← Library
Madras High CourtCS/29/2015decreed

R.R.Stones Pvt.Ltd. v. M/S.Compac Minerals (India)

2019-11-26Honourable Mr Justice N. Sathish Kumar13 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 26.11.2019

CORAM

THE HONOURABLE MR.JUSTICE N.SATHISH KUMAR R.R.Stones Pvt. Ltd., Rep.by its Authorised Person Captain G.Mohanarangam, Deputy General Manager (Shipping and Logistics), 8-2-120/86/5, 4th Floor, Sneha House, Road No.3, Banjara Hills, Hyderabad - 500 034.

Telangana.

... Plaintiff Vs.

M/s.Compac Minerals (India) Pvt. Ltd., Rep.by its Managing Director, Jonatan the, New No.241, Old No.116, Linghi Chetty Street, Parrys, Chennai - 600 001.

... Defendant Plaint filed under Order VII Rule 1 C.P.C. read with Order IV Rule 1 of the High Court Original Side Rules praying for: (a) To pass decree thereby directing the defendant to pay a sum of Rs.1,33,32,524/- (One Crore Thirty Three Lakhs Thirty Two Thousand Five Hundred and Twenty Four) to the plaintiff of which Rs.63,67,774/- (Sixty Three Lakhs Sixty Seven Thousand Seven Hundred and Seventy Four) being the principal and 1/13

Rs.69,64,750/- (Sixty Nine Lakhs Sixty Four Thousand Seven Hundred and Fifty) being the interest, together with future interest at the rate of 26.25% p.a., till the realization of the amount.

(b) To pass any other order as this Hon'ble Court may deem fit and proper in the circumstances of the case.

(c) To cost of the suit.

For Plaintiff : Mr.K.Sridhar For defendant : M/s.D.Jawahar

J U D G M E N T

The suit has been filed for recovery of a sum of Rs.1,33,32,524/- out of which Rs.63,67,774/-, being principal and remaining is interest at the rate of 26.25%.

2.

The case of the plaintiff is that he is a manufacturer of Potash Feldspar Power 100 MESH (100-200#) and 200 mesh (200325#) at their Mehaboobnagar Factory. The defendant had approached the plaintiff to purchase Potash Feldspar 100 mesh (100-200#) and 200 mesh (200-325#) and after mutual negotiation, the defendant on different dates had placed purchase orders for supply of Potash Feldspar 100 mesh (100-200#) and 200 2/13

mesh (200-325#). Accordingly, the plaintiff has effected various supplies and various invoice numbers. As on 30.11.2014, the defendant is due to pay a sum of Rs.1,33,32,544/-. The defendant also made a payment on 20.08.2013, the supply was effected on 05.10.2010. Hence, the suit.

3.

It is the case of the defendant that the suit is barred by limitation. The defendant has been making the payment for supply effected by the plaintiff. However, in the year 2010, the plaintiff had stopped the supply of the required quantity to the defendant. The defendant incurred huge loss because of stoppage of the materials and the statements of accounts are not correct. Hence, prays for dismissal of the suit.

4.

This Court, vide order, dated 06.10.2016, framed the following issues:-

1. Whether the suit is barred by limitation?

2. Whether the plaintiff had supplied potash feldspar power 100 Mesh (100-200#) and 200 mesh (200-325#) to the defendant as per purchase order?

3. Whether the defendant is liable to pay the cost of supply of potash feldspar amounting to 3/13

Rs.69,64,750/- and with interest?

4. Whether the letters/copies of returns filed by the plaintiff/Sales registers without the sign and seal of the defendant is enough to prove delivery of the materials by the plaintiff to the defendant?

5. Whether the plaintiff is entitled for the relief as prayed for?

5.

On the side of the plaintiff, Mr.R.Satheesh, Manager (HR) and authorized signatory of the plaintiff Company was examined as P.W.1 and the following documents were marked as Exs.P1 to P175 and no oral and documentary evidence adduced on the side of the defendant.

Exhibits Date Description of documents Ex.P.1 19.06.2019 Minutes of Meeting of Board of Directors.

EX.P.2 11.06.2014 Minutes of Meeting of Board of Directors.

Ex.P.3 Plaintiff's resolution.

