High Court of Judicature at Madras
S. PALANIVELU
M/s. Unipar Leather Chemicals Private Limited, Represented by its Chairperson & Wholetime Director
Versus
M.O.H. Leathers Private Limited Kaywear Exports
C.S.No.111 of 1999
Decided on : 06-06-2011
B. INDIAN LIMITATION ACT, 1963 - SECTION 5 - Suit of claim on goods sold and delivered - Plea in written statement that suit transactions were during period from 11-01-1993 to 31-05-1996 suit having been filed in 1999, it was barred by limitation - HELD, D1 for himself and on behalf of D2 had admitted liability on 12-02-1996 by means of Ex.P41 - Hence time will run from date of Ex.P41 ie., 12-02-1996 - relied on - Suit decreed.
Result: Suit decreed.
1. This is a money suit.
2. The following are the allegations contained in the plaint -2(A) The plaintiff had supplied goods to the defendants on various dates as stated in the Statement of Accounts. On various occasions, the plaintiff had been calling upon the defendants to regularise their accounts and to clear their dues. The defendants have been promising to do so but have failed and neglected to do so. The defendants, by their letter dated 12.02.1996 to the plaintiff have admitted their dues to the tune of Rs.20,41,212.84 being the outstanding as per their Statement of Account in respect of the 1st defendant and a sum of Rs.4,11,170.88 in respect of the 2nd defendant. Thus, totally the defendants admit that they are due to the plaintiff to the tune of Rs.24,52,383.72. The defendants being a single entity and also acting as a single entity for all transactions with the plaintiff, had promised to clear the outstandings by way of payment of Rs.3 Lacs each month starting from February, 1996. The defendants assured the plaintiff to try out their level best to clear this outstanding amount as early as possible. Inspite of repeated requests and reminders, the defendants have not cared to settle the outstanding and clear their account.
2(B) The entire transactions between the plaintiff and the defendants are commercial in nature. The defendants were to make payments of the Invoices as and when raised. In case of delay, the defendants were liable to pay interest at the rate of 24% per annum on the amount outstanding. As on date, the defendants are due and liable to pay a sum of Rs.17,65,716.27 towards interest on the total outstanding. Hence, the defendants are totally due and liable to pay a sum of Rs.42,18,099.99 to the plaintiff.
2(C) As the various requests made by the plaintiff did not prove fruitful, the plaintiff sent a legal notice dated 23.01.1999 to the defendants calling upon them to pay the outstandings due together with interest at 24% per annum. The defendants have till date not paid the outstandings due together with interest. The defendants have not replied to the legal notice and hence the plaintiff has filed the present suit. 3. In the written statement filed by the first defendant, it is alleged that the 1st and 2nd defendants are two distinct and separate entities. The 1st defendant is a limited company and the 2nd defendant is a partnership firm. The cause of action against the defendants is different and therefore the suit is bad for mis-joinder of parties and mis-joinder of causes of action. The suit claim is for the period from 11.01.1993 to 31.05.1995 but the suit was filed in the year 1999. Hence, the suit is barred by limitation and liable to be dismissed.
4. The following are the issues framed in the suit -
1. Whether the plaintiff is entitled to the suit claim of Rs.42,18,099/- alongwith interest at the rate of 24% per annum on the principal sum of Rs.24,52,383.72 as o n the date of filing of the suit?
2. Whether the first defendant treated the accounts of the 1st and 2nd defendants as a single account?
3. Whether the suit is maintainable, since the cause of action is different (first defendant is a limited company and the second defendant is a partnership firm)?
4. Whether the first defendant in its letter dated 12.2.1996 has acknowledged and agreed to pay the liability of the first and second defendants payable to the plaintiff in the manner stated therein?
5. Whether the second defendant' is a necessary party to the suit in view of letter dated 12.2.1996?
6. Whether the suit is bad for misjoinder of parties and misjoinder of cause of action as alleged by the defendant?
7. Whether the suit as filed is barred by limitation?
8. Whether the defendants are jointly and severally liable to pay the suit claim amount?
9. Whether the plaintiff can file a single suit when the status or entity of the first and second defendant are different?
10. To what relief the parties are entitled ?
Issue Nos.2 to 6,
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