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2017 Supreme(Del) 3379

IN THE HIGH COURT OF DELHI AT NEW DELHI
MUKTA GUPTA, J.
Dimension Data India Private Limited – Plaintiff
Versus
Vertex Custom Management India Private Limited – Defendant
CS(COMM) No. 1020 of 2016
Decided On : 13-10-2017

Advocates Appeared:
For the Plaintiff : Mr. Dhruv Wahi, Mr. Mohit Bhardwaj, Advs.

Failure to rebut averments can lead to deemed admission and result in a decree in favor of the plaintiff.

Headnote:

CPC - Civil Procedure Code - Decree for payment of outstanding amount along with interest

Fact of the Case:

Plaintiff seeks a decree for payment of outstanding amount for Microsoft licenses supplied to the defendant, who failed to clear the dues despite multiple reminders and legal notice.

Finding of the Court:

The court decreed in favor of the plaintiff, directing the defendant to pay the outstanding amount along with interest at 9% per annum from the date of institution of the suit.

Issues: Non-payment of outstanding amount for Microsoft licenses, defendant's failure to honor the invoice, and plaintiff's compliance with legal formalities.

Ratio Decidendi: Defendant's failure to rebut the plaintiff's averments led to the court deeming them as admitted, resulting in a decree in favor of the plaintiff.

Final Decision: The suit is decreed in favor of the plaintiff, directing the defendant to pay the outstanding amount along with interest at 9% per annum.

JUDGMENT :

MUKTA GUPTA, J.

1. By the present suit, plaintiff seeks inter alia a decree for a sum of Rs.1,91,73,992.07/- (Rupees One crore ninety one lakhs seventy three thousand nine hundred ninety two and paisa seven only) with pendente lite and future interest @ 18% per annum from the date of institution of the present suit upto the date of realization of the decretal amount in favour of the plaintiff and against the defendant.

2. Summons in the suit were issued to the defendant vide order dated 3rd August, 2016. Defendant was served through publication vide order dated 15th September, 2017. Since the defendant has not entered appearance despite service, plaintiff prays for a decree against the defendant in terms of Order VIII, Rule 10 of Code of Civil Procedure, 1908 (in short ‘CPC’) read with Order XIII-A CPC.

3. Plaintiff is a company incorporated under the Companies Act, 1956 having its registered office at Trade View, 2nd Floor, Kamala Mills Compound, Pandurang Budhkar Marg, Lower Parel, Mumbai – 400013. Plaintiff is engaged in the business of information, communication technology and allied services and is also a reseller of hardware and software.

4. Defendant is also a company duly incorporated under the Companies Act, 1956 and having its registered office at 122, First Floor, Jaina Tower-1, Jankapuri District Centre, Janakpuri, Delhi – 110058.

5. On 15th October, 2013, plaintiff had forwarded a proposal for sale of licenses to the defendant. Based on the aforesaid proposal, defendant placed a purchase order bearing no. P240000149-2 dated 24th October, 2013 for purchase of certain Microsoft Licenses. Plaintiff procured the licenses from the distributor of Microsoft and delivered to the defendant in October, 2013 itself. Thereafter, plaintiff raised invoice no. 7570094559 dated 15th November, 2013 for a sum of Rs.1,91,73,992.07 (Rupees One crore ninety one lakhs seventy three thousand nine hundred ninety two and paisa seven only) on the defendant towards the licenses supplied, which was delivered and accepted by the defendant on 18th November, 2013.

6. Out of the total invoice amount of Rs.1,91,73,992.07/-, defendant made payment of Rs.53,24,523.01/- (Rupees fifty three lakhs twenty four thousand five hundred twenty three and paise one only). Thus, the balance amount due on the defendant is Rs.1,38,64,057.89/- (Rupees One crore thirty eight lakhs sixty four thousand fifty seven and paise eighty nine only).

7. Plaintiff sent various reminders through phone calls and emails to the defendant to clear the outstanding amount, however, defendant failed to clear the outstanding amount.

8. On 2nd April, 2014, plaintiff received an email from the defendant alleging that certain line items of purchase order had been cancelled. Plaintiff responded to the aforementioned email vide email dated 7th April, 2014 whereby he categorically stated since the licenses were generated in the name of the defendant and plaintiff had made the payment towards the licenses to Microsoft, defendant was required to honor the invoice. Thereafter, vide email dated 18th April, 2014, again plaintiff demanded the outstanding dues but there was no response.

9. Since the defendant was avoiding to make the payment, plaintiff sent a legal notice dated 23rd January, 2015. Defendant replied to the notice vide reply dated 17th February, 2015 denying the payment to the plaintiff.

10. To substantiate the averments made in the plaint, plaintiff has placed reliance on the following documents:

(i). Board Resolution in favour of Mr. Jayant Kumar Thakur

(ii). Purchase order and proposal

(iii). Invoice no. 7570094559 dated 15th November, 2013

(iv). Invoice bearing acknowledgment of the defendant

(v). Emails exchanged between the plaintiff and defendant

(vi). Emails dated 2nd April, 2014, 7th April, 2014 and 18th April, 2014 exchanged between the plaintiff and defendant

(vii). Legal notice dated 23rd January, 2015

(viii). Reply dated 17th February, 2015 to the legal notice

(ix). Payment adv



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