Ex.P.4 19.12.2008 Form No.SMALL00063 (copy) EX.P.5 Memorandum and Articles of Association Company registration certificate (copy) Ex.P.6 26.04.2011 Form No.007100623 Ex.P.7 11.02.2010 Purchase Order No.CM 2103010 Ex.P.8 21.06.2010 Invoice No.22 (Fax) Ex.P.9 21.06.2010 Invoice No.23 Ex.P.10 21.06.2010 Invoice No.24 Ex.P.11 28.06.2010 Invoice No.26 Ex.P.12 28.06.2010 Invoice No.27 Ex.P.13 28.06.2010 Invoice No.28 Ex.P.14 30.06.2010 Invoice No.31 Ex.P.15 01.07.2010 Invoice No.33 4/13

Exhibits Date Description of documents Ex.P.16 07.07.2010 Invoice No.34 Ex.P.17 12.07.2010 Invoice No.36 Ex.P.18 12.07.2010 Invoice No.37 Ex.P.19 15.07.2010 Invoice No.38 Ex.P.20 17.07.2010 Invoice No.39 Ex.P.21 20.07.2010 Invoice No.42 Ex.P.22 26.06.2010 Purchase Order No.RRS 200610 (Fax) Ex.P.23 28.06.2010 Invoice No.29 Ex.P.24 12.07.2010 Purchase Order No.RRS 120710 (Fax) Ex.P.25 20.07.2010 Invoice No.40 Ex.P.26 20.07.2010 Invoice No.43 Ex.P.27 21.07.2010 Invoice No.44 Ex.P.28 26.07.2010 Invoice No.46 Ex.P.29 27.07.2010 Invoice No.47 Ex.P.30 28.07.2010 Invoice No.48 Ex.P.31 23.08.2010 Invoice No.58 Ex.P.32 04.09.2010 Invoice No.62 Ex.P.33 06.09.2010 Invoice No.63 Ex.P.34 07.09.2010 Invoice No.64 Ex.P.35 05.10.2010 Purchase Order No.CM 1101005 (Fax) Ex.P.36 27.09.2010 Invoice No.67 Ex.P.37 27.09.2010 Invoice No.68 Ex.P.38 19.10.

2010 Invoice No.72 Ex.P.39 15.10.2010 Purchase Order No.CM1101015 (Fax) Ex.P.40 19.10.2010 Invoice No.73 Ex.P.41 20.10.2010 Invoice No.74 Ex.P.42 18.05.2010 Invoice No.12 Ex.P.43 10.06.2010 Invoice No.17 Ex.P.44 11.06.2010 Invoice No.18 Ex.P.45 12.06.2010 Invoice No.19 Ex.P.46 14.06.2010 Invoice No.20 Ex.P.47 14.06.2010 Delivery Challan No.146 Ex.P.48 19.06.2010 Delivery Challan No.155 Ex.P.49 19.06.2010 Delivery Challan No.156 Ex.P.50 24.06.2010 Delivery Challan No.

Exhibits Date Description of documents Ex.P.51 26.06.2010 Delivery Challan No.165 Ex.P.52 26.06.2010 Delivery Challan No.166 Ex.P.53 26.06.2010 Delivery Challan No.167 Ex.P.54 26.06.2010 Delivery Challan No.168 Ex.P.55 26.06.2010 Delivery Challan No.169 Ex.P.56 26.06.2010 Delivery Challan No.170 Ex.P.57 26.06.2010 Delivery Challan No.171 Ex.P.58 26.06.2010 Delivery Challan No.172 Ex.P.59 26.06.2010 Delivery Challan No.173 Ex.P.60 27.06.2010 Delivery Challan No.176 Ex.P.61 27.06.2010 Delivery Challan No.178 Ex.P.62 28.06.2010 Delivery Challan No.179 Ex.P.63 28.06.2010 Delivery Challan No.180 Ex.P.64 09.07.2010 Delivery Challan No.206 Ex.P.65 09.07.2010 Delivery Challan No.207 Ex.P.66 09.07.2010 Delivery Challan No.208 Ex.P.67 09.07.2010 Delivery Challan No.209 Ex.P.68 10.07.2010 Delivery Challan No.210 Ex.P.69 10.07.

2010 Delivery Challan No.211 Ex.P.70 16.07.2010 Delivery Challan No.226 Ex.P.71 17.07.2010 Delivery Challan No.228 Ex.P.72 18.07.2010 Delivery Challan No.231 Ex.P.73 18.07.2010 Delivery Challan No.232 Ex.P.74 26.09.2010 Delivery Challan No.384 Ex.P.75 18.07.2010 Delivery Challan No.233 Ex.P.76 18.07.2010 Delivery Challan No.234 Ex.P.77 18.07.2010 Delivery Challan No.235 Ex.P.78 18.07.2010 Delivery Challan No.236 Ex.P.79 19.07.2010 Delivery Challan No.237 Ex.P.80 19.07.2010 Delivery Challan No.238 Ex.P.81 25.07.2010 Delivery Challan No.240 Ex.P.82 25.07.2010 Delivery Challan No.252 Ex.P.83 25.07.2010 Delivery Challan No.253 Ex.P.84 25.07.2010 Delivery Challan No.256 Ex.P.85 25.07.2010 Delivery Challan No.

