Madras High Court
M/S.Sri Agarwal Ispat (Chennai) ... vs M/S.Bna Automotive India Private ... on 9 June, 2025
Author: Senthilkumar Ramamoorthy
Bench: Senthilkumar Ramamoorthy
C.S.(Comm.Div.)No.83 of 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 09.06.2025
CORAM
THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY
C.S.(Comm.Div.)No.83 of 2022
M/s.Sri Agarwal Ispat (Chennai) Private Limited,
Represented by its Director,
Mr.Umesh Kumar Agarwal,
Having its registered office at AC-5,
2nd Avenue, 4th Floor, Anna Nagar,
Chennai - 600 040. ... Plaintiff
Vs.
M/s.BNA Automotive India Private Limited,
No.D.P.28, SIDCO Industrial Estate,
Thirumazhisai, Thiruvallur - 600 124,
Chennai, Tamil Nadu. ... Defendant
PRAYER: Plaint filed under Order IV Rule 1 of Original Side Rules read
with Order VII Rule 1 of the Code of Civil Procedure, 1908, prays for the
judgment and decree, as follows:
(a) For a sum of Rs.2,40,94,242/- (Rupees Two Crores Forty Lakhs
Ninety Four Thousand Two Hundred and Forty Two Only) together with
1/10
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C.S.(Comm.Div.)No.83 of 2022
interest at 18% per annum on Rs.2,21,40,895/- (Rupees Two Crores Twenty
One Lakhs Forty Thousand Eight Hundred and Ninety Five only) from the
date of plaint till the date of realization of the entire suit claim.
b) For costs of the suit.
For Plaintiff : Ms.P.S.Deepika
For Defendant : Set ex-parte on 02.02.2024
JUDGMENT
The suit was originally filed for recovery of a sum of Rs.2,21,40,895/-
with interest at 18% per annum from the date of plaint until the date of
realization. While the suit was pending, part payment was received by the
plaintiff from the defendant. In view thereof, after giving credit to such part
payment, the plaintiff filed an amended plaint for recovery of a sum of
Rs.1,68,42,503/- with interest at 18% per annum on the principal sum of
Rs.1,48,89,156/-.
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C.S.(Comm.Div.)No.83 of 2022
2. Upon receipt of suit summons, the defendant entered appearance
and filed a written statement. In the written statement, the defendant
acknowledges the transactions entered into by the defendant with a
proprietary concern called 'M/s.Sri Agarwal Ispat'. As regards the suit claim,
the defendant asserts that acknowledgement dated 08.02.2022 confirming
the balance of Rs.2,21,22,132/- was issued without authorisation. Thereafter,
by order dated 02.02.2024, the defendant was set ex-parte and the defence
raised in the written statement was struck off.
3. In the above circumstances, the plaintiff adduced evidence through
Mr.Umesh Kumar Agarwal, Director, who was examined as P.W.1. In the
course of examination in chief of P.W.1, 47 documents were exhibited as
Exs.P1 to P47.
4. Learned counsel for the plaintiff submitted that the plaintiff was
incorporated to take over the business of proprietary concern, 'M/s.Sri
Agarwal Ispat'. In support of her contention, she relies upon Ex.P3, which is
the memorandum and articles of association of the plaintiff. After pointing
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C.S.(Comm.Div.)No.83 of 2022
out that the suit claim relates to supply of goods by the predecessor in title of
the plaintiff to the defendant, learned counsel submitted that relevant
invoices were exhibited as Exs.P4 to P43. By referring to Ex.P44, which is
the ledger statement for the period from 01.04.2019 to 31.03.2022, learned
counsel submitted that the said document evidences the closing balance of
Rs.2,21,40,895/-. Learned counsel further submitted that the outstanding of
Rs.2,21,22,132/- was admitted in confirmation of balance dated 08.02.2022,
which was marked as Ex.P45. Therefore, she submits that the plaintiff is
entitled to the suit claim.
