2011 (12) TMI 711 - HC - Indian Laws

Summary

Issues Involved:
1. Territorial jurisdiction of the court.
2. Authorization to institute, sign, and verify the plaint.
3. Entitlement to agency commission.
4. Entitlement to interest on the commission.
5. Agreement on discount and commission terms.
6. Conditions for discount applicability.
7. Breach of obligations by the plaintiff.
8. Readiness of the site for installation.

Summary:

Issue 1: Territorial Jurisdiction
The court did not specifically address this issue in the judgment.

Issue 2: Authorization to Institute, Sign, and Verify the Plaint
The appellants contended that the suit was barred u/s 69(2) of the Partnership Act as the respondent was not a registered partnership firm at the time of filing the suit, and Mr. V.P. Verma was not authorized to institute the suit. The court found that the respondent-firm was indeed registered, and Mr. V.P. Verma, as the karta of HUF, was authorized to file the suit. The court relied on Ex.P-6, the certificate of registration, and testimonies confirming Mr. V.P. Verma's status as a partner. The court dismissed the appellants' arguments, citing precedents that a karta of HUF can enter into a partnership.

Issue 3: Entitlement to Agency Commission
The respondent claimed a 15% agency commission, while the appellants argued for a 10% commission due to non-commissioning of machines. The court upheld the respondent's claim for a 15% commission, noting that the appellants unilaterally reduced the commission without mutual consent.

Issue 4: Entitlement to Interest on the Commission
The court did not specifically address this issue in the judgment.

Issue 5: Agreement on Discount and Commission Terms
The respondent offered a 5% discount on a 15% commission if the entire order was placed and 100% commission was paid on receipt of shipping documents. The appellants unilaterally reduced the commission to 10% for two machines, which the court found unjustified.

Issue 6: Conditions for Discount Applicability
The court found that the 5% discount was conditional on the purchase of four machines and 100% commission payment on shipping document presentation, which the appellants did not fulfill.

Issue 7: Breach of Obligations by the Plaintiff
The appellants argued that the respondent failed to commission the machines, causing losses. The court found no merit in this argument, as the appellants did not provide evidence of readiness for installation.

Issue 8: Readiness of the Site for Installation
The court found that the appellants did not have the site ready for installation, as evidenced by the respondent's repeated requests and lack of response from the appellants.

Conclusion:
The court dismissed the appeal, upholding the respondent's entitlement to a 15% agency commission and rejecting the appellants' arguments regarding the suit's maintainability and authorization. No order as to costs was made.