Final Order 3

Order Details: Ex-parte Judgement
Pdf Text: CS No.100069 / 2021
Mrugesh – Varun
Judgment (Exh.49) 1 of 8
MHCC010018272020 Suit Filed on : 11.02.2020
Evidence Over : 25.07.2024
Arguments Completed : 09.12.2024
Decided on : 18.12.2024
Duration : 04 Y, 10 M, 07 Days
City Civil & Sessions Court, Mazgaon, Greater Mumbai
Court Room No. 31 – Commercial Court
(Additional District Judge : Vijay S. Hingne, LL. M.)
Commercial Suit No. 100069 / 2021 Exhibit No. 49
Plaintiff : Mrugesh Shah
Proprietor : Perfect Steel
220, 2nd Floor, Virchand Umersey Bldg.,
3rd Panjrapole Lane, C. P. Tank Road,
Mumbai 400 004.
Branch Office : 751, 1st floor,
Kundewala Estate Ajmeri Gate, Delhi 110006.
Also at 3A-160, N.I.T. Faridabad, Haryana
At E-21, K C Badkhal Road SGM Nagar,
Faridabad, Haryana 121001.
VERSUS
Defendant : Varun Arora
Proprietor : Dream Kitchens
A5 / 22. Raghu Nagar,
Dabri Lane No. 8, H-Block
New Delhi 110045.
Appearances
Plaintiff
: Adv. Shri Arshad Khan
Adv. Shri Rajender Singh Saluja.
Defendant
: Ex-parte
Suit for Recovery of ₹. 21,17,405/-
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CS No.100069 / 2021
Mrugesh – Varun
Judgment (Exh.49) 2 of 8
J U D G M E N T
(Delivered on this 18th Day of December 2024)
Suit is preferred for recovery of .	₹ 21,17,405/- with
interest @ 18 % per annum.
Case of Plaintiff :
2) Mrugesh Shah, Mumbai, Maharashtra, (hereinafter,
plaintiff) is the Proprietor of Perfect Steel, in business of sale and
supply of Stainless Steel Coils, Plates etc.
Varun Arora, New Delhi (hereinafter,
defendant) is
proprietor of Dream Kitchen.
3) From time to time, plaintiff supplied goods to
defendant, as follows :
Sr. Invoice No. Date Invoice Amount ( .)	₹
1 SI-127 03.10.2013 2,63,800/-
2 SI-173 09.11.2013 1,97,200/-
3 SI-183 13.11.2013 62,906/-
4 SI-254 31.01.2014 1,54,246/-
5 SI-256 31.01.2014 53,610/-
6 SI-269 08.02.2014 86,379/-
7 SI-289 03.03.2014 44,810/-
8 SI-336 31.03.2014 1,97,110/-
9 SI-7 02.04.2014 94,130/-
10 SI-10 04.04.2014 2,37,800/-
11 SI-13 05.04.2014 45,800/-
12 SI-21 15.04.2014 10,170/-
13 SI-32 19.04.2014 62,092/-
14 SI-40 26.04.2014 51,030/-
15 SI-47 02.05.2014 14,141/-
16 Sl-95 29.05.2014 1,47,570/-
17 SI-123 20.06.2014 69,540/-
18 SI-126 21.06.2014 36,430/-
19 SI-190 30.07.2014 2,07,760/-
20 SI-305 28.10.2014 1,10,220/-
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Mrugesh – Varun
Judgment (Exh.49) 3 of 8
21 SI-314 03.11.2014 1,67,190/-
22 SI-338 18.11.2014 49,030/-
Total 23,62,964/-
4) Defendant used to arrange his own vehicles for
transportation of the goods. On receipt of goods, defendant or his
employees used to acknowledge on the office copy of the invoice.
5) Against liability, defendant issued following Cheques :
Sr. Cheque No. Date Amount ( .)	₹
1 000480 25.01.2018 2,41,900/-
2 000488 25.01.2018 79,485/-
3 000481 25.01.2018 3,50,210/-
4 000484 25.01.2018 2,40,220/-
5 000482 25.01.2018 2,38,378/-
6 000483 25.01.2018 2,63,800/-
7 338821 29.01.2018 2,00,000/-
8 335182 29.01.2018 1,75,100/-
Total 17,89,093/-
6) However, above Cheques were dishonoured for reasons
Insufficient Fund and
Account Closed. Hence, on 12.02.2018,
plaintiff issued Notice U / Sec. 138 of the NI Act and thereafter
filed Complaint U / Sec. 138 of NI Act, which is pending before
Metropolitan Court, Mazgaon, Mumbai. Plaintiff filed Pursis at
Exh. 48 on 09.12.2024 stating that, Complaint is pending before
Learned Metropolitan Magistrate, Court Room No. 20, Mumbai.
7) On 10.04.2019, plaintiff subjected the dispute to Pre-
Institution Mediation. However, its Notice returned with postal
endorsement as,
incomplete address. Applicant failed to provide
alternate address. Hence, Learned Secretary, DLSA, Mumbai
issued Non-Starter Report on 13.08.2019.
