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2021 Supreme(Mad) 1392

IN THE HIGH COURT OF JUDICATURE AT MADRAS
G. JAYACHANDRAN, J.
M. Mohan, Proprietor, Sivasakthi Corporation – Appellant
Versus
Tamil Nadu Co-Operative Union – Respondent
C.S. No. 72 of 2020, Application No. 2087 of 2021
Decided On : 19-08-2021

Advocates:
Advocate Appeared:
K.V. Ananthakrishnan, R. Bala Ramesh.

Headnote:

Civil Procedure Code,1908 - Order VII, Rule - Tamil Nadu Co-operative Societies Act - Section 81 - Limitation Act - Sections 18 and 19 - Contract Act, 1872 Section 25(3) - Dealer in scraps, spares, tools and instruments in computer components and accessories - Delivery of machineries worth - Defendant refused to pay the balance amount - Suit laid on foundational fact that plaintiff is a dealer in scraps, spares, tools and instruments in computer components and accessories - He supplied machineries and equipments to 9 Industrial Training Institutes (ITI) run by defendant for a sum during the year - Defendant paid only a sum failed to pay the balance - Defendant did not show any initiative to take delivery of machineries worth which were kept ready for delivery, as per their order. After lapse of two and half years, the defendant falsely initiated proceedings under Section 81 of Tamil Nadu Co-operative Societies Act – Held, Goods supplied during the month present suit is filed - Dispute regarding quality of goods supplied started in the year - Instead of filing the suit for recovery of money within the time - Plaintiff had first filed the writ petition in the year 2015 to get money by short circuiting the legal process - High Court has rightly dismissed the writ petition - petitioner is amounting to recovery of money arising out of realm of contract. Further, the request of the petitioner for appointment of a retired Judge or an Advocate as an Arbitrator cannot be entertained as it is not backed by any Act or Rule - writ petition is dismissed

JUDGMENT :

G. JAYACHANDRAN, J.

Prayer: Plaint has been filed under Order IV, Rule 1 of Original Side Rules read with Order VII, Rule 1of C.P.C. praying to pass a judgment and decree in favour of the plaintiff: (a) directing the defendant to pay the plaintiff a sum of Rs. 2,57,91,638/- (Rupees Two Crores Fifty Seven Lakhs Ninety One Thousand and Six Hundred Thirty Eight only) with interest 18% p.a. Principal Rs. 2,57,91,638/- from this date till date of realization and (b) to pay cost of the suit.

Application has been filed under XIV, Rule 8 of O.S. Rules read with Order VII, Rule 11 of C.P.C. praying to reject the plaint in C.S. No. 72 of 2020 on the file of the High Court of Madras as barred by law.

1. Suit is filed for recovery of Rs. 2,57,91,638/- with interest at the rate of 18% from the date of suit till date of payment.

2. The suit laid on the foundational fact that, the plaintiff is a dealer in scraps, spares, tools and instruments in computer components and accessories. He supplied machineries and equipments to 9 Industrial Training Institutes (ITI) run by the defendant for a sum of Rs. 4,97,14,956/- during the year 2012. The defendant paid only a sum of Rs. 2,39,23,318/- and failed to pay the balance. The defendant did not show any initiative to take delivery of machineries worth Rs. 1,89,78,593/-, which were kept ready for delivery, as per their order. After lapse of two and half years, the defendant falsely initiated proceedings under Section 81 of the Tamil Nadu Co-operative Societies Act.

3. In this regard, the plaintiff’s representation for payment of the balance amount was not considered by the defendant, hence, the plaintiff filed a writ petition in W.P. No. 11061/ 2014 to dispose of his representation. The High Court directed the defendant to consider the representation. The defendant refused to pay the balance amount, based on the verification report done behind his back, which says that materials worth of Rs. 82,96,542/- are defective.

4. Alleging that the defendant cannot refuse to pay the balance amount, based on the Enquiry Report initiated under Section 81 of the Co-operative Societies Act and contrary to the terms of the tender condition. The suit is filed.

5. As far as limitation to sue, the plaint Para 13 reads as under:-

    “13. The cause of action for the above suit arose within the jurisdiction of this Hon’ble Court when the defendant by the proceedings Na. Ka. No. 6676/2011, dated 06.06.2012 placed order with the plaintiff for the supply of machineries to the tune of Rs. 6,86,93,549/- and when the plaintiff supplied machineries to the tune of Rs. 4,97,14,956/- and when the defendant paid a sum of Rs. 2,39,23,318/- and failed to pay the balance amount of Rs. 2,57,91,638/- and when the plaintiff placed orders with their principal supplier for balance machineries for the value of Rs. 1,87,78,593/- to be supplied to the defendant and when the defendant without taking delivery of balance machineries initiated proceedings against the plaintiff under Section 81 of the Tamil Nadu Co-operative Societies Act and when the plaintiff gave representation dated 13.3.2014 to take delivery of balance machineries for payment for the sale of machineries effected and when there was no reply and when the plaintiff failed W.P. No. 11061 of 2014 before the Hon’ble High Court, Chennai for Writ of Mandamus to dispose of the representation dated 13.3.2014 and directing the defendant to receive the balance materials and to pay balance amount of Rs. 2,57,91,638/- towards the machineries already supplied and when the defendant neither informed of the enquiry proceedings under Section 81 of T.N. Coop. Societies Act nor paid amount due to the plaintiff and when the plaintiff issued letters dated 23.07.2018 and 12.10.2018 pointing out the breach of obligations and on 03.06.2019 of when the defendant acknowledged the liability and agreed to pay the same after getting permission from the higher authority and on 13.09.2019 the plaintiff issued

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