J U D G M E N T

1. The present petition has been filed under Article 227 of the Constitution of India seeking to set aside of the order dated 02.12.2023 passed by the learned District Judge, Commercial Court-10, Central, Tis Hazari Courts, New Delhi in CS(COMM) 3005/2021 (hereinafter as “Trial Court”) titled as “ M/S. MK Enterprises vs M/S. Vohra Rubbers & Electricals and Others” whereby it dismissed the application filed by the petitioner under Order XII Rule 6 of the Code of Civil Procedure, 1908 (hereinafter “CPC”) for passing of a decree for an amount of Rs.11,20,365/-. 2. To the extent necessary, this Court notes the facts relevant to the present case:

3. In 2013, the respondent nos. 2 and 3 approached the petitioner herein and expressed their interest in purchasing heavy duty industrial equipment and other such equipments, that the petitioner dealt in. The respondents herein are a business family hailing from Kanpur (UP) and run their business under the name of M/s Vohra Rubber and Electricals. The firm is the proprietorship of the father of the respondents no.2 & 3 but is a family business being run by all the members. Following this, the petitioner and respondents proceeded to commence business dealings with one another on the assurance given by the respondents for prompt and timely payments against the goods to be supplied within 15 days from the date of respective supply.

4. It is not disputed that the respondents committed no defaults in payment for goods supplied w.e.f 2013 to 03.08.2016, however, subsequent thereto, there was a delay on payments over two months or so owing to which the petitioner stopped supplying the goods to the respondents till the outstanding dues were cleared by them. Upon clearing the entire dues uptill 03.08.2016, the respondent Nos. 2 and 3 again approached the petitioner in October 2016 for the purchase of goods and assured the petitioner that there would not be a delay of more than 30 days in making the payments, in the event of delay beyond 30 days, they would pay interest at a rate of 18% p.a for the delayed period. Upon this assurance, petitioner then proceeded to provide goods to the respondents and raised the first invoice on 28.10.2016 on renewed terms and assurances. The petitioner made the supplies of goods as per telephonic orders received from the respondents which were received by the respondents upto their satisfaction and without any complaint whatsoever. However, in the year 2017, the respondents failed in abiding by their commitments in making payments within 30 days citing various excuses.

5. Nonetheless the petitioner accommodated the respondents in relation to their delayed payments. During the period of COVID, in March 2020 the respondents sought goods from the petitioner and stated that payments would be made within the stipulated time period. However, respondent did not make the said payments even within a period of 9-10 months, which adversely impacted the financial situation of the petitioner. The invoices for the period of 31.07.2020 to 06.04.2021 amounting to Rs. 11,20,365/- remained unpaid along with interest. However, the respondents made one last payment of Rs. 50,000/- on 05.04.2021 and thereafter no payments were made.

6. In such circumstances, the petitioner visited the respondents in Kanpur on 12.07.2021 where upon meeting, it was stated by the respondents No. 2 & 3 that they do not owe anything to the petitioner and are not liable to pay. The petitioner then approached the police in Police Station Kotwali, Kanpur and thereafter the respondents were called to the police station and they stated that this was a civil matter and the police had no authority to deal with the same. However, upon persuasion of the police, the respondents agreed to settle the matter amicably and stated that they would pay the outstanding amount by 12.07.2023. However, the respondents refused to pay the interest on the delayed payments.

7. It is further the case of the petitioner that