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2017 Supreme(Del) 4907

IN THE HIGH COURT OF DELHI AT NEW DELHI
DEEPA SHARMA, J.
Vatech Global Co. Ltd. - Appellant
Versus
Unicorn Denmart Ltd - Respondent
CS(OS) 1849 of 2015
Decided on : 30-05-2017

Advocate Appeared:
For the Appellant :Mr. Vinod Khurana, Mr. Mohinder Vig and Mr. Nitin Sen, Advocates
For the Respondent:Mr. Suhail Dutt, Sr. Advocate along with Ms. Gunjan Kumar and Mr. Azhar Alam, Advocates

Headnote:

Civil Procedure Code, 1908 - Order 37 Rule 3(5) - Recovery - Leave to defend - Allowed with condition - Invoices formed a valid Contract between the parties - Defendants owes Rs. 2,77,26,742 to the plaintiff - Granting the leave to defend to the defendants - Defendants are directed to deposit the money with the Registrar General within six weeks as a pre-condition to the grant of leave to defend - Non-deposition by the defendants, application for leave to defend shall be considered to have been dismissed.

JUDGMENT :

Deepa Sharma, J.

I.A. 25396/2015 (by defendants under Order 37, Rule 3 (5) r/w Section 151 CPC for leave to defend) I.A No. 25397/2015 (under Section 5 of Limitation Act seeking condonation of delay in filing the application under Order 37, Rule 3 (5) CPC)

The present suit has been filed by the plaintiff under Order 37 CPC. It is submitted that plaintiff is an international company incorporated under the laws of Republic of Korea and having its registered office at 13, Samsung 1-ro 2-gil, Hwaseong-si, gyeonggi-do, 445-170, Korea. Mr. Sookeun Park is the Representative Director of Plaintiff and is authorised to sign and verify the pleadings and to institute the present suit on its behalf. A Copy of Board Resolution dated April 24, 2015 authorising Mr. Sookeun Park, has been placed on record.

2. The plaintiff is dealing with manufacturing of high tech dental 2D and 3D digital imaging Equipments and software headquartered in S. Korea. Plaintiff is engaged in designing, manufacturing and marketing state-of-the-art digital imaging products for dental CBCT etc. The plaintiff's business has an international existence. Defendant no. 1 is Unicorn Denmart, a Company incorporated under the Company's Act, 1956, and is engaged in the business of providing goods and services in range of dental equipments and is based at New Delhi having its registered office in Delhi. Defendant no. 2, Mr. Shammi Gumbhir, is the Managing Director of defendant no. 1 and Defendant no. 3, Mrs. Achla Gumbhir, is Whole time Director of defendant no. 1. Defendant no. 2 is involved jointly with other defendants in the management of defendant no. 1 and they all are jointly and severally responsible for the conduct of defendant no. 1. They had entered into a business relationship in 2009. The plaintiff had exported dental devices to defendants to market and sell them in India.

3. It was agreed between them that the defendants shall pay 50% of the advance of the required devices/equipments and on the release of that advance, the plaintiff shall execute the order and send the devices to the defendants and then the defendants shall within two months from the date of bill of lading, release the balance 50% amount to the plaintiff. This practice continued between the parties since 2009 and the email dated 05.11.2014 of the defendants confirmed the said fact. In the year 2014 in the month of September, defendant no. 1 placed an order for purchase of dental devices including “Intra Oral Sensor” and “Digital X-Ray System”. As per the standard practice between them, the plaintiff raised the performa invoices for that purpose.

The details are as follows:-

S. No.

Performa Invoice No. PI No.I

Dated

Commercial Value

1.

VG141015-IN-Unicorn-01

15th Oct 2014

US$ 176,250.10

2.

VG141031-11

31st Oct 2014

JPY28,320,600.00

3.

VG141125-IN-Unicore-03

25th Nov 2014

US$317,300.00

4.

VG141126-14

26th Nov 2014

JPYl 8,525,234.00

4. It is also submitted by the plaintiff that the defendants released 50% of advance based on the performa invoices and details are as under:-

Pro Inv No.

Value-of-PI

Amount-Transferred

Date-of-Transfer

VG141015- INUnicorn-01

US$ 176,250.10

US$88,125

27th October 2014

VG141031-11

JPY28,320,600.00

JPY14,160,300

6th Nov 2014

VG141125-IN-Unicore-03

USS 317,300.00

US$158,650

23rd Dec 2014

VG141126-14

JPYl 8,525,234.00

JPY7,551,945.25 JPYl,710,672.00

2nd Dec 2014 5th Dec 2014

5. Bank statements that the amount was transferred against each mentioned Performa Invoices and credited to the plaintiff's bank account were also enclosed by the plaintiff along with the suit.

6. It was contended that thereafter the plaintiff executed the order and raised the Commercial Invoices as per the details below:-

S. No.

Commercial Invoice no.

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