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RFA No. 100240 of 2016
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
DATED THIS THE 13TH DAY OF DECEMBER, 2022
PRESENT
THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ
AND
THE HON'BLE MR JUSTICE G BASAVARAJA
REGULAR FIRST APPEAL NO. 100240 OF 2016
BETWEEN:
1.
M/S HARE KRISHNA METTALLICS PRIVATE LTD.,
AN ISO 9011-2000 CERTIFIED COMPANY,
HIREBAGANAL KASAM KANDI ROAD,
DIST: KOPPAL-583229.
2.
SRI SANDEEP AGARWAL,
CHAIRMAN AND MANAGING DIRECTOR,
HARE KRISHNA METTALLICS PVT. LTD.
REGD. OFFICE: T-11/12,
3RD FLOOR, PHASE-3 JAIRAM COMPLEX,
NEELAGI NAGAR, PANJIM (GOA) – 400 121.
…APPELLANTS
(BY SRI. JAGADISH PATIL, ADVOCATE)
AND:
A.K. SHIVANAGUTTI AND SONS.
A REGISTERED PARTNERSHIP FIRM
THE CONTRACTOR AND EARTH MOVING
MACHINE SUPPLIERS, K.C. RANI ROAD, GADAG
BY ITS PARTNER SRI.AMARAPPA
S/O KARABASAPPA SHIVANAGUTTI,
AGE 76 YEARS, OCC: BUSINESS,
R/O: GADAG, TQ: GADAG,
DIST: GADAG – 582 101.
…RESPONDENT
(BY SRI. C N HARLAPUR, ADVOCATE)
THIS RFA IS FILED UNDER SEC.96 R/W. ORDER 41 RULE 1 OF
CPC., AGAINST THE JUDGMENT AND DECREE DTD:23.06.2016
PASSED IN O.S.NO.111/2010 ON THE FILE OF THE PRINCIPAL
SENIOR CIVIL JUDGE AND CJM, GADAG, PARTLY DECREEING THE
SUIT FILED FOR RECOVERY OF MONEY.
ROHAN
HADIMANI
T
Digitally signed
by ROHAN
HADIMANI T
Location: HIGH
COURT OF
KARNATAKA
DHARWAD
Date:
2023.01.21
15:16:26 +0530
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RFA No. 100240 of 2016
THIS APPEAL COMING ON FOR ORDERS, THIS DAY, SURAJ
GOVINDARAJ, J., DELIVERED THE FOLLOWING:
Trial court partly decreed plaintiff's suit (recovery Rs.13,39,720/- + 12% interest) relying on:
Legal notices (Ex.P3, Ex.P6) and defendants' replies (Ex.P9, Ex.P13(a)) as admitting supplies/invoices and dues (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) .
DW1's cross-exam as false denial of specific supplies (Rs.71,85,960/-) and payments (Rs.58,47,748/-) from 24.02.2008-26.09.2008, inferring dues (!) (!) (!) (!) (!) (!) (!) (!) .
Ex.P61 as admitting Rs.22,04,382/- due as on 30.06.2008, supporting claim (!) (!) (!) .
Defendants' "unconscionable" conduct: denying transactions despite ISO status and evidence (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) .
Dismissed counterclaim (Rs.9,03,197/- excess) as unproven, ignoring defendants' ledgers/accounts without cogent reconciliation (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) .
The defendant in O.S.No.111/2010 is before this
Court aggrieved by the judgment dated 23.06.2016
passed by the Principal Senior Civil Judge and CJM.,
Gadag.
In the said matter, by way of aforesaid judgment the
said Court had partly decreed the suit with costs
holding that plaintiff is entitled for the recovery of a
sum of Rs.13,39,720/- from the defendants along
with future interest at the rate of 12% p.a., from the
date of instituting the suit till the realisation of the
entire decretal amount. The Trial Court by the said
judgment also dismissed the counterclaim which had
been filed by the defendants for a sum of
Rs.9,03,197/-.
3.
Sri Jagadish Patil, learned counsel appearing for the
appellant would submit that
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3.1. The judgment passed by the Trial Court is not
proper. The Trial Court has misapplied itself and
has purely gone on legal notice which has been
issued without adverting to the documents in
relation thereto inasmuch as it is on the basis
of the legal notice that the Trial Court has come
to a conclusion that there is an admission on
the part of the defendants in relation to
amounts due.
3.2. The
Trial
Court
has
not
considered
the
documents that have been produced by the
defendants
more
particularly,
the
account
statement which disclose that there are no
amounts which are due from the defendants
but there are amounts which are due from the
plaintiff to the defendants.
3.3. In a suit for recovery of money, it is for the
plaintiff to categorically establish by cogent
evidence, the amounts due, supported by
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documentary evidence produced in said suit.
Without necessary documents being placed on
record, no claim for any amounts could be
made by the plaintiff.
3.4. The Trial Court has erred by considering the
contents of the legal notice in conjunction with
the invoices and has come to a conclusion that
the defendant had admitted the due amounts
when in fact no such admission has been made.
3.5. The transaction between the plaintiff and the
defendants has been going on from the year
2007. A consolidated statement of accounts
having been produced by the defendants, which
disclose both the credit and debit in terms of
the iron ore supplied and the amounts paid, by
virtue of which the total supply of iron ore
made by the plaintiff was for a sum of
Rs.1,38,63,016.60/- as regards which payment
of a sum of Rs.1,47,66,240/- has been made.
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Thus, there is an excess payment made of
Rs.9,03,197.40/-, that was claimed in the
counter claim.
3.6. These facts not having been taken into account
by the Trial Court, an error has been committed
by the Trial Court in partly decreeing the suit
and rejecting the counter claim.
4.
Per contra, Sri C. N. Harlapur, learned counsel
appearing for the respondent would support the
judgment passed by the Trial Court by contending
that
4.1. The due amount which has been claimed by the
plaintiff
is
for
supply
of
iron
ore
from
24.02.2008 to 26.09.2008 and as such the
reference
being
made
to
the
accounts
statement from the year 2007 to 2009 is
misplaced.
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4.2. The details of the supply made and amounts
received have been furnished in para 5 of the
plaint.
The
supply
is
to
the
tune
of
Rs.71,85,960/-
as
regards
which
the
defendants have paid Rs.58,47,748/- leaving a
balance of Rs.13,38,220/-, that amount was
claimed by the plaintiff in the suit.
4.3. The conduct on part of the defendants company
who claims to be an ISO certified company is
completely unconscionable and unfair inasmuch
as the defendants in its written statement has
denied the transaction itself but had laid a
counterclaim.
4.4. The defendants have completely denied the
supply and the transaction, which is contrary to
the documents produced in evidence, as also
the admission made by the witnesses of the
defendants and as such on that basis an
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inference has to be drawn that the amount
claimed by the plaintiff is in fact due.
4.5. By referring to the cross examination of DW1,
who is the Legal Manager
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