 07 Certified Copy of the Authorisation letter issued by the company to the plaintiff (Mahesh Shekar) 08 Certified Copy of the Judgement passed by the learned 36th ACMM Bangalore in CC.No.12800/2020 Dated 14.03.2023 09 Original PIM Certificate in PIM No.1445/2023 issued on 21.11.2023 by the District Legal Services Authority, Bengaluru Urban.
LIST OF WITNESSES EXAMINED ON BEHALF OF THE DEFENDANTS NIL LIST OF DOCUMENTS EXHIBITED ON BEHALF OF THE DEFENDANTS NIL (LATHAKUMARI M.), LXXXV Addl.City Civil & Sessions Judge, Bengaluru.
13 Com.O.S.No.1362/2023
The judgment is pronounced in
open court (vide separate
judgment). The operative portion
of the said judgment is as
follows :-
ORDER
The Suit filed by the plaintiff for
recovery of a total sum of
Rs.2,66,61,125.93/- with future
interest @ 18% p.a from the date
of suit till realization of the amount
is decreed with cost.
Plaintiff is entitled for future
interest @ 18% p.a. only against
principle amount.
Draw decree accordingly.
LXXXV ACC & SJ, B'LURU.