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1. The   present   suit   for   recovery   of   Rs.   26,52,515/­   alongwith pendentelite and future interest under Order XXXVII   Code of the Civil Procedure, 1908 (hereinafter called as CPC) has been filed by CS No. 1379/17 SCJ Plastics Ltd. Vs. Aricent Polymers pg. 1 of 5 the plaintiff against the defendant. 

2. Briefly stated, plaintiff is a Limited Company registered with ROC Delhi and Haryana and deals in Master Batches and compounds. It is averred  that  defendant  is  a  partnership  firm  of   Mr.   Ravi  Shanker Reddy and Madhu Kar Reddy and operating and working from the abovesaid address.

CS No. 1379/17 SCJ Plastics Ltd. Vs. Aricent Polymers pg. 2 of 5

5. That   the defendant firm had issued to plaintiff a filled and signed cheque   bearing   no.   000051   dated   14.06.2017   drawn   from   bank account   of   defendant   firm   with   Kotak   Mahindra   Bank.   The   said cheque got dishonored with remarks "Funds Insufficient".

6. That despite repeated requests by the plaintiff, defendant failed to pay outstanding amount to the plaintiff. Thus, as on date, a principal balance amount of Rs. 20,22,229/­ is still due from defendant firm. The   defendant   firm   is   also   liable   to   pay   the   plaintiff   a   sum   of Rs.6,30,286/­ towards interest. Thus, as on date a total amount of Rs.26,52,515/­   is   outstanding.   All   the   invoices   have   been   raised subject   to   jurisdiction   of   Delhi   courts.   A   legal   notice   dated 07.11.2016 was issued to the defendant to discharge his outstanding liabilities. Hence, the present suit was filed by plaintiff. 

9. The  present suit is based on invoices, and cheque (part payment) amounting to Rs.4,30,000/­ given by the plaintiffs to the defendant company. Plaintiff has filed following documents in support of his contention:­ CS No. 1379/17 SCJ Plastics Ltd. Vs. Aricent Polymers pg. 3 of 5

(i) True copy of certificate of Regn. of the plaintiff.

(ii) Resolution dated 01.04.2017.

(iii) Office copy of six invoices i.e. 2380 , 2586, 2825, 3089, 3204, and 160. 

(xii)   One   unserved   envelope   containing   legal   notice   dated 07.11.2016

10.   As   noted  above,   defendant  has   failed  to  enter   his   appearance   in terms of O 37 R 3(1) CPC. The suit falls under the provisions of summary procedure code. Therefore, in terms of sub­rule (3) of R (2) of Order XXXVII, plaintiff is entitled to a decree for the principle amount.

11.It is to be noted that the plaintiff is claiming interest @ 24% p.a. premised on the invoices.  May, I state that the interest claimed CS No. 1379/17 SCJ Plastics Ltd. Vs. Aricent Polymers pg. 4 of 5 by   the   plaintiff,   in   my   considered   opinion   appears   to   be unreasonable, arbitrary and on higher side, taking note of the commercial transaction and interest charged thereupon as well as   prevalent   rate   of   interest,   an   interest   @   12%   per   annum would be reasonable and justified.