2017 (11) TMI 1487 - HC - Indian Laws

Recovery along with pendente lite and future interest @ 24% per annum - Held that - This Court is of the view that the outstanding amount of ₹ 89,84,570/- payable by the defendant is clearly reflected in the ledger account maintained by the plaintiff. Further, the act of the defendant in issuing cheque dated 1st February, 2014 for a sum of ₹ 25,00,000/- in part payment of the aforesaid outstanding amount and the same being dishonoured vide return memo dated 26th April, 2014 with remarks Funds Insufficient are clearly indicative of the defendant s malafide intent of attempting to evade the payments due and payable to the plaintiff-company. Also, despite issuance of a legal notice dated 9th May, 2014 by the plaintiff calling upon the defendant to clear the outstanding dues, the defendant has neither replied to the same nor cleared the outstanding dues till date. As the averments in the plaint have not been rebutted by the defendant in spite of ample opportunities given by this Court, they are deemed to have been admitted. Consequently, the present suit is decreed for ₹ 1,11,04,928/- in favour of the plaintiff company and against the defendant along with pendent lite and future interest @ 8% per annum on the outstanding amount along with costs incurred by the plaintiff.

Summary

Issues: Recovery of outstanding amount, dishonor of cheques, legal notice, ex-parte proceedings, evidence submitted, decree.

Recovery of Outstanding Amount: The plaintiff filed a suit for the recovery of an outstanding amount of &8377; 1,11,04,928/- along with interest. The plaintiff alleged that they supplied goods to the defendant as per purchase orders, resulting in an outstanding amount of &8377; 89,84,570/- as of January 8, 2014. Despite repeated requests, the defendant failed to clear the dues, leading to the plaintiff initiating legal action.

Dishonor of Cheques: The defendant issued multiple cheques towards part payment of the outstanding amount. However, due to false promises and delay tactics by the defendant, the first two cheques expired without being presented. The third cheque of &8377; 50,00,000/- was presented but returned unpaid. Another cheque issued later was also returned unpaid due to insufficient funds, indicating a mala fide intent to evade payment.

Legal Notice and Ex-Parte Proceedings: The plaintiff served a legal notice on the defendant demanding payment, which went unanswered. As the defendant did not appear despite being served, the court proceeded ex-parte against the defendant. The plaintiff submitted evidence, including board resolutions, purchase orders, tax invoices, ledger accounts, and copies of cheques, to support their claim.

Decree: After examining the evidence and finding the defendant's actions indicative of mala fide intent to avoid payment, the court decreed the suit in favor of the plaintiff for the outstanding amount of &8377; 1,11,04,928/- along with interest at 8% per annum, costs incurred, and lawyer's fees. The court directed the registry to prepare a decree sheet accordingly, holding the defendant liable for the outstanding dues.