The burden of proof lies on the party asserting a claim, and failure to provide credible evidence results in upholding the original judgment.

JUDGMENT :

VIBHU BAKHRU, J.

1. The appellant (defendant in the suit) has filed the present appeal under Section 13(2) of the Commercial Courts Act, 2015 read with Order XLI of the Code of Civil Procedure, 1908 [hereafter the CPC], impugning a judgment dated 13.09.2024 [hereafter the impugned judgment] passed by the learned District Judge (Commercial Court)-04 [hereafter the Commercial Court], in CS (COMM) 614/2022 titled Mohd. Qadeer v. M/s CNR Exports.

2. The respondent (hereafter also referred to as the plaintiff) had filed the said suit [CS (COMM) No.614/2022] for recovery of a sum of Rs.3,73,383/- along with pendente lite and future interest at the rate of 24% per annum till the date of realization of the said amount. Additionally, the plaintiff had also sought a decree for costs and litigation charges. The learned Commercial Court allowed the aforementioned suit by the impugned judgment and decreed a sum of Rs.3,73,383/- along with pendente lite and future interest at the rate of 9% per annum from the date of the filing of the suit till the date of realization.

FACTUAL CONTEXT

3. The appellant (hereafter also referred to as the defendant) is a sole proprietorship concern of Mr Vinayak Choudhary. It is stated that, he is engaged in the business of manufacturing and exporting of leather and leather garments under the name of his proprietorship concern (M/s CNR Exports). The plaintiff is the sole proprietor of M/s Mehtab Export House and is engaged in the business of raw skin, finished leather, hides and skins.

4. It was the plaintiff’s case that Mr. Vinayak Choudhary had approached him to purchase certain goods (skins), which were supplied to him. The plaintiff had thereafter raised invoices for the sale of the said goods, however, the defendant failed to discharge the said invoices in entirety and a sum of Rs.3,73,383/- remained outstanding. The plaintiff had thereafter pursued the defendant for recovery of the said amount, however, the defendant had failed to repay the same.

5. The plaintiff claimed that he caused a legal notice dated 26.09.2020 to be issued to the defendant. The same was duly served on the defendant but the defendant had not responded to the same.

6. In the given circumstances, the plaintiff initiated pre-institution mediation proceeding, which was a non-starter.

7. The defendant filed a written statement contesting the suit. He claimed that he had placed an order for supply of certain raw material with the plaintiff sometime in July-August, 2020. He claimed that the total price of the goods, along with the rate difference, leather shaving charges, and freight charges was Rs.3,73,383/-, however, the plaintiff did not raise any invoice with respect to sale and purchase of the said goods. He claimed that the goods in question arrived at his factory and were found to be defective and not upto the mark. Accordingly, he claimed that transaction for purchase of the goods was cancelled, and the goods were returned. He stated that he had issued two debit notes dated 24.08.2020, aggregating an amount of Rs.3,73,381/- and the goods were returned to the plaintiff on the very same date.

8. The defendant claimed that on the said date, that is 24.08.2020, the plaintiff visited the factory premises and was handed over a cheque amounting to Rs.2,45,528/- which was the amount outstanding with respect to the past transactions/business dealings between them.

ISSUES

9. In view of the rival pleadings, the learned Commercial Court framed the following issues for consideration:

“1. Whether the plaintiff is entitled to recovery of Rs.3,73,383/- alongwith interest from the defendants, as alleged? OPP.

2. Whether the suit is not maintainable? OPD.

3. Whether there is no cause of action? OPD.

4. Relief.”

10. Both parties led the evidence. The plaintiff examined himself as PW-1 and testified to the invoices raised [Ex.PW-1/3 (colly)]; Certificate of GST Registration [Ex.PW-1/2] Statement of Accounts/Ledger [Ex.PW-1/5]; Messages exchanged between th