Breach of contract and failure to fulfill agreed terms can lead to recovery of outstanding amounts and legal interest.

G.S. Sistani, J. (Oral)

1. Plaintiff has filed the present suit for recovery of Rs.27,87,675/-.

2. Summons in the suit were issued on 13.1.2009. Defendant entered appearance on 8.7.2009. Written statement was filed. As none was appearing on behalf of the defendant since 19.9.2012, the defendant was proceeded ex parte on 24.1.2014. Prior thereto although the affidavits by way of evidence were filed, the witness of the plaintiff was not cross-examined. No evidence has been filed by the defendant.

3. The plaintiff relies on the amended affidavit (PW-1/A) of Sh.Vinod Gupta, PW-1, wherein PW-1 has testified that he is the General Manager (Personal and Administration) and Principal Officer of the plaintiff. As per PW-1/A, the plaintiff company is engaged in the business of manufacturing and sale of Pre-Engineered Building. It is further testified that the defendant placed purchase order on the plaintiff bearing no.Nil & SOL/KVB/22 dated 21.12.2004, a copy of the same has been marked as Mark “A” and purchase order no.SOL/KVB/23 dated 12.3.2005 for designing, engineering, drawing and erection of pre-engineered steel building at its new facility building at KVB Puram (A.P.) on the plaintiff company. Original Purchase order dated 10.3.2005 has been exhibited as Exhibit PW-1/4 and Original purchase order 12.3.2005 has been exhibited as Exhibit PW-1/5.

4. It has further been deposed that after mutual negotiations, the total value of the said contracts for carrying out the works detailed above as well as other miscellaneous works concerned with it, was arrived at Rs. 1,37,19,753/-(Rupees One Crore Thirty Seven Lac Nineteen Thousand Seven Hundred and Fifty Three Only).

5. It has also been deposed that immediately after placing of work orders, the plaintiff company started manufacturing pre-engineered steel building as per the requirements of the defendant company and the defendant started making the part payments as per the terms and conditions of the purchase orders.

6. PW-1 has next deposed that the plaintiff completed the entire work in terms of the purchase orders to the satisfaction of the defendant, however, the defendant company made a part payments of Rs.1,27,77,700/- (Rupees One Crore Twenty Seven Lac Seventy Seven Thousand Seven Hundred Only) inclusive of advance payments between 7.12.2004 to 3.1.2006 against the total payable amount of Rs.1,37,19,753/- (Rupees One Crore Thirty Seven Lac Nineteen Thousand Seven Hundred and Fifty Three Only) thereby leaving a balance of Rs.9,42,053/- (Rupees Nine Lac Forty Two Thousand and Fifty Three only).

7. Mr.Vinod, PW-1 has further deposed that the defendant company promised to pay the above said balance amount of Rs.9,42,053/- (Rupees Nine Lacs Forty Two Thousand and Fifty Three only) shortly but never cared to pay the same despite repeated requests and demands by the plaintiff company.

8. It has also been deposed by PW-1 that the defendant company further undertook to provide Form 1 for Sales Tax Exemption within 15 days from the date of its letter dated 30.5.2005 sent by fax and in case of failure to pay sales tax amount on the supplies made in terms of purchase orders, the defendant agreed to pay the amount in lieu thereof. Copy of the letter so received by Fax has been Exhibit PW-1/6.

9. PW-1 has also deposed that the defendant company has failed to provide Form 1 for Sales Tax Exemption as promised and as such the defendant is liable to pay a sum of Rs.9,18,842/- (Rupees Nine Lac Eighteen Thousand Eight Hundred and Forty Two Only) towards the sales tax amount on the supplies made through various invoices by the plaintiff company. The defendant is further liable to pay interest @ 14% p.a. amounting to Rs.418072/- (Rupees Four Lac Eighteen Thousand and Seventy Two only) on the said outstanding sales tax amount.

10. It has next been deposed that the plaintiff has made several representations and demands to the defendant to pay a sum of Rs.9,42,053/- (Rupees Nine Lac Forty Two Th