2013 (10) TMI 408 - HC - Companies Law

Recovery - Liquidation of Company - On the basis of the dishonored bills of exchange, the plaintiff submits that a total sum of Rs. 18,40,886 was due and payable by the defendants as on January 1991 - interest claimed by the plaintiff was 18% - Held that - There are certain letters placed on record sent by the defendants to the plaintiff on various dates enclosing Bank Drafts for different amounts. But these letters are dated sometime in November 1990 i.e. before the bills of exchange were drawn by the plaintiff. Thus I find these letters are irrelevant to the transactions which are in dispute in the suit - Since the defendants have not lead evidence to refute the contentions of the plaintiff right from the stage of filing a written statement, and since all the relevant documents are found on record and have been exhibited, decree ought to be passed in favor of the plaintiff as prayed for - Appeal allowed.

Summary

Issues: Suit for recovery of dues with interest, Ex-parte proceedings, Calculation of outstanding amount, Decree award

In this case, the plaintiff, a company engaged in manufacturing and selling television sets and audio systems, filed a suit for the recovery of Rs. 20,45,000 with interest against the defendants, who were appointed as stockists by the plaintiff. The defendants failed to honor bills of exchange amounting to Rs. 18,40,886, leading to the total claimed amount. The defendants did not file a written statement and were proceeded ex parte. The Official Liquidator calculated the outstanding amount to be Rs. 71,79,457.35 with interest at 18% per annum. The court examined the evidence, including bills of exchange and letters from the bank, and found in favor of the plaintiff due to the lack of refutation by the defendants. Consequently, a decree was awarded in favor of the plaintiff for the calculated amount with interest, and the suit was disposed of accordingly.