M/S. A.P. POLYPLAST PVT. LTD. v. M/S. PRIKNIT RETAILS LIMITED

1. The plaintiff has sued for recovery of Rs.28,96,721.25 with interest till the date of institution of the suit of Rs.12,37,147.86, total Rs.41,33,870/pleading that:

(i) that the plaintiff had as per the orders placed by the defendant from time to time sold/delivered/supplied plastic bags to the defendant;

(ii) that the defendant has been making payments from time to time and made the last payment on 30th November, 2010 of Rs.1,30,000/-;

(iii) that as per the current ledger account maintained by the plaintiff, an amount of Rs.28,96,721.25 is payable by the defendant to the plaintiff with respect to the said supplies; 2013:DHC:2073

(iv) that the plaintiff is an SSI company and has to procure the raw material by making advance payment to its suppliers and pays approximately Rs.35, 000/- as interest per month to its Bank for the financial facility for paying advance price to its suppliers;

(v) that the plaintiff is thus entitled to interest on the outstanding amount @ 24% per annum.

2. Summons of the suit and notice of the application for interim relief were issued to the defendant. The defendant, inspite of service, neither filed written statement nor appeared and was vide order dated 10th April, 2012 ordered to be proceeded against ex-parte.

3. The plaintiff in its ex-parte evidence has filed affidavit by way of examination-in-chief of its authorized signatory who has proved the resolution of the Board of Directors of the plaintiff Company authorizing the institution of the suit as Ex.CW-1/1; the account of the defendant in the ledger of the plaintiff for the period from 1st April, 2008 to 4th December, 2010 as Ex.CW-1/2; the invoices of supply of goods as Ex.CW-1/3 to Ex.CW-1/34; the C-Forms issued by the defendant to the plaintiff against the aforesaid invoices as Ex.CW-1/35 to Ex.CW-1/39; the e-mails and letters demanding the outstanding amount from the defendant as Ex.CW-1/40 to Ex.CW-1/43; the legal notice preceding the suit as Ex.CW-1/44 and the interest calculation sheet as Ex.CW-1/45.

4. The aforesaid un-rebutted and uncontroverted evidence proves the claim of the plaintiff for the principal amount of Rs.28,96,721.25. I have satisfied myself that the claim is within time.

5. Though the plaintiff has claimed interest @ 24% per annum but has not proved entitlement to the said rate. It is deemed expedient to grant interest to the plaintiff @ 9% per annum being the average rate of interest paid by the nationalized banks on fixed deposit during the relevant period. Further, though the plaintiff has computed the interest till the date of institution of the suit on the outstanding amount on each invoice with effect from 90 days after the date of invoice onwards but it is not the case of the plaintiff that at any earlier point of time interest was so paid by the defendant to the plaintiff. The last invoice of the plaintiff on the defendant is dated 4th December, 2010 with due date as of 4th March, 2011. It is as such deemed expedient to award interest on the principal amount of Rs. 28,96,721.25 with effect from 1st April, 2011 only.

6. Accordingly, the suit is decreed in favour of the plaintiff and against the defendant for recovery of Rs. 28,96,721.25 with interest @ 9% per annum from 1st April, 2011 till the date of institution of the suit, pendente lite and future till the date of payment. The plaintiff shall also be entitled to the costs of the suit as per schedule. Decree sheet be drawn up.

RAJIV SAHAI ENDLAW, J APRIL 25, 2013 ‘bs’..