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2018 Supreme(HP) 41
IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
Sandeep Sharma, J.
M/s Dr. R.K. Puri(registered Firm) and others - Plaintiffs
Versus
M/s Costal Project Pvt. Ltd. and others - Defendants
Civil Suit No. 80 of 2016
Decided On : 03-04-2018
Advocate Appeared:
For the Plaintiffs : Mr. Devender K. Sharma
The main legal point established in the judgment is that a suit filed under Order 37 CPC for recovery of a debt is maintainable if it is well within limitation and discloses sufficient cause of action. In the absence of the defendant's appearance, the court may decree the suit in favor of the plaintiff based on the deemed admission of the claim.
Headnote:
Order 37 CPC - Recovery of Debt - Indian Partnership Act, 1932 - Summary Suit - Plaintiffs filed a suit for recovery of Rs.85,83,780/- (principal amount) plus Rs.37,20,538/-(interest) at the rate of 10% per annum upto 20.6.2016 against defendants No.1 and 2. Defendants failed to appear, and the court decreed the suit in favor of the plaintiffs for the principal amount along with interest at the rate of 7.5% per annum from the date of institution of the suit till realization.
Fact of the Case:
Plaintiffs, a Firm registered under Indian Partnership Act, 1932, filed a suit under Order 37 CPC for recovery of a principal amount of Rs.85,83,780/- plus interest at the rate of 10% per annum upto 20.6.2016 against defendants No.1 and 2. Defendants failed to appear despite service.
Finding of the Court:
The court found that the suit filed by the plaintiffs was well within limitation and disclosed sufficient cause of action. The court decreed the suit in favor of the plaintiffs for the principal amount along with interest at the rate of 7.5% per annum from the date of institution of the suit till realization.
Issues: The main issue was whether the suit filed by the plaintiffs was maintainable under Order 37 CPC and whether the plaintiffs were entitled to recover the claimed amount from the defendants.
Ratio Decidendi: The court held that the suit filed by the plaintiffs was maintainable under Order 37 CPC as it was well within limitation and disclosed sufficient cause of action. The court also found that the defendants failed to put in appearance, and as per the provisions of Order 37 CPC, it was deemed that the defendants had admitted the claim of the plaintiffs.
Final Decision: The court decreed the suit in favor of the plaintiffs for the principal amount of Rs.85,83,780/- along with interest at the rate of 7.5% per annum from the date of institution of the suit till realization. No orders were given as to the costs of the suit.
Sandeep Sharma, J.
Instant suit under Order 37 CPC has been filed by the plaintiffs for recovery of Rs.85,83,780/- (principal amount) plus Rs.37,20,538/-(interest) at the rate of 10% per annum upto 20.6.2016, total amounting to Rs.1,23,04,318/- against the defendants, averring therein that plaintiff No. 1 is a Firm registered under Indian Partnership Act, 1932 having its office at H.N. 98/7, Upper Samkhetar Mandi, Himachal Pradesh and plaintiffs No.2 and 3 are the partners of plaintiff No. 1. Earlier Dr. R.K. Puri was the sole proprietor of the plaintiff- Firm but after his death, plaintiff Nos. 2 and 3 became partners of the plaintiff-Firm. Plaintiff has also placed on record photocopies of registration certificates, legal heir certificate, partnership deeds and death certificates of Dr. R.K. Puri and Dipanshu Puri. As per plaintiffs, they possessed heavy earth moving machinery, which they provided on hire basis. Proforma defendant i.e. National Hydroelectric Power Corporation (deleted from array of parties) awarded work of Hydro Electric Power Project Stage-II Sainj to defendant No. 1 and this work was being executed and supervised by defendant No.1 through defendant No. 2. Defendants No.1 and 2 approached plaintiff- Firm through its proprietor Dr. R.K. Puri in July, 2011 with a proposal to hire machinery from the firm for excavation work/trenching work on their site. Subsequently defendants No.1 and 2 placed/issued various work orders to the plaintiff-Firm for execution of work on the site. Detail of work done by the plaintiff-Firm, as has been detailed in the plaint, is reproduced herein below (verbatim):
“SCHEDULE OF WORK
i. Volvo-Excavator-140
(a) This machine is hired by the defendant vide work Order No. 276, dated 1-8-2013 at the monthly rate of Rs.1,85,000/- P.M. The main terms and condition of this work was that the Diesel is to be provided by the defendants for running the Machine and a log book is also maintained by defendants pertaining to every vehicle in which the details of work done every day by that vehicle is to be recorded, which Log Book is maintained by the site Incharge of defendants No. 1 and 2, on the basis of which the monthly bill is to be prepared and this lo book remained in the custody of the employees of defendants. That vide this work order the machine worked as under:-
Sr. No.
Period
Amount
1.
9-8-2013 to 31-8-2013
1,41,833/-
2.
1-9-2013 to 30-9-2013
1,85,000/-
3.
1-10-2013 to 31-10-2013
1,85,000/-
Total
5,11,833/-
Photo Copy of Log Book is attached herewith.
(b) That the above work order No-276 was further extended on dated 1-11-2013 to 30-11-2013, the detail of work done on the spot is duly given in the log-book and the following work is done under the extended order as under:-
Sr. No.
Period
Amount
1.
1-11-2013 to 30-11-2013
1,85,000/-
Total
1,85,000/-
Photo Copy of Log Book is attached herewith.
(c) That the above work order No-276 was further extended on dated 31-1-2014 and the following work is done under the extended order as under:-
Sr. No.
Period
Amount
1.
31-1-2014 to 28-2-2014
1,85,000/-
2.
1-3-2014 to 31-3-2014
1,85,000/-
Total
3,70,000/-
Photo Copy of Log Book is attached herewith.
(d) That the plaintiff also worked with the above said machines earlier also as under:-
Sr. No.
Period
Amount
1.
20-7-2012 to 30-8-2012
2,46,667/-
2.
1-12-2013 to 31-12-2013
1,85,000/-
Total
4,31,667/-
Photo Copy of Log Book is attached herewith.
That the total amount payable by the defendants to the plaintiff for the work done by this Machine for the above referred period comes to Rs.14,98,500/-.
That the amount of interest on this entire payment at the rate of Rs.10% P.A. up to 20-6-2016 from due date comes to Rs.4,63,222/-.
As such the total amount alongwith interest of this machine up to 20-6-2016 comes
