SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2021 Supreme(Mad) 657

IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.V. KARTHIKEYAN, J.
M/s. Just Water (TZ) Ltd., Represented by its Power of Attorney Agent N. Suresh, Tanzania - Appellant
Versus
Canadian Crystaline Water India Ltd. Chennai & Another - Respondent
C.S. No. 486 of 2016
Decided On : 10-03-2021

Advocates Appeared:
For the Appellant :G. Kalyan Jhabak for M/s. Surana & Surana, Advocates.
For the Defendants :P.R. Raman, Senior Counsel for C. Seethapathy, Advocate.

Headnote:

Limitation - Commercial Transaction - Section 10 of the Limitation Act, 1963 - [DELAY IN DISPATCHING EQUIPMENTS] - [Section 10 of the Limitation Act, 1963] - The court held that the suit was barred by limitation as the cause of action arose in December 2009 when the defendants should have dispatched the materials. The correspondences between the parties could not extend the period of limitation. The plaintiff's reliance on Section 10 of the Limitation Act, 1963 was rejected as trust and commercial transactions cannot go hand in hand. The suit was dismissed with costs.

Fact of the Case:

The plaintiff, a Tanzanian company, filed a suit against the defendants, Indian companies, for delay in dispatching mineral water processing and packaging plant machinery. The plaintiff claimed that the defendants had not delivered the machinery as agreed and had sold the entrusted machines to another company, causing financial loss.

Finding of the Court:

The court found that the suit was barred by limitation as the cause of action arose in December 2009. The correspondences between the parties could not extend the period of limitation. The plaintiff's reliance on Section 10 of the Limitation Act, 1963 was rejected. The suit was dismissed with costs.

Issues: The issues framed for trial included delay in dispatching equipments, right to sell undelivered equipments, applicability of limitation, proof of manufacturing and keeping ready the PET Blowing Machine, necessity of the second defendant as a party, and entitlement to reliefs claimed in the suit.

Ratio Decidendi: The court held that the suit was barred by limitation as the cause of action arose in December 2009. The correspondences between the parties could not extend the period of limitation. The plaintiff's reliance on Section 10 of the Limitation Act, 1963 was rejected as trust and commercial transactions cannot go hand in hand.

Final Decision: The suit was dismissed with costs, quantified at Rs.1,00,000/- (Rupees one Lakh only).

JUDGMENT :

Prayer:- This Civil Suit is filed under Order VII Rules 1 & 2 of the Civil Procedure Code read with Order IV Rule 1 of the O.S. Rules, for a Judgment and Decree against the defendants for the following reliefs:

(a) directing the defendants to pay a sum of Rs.1,10,00,000/- (Rupees One Crores Ten Lakhs only) of the plaintiff;

(b) directing the defendants to pay interest @ 18% per annum on the above said amount of Rs.1,10,00,000/- from the date of the suit till reaslisation.

1. This suit had been filed by the plaintiff M/s. Just Water (TZ) Ltd., a Company incorporated under the Corporate Laws of Tanzania, seeking a Judgment and Decree against the defendants, Canadian Crystaline Water India Ltd., and Shivsu Canadian Clear Waters Limited, both Companies incorporated under the Companies Act, 1956, to pay a sum of Rs.1,10,00,000/- together with interest at 18% p.a., from the date of the suit till the date of payment and also for costs of the suit.

2. In the plaint, it had been stated that the plaintiff, is a Limited Liability Company incorporated under the Corporate Laws of Tanzania having its administrative office at Tanzania had been approached by the defendants, who are in the business of manufacturing Mineral Water Processing Machines, Bottling Machines and PET Stretching Blow Moulding Machines, etc., claiming that they are capable of manufacturing Mineral Water Processing and Packaging Plant and requesting the plaintiff to purchase the Mineral Water Processing and Packaging Plant. It had been stated that the defendants are sister companies and claimed to have a global presence with offices in about 42 countries including an office at Kenya. The plaintiff placed an order for purchase of a Mineral Water Processing and Packaging Plant including Rotary Filling Machine, Automatic PET Blowing Machine etc., for a total sum of US$ 90,000. It had been stated that the understanding was that the machineries would be dispatched by the second week of December 2009. A quotation and a Proforma invoice both dated 28.10.2009 were taken out in the name of the first defendant and issued to the plaintiff. The plaintiff made the entire payment towards the invoice in four installments by 11.01.2010. In the Proforma Invoice, the price of each of the machine parts had been specified. The defendants had not supplied the Fully Automatic PET Blowing machine SSB20@2000 BPH with moulds and other accessories. The defendants had charged a sum of US$ 47,500 plus applicable packaging, forwarding and freight charges, which had also been paid by the plaintiff with respect to the said PET Blowing machine. However, the defendants did not deliver the machinery even by April 2010. On 29.04.2010, the plaintiff issued two electronic mails to the defendants requesting the details of the dispatch. It had been stated that when the plaintiff visited the defendants manufacturing factory in Chennai in March 2010, it was informed that the machines had already been manufactured and would be delivered soon. The plaintiff issued another electronic mail on 18.05.2010. The defendants forwarded a copy of a packaging slip and relevant freight invoice dated 05.05.2010. It included the undelivered equipments. However, the plaintiff claims that the packaging slip and freight invoice are not true documents. The plaintiff then deferred taking delivery of the undelivered equipments in September 2010 for a short period of time even though the entire price and the packaging, forwarding and freight charges had already been made. The plaintiff was affected by peak season rush and had to wait till the peak season to pass to take delivery of the undelivered machines.

3. It is the claim of the plaintiff that the defendants also agreed to keep the undelivered equipments and hold on to the same in trust for the benefit of the plaintiff. On 28.03.2011, the plaintiff instructed the defendants to shift the undelivered equipments to the plaintiff. Further reminders were given on 31.05.2011 and 01

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top