On 11.02.2020, plaintiff preferred present Commercial
Suit No. 100069 / 2021 for recovery of . 21,17,405	₹ /- with
interest @ 18 % per annum.
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Judgment (Exh.49) 4 of 8
Defendants :
8) Plaintiff filed Affidavit of Service (Exh.5), stating that,
defendant is served by way of Paper Publication in
Financial
Express, Delhi Dt. 12.07.2023.
As defendant failed to appear, hence, on 13.10.2023,
Suit was ordered to proceed ex-parte.
Evidence of Plaintiff :
9) Plaintiff adduced oral and documentary evidence as :
PW1, Exh. 9 : Evidence Affidavit of Mrugesh Narendra Shah.
Exh.11 : Tax invoice Dt. 03.10.2013.
Exh.12 : Tax invoice Dt. 07.10.2013.
Exh.13 : Tax invoice Dt. 09.11.2013.
Exh.14 : Tax invoice Dt. 13.11.2013.
Exh.15 : Tax invoice Dt. 31.01.2014.
Exh.16 : Tax invoice Dt. 31.01.2014.
Exh.17 : Tax invoice Dt. 08.02.2014.
Exh.18 : Tax invoice Dt. 03.03.2014.
Exh.19 : Tax invoice Dt. 31.03.2014
Exh.20 : Tax invoice Dt. 02.04.2014.
Exh.21 : Tax invoice Dt. 04.04.2014.
Exh.22 : Tax invoice Dt. 05.04.2014.
Exh.23 : Tax invoice Dt. 15.04.2014.
Exh.24 : Tax invoice Dt. 19.04.2014.
Exh.25 : Tax invoice Dt. 26.04.2014.
Exh.26 : Tax invoice Dt. 02.05.2014.
Exh.27 : Tax invoice Dt. 29.05.2014.
Exh.28 : Tax invoice Dt. 20.06.2014.
Exh.29 : Tax invoice Dt. 21.06.2014.
Exh.30 : Tax invoice Dt. 30.07.2014.
Exh.31 : Tax invoice Dt. 28.10.2014.
Exh.32 : Tax invoice Dt. 03.11.2014
Exh.33 : Tax invoice Dt. 18.11.2014.
Exh.34 : Certified copy of Cheque No. 000480 Dt. 25.01.2018
Exh.35 : Certified copy of Cheque No. 000488 Dt. 25.01.2018
Exh.36 : Certified copy of Cheque No. 000481 Dt. 25.01.2018.
Exh.37 : Certified copy of Cheque No. 000484 Dt. 25.01.2018.
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Judgment (Exh.49) 5 of 8
Exh.38 : Certified copy of Cheque No. 000482 Dt. 25.01.2018.
Exh.39 : Certified copy of Cheque No. 000483 Dt. 25.01.2018.
Exh.40 : Certified copy of Cheque No. 338821 Dt. 29.01.2018.
Exh.41 : Certified copy of Cheque No. 335182 Dt. 29.01.2018.
Exh.42 : Certified copy of Bank Memos.
Exh.43 : Certified copy of Advocate Notice.
Exh.44 : Certified copy of Postal receipt.
Exh.45 : Certified copy of Acknowledgment Card.
Exh.46 : Ledger Account statement with Sec. 65(b) Certificate.
Exh.47 : Evidence closure pursis filed by plaintiff.
Points for determination :
10) Heard Adv. Arshad Khan for plaintiff. Perused Record.
Points for determination, findings and reasons are as follows:
Points
Findings
1. Is plaintiff entitled for recovery
as prayed?................................ Partly in Affirmative
2. What Order?............................. As Final Order.
R E A S O N S
Reasons as to Point No. 1 & No. 2 :
11) Plaintiff has examined himself (PW1, Exh.9).
He deposed in accordance with pleadings from Plaint
and claimed, defendant has deliberately avoided repayment.
12) Despite service of Writ of Summons, defendant did not
appear in the Suit to contend that, he has repaid the dues or that,
for some reasons, he is not liable to make repayment.
Thereby, defendant has kept oral and documentary
evidence of the plaintiff, unchallenged.
There is nothing suspicious in the pleadings as well as
oral and documentary evidence of plaintiff.
Hence, said oral documentary evidence is relied upon.
13) On the strength of available unchallenged evidence and
on the test of preponderance of probability, it is held that,
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Mrugesh – Varun
Judgment (Exh.49) 6 of 8
transaction, as alleged by the plaintiff, had taken place and that,
defendant has defaulted the payment. Therefore, plaintiff is
entitled for recovery of amount.
Limitation :
14) Plaintiff has based his claim on Invoices from Dt.
03.10.2013 to
18.11.2014.
Hence, three years limitation for filing Recovery Suit
will commence from
19.11.2014 and will conclude on
18.11.2017.
