IMPORTANT POINT
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.

JUDGMENT :

Krishna Rao, J.

1. The instant suit is filed by the plaintiff company for a decree of Rs. 21,55,194/-along with interim interest and interest on judgment at the rate of 21% per annum until realisation.

2. The Plaintiff is a company incorporated under the Companies Act, 1956 and carries on business from ‘Gemini House’, Bus Depot Lane, Deonar, Mumbai, Maharasttra – 400008.

3. The Plaintiff is engaged, inter alia, in the business of rental service provider for capital equipments and also provides rental services for equipment required on rent for various fields like concreting, earth moving, road work, building work, foundation engineering, captive power plant, vertical axel and material handling.

4. The defendant is a company incorporated under the Companies Act, 1956 and carried on or still carries on business from its registered office at Room No. 405, 4th Floor, Centre Point Building, 21, Hemanta Basu Sarani, Kolkata – 700001.

5. On or about May 2011, the defendant approached the plaintiff for providing capital equipment on rent and the plaintiff company had agreed to provide such rental services and shall raise bills and invoices per month and the same would be cleared by the defendant.

6. As agreed upon between the parties, the defendant had issued four (4) work orders, dated 30th June, 2011; on 19th July, 2011, two work orders were issued together, and 6th February, 2012, upon the plaintiff at its registered office, for providing capital equipment on rent at Kalinganagar site and Bhilai site.

7. It was agreed between the parties that the plaintiff will raise its monthly rental bills for capital equipment on the last day of the month of operation and the same will be settled by the defendant within ten days of receipt and it was agreed that if in case of any delay in making payment beyond the period of ten days the same will attract interest @2% per month.

8. The plaintiff, therefore, has accordingly given on rent capital equipment and has duly raised its bills and/or invoices for a total sum of Rs. 65,61,837/-, and also the plaintiff had issued some credit notes and upon adjustment of the same the net amount payable by the defendant to the plaintiff was an amount of Rs. 57,89,159/-.

9. The defendants in order to release its liabilities towards payment due, has made a part payment for a sum of Rs. 42,04,457/-, through NEFT being numbered as SET1STP13B348236, dated 6th February, 2013 for a sum of Rs. 1,50,000/-thereby leaving a balance principal amount of Rs. 15,84,702/-, which primarily proves that the defendant had acknowledged and admitted its liability.

10. On 19th February, 2013 at around 2:26 p.m., an email was sent by one Mr. Nandan Vartak, Manager – Credit Control of the plaintiff to Mr. Maniraj, who is the Finance Manager of the defendant, thereby calling upon the defendant to confirm outstanding balance amount due for Kalinganagar Site, to which a reply was received by the plaintiff sent by Mr. Maniraj, the Finance Manager, whereby detailed accounts and ledgers of the parties were sent for reconciliation, where it was admitted by the defendant that a sum of Rs. 15,84,702/-is outstanding due and payable by the defendant to the plaintiff.

11. On 21st February, 2013 at 10:54 a.m., an e-mail was sent by one Mr. Satish Poojari, Finance Head of the plaintiff to Mr. Maniraj, confirming that the outstanding payment of the plaintiff from Chitra Builders is Rs. 15,84,702/-and the plaintiff requested the defendant to release the payment at earliest.

12. After several requests made to the defendant for payment of the outstanding due amount, the defendant had failed and neglected to pay the same. On 31st October, 2014, a legal notice was sent by the Learned Advocate of the plaintiff, to the defendant, calling upon the defendant to pay Rs. 15,84,702/-and if the defendant fails to pay the same, the plaintiff shall take appropriate steps against the defendant.

13. On 24th June, 2015, again a notice was sent to the defendant by Regist