JUDGMENT Badar Durrez Ahmed, J.
1. This suit has been filed for recovery of a sum of Rs. 39,22,501.15. It has also been prayed that interest be awarded @ 18% per annum on the principal amount from the date of institution of the suit till realisation as also cost of the suit be also awarded.
2. The plaint has been instituted by Shri S.P. Tawani as the Principal Officer as also the general attorney of the plaintiff company having authority to sign, verify, institute and file the suit for and on behalf of the company. The plaintiff is engaged, inter alia, in trading and marketing Urea, Sulphur and other fertilizers. The defendant and the plaintiff had an ongoing arrangement inasmuch as the plaintiff used to supply goods, namely Urea/DAP(Di Ammonium Phosphate) to the defendant against invoices raised by the plaintiff and the defendant used to pay for the same. This relationship between the plaintiff and the defendant had been going on for sometime and from time to time the defendant was making payments for the supplies made by the plaintiff.
3. The suit has been filed essentially for recovery of the price of the goods supplied by the plaintiff to the defendant as well as interest thereon. The defendant was directed to be proceeded with ex parte by virtue of an order dated 06.07.2005 whereupon the plaintiff was directed to lead ex parte evidence which he has done in the form of an affidavit by the said Mr S.P. Tiwani. Various documents, being Exhibit Nos. PW1/1 to PW1/20, have been exhibited and the same stand proved. Upon an examination of the evidence on record and the statements contained in the plaint, it appears that although the dealings between the plaintiff and the defendant was for a period prior to 1996, there is an acknowledgment by the defendant by a letter dated 10.05.1997 (Exhibit PW1/16) wherein the defendant has acknowledged that an amount of Rs 24,42,245.19 was due and payable by the defendant to the plaintiff. This letter discloses that as against the amount of Rs. 25,89,030.57 that was claimed by the plaintiff, the defendant had acknowledged the said amount of Rs. 24,42,245.19. It is also stated in this letter that the accounts have been reconciled during the month of March/April, 1996 with the Commercial Officer/Marketing Officer of the plaintiff at Chandigarh. The amounts were not paid, as indicated in the said letter, due to the defendant having been overcome by some financial problems and a request was made for time for managing the funds and to arrange for the same within 3-4 months. The payments were, however, not made even thereafter. As a result of which the plaintiff was compelled to file the present suit.
4. The learned counsel for the plaintiff pointed out that a cheque had been issued in the meanwhile by the defendant which also could not be encashed due to insufficiency of funds. The learned counsel for the plaintiff also pointed that that the defendant's letter Exhibit PW1/16 was in response to the plaintiff's letter of 15.04.1997 (Exhibit PW1/15) wherein the plaintiff had called upon the defendant to make the payment along with interest thereon calculated at 24% per annum within three weeks of the receipt of the notice. The learned counsel for the plaintiff drew my attention to paragraph 19 of the evidence affidavit wherein it was stated that out of the principal amount of Rs. 25,89,030.57, after making certain adjustments and transfer entries, a sum of Rs. 22,94,893.15 remained outstanding on account of the principal. Therefore, it appears that the adjustments were to the tune of about Rs. 2,94,137.07/-. Since the defendant had make an acknowledgment of only Rs. 24,42,245.19, therefore the principal amount will have to be taken as Rs. 24,42,245.19 and will have to be further reduced by the said sum of Rs. 2,94,137.07 which adjustments have admittedly been made by the plaintiff. The resultant principal amount due from the defendant to the plaintiff works out to Rs. 21,48,108.12. Therefore, the plaintiff has been able to show that this amount is due and pending from the defendant and the plaintiff is entitled to a decree for the said amount. The plaintiff having notified the defendant with regard to payment of interest would also be entitled to interest on the said amount at 18% per annum w.e.f. 15.4.1997 till the date of the decree. The plaintiff is also entitled to interest @ 9% on the aforesaid amount from the date of the decree till the date of realisation. The plaintiff is also entitled to costs. The suit is so decreed. A decree be prepared accordingly.