IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
M.R. SHAH, A.Y. KOGJE, JJ.
ABB INDIA LIMITED — Appellant
Vs.
BHARAT BIJLEE LIMITED — Respondent
F.A No. 3842 of 2017 and Civil Application No. 1 of 2017
Decided on : 06-04-2018
Code of Civil Procedure, 1908 – Order 1, Rules 1 and 2, Order 37 – Motor Vehicles Act, 1988 – Section 50 – Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 – Feeling aggrieved and dissatisfied by the impugned judgment and decree passed by Judge, Commercial Court, in Commercial Civil Suit, by which Commercial Court has partly allowed said suit and has passed a decree in favour of the original plaintiff for a sum of Rs.5,69,91,250/- with interest at the rate of 12% per annum from date of filing the suit till date of decree, and at rate of 9% per annum from date of decree till realization of the amount, with a liberty in favour of appellant herein - original defendant to take delivery of transformers in question after making payment of aforesaid amount along with interest, original defendant has preferred present appeal under provisions of Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 – Held, Even counsel appearing on behalf of plaintiff is not in a position to justify impugned judgment and decree awarding storage charges, more particularly, in absence of any further evidence – Impugned judgment and decree passed by trial Court awarding storage charges deserves to be quashed and set aside – Impugned judgment and decree passed by trial Court insofar as award of storage charges of Rs.17,75,000/- is concerned, is hereby quashed and set aside – Rest of the judgment and decree passed by Judge, Commercial Court, in Commercial Civil Suit is hereby confirmed – Appeal Allowed (Paras 17, 18)
M.R. Shah, J.
Feeling aggrieved and dissatisfied by the impugned judgment and decree passed by the learned Judge, Commercial Court, Vadodara, in Commercial Civil Suit No.138/2016, by which the learned Commercial Court has partly allowed the said suit and has passed a decree in favour of the original plaintiff for a sum of Rs.5,69,91,250/- with interest at the rate of 12% per annum from the date of filing the suit till the date of decree, and at the rate of 9% per annum from the date of decree till realization of the amount, with a liberty in favour of the appellant herein - original defendant to take the delivery of the transformers in question after making payment of the aforesaid amount along with interest, the original defendant has preferred the present appeal under the provisions of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 (hereinafter referred to as "the Commercial Courts Act" for short).
2. The facts leading to the present appeal in nutshell are as under:
2.1 That the original plaintiff Bharat Bijlee Limited is a manufacturer of electrical and engineering goods and mainly electrical motors, transformers, drives, elevator system and also undertakes technical projects on turnkey basis. That the plaintiff Company is having its registered office at Mumbai and a factory at Airoli, Navi Mumbai. That the original defendant ABB Limited (hereinafter referred to as "the defendant"), having its registered office at Bangalore, is having one of its plants at Vadodara. As per the plaintiff, the defendant approached the plaintiff for supply of two numbers of 50 MVA 230/11 KV Power Transformers. That the defendant also gave specifications of the transformers. According to the plaintiff, the transformers which the defendant wanted to purchase were of special specifications and not the transformers which are generally manufactured by the plaintiff. That the defendant wanted customized equipments and had asked for the offer of the plaintiff for supply of the transformers and after scrutinising the offer submitted by the plaintiff, the defendant placed a Purchase Order, being No.3191254738 dated 22.02.2010, on a firm price basis at per unit ex-works price of Rs.2,03,75,000/- and the total value of the said two transformers, being Rs.4,07,50,000/-. The Purchase Orders were issued as per the terms and conditions incorporated in the said Purchase Orders and the same were accepted by the plaintiff.
2.2 According to the plaintiff, as per the terms of the said Purchase Order, Unit-I transformer was to be delivered ex-works by 15.06.2010 and Unit-II by 15.09.2010. According to the plaintiff, the defendant had obtained contract for Distribution System Project on turnkey basis from its customer Sterlite Industries (India) Limited, Tuticorin, (hereinafter referred to as "Sterlite Industries/Sterlite"), and as a part of the entire project, the defendant required two numbers of 50 MVA transformers and therefore, it placed order with the plaintiff and the scope of the works included design, engineering, manufacturing, testing, training, inspection, packing, forwarding and delivery of the transformers, strictly as per the specifications and requirements of defendant's project. According to the plaintiff, as per the terms of the Purchase Order, the transformers manufactured by the plaintiff were to be subjected to inspection and approval of defendant/its customer/its consultant, prior to despatch. That the plaintiff had to give fourteen days' advance intimation regarding expected date of readiness to enable the defendant organize inspection and thus, as part of the fulfillment of the terms of the Purchase Order, the plaintiff had intimated the defendant to carry out the inspection of both the units. According to the plaintiff, the defendant's representative, along with the
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