( 1 ) THIS is an application on behalf of the defendants under Order XXXVII Rule 3 (5) Civil Procedure Code for granting leave to defend in the above suit filed under Order XXXVII Civil Procedure Code by the plaintiff-M/s Dentsply India Pvt. Ltd.

( 2 ) THE suit, filed on behalf of the plaintiff avers as follows;

(A) That the plaintiff is the manufacturer and marketeer of various Dental equipments; (b) That the defendant No. l is a Partnership concern and defendants 2 and 3 are its partners; (c) That the defendant No. l was appointed as a Distributor for the region of Delhi, rajasthan and Haryana by letter dated 1st of January, 1996 for the products manufactured by the plaintiff; (d) That however, no formal written agreement was executed between the parties; (e) That the plaintiff has been supplying the goods to the defendants from March, 1996 till December, 1998 under various invoices; (f) That the sales have been made by approximately 647 Nos. of invoices amounting to Rs. 5,52,87,497. 03 (Rupees five Crores Fifty Two Lacs Eighty Seven thousand Four Hundred Ninety Seven and paise Three Only); (g) That the defendants though making payments from time to time to the plaintiff have been irregular in payments; (h) That the sales made by the plaintiff were credit sales as per the terms and conditions contained in the invoices; (i) That as and when defendant made a payment, the same was duly credited into the accounts of the defendant being maintained by the plaintiff Company in the regular course of business; (j) That out of the supply of goods of more than Rs. 5,52,87,497. 03 as detailed above, the defendants returned goods to the plaintiff worth Rs. 52,20,005. 91; (k) That the defendants also made a total payment of Rs. 2,19,58,817. 34 (Rupees Two crores Nineteen Lacs Fifty Eight Thousand eight Hundred. Seventeen and Paise Thirty four only) to the plaintiff from time to time; (1) That according to the Statement of account maintained by the plaintiff company in the ordinary course of its business, an amount of Rs. 2 ,81,08 ,673. 78 (Rupees Two Crores Eight One Lacs Eight thousand Six Hundred Seventy Three and paise Seventy Eight Only) is due from the defendants to the plaintiff as on 15th of february, 1999 which amount the defendants have failed to pay despite repeated requests and reminders; (m) That approximately 382 Nos. of S. T. Forms and C Forms were still pending and the defendants were bound to give the same to the. plaintiff; (n) That leave be granted to the plaintiff to amend the plaint in case of the defendants refusal to issue the ST-1 and C forms and the plaintiff s consequent liability to make the said payments to the Sales Tax Authorities; (o) It is not disputed that Dental Equipments and goods worth Rs. 5,52,67. 497. 03 have been sold to the defendants. It is also not disputed that Rs. 2. ,81,08,673. 78 is outstanding against the defendants; (p) That in the month of September, 1998 the defendants issued 6 chues amounting to rs. 11,02,449-92 (Rupees Eleven Lacs Two thousand Four Hundred Forty Nine and paise Ninety Two Only) in favour of the plaintiff Company towards part payment; (q) That the above mentioned cheques were dishonoured with the remark "payment stopped"; (r) That as on date the defendant is liable to pay the following amount; a) As on 31. 8. 98 Rs. 2,81,08,673. 78 b) Interest @ 20%. pa Rs. 25,86,848. 00 (s) That thus the total claim in the plaint is Rs. 3,06,95,521. 78; (t) That the two letters dated 21st of january, 1999 and 13th of February, 1999 were written by the plaintiff, demanding from the defendants the outstanding amount; (u) That however, despite repeated requests said payments have not been made which led to the filing of the present suit under Order XXXVII Civil Procedure Code and (v) That no relief which does not fall within the ambit of Order XXXVII Civil Procedure Code has been claimed in the plaint;

( 3 ) THE defendants have filed the present application, ia. 3759/99 under Orde