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2007 (12) TMI 523 - HC - Indian Laws

Issues Involved:
The judgment involves the issue of whether a suit for recovery of unpaid goods can be treated as a summary suit u/s Order XXXVII of the Code of Civil Procedure based on invoices as a written contract.

Summary:
The plaintiff filed a Summary Suit for recovery of unpaid goods, claiming a specific sum with interest. The suit was based on invoices which were treated as a written contract. The defendants did not dispute the receipt of goods and invoices. The main contention was whether the suit could be treated as a summary suit u/s Order XXXVII. The Court held that even though the invoices were not signed by both parties, they constituted a written contract, relying on legal precedents. The Court also invoked Section 70 of the Contract Act, holding the defendants liable for compensation for goods received. The judgment decreed in favor of the plaintiff for the principal amount with interest, emphasizing the validity of the suit as a summary suit based on the invoices.

Detailed Analysis:
The plaintiff filed a Summary Suit for recovery of unpaid goods, specifically Impact Modifier Kane Ace B-31, based on invoices which were considered as a written contract. The defendants did not dispute the receipt of goods and invoices, leading to the question of whether the suit could be treated as a summary suit u/s Order XXXVII. The Court emphasized that a written contract does not necessarily require signatures from both parties, citing legal precedents to support the view that the invoices constituted a written contract.

The Court referred to Section 70 of the Contract Act, which states that a person enjoying the benefit of goods delivered is bound to compensate the deliverer. This legal provision was applied to hold the defendants liable for payment to the plaintiff. The judgment cited previous cases where similar views were upheld by the Court, reinforcing the application of Section 70 in such matters.

The defendants raised objections regarding specific averments in the plaint and discrepancies in rates mentioned in invoices and purchase orders. However, the Court dismissed these objections, stating that the suit was valid based on the invoices as a written contract. The Court also addressed the issue of interest stipulation in the contract, affirming that the invoices contained terms for interest on overdue payments.

In conclusion, the Court decreed in favor of the plaintiff for the principal amount with interest, highlighting the validity of the suit as a summary suit based on the invoices. The defendants were held liable to pay the specified amount with future interest and costs, concluding the matter in favor of the plaintiff.

 

 

 

 

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