IN THE HIGH COURT AT CALCUTTA
KRISHNA RAO, J.
Skipper Limited – Plaintiff
Versus
Raja Kalidas Bardhan Roy and Another – Defendants
CS-COM No. 626 of 2024 (Old No. CS 195 of 2018)
Decided On : 04-04-2024
Substituted Service - Event Management Agreement - [Order 5 Rule 20 of the Code of Civil Procedure, 1908] - [Section 73 of the Indian Contract Act, 1872] - [Section 73 of the Indian Contract Act, 1872] - The court found that the plaintiff proved its case as the defendants issued dishonored cheques to influencers and failed to make payments, leading to the plaintiff's loss. The plaintiff was entitled to the claimed amount along with interest.
Fact of the Case:
The plaintiff filed a suit against the defendants for non-payment of a sum along with interest. Substituted service was used as the Writ of Summons was not served upon the defendants. The plaintiff engaged the defendant no. 1 as an Event Manager for a 'Coupon Redemption Programme' through an agreement. The defendants issued dishonored cheques to influencers, leading to the plaintiff's loss.
Finding of the Court:
The court found that the plaintiff proved its case as the defendants issued dishonored cheques to influencers and failed to make payments, leading to the plaintiff's loss. The plaintiff was entitled to the claimed amount along with interest.
Issues: Non-payment by defendants, dishonored cheques, and loss suffered by the plaintiff.
Ratio Decidendi: The defendants' failure to honor their payment obligations and the resulting loss to the plaintiff led to the court's decision in favor of the plaintiff.
Final Decision: The defendants were directed to pay the plaintiff the claimed amount along with interest.
JUDGMENT :
KRISHNA RAO, J.
1. The present suit is filed by the plaintiff for a decree for a sum Rs. 28,30,011/- along with interim interest and interest upon judgment at the rate of 18% per annum.
2. The plaintiff is engaged in the business of manufacturing and supply of various kinds of steel and PVC materials.
3. The defendant No. 1 is engaged in the business of organizing events and event management under the name and style “Konnect” as the sole proprietorship and the defendant No. 2 is an employee of defendant No. 1.
4. It is found from the records that the Writ of Summons was not served upon the defendants either by way of bailiff service or through postal service and accordingly the plaintiff has taken recourse of substituted service by way of publication in the daily Bengali Newspaper and English Newspaper and the publication was made.
5. As per the report of the Deputy Registrar (Ct. & J.) dated 14th December, 2022, it was found that even after the publication of notice, the defendants have not entered appearance and by an order dated 1st August, 2023, this Court had directed the matter to be treated as an “Undefended Suit.”
6. The plaintiff and the defendant No. 1 entered into an agreement dated 19th January, 2015, through which the plaintiff had engaged the defendant no. 1 as an Event Manager for “Coupon Redemption Programme” and some of the relevant terms of the agreement are as follows:
(ii) The period of contract was one year and the terms thereof was to be reviewed after every six months.
(iii) The defendant no. 1 was to collect data from the loyal and general influencers as per prescribed date provided to him and organize the ‘Coupon Redemption Scheme’ and Plumber Meet.
(iv) The representative of the defendant was to be physically present at the time of events.
(v) The defendant no. 1 was to collect coupons from the influencers and redeem the same at the rate of Rs. 20 per coupons.
(vi) The defendant no. 1 was to submit reconciliation statement regarding the details of coupons collected and money reimbursed against the coupons on a weekly basis.
(vii) The defendant no. 1 was to be paid monthly remuneration of Rs. 1,11,916/-.
7. At the time of execution of the said agreement, the plaintiff had made a payment of Rs. 1,32,247/- to the defendant for the following work to be done:
(b) Five Webcam (Logitech).
(c) 5000 Loyalty Cards with lamination.
8. Thereafter, a sum of Rs. 11,500/- was again paid to the defendant No. 1 by the plaintiff for sending 50,000 messages on behalf of the plaintiff to the influencers and also a sum of Rs. 4 lakhs was deposited with the defendant as security which is to be refunded on termination of the contract.
9. The terms of the agreement dated 19th January, 2015 were revised by a letter dated 1st June, 2015, as issued by the plaintiff to the defendant no. 1. The relevant terms which were amended or added or revised by way of amendment to the agreement are as follows:
(ii) Defendant no. 1 and its representatives should ensure that they also carry enough cash for the activity, as any amount below Rs. 500 should be distributed in cash.
(iii) No post-dated cheques should be issued to anybody in any venue.
(iv) The defendant no. 1 will be paid approximately Rs. 4,000/- per month per venue towards fees.
(v) Failure to follow any points mentioned in the scope of services can result in termination of contract and/or compensation
Money suit must be decreed in favour of plaintiff where plaintiff has proved its case.
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 main legal point established in the judgment is that admissions by the parties and the authenticity of documents play a crucial role in determining liability for loan repayment.
Admissions made by a party can serve as substantive evidence, allowing the court to grant a decree in the absence of a defense.
The court established that a defendant must present a substantial defense to avoid summary judgment; mere assertions without evidence do not suffice.
Breach of contract and failure to fulfill the terms of a Memorandum of Understanding can lead to liability for refund of advance amount along with interest.
The main legal point established in the judgment is the liability of the defendants to fulfill their obligations under the agreement and pay the agreed amount with interest to the plaintiff.
A cause of action is established when the plaintiff proves necessary facts for relief, as demonstrated by the acknowledgment of a loan and dishonor of a cheque.
The court emphasized that disputed documents and agreements raised triable issues that required evidence and could not be decided summarily.
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