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NEUTRAL CITATION NO. 2026:MPHC-GWL:23906

1 FA-79-2003 IN THE HIGH COURT OF MADHYA PRADESH

AT GWALIOR BEFORE

HON'BLE SHRI JUSTICE ASHISH SHROTI FIRST APPEAL No. 79 of 2003

STATE OF CHHATISGARH & ANR.

Versus M/S JAYA KITS UDYOG, MORENA

&

FIRST APPEAL No. 80 of 2003 STATE OF CHHATISGARH & ANR.

Versus M/S JAYA KITS UDYOG, MORENA

&

FIRST APPEAL No. 81 of 2003 STATE OF CHHATISGARH & ANR.

Versus M/S JAYA KITS UDYOG, MORENA

&

FIRST APPEAL No. 82 of 2003 STATE OF CHHATISGARH & ANR.

Versus M/S JAYA KITS UDYOG, MORENA

Appearance:

Shri K.N. Gupta - Senior Advocate with Ms. Suhani Dhariwal - Advocate for the appellants.

Shri Parth Dixit - Advocate for the respondent.

Reserved on : 06.08.2026 Delivered on : 11.08.2026

JUDGMENT

Signature Not Verified

Signed by: ANIL KUMAR

CHAURASIYA

Signing time: 11-08-2026

07:06:51 PM

NEUTRAL CITATION NO. 2026:MPHC-GWL:23906

2 FA-79-2003

1. In this bunch of four appeals, the suit for recovery of a certain amount filed by respondent no.1 has been decreed by learned trial court vide impugned judgment and decree dated 28.11.2002, challenging which the present appeals have been filed by the appellants/State of Chhattisgarh. The details of the suit for recovery filed by respondent no.1 are given

hereinbelow:

Date of F.A. Suit No. Date of payment Date of 80 Date of filing of No. of amount CPC Notice Reply

suit

79/2003 12A/2001 19.08.1996 27.06.1998 01.09.1998 24.11.1999 80/2003 10A/2001 31.07.1994 27.06.1998 01.09.1998 24.11.1999 81/2003 17A/2001 02.12.1994 27.06.1998 01.09.1998 24.11.1999 82/2003 11A/2001 21.12.1994 27.06.1998 01.09.1998 24.11.1999

2. For purposes of convenience, the facts are taken from First Appeal No.79 of 2003. The respondent no.1/plaintiff filed a suit for recovery of Rs.3,79,393/- on 24.11.1999 on the ground that certain goods were ordered by defendant no.2 to be supplied by the plaintiff firm. Goods amounting to Rs.1,14,800/- were supplied by the plaintiff to defendant no.2 on 01.09.1990. However, payment thereof was not made immediately within seven days. The plaintiff averred that he sent a letter to defendant no.2 asking for payment of the amount, to which he was informed that the records regarding the supply of goods by the plaintiff have been sent to the Economic Offences Wing, Bhopal, and only on return of the record, payment could be made to

it.

3. It is further averred that payment of Rs.1,14,800/- was made by the defendant to the plaintiff on 19.08.1996. The plaintiff was aggrieved by the

Signature Not Verified

Signed by: ANIL KUMAR

CHAURASIYA

Signing time: 11-08-2026

07:06:51 PM

NEUTRAL CITATION NO. 2026:MPHC-GWL:23906

3 FA-79-2003 non-payment of interest on the aforesaid amount. He accordingly served a notice under Section 80 CPC to the defendants on 27.06.1998, which was replied by defendant no.2 on 01.09.1998. Thereafter, the present suit was

filed on 24.11.1999.

4. The defendants denied the plaintiff's claim for payment of interest on the amount paid by them on 19.08.1996.

5. The learned Trial Court has decreed the suit in favour plaintiff.

Even though the plaintiff has claimed interest at the rate of 18%, the trial court decreed the suit by granting interest at the rate of 9% per annum from 25.11.1996 till the date of filing of the suit, and at the rate of 6% per annum

from the date of filing of the suit till its recovery.

6. Learned Senior Counsel for the appellants/defendants challenged the impugned judgment and decree on two grounds. Firstly, that the trial court did not have territorial jurisdiction inasmuch as the defendants are based at Jagdalpur (at that time in State of Madhya Pradesh) and secondly, the claim for interest was barred by limitation. Both these issues have been decided

against the defendants by the trial court.

7. It is submitted by the learned Senior Counsel for the defendants that the entire transaction with regard to the supply of goods took place at Jagdalpur, and payment to the plaintiff was also made from Jagdalpur. Therefore, according to his submission, no part