5. As noticed earlier, after giving credit to payments received while
the suit was pending, an amended plaint seeking recovery of a sum of
Rs.1,68,42,503/- was filed. While the defendant originally filed a written
statement, the defendant was set ex-parte by order dated 02.02.2024 and this
Court directed that the defence in the written statement be struck off. In any
case, the only defence raised in the written statement was that Ex.P45 was
not executed by an authorised person. Apart from Ex.P45, the plaintiff has
placed on record relevant invoices as Exs.P4 to P43. The ledger statement
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C.S.(Comm.Div.)No.83 of 2022
relating to the defendant shows a closing balance of Rs.2,21,40,895/- as on
31.03.2022. The memorandum of association (Ex.P3) evidences that the
business of the erstwhile proprietary concern was taken over as a going
concern by the plaintiff with all its assets and liabilities.
6. On the basis of the pleadings and evidence adduced by the plaintiff,
the amended suit claim stands proved as regards the principal claim of
Rs.1,48,89,156/-. While the invoices specify the rate of interest as 21% per
annum, there is no document evidencing the agreement with regard to the
rate of interest. Being a commercial transaction, by taking into account the
interest rate prevailing at the relevant point of time, the plaintiff is entitled to
interest at 12% per annum from the date of plaint.
7. As the successful party, the plaintiff is also entitled to costs. The
plaintiff paid a sum of Rs.7,22,827.26 as Court fee, which the plaintiff is
entitled to receive. In addition, the plaintiff is entitled to lawyer's fee and
expenses. The defendant is, therefore, liable to pay an aggregate sum of
Rs.10,00,000/- as costs.
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C.S.(Comm.Div.)No.83 of 2022
8. Therefore, the suit is decreed by directing the defendant to pay the
plaintiff a sum of Rs.1,48,89,156/- (Rupees One Crore Forty Eight Lakhs
Eighty Nine Thousand One Hundred and Fifty Six only) with interest
thereon at 12% per annum from the date of plaint until the date of
realization. The defendant is further directed to pay a sum of Rs.10,00,000/-
(Rupees Ten Lakhs only) as costs to the plaintiff, including a sum of
Rs.7,22,827.26 towards Court fee and the remaining towards lawyer's fee
and other expenses.
09.06.2025
Speaking Order
Index : No
Neutral Citation: No
vji
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C.S.(Comm.Div.)No.83 of 2022
Plaintiff's witness:
P.W.1 – Umesh Kumar Agarwal
Documents exhibited by the plaintiff:
Exhibits Documents
Ex.P1 Board Resolution dated 11.04.2022
Ex.P2 Printout of the Incorporation Certificate
Ex.P3 Printout of the AOA and MOA of the plaintiff's company
Ex.P4 Printout of the A.R.Invoice No.01387 dated 28.07.2021
Ex.P5 Printout of the A.R.Invoice No.01517 dated 05.08.2021
Ex.P6 Printout of the A.R.Invoice No.01566 dated 07.08.2021
Ex.P7 Printout of the A.R.Invoice No.01567 dated 07.08.2021
Ex.P8 Printout of the A.R.Invoice No.01708 dated 18.08.2021
Ex.P9 Printout of the A.R.Invoice No.01747 dated 20.08.2021
Ex.P10 Printout of the A.R.Invoice No.01754 dated 20.08.2021
Ex.P11 Printout of the A.R.Invoice No.01984 dated 05.09.2021
Ex.P12 Printout of the A.R.Invoice No.02076 dated 10.09.2021
Ex.P13 Printout of the A.R.Invoice No.02079 dated 10.09.2021
