The main legal point established in the judgment is the requirement for parties to provide sufficient evidence to support their claims and defenses in a breach of contract dispute.

Prathiba M. Singh, J.

1. This is an appeal against the final judgment and decree dated 26th May, 2016 by which the Trial Court has decreed the suit of the Respondent/Plaintiff (hereinafter, ‘Franchisee’) in the following terms:

“50. In view of aforesaid discussion of the court, suit of the plaintiff is decreed with cost for recovery of Rs.7,07,981/- (Seven Lakh Seven Thousand Nine Hundred Eighty One) alongwith pendente-lite and future interest @ 13% per annum.”

2. A Franchise Agreement (hereinafter ‘Agreement’) was entered into between the Appellant/Defendant- BIG SHOE BAZAR INDIA PVT LTD (hereinafter, ‘BSB’) which operated an e-commerce website by the name www.bigshoebazaar.net. The Agreement, inter alia, contained the following terms and conditions.

“1. BSB and the Franchisee have mutually decided to do business wherein, the Franchisee has agreed to open a Bigshoebazaar store at Civil Lines, Bijnour, U.P.

2. To open this store, the Franchisee has minimum area is 650 sq. ft. approx and investment is around 8 Lakh Rs for stock deposit only and 4 lakh for infrastructure costing.

3. This agreement will be for a period of 9 years and can be extended further after 3 years as mutually agreed by the both parties.

4. During this period, the Franchisee would maintain a store branded as Bigshoebazaar or by whatever name the BSB brand is known as.

5......10…….

11. For the purchases made, the Franchisee would get 45 thousand as a minimum guarantee plus 7% commission on sales every month. This amount would be given as cheque/RTGS payment on every 10th of each month. VAT would be reimbursed by the company.

12.........18..........

19. To finalize this agreement the Franchisee is giving a cheque of 8.5 lakhs rupees in the name of Bigshoebazaar India Pvt. Ltd. and its dated 8.5 lakhs. This amount would be treated as advance given to the company against future purchase of stocks at the store. Cheque no-011721/011724.

20. BSB and franchise will have work together for 3 years. After completion of this period any side can wind up operation with 60 days prior notice.

21.......23.........

24. Franchisee will purchase Rs.2 lakh as a stock in between Durga puja and Diwali in this year.”

3. The Franchisee – the proprietor of M/s Gandhi Enterprises, referred to as Franchisee in the Agreement was to run a retail show room of Bigshoebazaar.net. in the city of Bijnour, Uttar Pradesh. The date of the Agreement is 13th August, 2010 and the same was for a period of 9 years extendible for a further period of 3 years. There was a lock-in period of 3 years as per clause 20. Disputes arose between the parties very early after the execution of the Agreement and notice dated 12th August, 2011 was served upon the Franchisee, inter alia, alleging the following violations by the Franchisee:

“1. There is no support from your side to the manager which is hampering the business.

2. You are not allowing our team to install the Logic Software as agreed.

3. You do not update POS on immediate basis. The Company officials have reminded you various times. However you still continue to do so.

4. Your behaviour with the store manager Mr. Nahar Singh is not professional. You behave with him in a highly unprofessional manner. Even you have not allowed our store manager to go to the store room.

5. Your sell sometimes products without bills.

6. You are not passing the discounts to the customers which Company is providing you.

7. You do not allow to use the computers to our team so that they can make the necessary entries relating to the sale of the products.

8. Your actual stock is tallying with the accounting records.”

4. In reply to this letter, the Franchisee simply replied that the company secretary was not authorised to issue the show cause notice. Thereafter, however, it appears that the Agreement was implemented by the parties and the Franchisee purchased the products from BSB periodically. The Franchisee has placed on record several e-mails to show that the relationship between the parti