Final Order 5

Order Details: COPY OF JUDGMENT
Pdf Text: IN THE COURT OF SH. GORAKH NATH PANDEY
DISTRICT JUDGE (COMMERCIAL COURT),
NORTH DISTRICT, ROHINI COURTS: DELHI.
CS (COMM.) 708/2023
CNR NO.DLNT010134202023
M/S. INDIA TRADE LINK PVT. LTD.
THROUGH ITS DIRECTOR
SH. ROHIT GUPTA
B-35/3, INDUSTRIAL AREA,
G.T. KARNAL ROAD, DELHI – 110033.
……….Plaintiff.
VERSUS
M/S. NAVKAR METALS
THROUGH ITS PROPRIETOR
MR. SUNIL PICHHOLIYA
B-11, DHARAM COMPLEX ANJUR PHATA
BHIWANDI DISTRICT THANE MAHARASHTRA.
ALSO AT:
SECOND FLOOR OFFICE NO.30,
RUNGTHA BHUVAN, 94/100,
SITARAM PODDAR MARG FANASWADI,
MUMBAI, MAHARASHTRA - 400002
……..Defendant.
Date of Institution : 02.12.2023
Date of final arguments : 24.09.2024
Date of decision : 24.09.2024
Decision : Decreed.
JUDGMENT: -
1. This suit has been filed by the Plaintiff against the
defendant for recovery of Rs.17,95,930/- alongwith pendente-lite
and future interest @ 12% p.a.
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2. As contended, the plaintiff company is dealing in Tin
Ingots and Zinc SHG. The defendant approached the plaintiff at
its Delhi Office for the supply of goods i.e. Tin Ingots and Zinc
SHG. The defendant also assured the plaintiff for timely
payment. The defendant placed orders upon the plaintiff as per
requirement. The plaintiff supplied the materials to the defendant
against invoices as detailed in para no.5 of the plaint. The
plaintiff also maintained the ledger account in respect of the
transactions between the parties and amount of Rs.16,47,642/-
remained due and outstanding against the defendant. The plaintiff
made several requests to the defendant to clear the outstanding
due but of no avail. The present suit is accordingly filed by the
plaintiff seeking recovery of Rs.17,95,930/- (Rs.16,47,642/-
towards principal amount + Rs.1,48,288/- towards interest @
12% per annum from 06.01.23 to 06.10.23) against the
defendant.
3. The Defendants failed to appear despite being served on
19.03.2024 and 21.03.2024 nor filed the written statement within
the stipulated time as per Commercial Courts Act, 2015 and
hence the defence of the defendant was struck off vide order
dated 04.07.2024. Following notional issues was framed for
adjudication of the case:
(i) Whether the plaintiff is entitled to decree in the sum
of Rs.17,95,930/- as prayed for? OPP
(ii) Whether the plaintiff is entitled to any interest and if
so, at what rate, at what amount and for what period? OPP
(iii) Relief.
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4. Evidence in this case was recorded before the Local
Commissioner appointed by the court vide order dated 04.07.24.
The Plaintiff examined its Director Sh. Rohit Gupta as PW-1 to
prove the case. The witness was not cross-examined on behalf of
the Defendant. No evidence was led by the Defendant as well.
5. I have heard Learned Counsel for the Plaintiff and have
perused the plaint, documents filed alongwith the same and the
evidence led by the Plaintiff. My issue-wise findings is as under:
(i) Whether the plaintiff is entitled to decree in the sum
of Rs.17,95,930/- as prayed for? OPP
(ii) Whether the plaintiff is entitled to any interest and if
so, at what rate, at what amount and for what period? OPP
The onus to prove the above issues was on the plaintiff.
The brief and relevant facts for filing the present suit has been
mentioned at the outset. The plaintiff examined its Director as
PW1 to prove the case. He deposed by way of affidavit
Ex.PW1/1 reiterating the contents of the plaint. He has also
proved the following documents:-
(i) Ex.PW1/A: Board Resolution dated 18.10.23.