Ex.P14 Printout of the A.R.Invoice No.02110 dated 13.09.2021
Ex.P15 Printout of the A.R.Invoice No.02114 dated 14.09.2021
Ex.P16 Printout of the A.R.Invoice No.02210 dated 21.09.2021
Ex.P17 Printout of the A.R.Invoice No.02226 dated 21.09.2021
Ex.P18 Printout of the A.R.Invoice No.02275 dated 25.09.2021
Ex.P19 Printout of the A.R.Invoice No.02278 dated 25.09.2021
Ex.P20 Printout of the A.R.Invoice No.02299 dated 27.09.2021
Ex.P21 Printout of the A.R.Invoice No.02555 dated 13.10.2021
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C.S.(Comm.Div.)No.83 of 2022
Exhibits Documents
Ex.P22 Printout of the A.R.Invoice No.02565 dated 13.10.2021
Ex.P23 Printout of the A.R.Invoice No.2566 dated 13.10.2021
Ex.P24 Printout of the A.R.Invoice No.02591 dated 16.10.2021
Ex.P25 Printout of the A.R.Invoice No.02601 dated 17.10.2021
Ex.P26 Printout of the A.R.Invoice No.02606 dated 18.10.2021
(Certificate u/s.65B of I.E.Act Produced)
Ex.P27 Printout of the A.R.Invoice No.02726 dated 23.10.2021
(Certificate u/s.65B of I.E.Act Produced)
Ex.P28 Printout of the A.R.Invoice No.02733 dated 24.10.2021
(Certificate u/s.65B of I.E.Act Produced)
Ex.P29 Printout of the A.R.Invoice No.02739 dated 25.10.2021
(Certificate u/s.65B of I.E.Act Produced)
Ex.P30 Printout of the A.R.Invoice No.02756 dated 26.10.2021
(Certificate u/s.65B of I.E.Act Produced)
Ex.P31 Printout of the A.R.Invoice No.02762 dated 27.10.2021
(Certificate u/s.65B of I.E.Act Produced)
Ex.P32 Printout of the A.R.Invoice No.02877 dated 03.11.2021
(Certificate u/s.65B of I.E.Act Produced)
Ex.P33 Printout of the A.R.Invoice No.02897 dated 07.11.2021
(Certificate u/s.65B of I.E.Act Produced)
Ex.P34 Printout of the A.R.Invoice No.02905 dated 08.11.2021
(Certificate u/s.65B of I.E.Act Produced)
Ex.P35 Printout of the A.R.Invoice No.02912 dated 08.11.2021
(Certificate u/s.65B of I.E.Act Produced)
Ex.P36 Printout of the A.R.Invoice No.03041 dated 17.11.2021
(Certificate u/s.65B of I.E.Act Produced)
Ex.P37 Printout of the A.R.Invoice No.03060 dated 18.11.2021
(Certificate u/s.65B of I.E.Act Produced)
Ex.P38 Printout of the A.R.Invoice No.03062 dated 18.11.2021
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C.S.(Comm.Div.)No.83 of 2022
Exhibits Documents
(Certificate u/s.65B of I.E.Act Produced)
Ex.P39 Printout of the A.R.Invoice No.03182 dated 25.11.2021
(Certificate u/s.65B of I.E.Act Produced)
Ex.P40 Printout of the A.R.Invoice No.03186 dated 25.11.2021
(Certificate u/s.65B of I.E.Act Produced)
Ex.P41 Printout of the A.R.Invoice No.03590 dated 18.12.2021
(Certificate u/s.65B of I.E.Act Produced)
Ex.P42 Printout of the A.R.Invoice No.03592 dated 18.12.2021
(Certificate u/s.65B of I.E.Act Produced)
Ex.P43 Printout of the A.R.Invoice No.03595 dated 19.12.2021
(Certificate u/s.65B of I.E.Act Produced)
Ex.P44 Office copy of the Ledger Account dated 01.04.2021 to
31.03.2022
Ex.P45 Letter for Defendant acknowledgment of Debt dated
08.02.2022
Ex.P46 Legal Notice from the plaintiff to the Defendant dated
14.03.2022
Ex.P47 Acknowledgment Card of the Legal Notice dated 15.03.2022
09.06.2025
To
M/s.BNA Automotive India Private Limited,
No.D.P.28, SIDCO Industrial Estate,
Thirumazhisai, Thiruvallur - 600 124,
Chennai, Tamil Nadu.
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C.S.(Comm.Div.)No.83 of 2022
SENTHILKUMAR RAMAMOORTHY, J.
vji
C.S.(Comm.Div.)No.83 of 2022
09.06.2025
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