Delhi District Court
M/S Scj Plastics Ltd vs M/S Kinger Plast (I) Pvt. Ltd on 10 October, 2012
IN THE COURT OF MS. ARCHANA BENIWAL
CIVIL JUDGE05 (SOUTH), SAKET COURTS, NEW DELHI
CS NO. 537/11
Unique Case ID No. 02406C0279012011
M/s SCJ Plastics Ltd.
F3/1011, Okhla Industrial Area,
PhaseI, New Delhi110020. ...PLAINTIFF
VERSUS
M/s Kinger Plast (I) Pvt. Ltd.
Regd. Office At:
J133, Second Floor,
Saket, New Delhi110017.
Factory/works at:
99, Udyog Kendra,
Greater Noida (U.P.) ...DEFENDANT
Date of institution : 01.11.2011
Date of reserving : 06.09.2012
Date of pronouncement : 10.10.2012
JUDGMENT
1. The plaintiff has filed the present suit under Order 37 of the Code of Civil Procedure, 1908 (hereinafter referred to as the 'CPC.') Suit No. 537/11 Page 1 of 5 for recovery of Rs.38,830/ (Rupees Thirty Eight Thousand Eight Hundred and Thirty only) along with pendentelite and future interest at the rate of 24% per annum and the costs of the suit from the defendant.
2. The case of the plaintiff is that the plaintiff is a Limited Company duly incorporated under the Companies Act, 1956 and registered with the ROC (Delhi and Haryana). The plaintiff deals in Master Batches and Compounds. The defendant is a private limited company duly registered with ROC, Delhi. The defendant had a running account with the plaintiff. On 03.09.2008, vide bill No. 2566, the defendant had purchased Master Batches worth Rs.40,323/ on credit of 60 days from the plaintiff, subject to issuance of Sales Tax FormC and Delhi jurisdiction as mentioned on the aforesaid bill. It is further submitted that as per the conditions stated on the aforesaid bill, market custom and usage and also as per Section 61 (2) of the Sale of Goods Act, on delayed payment the defendant were and are still liable to pay to the plaintiff company interest also @ 24% p.a. from the date of expiry of credit period of 60 days on 02.11.2008 till realisation. It is further submitted that against the said purchase of goods vide the said invoice No. 2566, as on date, a balance payment of Rs.22,580/ is still Suit No. 537/11 Page 2 of 5 due from the defendant. On the aforesaid balance payment, the defendant is liable to pay to the plaintiff company a sum of Rs.16,250/ as interest at the rate of 24% per annum from the date the said outstanding payment became due till date. The plaintiff company had sent to the defendant a legal notice dated 05.03.2010 by speed post. Till date the defendant has failed to reply to the said legal notice. Hence, the present suit has been filed by the plaintiff.
3. The defendant was deemed to be duly served by way of RC/AD on 22.05.2012. However, despite service of summons the defendant company failed to enter its appearance through any representative on their behalf.
4. The plaintiff has filed with the plaint, a photocopy of certificate of incorporation of the plaintiff company with ROC, resolution dated 26.02.2011 in original, office copy of the invoice No. 2566 dated 03.09.2008 in original, copy of statement of accounts of the defendant, true copy of email dated 22.12.2009, true copy of legal notice dated 05.03.2010 and postal receipt dated 05.03.2010 in original on the basis of which the suit has been filed and the liability of the defendant company is based.
Suit No. 537/11 Page 3 of 5
5. In view of Order 37 Rule 2 (3) of the CPC as the defendant had committed a default in entering his appearance, the allegations in the plaint are deemed to be admitted if substantiated by the material placed on record and the plaintiff is entitled to a decree for any sum, not exceeding the sum mentioned together with interest, if any, upto the date of the decree and the costs of the suit.
6. However, the plaintiff has prayed for pendentelite and future interest at the rate of 24% per annum. As per the provisions of Order 37 Rule 2(3) of the CPC, the plaintiff is entitled to interest only upto the date of decree and there is no provision for future interest. Further, the interest is claimed at the rate of 24% per annum, which in view of this Court is exorbitant keeping in view that the principal amount/outstanding payment in the present case was Rs.22,580/ to which the plaintiff has already added interest at the rate of 24% per annum till the date of institution of the suit which comes to Rs.16,250/. Hence, this Court is of the view that the ends of justice would be met if the plaintiff is awarded interest at the rate of 09% per annum upto the date of the decree.
7. Hence, the plaintiff company is entitled to a decree for a sum of Rs.38,830/ (Rupees Thirty Eight Thousand Eight Hundred and Thirty Suit No. 537/11 Page 4 of 5 only) along with interest at the rate of 09% per annum upto the date of decree and the costs of the suit.
8. Decree sheet be prepared accordingly. File be consigned to record room.
Announced in open Court on 10.10.2012.
(Archana Beniwal) CJ05 (South), New Delhi 10.10.2012 Suit No. 537/11 Page 5 of 5