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1993 Supreme(Del) 671

High Court Of Delhi
KARAN INDUSTRIES - Appellant
Versus
D.C.M.LIMITED - Respondent
Interim Application 171 of 1993
Decided On : 11/11/1993

Advocates Appeared:
J.SETHI, KAJAL CHANDRA, MUKUL ROHTAGI, Rajiv Sawhney, SANJIV ANAND

Headnote:CIVIL PROCEDURE CODE 1908 - Order 39 Rule 1 & 2 — injunction sought restraining the defendants from using dies and moulds without seeking specific performance i.e. delivery of said dies & moulds-impermissable plaintiff guilty of delay and acquiescence-interim injunction can not be granted.

J. K. MEHRA, J.

( 1 ) THIS is an application under Order 39 Rules I and 2 read with Section 151 CPC for grant of ad interim injunction against the defendants praying as under:-

" (A) attach property No. 25 Sardar Patel Marg, New Delhi and Industrial Unit of D. C. M. Engineering Products, with Plant and Machinery at Village Asron, District Hoshiarpur, Near Ropar, Punjab and/or in the alternative direct the defendants to furnish adequate security, sufficient to satisfy the decree to the satisfaction of this Hon ble Court; (b) restrain the defendants, their servants, agents and assigns from either using for manufacturing, aleinating, parting with possession or in any other manner transferring by sale or otherwise, 7 patterns of the Plaintiffs and the castings made therefrom; (c) restrain the Defendant Nos. 3 and 4 from leaving the Local Limits of jurisdiction of this Hon ble Court without prior permission of this Hon ble Court; (d) pass an ad interim exparte order in terms of prayers (a), (b) and (c) above; and"

( 2 ) THE arguments on this application have been heard afresh after remand by the Division Bench. I have gone through the pleadings of the parties with the help of the counsel for the plaintiffs and the defendants. According to the plaintiffs, sometimes in the year 1979, plaintiff No. 6 came in touch with defendant No. 2 and both agreed to transact business with each other whereafter the plaintiff No. I placed an order on Defendant No. I for blocks/patterns which would thereafter be used by the defendants to produce the casting of cylinder heads. It is further alleged in the plaint that it was clearly understood that the defendants would use the blocks/patterns for manufacturing and supply of the casting to the plaintiffs exclusively and none else. However, neither any order for blocks/ patterns was placed by the plaintiffs on the defendants nor any agreement, as alleged by the plaintiff, containing the aforesaid condition/understanding, has been filed by the plaintiff. The plaintiff has further alleged having paid various sums of money towards the purchase of such patterns from the defendantts and seven such patterns are listed in paragraph-4 of the plaint along with the amounts paid by the plaintiff to the defendants. The defendants have not disputed having received thesumofrs. 2,54,000. 00 and Rs. 2,00,000/ - in 1980 and 1988 respectively, but have stated that this money was paid by the plaintiff towards the cost of development of patterns and that there was no agreement to supply dies/patterns. The defendants have alleged that the present suit is a counter-blast to the defendant s Suit No. 1276/92 filed in March 1992 against the plaintiffs for recovery of their dues and have referred to inter alia plaintiff s letter dated 17. 5. 88. The defendants have also stated that they have been developing and manufacturing in series dies/patterns developed by them since 1977 and that the plaintiffs like many others were buyers of the cylinder head castings only, which were produced by the defendants by using the said dyes/pat-terns. The defendants have placed on record letters dated 22. 10. 1980 and 21. 5. 1988 wherefrom it is clear that the plaintiffs were buyers only of the casting and in latter letter, they have further provided a condition, which is as follows :-

1. CASTING RATE: Casting s rate shall be as follows:

1. 1 760 pieces of Cylinder Heads (PC/di) shall be billed at Rs. 500. 00 (Rs. five hundred) per piece.

1. 2 The rate for subsequent supplies shall be Rs. l,000. 00 (Rs. one thousand) per piece.

2. TAX/duty : The rate is ex-your Works. All taxes and duties shall be paid by us over and above the basic price.

3. INSURANCE: Transit insurance shall be arranged by us at our ex- pense.

4. REJECTIONS: 4. 1 Castings found defective during the initial stages of development shall be returned.

4. 2 Once the development stage is over, DCM will supply additional 5 pieces for every 100 pieces billed to take care of rejections becau




























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