Delhi High Court
R K Swamy Bbdo Private Ltd vs M/S Ultra Motor India Pvt Ltd on 23 May, 2011
Author: V. K. Jain
THE HIGH COURT OF DELHI AT NEW DELHI
% Judgment Pronounced on: 23.05.2011
+ CS(OS) No. 1942/2010
R K SWAMY BBDO PRIVATE LTD .....Plaintiff
- versus -
M/S ULTRA MOTOR INDIA PVT LTD ....Defendant
Advocates who appeared in this case:
For the Plaintiff: Mr. I.C.Kumar, Adv.
For the Defendant: None.
CORAM:-
HON'BLE MR JUSTICE V.K. JAIN
1. Whether Reporters of local papers may
be allowed to see the judgment? No
2. To be referred to the Reporter or not? No
3. Whether the judgment should be reported No
in Digest?
V.K. JAIN, J. (ORAL)
IA 17783/2010 (O.37 R.5 CPC)
This is an application filed by the defendant for
leave to contest the suit.
Since no one is present for the defendant at 3.11
PM, the application is dismissed in default.
The application stands disposed of accordingly.
CS(OS) 1942/2010
1. This is a suit under Order 37 Rule 2 of the Code of
Civil Procedure. The plaintiff company is engaged in the
business of rendering services in the area of Media Direction
for developing media strategies, media planning and buying
media space, execution, operation and release of
advertisements on behalf of its clients in Press, TV, Radio,
Films etc. The defendant vide its letter dated 02.01.2009
appointed M/s. Media Direction, a unit of the plaintiff
company, as its Media Agency on Record for a period of one
year and entered into an agreement dated 11.05.2009
specifying the scope of work and services to be provided by
the plaintiff company. The defendant issued various orders
to the plaintiff for release of their advertisements. The
plaintiff company raised bills for a total sum of
Rs.70,36,711/- out of which the defendant paid a sum of
Rs.48,05,012/-, leaving a balance amount of
Rs.22,29,889/-. It is alleged that the media bills have been
paid by the plaintiff because had it not made payment, it
would have been deprived of the status and privileged of a
Accredited Advertising Agency. The defendant also issued a
balance confirmation dated 31.05.2010 admitting therein
that they are liable to pay a sum of Rs.21,90,543/- to the
plaintiff company. The liability has been reduced from
Rs.22,29,889/- to Rs.21,90,543/- since the defendant
issued TDS certificates worth Rs.39,346/-. The plaintiff has
now claimed the aforesaid amount of Rs.21,90,543/- along
with interest thereon at the rate of 18% per annum
amounting to Rs.5,96,964/-, which the defendant had
agreed to pay on the outstanding dues.
2. Since the application filed by the defendant for
leave to contest has been dismissed today, the plaintiff has
become entitled to judgment forthwith.
3. In view of the provisions contained in Order 37
Rule 1(2)(b) of the Code of Civil Procedure, the plaintiff is
entitled to recover a debt or liquidated payment in money,
arising on a written contract, along with interest on that
amount. The plaintiff has placed on record a copy of the
letter dated 02.01.2009, whereby Media Directions were
appointed as the Media Agency of the defendant for a period
of one year. The plaintiff has also filed an agreement dated
11.05.2009 executed between the parties. Vide this
agreement, the defendant appointed Media Directions , a
division of the plaintiff-company as its agency on record for
the purpose of handling the assigned media and media
related work such as development of media strategies,
media planning and buying and execution and operations of
various advertising campaigns in respect of the all
products/services manufactured and sold/rendered by it.
The relevant clauses of the agreement, inter alia, provide as
under:
"BILLING PROCEDURE AND TIME FOR
PAYMENT
All the media costs along with the 3% fee
pertaining to the MEDIA AGENCY as
aforesaid, will be billed by MEDIA
AGENCY on CLIENT from time to time.
The bills are payable by CLIENT to
MEDIA AGENCY strictly according to the
schedule indicated below:
Press Advertising
Within 30 days from the date of our
bill/invoice
TV Advertising
Within 30 days from the date of our
bill/invoice
Radio Advertising
Within 30 days from the date of
our bill/invoice
Film/Internet Advertising
Within 30 days from the date of
our bill/invoice
Outdoor Advertising
Within 30 days from the date of
our bill/invoice or subject to
terms of contract with concessionaires
xxxx....In case of a delay in payment to
the MEDIA AGENCY from the CLIENT,
beyond the stipulated credit period, the
outstanding amount will attract interest
of 1.5% per month."
The plaintiff has also placed on record the
purchase orders, issued to it by the defendant-company
from time to time and the invoices raised by it on the
plaintiff. The plaintiff-company has also filed the Balance
Confirmation Form dated 31st May, 2010, whereby the
defendant confirmed that an unpaid balance of Rs
21,90,453/- was due from it to the plaintiff-company as on
31st March, 2010.
4. In view of the averments made in the plaint,
coupled with the above-referred documents filed by the
plaintiff company, it is entitled to recover a sum of
Rs.21,90,543/- from the defendant company as the
principal sum. A perusal of the Agreement dated 11.05.2009
would also show that the defendant had agreed to pay an
interest at the rate of 18% per annum on the outstanding
payment. Hence, the plaintiff is entitled to recover a sum of
Rs.21,90,543/-.
For the reasons given in the preceding paragraphs, a
decree for recovery of Rs.27,87,507/- with costs and
pendente lite and future interest at the rate of 12% per
annum is hereby passed in favour of the plaintiff and
against the defendant.
Decree sheet be drawn accordingly.
(V.K. JAIN)
JUDGE
MAY 23, 2011
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