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2002 Supreme(Del) 1051
High Court Of Delhi
BRITISH INDIA CORPORATION LIMITED - Appellant
Versus
FIRM ANAND PARKASH OM PARKASH - Respondent
Decided On : 08/05/2002
The main legal point established is the enforceability of the pronote and guarantee, and the determination of liability for outstanding dues under the Companies Act, 1956 and the Limitation Act, 1963.
Headnote:
PLAINTIFF - Recovery of outstanding dues - Companies Act, 1956, Section 291 - Limitation Act, 1963, Section 18 - Guarantee - Interest - Decree
Fact of the Case:
The plaintiff, a limited liability company, filed a suit against defendant No. 1, a partnership firm, for recovery of outstanding dues for woollen goods supplied. The plaintiff alleged that the accounts were acknowledged by the defendants, and a pronote was executed for the outstanding amount. The defendants contested the suit, denying the authority of the plaintiff's representative to file the suit and disputing the amount claimed.
Finding of the Court:
The court found that the suit was validly filed and within the limitation period. The pronote executed by the defendants was held to be properly stamped and enforceable. The court also upheld the guarantee given by defendant No. 14 and its partners, and ruled that the liability of the defendants was established. The court decreed the suit in favor of the plaintiff for the outstanding amount, costs, and future interest.
Issues: Validity of suit filing, limitation period, stamping of pronote, liability of guarantors, adjustment of amount, rate of interest, and entitlement to special costs.
Ratio Decidendi: The court upheld the authority of the plaintiff's representative to file the suit and found the suit to be within the limitation period. The pronote was deemed properly stamped and enforceable, and the guarantee given by defendant No. 14 was upheld. The court also determined the entitlement of the plaintiff to the outstanding amount, costs, and future interest.
Final Decision: The court decreed the suit in favor of the plaintiff for the outstanding amount, costs, and future interest against the defendants.
( 1 ) PLAINTIFF filed this suit alleging that it is a limited liability company and has one mill known as Cawnpore Woollen Mill at Kanpur and another mill known as New Fgerton Woollen Mill at Uhariwal. PC jain is authorised to sign and verify the plaint and institute suit on behalt of plaintiff- corporation Both the mills manufacture woollen goods. Defendant No 1 had been a partneiship firm having defendants 2 to 4,8 to 10, Suresh Kumar Goyal and Om prakash Goyal, deceased as its partners. Defendant No. 1 had been buying woollen goods from the said two mills. The plaintiff in the accounts maintained at Kanpur and Dhariwal of said two mills debited the price of woollen goods purchased by defendant No. 1 and other expenses including cost of samples and bank charges. Similarly, amounts paid by defendant No. 1 or any other credits granted to it on account of dealings between the parties, were credited in the said accounts In the account books of plaintiffs Cawnpore Woollen Mills from 16th june, 1964 upto 31st december, 1964, Rs. 22,37,049. 77 were debited. Aggregate amount credited in that account was Rs. 13,04,356. 98 leaving a balance of Rs. 9,32,692. 79 which was taken to the next years account beginning from 1st January, 1965. Rs. 30,59,1. 15. 75 were debited to defendant No. 1-firm as the price of woollen goods supplied and other charges while a sum of Rs. 24,77,713. 94 was credited on account of payments made or other credits granted to it, thus, leaving a balance of Rs. 5,81,401. 81 as on 31st december, 1965. Thereafter, Rs. 46,63,754. 01 were debited and Rs. 36,81,457. 29 were credited leaving a debited balance of Rs. 9,82,296. 72 as on 31st December, 1966. Including this balance, Rs. 43,29,020. 69 were debited and Rs. 24,33,827. 83 were credited leaving a debit balance of Rs. 18,95,192. 86 as on 31st December, 1967, It is further alleged that Rs. 55,72,858. 18 were debited towards the price of goods supplied and other charges while Rs. 33,00,189. 12 were credited on account of paymentsmade by defendant No. 1 and other credits granted to it, leaving a balance of Rs. 22,72,669. 06 as on 31st December, 1968. Again Rs. 58,07,245. 11 were debited and Rs. 47,56,424. 92 were credited leaving a balance of Rs. 10,50,820. 19 as on 31st december, 1969. Including this balance, Rs. 39,27,843. 25 were debited and Rs. 21,39,410. 32 were credited leaving a balance of Rs. 17,88,432. 93 due to the plaintiff from defendant No. 1-firm as on 31st December, 1970. Rs. 37,83,434. 02 were debited to the account of defendant No. 1-firm towards the price of woollen goods further supplied and other charges and Rs. 13,10,727. 86 were credited on account of payments made by defendant No. 1 and other credits granted to it leaving a debit balance of Rs. 24,72,706. 16 as on 31st December, 1971.
( 2 ) IN the account books of plaintiff s New Egerton Woollen Mills from 16th june, 1964 to 31st December, 1964, Rs. 30,85,840. 42 were debited to defendant No. 1-firm towards the price of woollen goods supplied and other charges After allowing credit for Rs. 17,50,247. 68 paid and the other rebates/discounts allowed, amount of Rs. 13,35,592. 74 remained due to the plaintiff which was taken to the next year s account beginning from 1st January, 1965. Thereafter, Rs. 50,28,555. 94 were debited and Rs. 37,18,989. 34 were credited, leaving a balance of Rs. 13,09,566. 60 as on 31st December, 1965. Thereafter, Rs. 1,00,31,541. 24 were debited and Rs 76,45,821. 99 were credited leaving a balance of Rs. 23,85,719. 25 due to the plaintiff from defendant No. 1-firm as on 31st December, 1966. Again, Rs. 65,63,597. 86 were debited and Rs. 40,88,044. 87 were credited leaving a balance of Rs. 24,75,552 99 as on 31st December, 1967. It is alleged that including this balance, Rs. 66,60,212. 92 were debited and Rs. 58,45,539. 82 were credited, leaving a balance of Rs. 8,14,673. 10 due to the plaintiff from defendant No. 1-firm as on 31st December, 1968. Thereafte