Plaintiff contended that, defendant issued last Cheque
on
29.01.2018.
Plaintiff also filed Certified Copy of said Cheque.
Said oral and documentary evidence regarding issuance
of Cheque is not under challenge from defendant. Hence, said
evidence is relied upon.
By issuing said Cheque, defendant admitted existence
of liability and thereby, has renewed the limitation.
Therefore, limitation will recommence from
29.01.2018
and will conclude on
28.01.2021.
As Suit is filed on
11.02.2020, it is held to be within
limitation.
Liability :
15) Plaintiff claimed that, he supplied goods to defendant as
per invoices at Exh. 11 to Exh. 33. Total value of these invoices
comes to .	₹ 23,62,964/-. Against it, plaintiff is claiming recovery
of .	₹ 21,17,405/-.
Plaintiff has filed Tax Invoices, but has not filed
Delivery Challans.
However, only invoices at Exh. 11, Exh. 12, Exh.13,
Exh. 14, Exh. 17, Exh. 19, Exh.20, Exh.21, Exh. 22, Exh. 23,
Exh.24, Exh. 26, Exh. 27, Exh. 28, Exh. 29, Exh. 30 bears seal of
defendant. So, it is held that, plaintiff has established delivery of
goods reflected only in these invoices. These invoices are as
follows :
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Mrugesh – Varun
Judgment (Exh.49) 7 of 8
Sr. Exh. Invoice
No. Date Invoice
Amount
( .)	₹ Remarks
1. 11 SI-127 03.10.2013 2,63,800/-
2. 12 132 07.10.2013 43,020/- Not pleaded
3. 13 SI-173 09.11.2013 1,97,200/-
4. 14 SI-183 13.11.2013 62,906/-
5. 17 SI-269 08.02.2014 86,379/-
6. 19 SI-336 31.03.2014 1,97,110/-
7. 20 SI-7 02.04.2014 94,130/-
8. 21 SI-10 04.04.2014 2,37,800/-
9. 22 SI-13 05.04.2014 45,800/-
10. 23 SI-21 15.04.2014 10,170/-
11. 24 SI-32 19.04.2014 62,092/-
12. 26 SI-47 02.05.2014 14,141/-
13. 27 Sl-95 29.05.2014 1,47,570/-
14. 28 SI-123 20.06.2014 69,540/-
15. 29 SI-126 21.06.2014 36,430/-
16. 30 SI-190 30.07.2014 2,07,760/-
Total 17,75,848/-
16) Thereby, plaintiff has filed 22 invoices during evidence.
However, in his pleading
Invoice No. 132 at Exh. 12 Dt.
07.10.2013 for .	₹ 43,020/- is not pleaded.
Hence, said amount will have to be deducted from
.	₹ 17,75,848/-. Hence, amount of Bills comes to .	₹ 17,32,828/-.
So, plaintiff is entitled for recovery of .	₹ 17,32,828/-.
However, perusal of Legal Notice at Exh. 43 shows that,
plaintiff has made demand of .	₹ 17,44,093/-. That apart, Cheques
on which plaintiff is relying upon are of total value of
.	₹ 17,89,093/-.
In view of above invoices, liability is ascertain as .	₹
17,32,828/-. Therefore, defendant is liable to pay said amount.
Interest:
17) Plaintiff has claimed interest @ 18 % per annum.
Interest @ 18 % per annum is exorbitant. Unless parties
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Mrugesh – Varun
Judgment (Exh.49) 8 of 8
agrees for such interest, by way of execution of Agreement, it
cannot be awarded.
Perusal shows that, plaintiff and defendant have not
executed any document through which, they have agreed interest
@ 18 % per annum. Hence, said interest cannot be granted.
Considering the fact that, dispute is of commercial
nature, then interest @ 9 % per annum would be reasonable.
18) In view of unchallenged oral and documentary evidence
of the plaintiff, the Suit is entitled for Decree. Hence, the Points
are so answered and the Suit is partly allowed, as follows :
ORDER
1. Commercial Suit No. 100069 / 2021, Mrugesh Shah Vs
Varun Arora, is partly decreed, with proportionate cost.
2. Defendant, within three months from date of this Order,
shall pay, .	₹ 17,32,828 /- ( . Seventeen Lakhs Thirty
₹
Two Thousand Eight Hundred and Twenty Eight Only)
to the plaintiff, with interest @ 9 % per annum, from the
date of filing of the Suit, till its realization.
3. Court fee, if any, be refunded to the plaintiff, as per
rules.
4. Decree be drawn up accordingly.
5. Judgment pronounced in Open Court.
6. Parties be informed about their right to challenge this
Judgment and period of limitation.
7. After compliance and period of Appeal, Shirestedar and
AS to consign Record of the Suit, to Record Room.
Mumbai
Dated : 18.12.2024 (Vijay S. Hingne)
Additional District Judge,
Court Room No.31 - Commercial Court,
City Civil & Sessions Court,
Mazgaon, Greater Mumbai
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