Delhi District Court
M/S Suresh Apparels Through Its Ar And ... vs Amit Kumar Prp Of Ganesh Textile on 12 February, 2025
IN THE COURT OF SH. SANJAY SHARMA-II : DJ (COMMERCIAL COURT)-03
(SHAHDARA): KARKARDOOMA COURTS, DELHI
CS (Comm.) No. 134/2024
CNR NO.: DLSH01-001184-2024
M/s. Suresh Apparels
Through its Partner: Mr. Bharat Jain
S-1, Pumping Station Road
5th Cross, Erode, Tamil Nadu-638 001
..... Plaintiff
VERSUS
Amit Kumar @ Amit Sharma
Proprietor: M/s. Ganesh Textile
Shop No. 3, 9/5190, Main Road
Shanti Mohalla, Old Seelampur
Gandhi Nagar, Delhi-110031
Also at:
9/1590, Old Seelampur
Gandhi Nagar, Delhi-110031
..... Defendant
Date of Institution : 21.02.2024
Date of Arguments : 10.02.2025
Date of Judgment : 12.02.2025
JUDGMENT
1. The plaintiff, through its Authorized Representative / Partner Mr. Bharat Jain, instituted a suit for recovery of Rs. 10,44,869/- (comprising principal amount of Rs. 9,09,792/- and Rs. 1,35,077/- as interest @ 24% per annum for the period from 01.04.2023 to 21.10.2023) alongwith pendente- lite and future interest @ 24% per annum against the defendant.
CS (Comm.) No. 134/2024 M/s. Suresh Apparels vs. Amit Kumar @ Amit Sharma Page No. 1 of 9
2. The plaintiff, a partnership firm registered with the Registrar of Firms under 'The Indian Partnership Act, 1932', is engaged in sale and purchase of ' fabrics, cloth and allied material'. The defendant is the proprietor of 'M/s. Ganesh Textile'.
3. The plaintiff supplied 'Reyon and Cotton Fabrics', on credit basis, to the defendant from 08.04.2021 to 29.04.2023, vide invoices, as under:
Sl. No. Invoice No. Dated Amount
1. Invoice No. 142 08.04.2021 Rs. 1,57,421/-
2. Invoice No. 218 12.04.2021 Rs. 1,65,798/-
3. Invoice No. 832 29.06.2021 Rs. 2,80,580/-
4. Invoice No. 1132 16.07.2021 Rs. 2,91,769/-
5. Invoice No. 1318 29.07.2021 Rs. 1,67,660/-
6. Invoice No. 1890 06.09.2021 Rs. 2,74,134/-
7. Invoice No. 3828 15.02.2022 Rs. 4,51,500/-
8. Invoice No. 4123 08.03.2022 Rs. 3,58,563/-
9. Invoice No. 171 11.04.2022 Rs. 3,64,619/-
10. Invoice No. 483 27.04.2022 Rs. 3,35,953/-
11. Invoice No. 491 28.04.2022 Rs. 3,94,951/-
12. Invoice No. 1002 28.05.2022 Rs. 4,27,055/-
13. Invoice No. 1275 17.06.2022 Rs. 3,20,906/-
14. Invoice No. 1517 02.07.2022 Rs. 3,60,088/-
15. Invoice No. 5164 24.03.2023 Rs. 3,24,137/-
16. Invoice No. 124 08.04.2023 Rs. 3,40,817/-
17. Invoice No. 413 29.04.2023 Rs. 4,91,976/-
4. The plaintiff was maintaining ledger and debiting invoices and crediting payments made by the defendant w.e.f. 07.06.2021 to 18.07.2023. As per ledger, an amount of Rs. 9,09,792/- was due against the defendant, as on 18.07.2023. The plaintiff debited an amount of Rs. 1,35,077.94/- as interest @ 24% per annum w.e.f. 01.04.2023 to 21.10.2023. The defendant did not clear the outstanding amount.
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5. Thereafter, the plaintiff sent a demand notice dated 23.10.2023 to the defendant. The defendant sent a reply dated 18.11.2023. The plaintiff lodged a complaint with PS Gandhi Nagar on 14.10.2023. However, the defendant, vide request dated 02.11.2023, stated that he would pay substantial amount on 20.11.2023. However, the defendant failed to make payment of the balance amount. Therefore, the plaintiff filed the suit against the defendant.
6. The summons sent to the defendant were returned with the report 'left without instructions'. Thereafter, the defendant was served, vide publication, in the newspaper 'The Hindu' dated 09.07.2024.
7. On 29.07.2024, the defendant entered appearance through Mr. Ramesh Rana and Mr. Sharthak Saxena, Advocates. Thereafter, the defendant neither appeared nor filed written statement. The right of the defendant to file written statement was closed, vide order dated 14.08.2024.
8. Vide order dated 14.08.2024, the Court framed issues, as under:
"1. Whether plaintiff / counter-claimant is entitled to recovery of Rs. 10,44,869/- with interest @ 24% per annum?
