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) 1753

IN THE HIGH COURT OF JUDICATURE AT MADRAS
G. JAYACHANDRAN, J.
S. Suresh Kumar – Plaintiff
Versus
Prakash Chand Jain – Defendant
Civil Suit No. 63 of 2021, Application No. 621 of 2021
Decided On : 01-09-2021

Advocates:
Advocate Appeared:
For the Plaintiff : R. Abdul Mubeen.

Headnote:

Civil Procedure Code,1908 - Orders VII ,XXXVII, Rule 1 - Suit is filed for recovery - Whether suit claim to be allowed as prayed - Plaint averment in short is that he is a wholesale dealer carrying on business at in electric materials and such other accessories and hardware goods – At request of defendant plaintiff supplied various materials on credit basis as per defendant’s demand through invoices on a running account - Defendant failed to pay money as per invoices leaving an outstanding amount - Attempt to contact defendant for collection of dues went futile - Defendant remained unapproachable- On other hand defendant through his advocate caused a notice admitting liability - He in this notice requested months time to repay entire dues - After waiting for months plaintiff realised that defendant request for time was only to cheat plaintiff his lawful dues - Therefore plaintiff caused remainder notice to defendant - Said notice returned to sender – Held, If undertaking in notice is taken as acknowledgement of debt then limitation period expires on As clarified earlier two years period sought to repay cannot be taken as credit period fixed under Article since expression used in Article 15 clear enough to hold that credit period is to be fixed at inception when goods sold and delivered months period sought by defendant through his lawyer is not credit period fixed under contract but grace period requested subsequently - Even for sake of argument months is taken as credit period fixed even then limitation had come to end on Whereas suit is filed on – Petition Dismissed

JUDGMENT :

G. JAYACHANDRAN, J.

Prayer: Civil Suit has been filed under Order VII, Rule 1 of O.S. Rules Read With Order XXXVII, Rule 1 of C.P.C. praying to pass a judgment and decree against the defendant: (a) for a sum of Rs. 2,71,19,379/- (Rupees Two Crores Seventy One Lakhs and Nineteen Thousand Three Hundred Seventy Nine Only) together with further interest @ 24% on the Principal amount of Rs. 1,18,04,279/- (Rupees One Crore Eighteen Lakhs Four Thousand Two Hundred Seventy Nine only) per annum from the date of this plaint till the date of realisation and (b) for the cost of the suit.

1. The suit is filed for recovery of Rs. 2,71,19,379/- with interest for the goods sold and delivered to the defendant under numerous invoices raised between 23.11.2013 and 30.05.2015.

2. The plaint averment in short is that, he is a wholesale dealer, carrying on business at Chennai, in electric materials and such other accessories and hardware goods. At request of the defendant, the plaintiff supplied various materials on credit basis, as per the defendant’s demand, through the invoices, on a running account. The defendant failed to pay the money as per the invoices, leaving an outstanding of Rs. 1,18,04,279/- as on 30.05.2015. The attempt to contact the defendant for collection of dues went futile. The defendant remained unapproachable. On the other hand, the defendant through his advocate caused a notice dated 20.03.2015 admitting the liability. He in this notice requested 24 months time to repay the entire dues. After waiting for 24 months, the plaintiff realised that the defendant request for time was only to cheat the plaintiff his lawful dues. Therefore, the plaintiff caused the remainder notice dated 01.11.2019 to the defendant. The said notice returned to the sender. Thereafter, this suit filed for a sum of Rs. 2,71,19,379/- being the outstanding of Rs. 1,18,04,279/- as per invoices along with 24% interest from the last date of payment till 30.09.2020 and interest at the rate of 24% pa for the period pendent-lite till the date of realisation. The suit laid before the Commercial Division of the High Court being a commercial transaction relating to sale of goods. The Court notice and private notice sent to the defendant ‘returned un-served’ and pursuant to this Court direction, the plaintiff effected substituted service of summon through paper publication.

3. Citing the completion of service to the defendant through paper publication, the learned counsel for the plaintiff sought for Attachment Before Judgment as prayed in the Application No. 621/2021. The learned counsel submitted that, to evade the liability, the defendant remained ex-parte. He is making all attempts to alienate the suit schedule property, hence, to protect the interest of the plaintiff, attachment of the suit schedule property before judgment is imminent.

4. This Court, on verification, found no evidence to indicate the property mentioned in the schedule and sought to be attached belongs to the defendant. Hence, directed the plaintiff's counsel to produce document/s to show, the schedule mentioned property belongs to the respondent/defendant.

5. The plaintiff's counsel has not filed any document even to prima-facie indicate, the suit schedule mentioned property is owned by the defendant. The learned counsel, instead, sought for summary judgment allowing the suit claim, since the defendant has failed to participate in the proceedings, despite notice. According to the plaintiff, there is no real prospect of successfully defending the suit claim and there is no compelling reasons, why the claim should not be disposed before recording the oral evidence.

6. Thus, this Court has been asked to consider the pleadings and the documents relied upon by the plaintiff to decide, whether the suit claim to be allowed as prayed.

7. According to the plaintiff, electrical and hardware goods

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