Madras High Court
M/S.Tractors And Farm Equipment ... vs N.Deepak on 5 October, 2023
C.S.No.23 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 05.10.2023
CORAM
THE HONOURABLE MR.JUSTICE ABDUL QUDDHOSE
C.S.(Comm.Div.)No.23 of 2021
M/s.Tractors and Farm Equipment Limited,
77, Nungambakkam High Road,
Chennai – 34.
Rep. By its Authorised Signator
Mr.C.P.Sounderarajan .. Plaintiff
-vs-
N.Deepak,
Sole Proprietor,
M/s.Mahalakshmi Tractors,
ThuruvanaHalli, Plot No.125, B.H.Road,
Near Banashankari KalyanaMantap,
Kudur, Chickmagalur District.
Karnataka – 577 548.
Through the District,
Chickmagalur. .. Defendant
PRAYER: Civil Suit is filed under order IV Rule 1 O.S. Rules, read with
Order VII Rule 1 of CPC and Section 2(1)(c)(ix) of the Commercial Courts
Act, 2015, praying for a direction to the defendant to pay a sum of
Rs.1,16,86,541.46/- with interest at 12% per annum from the date of the suit
till the date of payment.
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C.S.No.23 of 2021
For Plaintiff : Mr.Vadiraj Aniruth
for M/s.S.Ramasubramaniam & Associates
Defendant is set exparte
JUDGMENT
This commercial suit has been filed by the plaintiff seeking for
recovery of a sum of Rs.1,16,86,541.46/- together with interest and costs
from the defendant.
2. The plaintiff is a tractor manufacturer. The defendant was its
dealer and he was appointed as a dealer on 22.09.2014. Ever since the said
appointment, the plaintiff and the defendant are having regular transactions
with regard to the tractor sales. The defendant has been irregular in making
the payment to the plaintiff in respect of the tractor sales made by the
plaintiff to him. According to the plaintiff, there is a balance of
Rs.1,16,86,54.46/- still due and payable by the defendant to them as detailed
hereunder:-
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C.S.No.23 of 2021
Supply of tractors : Rs.80,75,372.07/-
Less: Credit for spare parts : Rs.1,07,347.93/-
Less: Credit claim account : Rs.23,482.68/-
Less: Security Deposit : Rs.3,00,000/-
Total : Rs.76,44,541.46/-
Add: Trade Advance : Rs.40,42,000/-
Total outstanding : Rs.1,16,86,541.46/-
3. The documents filed by the plaintiff have been marked as exhibits
before the learned Master-III while recording the oral evidence of the
plaintiff. The plaintiff's authorised representative Mr.Shobak, who is the
Deputy Manager – Dealer Developments, was examined as P.W.1 on behalf
of the plaintiff. The defendant has been set exparte by this Court on
18.04.2022.
4. As seen from the minutes of the meeting dated 25.05.2018,
02.12.2019, 24.04.2020 and 27.08.2020 between the plaintiff and the
defendant, which have been marked as exhibits, the defendant has partially
acknowledged the liability towards the plaintiff. The minutes of the
meeting dated 25.05.2018, 02.12.2019, 24.04.2020 and 27.08.2020 have
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C.S.No.23 of 2021
been marked as Exs.P7 to P10 respectively.
5. The learned counsel for the plaintiff, on instructions, would submit
that the plaintiff is giving up the claim pertaining to trade advance
amounting to Rs.40,42,000/- referred to supra. The said submission is
recorded. If the said sum of Rs.40,42,000/- is deducted from the suit claim,
a sum of Rs.76,44,541.46/- (Rs.1,16,86,541.46-Rs.40,42,000) will become
due and payable by the defendant to the plaintiff. As seen from the minutes
of the meeting dated 25.05.2018, 02.12.2019, 24.04.2020 and 27.08.2020,
which have been marked as Exs.P7-P10, the defendant has acknowledged
its liability towards tractor sales made by the plaintiff to the defendant.
6. The plaintiff has also filed its accounts statement for the period
from 01.08.2014 to 28.02.2021, which has been marked as Ex.P11, and in
page No.130 of the said accounts statement, the credit claim account
amounting to Rs.23,482.68/- is reflected. Similarly, security deposit amount
available with the plaintiff amounting to Rs.3 lakhs is reflected in page
No.119 of the accounts statement.
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C.S.No.23 of 2021
7. The claim towards supply of tractors amounting to
Rs.80,75,372.07/- is after adjusting the bank guarantee amount of Rs.45
lakhs, which was invoked by the plaintiff on 29.12.2020 on account of
breach of the contract committed by the defendant. The same is also
reflected at page No.118 of the statement of accounts (Ex.P11).
8. After adjusting the amount available with the plaintiff and after
recording the statement made by the learned counsel for the plaintiff that on
instructions, the plaintiff is giving up the claim towards trade advance of
Rs.40,42000, the following amount is still due and payable by the defendant
to the plaintiff as seen from the evidence available on record. The details
are set out hereunder:-
Supply of tractors : Rs.80,75,372.07/-
Less: Credit for spare parts : Rs.1,07,347.93/-
Less: Credit claim account : Rs.23,482.68/-
Less: Security Deposit : Rs.3,00,000/-
Total : Rs.76,44,541.46/-
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C.S.No.23 of 2021
9. Based on the oral and documentary evidence available on record,
the suit claim will have to be partly decreed in favour of the plaintiff.
10. With regard to the interest, since the contract does not stipulate
the payment of any interest, this Court cannot award interest at the rate of
12% as claimed in the suit. However, when it is an admitted fact that the
defendant is a defaulter, this Court will have to award interest though at a
nominal rate in consonance with the present banking interest. This Court
deems it fit to award 6% interest on the outstanding amount from the date of
the suit till the date of the payment.
11. In the result, the suit is partly decreed by directing the defendant
to pay a sum of Rs.76,44,541.46/- together with interest at 6% per annum
from the date of filing of the suit till the date of the payment. The defendant
is also directed to pay the costs of the suit.
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rkm
Index:yes/no
Neutral citation:yes/no
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C.S.No.23 of 2021
Plaintiff's witness:
Mr.A.V.Shobak - PW1
Documents exhibited by the Plaintiff:
Sl.No. Exhibits Date Particulars of Documents
1 Ex.P1 06.06.2022 Letter of Authorisation
Letter of Intent issued by the Plaintiff to the
2 Ex.P2 29.08.2014
Defendant
Letter of Probationary Appointment issued by
3 Ex.P3 22.09.2014
the Plaintiff to the Defendant
4 Ex.P4 01.04.2020 Letter from the Plaintiff to the Defendant
5 Ex.P5 23.11.2019 Letter from the Defendant to Plaintiff
Letter acknowledging the change in the
6 Ex.P6 10.06.2020 enfranchised territory from the Plaintiff and
the Defendant
Minutes of Meeting between the Plaintiff and
7 Ex.P7 25.05.2018
the Defendant.
Minutes of Meeting between the Plaintiff and
8 Ex.P8 02.12.2019
the Defendant
Minutes of Meeting between the Plaintiff and
9 Ex.P9 24.04.2020
the Defendant
Minutes of Meeting between the Plaintiff and
10 Ex.P10 27.08.2020
the Defendant
11 Ex.P11 12.03.2021 Statement of Accounts
AQJ
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C.S.No.23 of 2021
ABDUL QUDDHOSE, J.
rkm
C.S.(Comm.Div.)No.23 of 2021
05.10.2023
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