OPP
2. Relief."
9. The plaintiff examined its Authorized Representative / Partner Mr. Bharat Jain as PW-1. He deposed, on strength of affidavits Ex.PW1/A and Ex.PW1/B. He relied on documents, as under:
Sl No. Description Exhibit
1. Ledger from 01.04.2021 to 21.10.2023 Ex.PW1/1
2. Invoice No. 142 alongwith e-way bills and Ex.PW1/2
consignment note
CS (Comm.) No. 134/2024 M/s. Suresh Apparels vs. Amit Kumar @ Amit Sharma Page No. 3 of 9
3. Invoice No. 218 alongwith e-way bills and Ex.PW1/3
consignment note
4. Invoice No. 832 alongwith e-way bills and Ex.PW1/4
consignment note
5. Invoice No. 1132 alongwith e-way bills and Ex.PW1/5 consignment note
6. Invoice No. 1318 alongwith e-way bills and Ex.PW1/6 consignment note
7. Invoice No. 1890 alongwith e-way bills and Ex.PW1/7 consignment note
8. Invoice No. 3828 alongwith e-way bills and Ex.PW1/8 consignment note
9. Invoice No. 4123 alongwith e-way bills and Ex.PW1/9 consignment note
10. Invoice No. 171 alongwith e-way bills and Ex.PW1/10 consignment note
11. Invoice No. 483 alongwith e-way bills and Ex.PW1/11 consignment note
12. Invoice No. 491 alongwith e-way bills and Ex.PW1/12 consignment note
13. Invoice No. 1002 alongwith e-way bills and Ex.PW1/13 consignment note
14. Invoice No. 1275 alongwith e-way bills and Ex.PW1/14 consignment note
15. Invoice No. 1517 alongwith e-way bills and Ex.PW1/15 consignment note
16. Invoice No. 5164 alongwith e-way bills and Ex.PW1/16 consignment note
17. Invoice No. 124 alongwith e-way bills and Ex.PW1/17 consignment note
18. Invoice No. 413 alongwith e-way bills and Ex.PW1/18 consignment note
19. Demand Notice dated 23.10.2023 Ex.PW1/19
20. Reply of the defendant dated 18.11.2023 Ex.PW1/20
21. Complaint dated 14.10.2023 Ex.PW1/21
22. Request of the defendant dated 02.11.2023 Ex.PW1/22
23. GST Registration Certificate of the plaintiff Ex.PW1/23
24. Authority Letter Ex.PW1/24
25. Reconciliation Summary of G.S.T.R.-1 Ex.PW1/25
26. Registration Certificate of GST Ex.PW1/26
27. Declaration under Order 11 Rule 6 CPC Ex.PW1/27
28. 'Non-Starter Report' dated 22.12.2023 Ex.PW1/28 CS (Comm.) No. 134/2024 M/s. Suresh Apparels vs. Amit Kumar @ Amit Sharma Page No. 4 of 9
29. Form-A issued by Registrar of Firms in favour of the Ex.PW1/29 plaintiff under Section 59 of 'The Indian Partnership Act, 1932'
30. True copy of Invoice No. 125 dated 09.10.2024 in the Ex.PW1/30 sum of Rs. 1,35,077.94/-
31. Screen-shot of WhatsApp delivered Invoices bearing Ex.PW1/31 two ticks of delivery
10. The Court has heard arguments of Mr. Ghan Shyam Singh, Ld. Counsel for the plaintiff and examined the pleadings and documents.
THE ISSUE NO. 1:
1) Whether plaintiff / counter-claimant is entitled to recovery of Rs. 10,44,869/- with interest @ 24% per annum?
OPP
11. PW-1 Bharat Jain, Authorized Representative / Partner of the plaintiff deposed, on strength of affidavits Ex.PW1/A and Ex.PW1/B.
12. The defendant neither appeared nor contested the suit. He has not filed written statement. Therefore, the averments made in the plaint are not traversed. The averments made in the plaint are deemed admitted.
13. PW-1 Bharat Jain testified the facts stated in the plaint. He filed invoices alongwith e-way bills and consignment notes Ex.PW1/2 to Ex.PW1/18 pertaining to supply of goods to the defendant. He filed ledger for the period from 01.04.2021 to 21.10.2023 reflecting debit and credit entries, vide Ex.PW1/1. The defendant has not cross-examined PW-1 Bharat Jain on the aspect of supply of the goods, vide invoices Ex.PW1/2 to Ex.PW1/18 and correctness of the entries made in the ledger. The depositions of PW-1 Bharat Jain remained uncontroverted. There is no reason to doubt the evidence led by the plaintiff, oral and documentary.
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14. According to Ledger Ex.PW1/1, an amount of Rs. 9,09,792/- was due against the defendant, as on 18.07.2023. The plaintiff sent demand notice dated 23.10.2023 Ex.PW1/19 to the defendant. The defendant sent a reply dated 18.11.2023 Ex.PW1/20. In the reply, the defendant has not disputed business relationship and the supply of the goods, vide the said invoices. However, he stated that the plaintiff supplied sub-standard goods and therefore, he sustained loss to the extent of Rs. 5,00,000/- and denied his liability to pay the suit amount, as under:
"5. That indeed till February 2023 the goods' supplied by your client was of good quality and till the said period our client made the regular payment to your client and thereafter in March & April, 2023 our client placed three orders and the same were duly supplied by your client assuring quality and standard of the material being ordered.
