IN THE HIGH COURT OF CALCUTTA
Krishna Rao, J.
Subhash Murarka - Appellant
Versus
Besco Limited - Respondent
CS 62 of 2018
Decided On : 13-07-2022
Recovery - Business Dispute - CS 62 of 2018 - The Sale of Goods Act, 1930 - Section 4, Section 9, Section 15, Section 16, Section 19, Section 31 - The Interest Act, 1978 - Section 3 - The plaintiff filed a suit for recovery of an amount against the defendant for the supply of materials. The court found in favor of the plaintiff, directing the defendant to pay the outstanding amount along with interest. The court's decision was influenced by the evidence presented by the plaintiff, confirming the supply of materials and the outstanding payment due from the defendant.
Fact of the Case:
The plaintiff filed a suit for the recovery of an outstanding amount against the defendant for the supply of materials. The defendant failed to contest the suit, and the plaintiff provided evidence of the supply of materials and the outstanding payment due.
Finding of the Court:
The court found that the plaintiff had duly proved the case and was entitled to the outstanding amount along with interest.
Issues: The main issue was the non-payment of the outstanding amount by the defendant despite the supply of materials by the plaintiff.
Ratio Decidendi: The court's decision was based on the evidence presented by the plaintiff, confirming the supply of materials and the outstanding payment due from the defendant.
Final Decision: The defendant was directed to pay the outstanding amount of Rs. 27,96,848/- along with interest at the rate of 12% per annum within sixty days.
JUDGMENT
Krishna Rao, J. - The plaintiff has filed this suit for recovery of an amount of Rs. 35,80,000/- against the defendant along with interest.
The facts of the case are as follows:-
'The plaintiff is a proprietor of M/s. Subhash Enterprises and is carrying on the business dealing in S.S. Mig. wires, Co2 Mig. wires and welding electrodes and other products.
The defendant was carrying the business as manufacturer of railway wagons. In the Month of December, 2014, the plaintiff and the defendant entered into an oral agreement for supply of S.S. Mig. wires, Co2 Mig. wires and welding electrodes and accordingly the defendant had placed purchase orders to the plaintiff for supply of the said articles. In terms of the purchase orders of the defendant, the plaintiff during the month of December, 2014 to November, 2015 from time to time had delivered the said materials at agreed rates at the workplace of the defendant. The said goods were duly received and accepted by the defendant without raising any objection as to quantity, quality, specification or otherwise.
After supply of the materials to the defendant, the plaintiff had raised invoices of payment. The invoices issued by the plaintiff was duly received by the defendant without any objection for a total some of Rs. 53,56,948/-. Out of the total amount, the defendant had paid an amount of Rs. 25,60,100/- to the plaintiff but the defendant has not paid the balance of Rs. 27,96,848/- to the plaintiff. The defendant has made the last payment to the plaintiff on 20.11.2015.
In spite of several requests made by the plaintiff, the defendant has not made the balance payment to the plaintiff and accordingly on 06.03.2018, the plaintiff had sent a legal notice calling upon the defendant for payment of the balance of amount Rs. 27,96,848/-.
Inspite of receipt of the legal notice, the defendant has not paid the unpaid amount and accordingly the plaintiff has filed the instant suit.'
2. It appears from Order dt. 02.09.2019 that after the going through the report of the Deputy Registrar (Court and Judicial) dt. 10.12.2018 and the service report of the Deputy Sheriff, Calcutta dt. 18.07.2019, this Court had listed the matter as 'Undefended Suit' as in spite of receipt of writ of summons of the instant suit, the defendant had not entered appearances to contest the instant suit.
3. The plaintiff was examined and during his examination, the following documents were exhibited:-
'(i) Purchased Order No. LO/WGN/14-15/0040 dt. 13.09.2014 containing six pages - Exhibit A collectively.
(ii) Tax invoices and Challan dt. 02.01.2015, 31.03.2015, 16.05.2015, 28.05.2015, 10.06.2015, 26.06.2015, 08.07.2015, 10.08.2015, 27.08.2015 and 19.11.2015 - Exhibit B collectively.
(iii) Copy of the inspection report issued by Besco Limited - Exhibit C collectively.
(iv) Copy of the Inspection Certificates issued by the Rites Limited - Exhibit D collectively.
(v) Copy of the letter dt. 07.09.2016 issued by the defendant to the plaintiff - Exhibit E collectively.
(vi) Copy of Email sent to the defendant requesting for payment dt. 30.01.2015 and 21.03.2015 - Exhibit F.
(vii) Copy of letter issued by Uttam Agarwal and Association dt. 28.10.2017 confirmation from the defendant with regard to the balance amount of Rs. 27,96,848/- Exhibit G.
(viii) Copy of the notice issued by the plaintiff to the defendant dt. 06.03.2018 - Exhibit H.'
4. Exhibit A proves that the defendant has placed an order for supply of materials from time to time and Exhibit B proves that the materials along with invoices have been received by the defendant. Exhibit C also proves that the materials have been placed to the Besco Limited for inspection.
5. Exhibit D proves that the materials supplied by the plaintiff to the defendant were duly inspected by the Rites Limited. Exhibit E proves that the plaintiff had sent a letter to the defendant with the request for payment of Rs. 40,46,848/-. Exhibit F proves that the plaintiff had sent demand to the defendant requestin
The court's decision emphasized the importance of honoring contractual obligations and the legal right to recover outstanding payments for goods supplied.
A plaintiff must prove the total cost of goods and payments made to succeed in a recovery suit; failure to do so can lead to dismissal due to limitation.
The main legal point established in the judgment is the entitlement of the plaintiff to a decree for the recovery of the debt along with interest under the Indian Contract Act, 1872.
The plaintiff successfully proved the delivery of goods and the defendant's liability for unpaid dues, entitling the plaintiff to recover the amount with interest.
Money suit – Demand raised against supply of goods has to be allowed.
Acknowledgment of liability and non-payment of outstanding amount despite acknowledgment can lead to legal action under the Companies Act, and the court can enforce payment along with interest.
Admissions made by a party can serve as substantive evidence, allowing the court to grant a decree in the absence of a defense.
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