Exhibits Date Description of documents Ex.P.86 03.09.2010 Delivery Challan No.347 Ex.P.87 03.09.2010 Delivery Challan No.350 Ex.P.88 03.09.2010 Delivery Challan No.351 P.89 03.09.2010 Delivery Challan No.352 P.90 25.09.2010 Delivery Challan No.380 P.91 26.09.2010 Delivery Challan No.381 P.92 26.09.2010 Delivery Challan No.385 P.93 26.09.2010 Delivery Challan No.386 P.94 30.09.2010 Delivery Challan No.392 P.95 01.10.2010 Delivery Challan No.393 P.96 01.10.2010 Delivery Challan No.396 P.97 03.10.2010 Delivery Challan No.409 P.98 12.10.2010 Delivery Challan No.410 P.99 12.10.2010 Delivery Challan No.412 P.100 12.10.2010 Delivery Challan No.413 P.101 12.10.2010 Delivery Challan No.414 P.102 12.10.2010 Delivery Challan No.415 P.103 12.10.2010 Delivery Challan No.416 P.104 15.10.2010 Delivery Challan No.421 P.105 15.10.2010 Delivery Challan No.

422 P.106 16.10.2010 Delivery Challan No.424 P.107 17.10.2010 Delivery Challan No.425 P.108 17.10.2010 Delivery Challan No.426 P.109 17.10.2010 Delivery Challan No.427 P.110 19.10.2010 Delivery Challan No.431 P.111 19.10.2010 Delivery Challan No.432 P.112 14.06.2012 Letter sent to CTO, Narayanguda Circle. (Copy) being copy, objected.

P.113 Oct ' 10 CST FORM 'H' with Annexure vide No.L313589.

P.114 - CST FORM 'H' with Annexure vide No.762867.

P.115 - CST FORM 'H' with Annexure vide No.762866.

P.116 - Series of Statemen of accounts issued by Andhra Bank.

P.117 03.01.2014 Letter sent by plaintiff company.

P.118 30.01.2014 Legal Notice (office copy).

P.119 28.02.2014 Reply Notice.

7/13

Exhibits Date Description of documents P.120 08.04.2014 Letter sent by defendant counsel.

P.121 23.04.2010 Bill of Lading No.MAACB10001987 P.122 23.04.2010 Bill of Lading No.MAACB10001901 P.123 25.04.2010 Bill of Lading No.MAACB10002459 P.124 27.04.2010 Bill of Lading No.MAACB10002187 P.125 14.05.2010 Bill of Lading No.SSLMAJAKTCA2369 P.126 14.05.2010 Bill of Lading No.SSLMASUBCA2370 P.127 15.05.2010 Bill of Lading No.MAACB10002470 P.128 16.05.2010 Bill of Lading No.INMAAPKL238820 P.129 22.05.2010 Bill of Lading No.MAACB10002743 P.130 22.05.2010 Bill of Lading No.MAACB10002744 P.131 28.05.2010 Bill of Lading No.SSLMAJAKTCA2369 P.132 14.06.2010 Bill of Lading No.TALTSM00731530 P.133 16.06.2010 Bill of Lading No.TALTSM00731532 P.134 16.06.2010 Bill of Lading No.TALTSM00733522 P.135 19.06.2010 Bill of Lading No.TALTSM00733882 P.136 22.06.2010 Bill of Lading No.TALTSM00733929 P.137 26.06.2010 Bill of Lading No.TALTSM00733927 P.

138 01.07.2010 Bill of Lading No.TALTSM00736404 P.139 02.07.2010 Bill of Lading No.TALTSM00737597 P.140 05.07.2010 Bill of Lading No.TALTSM00737620 P.141 05.07.2010 Bill of Lading No.TALTSM00737471 P.142 06.07.2010 Bill of Lading No.TALTSM00738204 P.143 14.07.2010 Bill of Lading No.TALTSM00740575 P.144 14.07.2010 Bill of Lading No.TALTSM00740575 P.145 14.07.2010 Bill of Lading No.TALTSM00739229 P.146 16.07.2010 Bill of Lading No.TALTSM00741649 P.147 16.07.2010 Bill of Lading No.TALTSM00741249 P.148 21.07.2010 Bill of Lading No.TALTSM0074609 P.149 24.07.2010 Bill of Lading No.TALTSM00742806 P.150 24.07.2010 Bill of Lading No.TALTSM00741915 P.151 31.07.2010 Bill of Lading No.MAASUB10070090 P.152 07.08.2010 Bill of Lading No.MAASUB10080005 P.153 17.08.2010 Bill of Lading No.TALTSM00748874 P.154 27.08.2010 Bill of Lading No.