6. That to the utmost shock, when our client received the goods supplied by your client, it was found that the goods supplied is of sub- standard quality and defective, which was not even expected by your client as both were in business since 2013. Thereafter our client on multiple occasions called your client for the replacement of the sub-standard and defective goods. That whenever our client tried to approach your client he never paid heed to the request of our client except knocking about the payment despite knowing the fact that the supplied goods was not in usual quality.
7. That it is pertinent to bring into your notice that due to the said defective and sub-standard supply of goods by your client, our client faced high monetary losses and mental agony and loss of reputation due to cancellation of orders from the customers of our client.
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8. That due to the said deliberate and intentional supply of defective and sub-standard goods, our client loss his potential business profit which is around but not limited to Rs. 5,00,000/-.
9. That keeping in view the above mentioned actual and true facts and circumstances, there is no liability arises upon our client even due to the purchased sub-standard quality goods from your client oppositely our client faced huge monetary losses around but not limited to Rs. 5,00,000/- (Rupees Five lakhs only) due to sub- standard material and loss of business.
10. That therefore there is no liability of Rs. 10,44,869/- (Rs. Ten Lakhs forty four thousand eight hundred sixty nine only) towards your client as said so in the said notice and same is denied vehemently."
15. The plaintiff lodged a complaint with PS Gandhi Nagar on 14.10.2023 Ex.PW1/21. The defendant, vide request dated 02.11.2023 Ex.PW1/22, stated that he would make payment of the substantial amount on 20.11.2023, which is translated, as under:
"To Mr. Bharat Jain You have lodged a complaint against me with PS Gandhi Nagar. In that respect, I request you to not to proceed with your complaint and I will make payment of substantial amount on 20.11.2023.
-sd-
Amit Kumar Add.: D-8, Gali No. 8, Jyoti Colony Delhi-93"
16. However, the defendant neither proved supply of sub-standard / defective goods nor made payment of the balance amount of Rs. 9,09,792/-. Therefore, the plaintiff is entitled to a decree for recovery of principal amount of Rs. 9,09,792/-. CS (Comm.) No. 134/2024 M/s. Suresh Apparels vs. Amit Kumar @ Amit Sharma Page No. 7 of 9
17. The plaintiff is claiming an amount of Rs. 1,35,077/- as interest @ 24% per annum for the period from 01.04.2023 to 21.10.2023 on the premise that the said rate of interest was mentioned on the invoices and he debited the said interest in ledger Ex.PW1/1. There is no evidence that the defendant agreed to the said rate of interest. Moreover, the plaintiff was supplying the goods and debiting the invoices and crediting the payments made by the defendant. The defendant did not debit the interest component in the ledger. An amount of Rs. 9,09,792/- was due against the defendant, as on 18.07.2023. The suit of the plaintiff was based on balance amount at the foot of a running account. However, the plaintiff, vide separate computation, is seeking the said amount. There is no evidence that the said rate of interest is usual market rate of interest or bank rate of interest. The said rate of interest is usurious, exorbitant and penal in nature. The Court cannot grant such a high rate of interest on the unpaid amount. The plaintiff claimed interest, vide notice dated 23.10.2023 Ex.PW1/19. Therefore, in terms of Section 3(1)(b) of ' The Interest Act, 1978', the plaintiff will be entitled to interest on the principal amount @ 7% per annum w.e.f. 18.11.2023 till realization. Accordingly, the issue No. 1 is decided in favour of the plaintiff and against the defendant.
RELIEF
18. Therefore, the suit of the plaintiff is decreed with costs and a decree in the sum of Rs. 9,09,792/- alongwith interest @ 7% per annum w.e.f. 18.11.2023 till realization is passed in favour of the plaintiff and against the defendant. Decree sheet be drawn. File be consigned to record room.
Announced in the open Court SANJAY SHARMA-II on this 12 February, 2025 DJ (Commercial Court)-03 (Shahdara) th KKD Courts, Delhi CS (Comm.) No. 134/2024 M/s. Suresh Apparels vs. Amit Kumar @ Amit Sharma Page No. 8 of 9 M/s. Suresh Apparels vs. Amit Kumar @ Amit Sharma CNR No.: DLSH01-001184-2024 CS (Comm.) No. 134/2024 12.02.2025 Present : Mr. Ghan Shyam Singh, Ld. Counsel for the plaintiff.
Vide separate judgment, the suit of the plaintiff is decreed with costs and a decree in the sum of Rs. 9,09,792/- alongwith interest @ 7% per annum w.e.f. 18.11.2023 till realization is passed in favour of the plaintiff and against the defendant. Decree sheet be drawn. File be consigned to record room.
Sanjay Sharma-II DJ (Commercial Court)-03 Shahdara, KKD, Delhi 12.02.2025 CS (Comm.) No. 134/2024 M/s. Suresh Apparels vs. Amit Kumar @ Amit Sharma Page No. 9 of 9