SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

2021 Supreme(Kar) 563

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
S. SUJATHA, J.
The Chief Officer, Town Municipal Council - Appellant
Vs.
Lakshmi Agencies - Respondent
R.F.A. No. 696/2012
Decided On : 22-03-2021

Advocates:
Advocate Appeared:
For the Appellant : C.M. Jagadeesh, Adv.
For the Respondent: G. Balakrishna Shastry, Adv.

Headnote:

Karnataka Municipalities Act, 1964 - Sections 72(5) , 72[4] and [5] - Suit for recovery of the amount - Denied as false and concocted - oral and documentary evidence - Whether the plaintiff proves that, he had supplied the goods worth defendant as alleged in plaint - Whether plaintiff further proves that he is entitled the change of interest month as averred in para 4 of plaint - Whether the plaintiff proves that calculation made by plaintiff to the tune is true and correct - Whether defendant proves that this Court has no pecuniary jurisdiction to try this suit - Whether the plaintiff is entitled for the decree for a sum with future interest at rate of 24% per annum from the date of suit till the realization - What Order or Decree - plaintiff is a trader engaged in the trading of water supply equipments and water supply chemicals. The plaintiff has supplied chemicals, spare parts and other consumables worth water supply work of the defendant - Municipality vide supply indent dated 15.1.2000 as detailed in four delivery notes. The said goods were received by the defendant in good condition and has issued acknowledgements on 17.1.2000. Pre-receipted cash bills dated 17.1.2000 were issued pursuant to which defendant addressed a letter dated 17.3.2000 and 26.5.2000 acknowledging the receipt of the goods and expressed its inability to pay the amount immediately and sought for some time i.e., after receiving the grant – Held, Karnataka Municipalities Act, 1964, the sanction of the municipal council is required in the case of City municipal council for purchase of movable property, or for the sale of any movable property belonging to a municipal council, if the value of the property to be sold as estimated in the municipal accounts exceeds one thousand rupees in the case of a town municipal council and two thousand rupees in the case of a city municipal council. Before any contract for the supply of materials or goods or for the execution of any work which will involve an expenditure exceeding five thousand rupees is entered into - tenders shall be publicly invited from persons willing to enter into such contract and when the estimated value exceeds such amount as may be prescribed no such contract shall be entered into without the previous approval of the Government or an officer duly authorized by the Government in this behalf. As such, the supply of goods exceeding Rs. 5,000/- said to have been made by the plaintiff to the defendant - On re-appreciation of oral and documentary evidence, we are of the considered view that the judgment and decree passed by the Trial Court suffers from infirmity and the same is not sustainable - Appeal is allowed.

JUDGMENT :

S. SUJATHA, J.

1. This appeal is filed by the defendant challenging the judgment and decree dated 22.2.2011 passed in O.S. No. 22/2003 on the file of the Senior Civil Judge & C.J.M., Chamarajanagar ('Trial Court' for short).

2. For the sake of convenience, the parties are referred to as per their status before the Trial Court.

3. The plaintiff instituted O.S. No. 22/2003 seeking for the decree to recover a sum of Rs. 10,50,066/- along with future interest @ 24% per annum from the date of suit till the date of realization. The Trial Court has decreed the suit in part with costs holding that the plaintiff is entitled to recover Rs. 10,60,066/- along with interest @ 9% p.a. from the date of suit till the date of decree and thereafter @ 12% p.a. till the date of realization.

4. The plaint averments are that the plaintiff is a trader engaged in the trading of water supply equipments and water supply chemicals. The plaintiff has supplied chemicals, spare parts and other consumables worth Rs. 7,31,350/- for the water supply work of the defendant - Municipality vide supply indent dated 15.1.2000 as detailed in four delivery notes. The said goods were received by the defendant in good condition and has issued acknowledgements on 17.1.2000. Pre-receipted cash bills dated 17.1.2000 were issued pursuant to which defendant addressed a letter dated 17.3.2000 and 26.5.2000 acknowledging the receipt of the goods and expressed its inability to pay the amount immediately and sought for some time i.e., after receiving the grant. It is the grievance of the plaintiff that despite repeated reminders and notice issued, no payments were made by the defendant for the goods supplied. Hence, the plaintiff was constrained to file the suit for recovery of the amount of Rs. 4,99,720/- with interest @ 2% per month amounting to Rs. 10,50,066/-.

5. In response to the summons issued, defendant appeared and filed the written statement totally denying the claim of the plaintiff. The primary defence set up was that no goods were supplied to the defendant as contended. The issuance of letters dated 17.3.2000 and 26.5.2000 were totally denied as false and concocted. Suit was decreed on 5.4.2007 which was challenged by the defendant in R.A. No. 70/2007. The first Appellate Court allowed the appeal and remanded the matter to the Trial Court.

6. On the basis of the pleadings, the following issues were framed:

1. Whether the plaintiff proves that, he had supplied the goods worth of Rs. 7,31,350/- to the defendant as alleged in the plaint?

2. Whether plaintiff further proves that he is entitled the change of interest @ Rs. 2% per month as averred in para 4 of the plaint?

3. Whether the plaintiff proves that the calculation made by the plaintiff to the tune of Rs. 10,50,066/- is true and correct?

4. Whether the defendant proves that this Court has no pecuniary jurisdiction to try this suit?

5. Whether the plaintiff is entitled for the decree for a sum of Rs. 10,50,066/- with future interest at the rate of 24% per annum from the date of suit till the realization?

6. What Order or Decree?

7. Plaintiff examined himself as PW-1 and one more witness was examined as PW-2. Exs. P1 to P36 were got marked. The official of the defendant Municipality was examined as DW-1 and Exs. D1 to D7 were marked.

8. On appreciation of oral and documentary evidence, issue Nos. 1 and 3 were answered in the affirmative, issue Nos. 2 and 5 were answered partly in the affirmative and issue No. 4 was answered in the negative.

9. Being aggrieved, the defendant has preferred the present appeal primarily on the ground that the documents viz., duplicate delivery notes Exs. P1 to P4 produced by the plaintiff to prove his claim that the materials against indent were supplied were concocted, denying the supply of the said goods to the defendant. Learned counsel for the defendant disputing Exs. P9 and P10 argued that no material was supplied by the plaintiff. The documents were created in collusion with the then

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top