Exhibits Date Description of documents P.155 16.09.2010 Bill of Lading No.MAAJKT10090019 P.156 03.10.2010 Bill of Lading No.MAAJKT10100004 P.157 11.10.2010 Bill of Lading No.MAASUB10100016 P.158 18.10.2010 Bill of Lading No.KCA/MAA/PKG/1010/0218 P.159 24.10.2010 Bill of Lading No.MAASUB10100076 P.160 24.10.2010 Bill of Lading No.MAASUB10100077 P.161 24.10.2010 Bill of Lading No.MAAJKT10100078 P.162 27.10.2010 Bill of Lading No.MAASUB10100099 P.163 31.10.2010 Bill of Lading No.MAAJKT10110001 P.164 14.01.2011 E-mail sent by the defendant to plaintiff.

P.165 19.01.2011 E-mail sent by the defendant to the plaintiff. P.166 08.02.2011 E-mail sent by the plaintiff to the defendant. P.167 05.09.2012 E-mail sent by the defendant to the plaintiff. P.168 03.10.2012 E-mail sent by the plaintiff to the defendant. P.169 05.11.2012 E-mail sent by the plaintiff to the defendant. P.170 01.12.2012 E-mail sent by the plaintiff to the defendant. P.171 03.12.2012 E-mail sent by the defendant to the plaintiff. P.172 28.07.2012 Show cause notice of the Commercial department. P.173 02.08.2012 Reply to show cause notice.

P.174 08.08.2012 Proceedings of Commercial tax office.

P.175 Statement of Accounts.

6.

Heard both sides.

7.

The learned counsel for the plaintiff submits that Exs.P.113 to P.115-H-Form, clearly proves the nature of supply by the plaintiff. The Bill of Lading, Exs.P.21 to P.163, transaction and Ex.P.168 Email sent by the defendant, wherein he has admitted the liability besides payment made by the defendant. On 20.08.2018, 9/13

Ex.P.116 proves that the plaintiff is entitled to suit amount. 8.

It is the contention of the learned counsel for the defendant that the plaintiff has not supplied the goods as per the document, there is a short supply besides the suit is barred by limitation and invoice has not been filed. Hence, prays for dismissal of the suit.

Issue No.1 9.

As far as Issue No.1, admittedly, there is no dispute with regard to the supply and delivery of the goods. The invoices raised in the purchase order were issued in the year 2010. The last purchase order dated 15.10.2010, wherein the materials were supplied about 30500 metric tons supplied on 15.10.2010. The accounts statements filed by the plaintiff is only a running account. Ex.P.175, clearly indicates that on 20.08.2013, the defendant has paid a payment of Rs.50,000/- towards the outstanding amount and this amount have been spoken by the plaintiff. It is clearly noted that no oral and documentary evidence adduced by the defendant, the defendant himself has not come before the Court to substantiate his allegation with the plaintiff evidence clearly indicates that the 10/13

part payment has been made within the period of limitation. The fresh period of limitation starts from the date of payment. The suit has been filed within one year from the date of payment made in the year 2013. Such being the position, the suit is well within the period of limitation and not barred by limitation. Accordingly, the issue is answered.

Issue Nos.2 to 4 10.

It is not in dispute that the place of purchase order and supply of materials and Exs.P.113 to P.115 Form-H, have been carefully perused, the same would not only to show the nature of metric tons but also the invoice numbers and dates, H-Form not only signed by the plaintiff but also defendant. H-Form, in fact issued by the defendant and Ex.P.173, the order of the CTO clearly proves that the goods were supplied by the plaintiff and Bill of Lading Exs.P.121 to P.163 also clearly establishes the fact that the plaintiff has supplied the materials. The main contention of the defendant that there was short supply, therefore the plaintiff is not entitled to such amount except in an oral submission of the counsel, whatsoever placed contend that there is a short supply. The defendant has also failed to appear before the Court for subjecting 11/13

himself for cross examination that itself clearly indicates that the defence is not correct. At any event, the document filed on the side of the plaintiff particularly Bill of Lading and Exs.P.121 to 163 and H-Form, Exs.P.113 to P.115 and email sent by the defendant, Ex.168, clearly proves that the plaintiff claim that the defendant is due to pay a sum of Rs.63,67,774/- towards the materials supplied. Even in the written statement, there is no specific denial about the supply of materials. When such being the position, from the above documents and Ex.P1, the plaintiff is entitled to suit claim. Accordingly, interest is calculated as per Section 16 of Micro, Small and Medium Enterprises Development Act, 2006, as the plaintiff is a Small and Medium Enterprises.

When the statute itself provides for claiming such interest, the interest calculation by the plaintiff while filing of the suit is not disturbed. However, taking note of the fact that pending suit, the Court can invoke the jurisdiction under Section 34 of CPC, this Court is inclined to reduce the interest at the rate of 9% during the pendency of the suit till the date of realization. With costs.

26.11.2019 AT 12/13

N.SATHISH KUMAR ,J.

AT 26.11.2019 13/13