IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

Date of decision: 12.01.2026

M/s. Modgill Building Material and another ...Appellant(s)

Vs.

M/s. Shiv Shanker Enterprises and another ...Respondent(s)

CORAM: HON’BLE MS. JUSTICE NIDHI GUPTA

Present:- Dr. Sumati Jund, Advocate and

Mr. Rahul Saini, Advocate for the appellants.

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NIDHI GUPTA, J.

Present Second Appeal has been filed by the defendants

against the judgment of reversal dated 31.05.2018; whereby the first Appellate Court has decreed the suit of the respondents/plaintiffs for

recovery of Rs.1,63,218/-.

2. Brief facts of the case in chronological order are as follows: -

23.08.2016: The respondent/plaintiffs had instituted the suit with the averments that plaintiff No.1 is proprietorship Firm and plaintiff No.2 is a Proprietor/Incharge of the said Firm. Similarly, defendant No.2 is the Proprietor/Incharge and responsible person of defendant No.1-Firm. It was averred that defendants had placed an order for purchase of iron and steel goods with the plaintiffs. Plaintiffs had supplied the said goods to the defendants vide Bill No. 265 dated 13.09.2013 for a value of Rs.1,63,218/- on credit basis. It was contended that the said goods had been duly

received and accepted by the defendants as per the terms and conditions of Sale Bills. As such, as on 31.03.2014, amount of Rs.1,63,218/- was outstanding towards the defendants. It was further averred that as per the terms and conditions of the Sale Bills duly accepted by the defendants, defendants had agreed to pay interest @ 36% per annum if the payment was not made on due date. Plaintiff had got issued legal notice dated 22.01.2016 calling upon defendants to pay outstanding amount alongwith interest @ 18% per annum but the defendants failed to pay the same. Accordingly, present suit was filed on 23.08.2016.

01.07.2017: Upon appraisal of the pleadings and the evidence led by the parties, the learned Civil Judge (Junior Division), Amloh had dismissed the suit of the plaintiffs vide exparte judgment and decree dated 01.07.2017 on the ground that plaintiffs had failed to produce original bills and had only produced photocopy of the bills and Ledgers of the Firm.

06.09.2017: The plaintiffs then filed Civil Appeal No. 120 dated

06.09.2017.

22.12.2017: In the said Appeal, service of the respondents was dispensed with by the District Judge, Fatehgarh Sahib vide order dated 22.12.2017.

31.05.2018: Thereafter, the learned District Judge, Fatehgarh Sahib had decreed the suit of the plaintiffs taking into account the fact that plaintiffs by way of application under Order 41 Rule 27 read with Section 151 CPC had led additional evidence; and the appeal of the plaintiffs was accepted vide judgment and decree dated 31.05.2018 as follows:-

“Suit of the appellants/ plaintiffs stands decreed with costs for the recovery of Rs.1,63,218/- alongwith interest @ 12% p.a, w.e.f. 13.09.2013 till date of decree and future interest @6% p.a, till actual realization.”

16.04.2024: Thereafter the appellants/defendants filed application dated 16.04.2024 before the learned District Judge, Fatehgarh Sahib seeking setting aside of the exparte judgment and decree dated 31.05.2018 as also for setting aside exparte order dated 22.12.2017.

29.03.2025: Vide order dated 29.03.2025, learned District Judge, Fatehgarh Sahib had allowed the said application of the appellants and had set aside the order dated 22.12.2017; as also the exparte judgment and decree dated 31.05.2018 and had restored the appeal to its original number.

09.04.2025: Thereafter, after hearing learned counsel for both the parties, the Civil Appeal filed by the plaintiffs was finally once again accepted and suit of the plaintiffs was decreed by the learned District Judge, Fatehgarh Sahib, vide judgment and decree dated 09.04.2025 as follows: -

“The appeal filed by the appellants is allowed with costs and suit filed by the plaintiffs for recovery of Rs.1,63,218/- is decreed. The plaintiff concern will be further entitled to