Delhi High Court
Zest Systems Pvt. Ltd. vs Center For Vocational And ... on 19 September, 2018
$~OS-14
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of decision: 19.09.2018
+ CS(COMM) 513/2017
ZEST SYSTEMS PVT. LTD. ..... Plaintiff
Through Mr.Kirti Uppal, Sr.Adv. with
Mr.N.K.Kantawala and Mr.Satyender
Chahar, Advs.
versus
CENTER FOR VOCATIONAL AND
ENTREPRENEURSHIP STUDIES & ANR ..... Defendants
Through Mr.Raman Kapur, Sr.Adv. with
Mr.Paranjay Chopra, Adv. for D-1.
CORAM:
HON'BLE MR. JUSTICE JAYANT NATH
JAYANT NATH, J. (ORAL)
IA.No.6742/2018
1. This application is filed seeking a decree on admission under Order
13A Rule 3 of the Commercial Courts, Commercial Division and
Commercial Appellate Division of the High Courts Act, 2015 for a sum of
Rs.2,25,38,966/-.
2. This suit is filed for recovery of Rs.4,86,18,363/- along with interest.
3. The learned senior counsel appearing for the plaintiff submits that as
per the balance sheet of defendant No.1 there is an admission and as on
31.03.2015, defendant No.1 admitted a sum of Rs.2,25,38,966/- is payable
to the plaintiff. He also relies upon the judgments of this court in Shahi
CS(COMM)513/2017 Page 1
Exports Pvt. Ltd. v. CMD Buildtech Pvt. Ltd., 2013 (202) DLT 735 and
Bhajan Singh Sharma v. Wimpy International Ltd., 2011 (185) DLT 428
to contend that acknowledgement in the balance sheet by the defendant
extends the period of limitation.
4. The learned senior counsel appearing for defendant No.1 has only
raised one submission, namely, the suit is barred by limitation.
5. In Shahi Exports Pvt. Ltd. vs. CMD Buildtech Pvt. Ltd. (supra) this
court held as follows:-
"7. It is hardly necessary to cite authorities in support of the
well-established position that an entry made in the company's
balance sheet amounts to an acknowledgement of the debt
and has the effect of extending the period of limitation under
section 18 of the Limitation Act, 1963. However, I may refer
to only one decision of the learned single judge of this Court
(Manmohan, J.) in Bhajan Singh Samra v. Wimpy
International Ltd. 185 (2011) DLT 428 for the simple reason
that it collects all the relevant authorities on the issue,
including some of the judgments cited before me on behalf of
the petitioners. This judgment entirely supports the
petitioners on this point."
6. In view of the legal position spelt out in judgments noted above, the
acknowledgement of the debt in the balance sheet extends the period of
limitation. The acknowledgement is as on 31.3.2015. This suit is filed in
2017. The suit is clearly within limitation The present application is allowed.
CS(COMM) 513/2017
7. In view of the above order passed today in IA No.6742/2018, a decree
is passed in favour of the plaintiff against defendant No.1 for a sum of
Rs.2,25,38,966/-. The plaintiff shall also be entitled to simple interest @
12% per annum from the date of institution of the suit till the decree.
CS(COMM)513/2017 Page 2
Similarly, the plaintiff shall also be entitled to simple interest @ 12% per
annum from the date of decree till recovery. The plaintiff shall also be
entitled to cost.
8. As far as defendant No.2 is concerned, he is said to be a director of
defendant No.1. The learned senior counsel for the plaintiff submits that
there are grave allegations against defendant No.2 and they would like to
continue the suit against defendant No.2.
9. List on 17.12.2018 for framing of issues.
JAYANT NATH, J.
SEPTEMBER 19, 2018/v
CS(COMM)513/2017 Page 3