(ii) Ex.PW1/B (Colly): Copy of invoices bearing
no.261521139879 241521006986, 281526408840,
291530265078, 261531372956.
(iii) Ex.PW1/C: Statement of account.
6. As already noted hereinabove, PW-1 was not cross-
examined on behalf of the Defendant. Hence, his testimony as
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well as the documents proved by him remained uncontroverted. I
see no reason to disbelieve his deposition as well as the
documents proved by him. Considering the testimony of PW-1
and the documents proved by him, it is evident that the Plaintiff
has proved its case against the defendant towards the principal
amount of Rs.16,47,642/-. The issue no.(i) is decided
accordingly.
The plaintiff has also claimed Rs.1,48,288/- towards
interest @ 12% per annum from 06.01.23 to 06.10.23 on the
principal amount as well as pendente-lite and future interest @
12% per annum. The interest is payable as per Section 34 CPC.
For ready reference, Section 34 CPC is reproduced hereunder:
Section 34 CPC: Interest
(i)“Where and in so far as a decree is for the payment of money, the
Court may, in the decree, order interest at such rate as the Court
deems reasonable to be paid on the principal sum adjudged, from
the date of the suit to the date of the decree, in addition to any
interest adjudged on such principal sum for any period prior to the
institution of the suit, with further interest at such rate not
exceeding 6% per annum as the Court deems reasonable on such
principal sum from the date of the decree to the date of payment, or
to such earlier date as the court thinks fit.
(ii).Provided that where the liability in relation to the sum so
adjudged had arisen out of a commercial transaction, the rate of
such further interest may exceed 6% per annum but shall not exceed
the contractual rate or interest or where there is no contractual rate,
the rate at which moneys are lent or advanced by national- ized
banks in relation to commercial transactions.
Explanation (i) In this sub-section, “nationalized bank” means a
corresponding new bank as defined in the Banking Companies
(Acquisition and Transfer of Un- dertakings) Act 1970.
Explanation (ii) For the purposes of this section, a transaction is a
commercial transaction, if it is connected with the industry, trade or
business of the party in - curring the liability.
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Where such a decree is silent with respect to the payment of further
interest (on such principal sum) from the date of the decree to the
date of the payment or other earlier date, the Court shall be deemed
to have refused such interest, and a separate suit therefore shall not
lie”. (Emphasis Supplied).
7. Section 34 CPC provides that plaintiff will be entitled the
interest at the rate at which Court finds reasonable. For a general
suit, the rate of interest prescribed is 6% and for commercial suit,
the Parliament promulgates that rate of interest may increase
from 6% to a rate which is found reasonable. Plaintiff is
accordingly entitled to only the rate at which RBI has issued
Circular for Commercial suits.
8. As far as the interest is concerned, rate applicable to
Commercial transaction shall be payable. As per RBI notification
dated 30.08.2022 issued vide Press Release no.2022-2023/794
whereby advisory issued by RBI to Schedule Commercial banks
of accepting deposit rates @ 9.05% per annum.
In view of the above discussions, the plaintiff is also
entitled to pendentelite and future interest @ 9% per annum on
the principal amount of Rs.16,47,642/- per annum. The issue no.
(ii) stands decided accordingly.
Relief:
9. In view of the above, the suit of plaintiff is accordingly
decreed in favour of the plaintiff and against the defendant for a
sum of Rs.16,47,642/- alongwith pendentelite and future interest
@ 9% per annum. The Plaintiff shall be entitled to the costs of
the suit also. Decree sheet be prepared accordingly.
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10. Judgment be uploaded on the Server.
11. File be consigned to Record Room after necessary
compliance.
Announced in the open court (GORAKH NATH PANDEY)
on 24th September, 2024. District Judge (Commercial Court)
North: Rohini:Delhi.
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