2015 (10) TMI 1019 - HC - Companies Law

Recovery of debts Payment of salaries of personnel manning the kiosks Petitioner asserts that agreement between the parties did not authorise the company to pay the personnel engaged at the kiosks and payment so made cannot be adjusted against the bills raised Respondent contends that petitioner failed to satisfy the terms and conditions of the contract and emphasised that it would pay the outstanding bills provided the salaries of personnel were paid Held That - Respondent has not failed to pay the amount due without justifiable cause but the same needs to be paid within the prescribed time Decide conditionally in favour of the Respondent.

Summary

Issues:
Claim for services rendered by petitioner to company, non-payment dispute, adjustment of personnel salaries against bills, triable issue raised by company's defense, principal sum due, interest calculation, stay condition, advertisement in case of default, balance claim relegation to a suit.

Analysis:
The petitioner claimed an amount exceeding Rs. 9.90 lakh for services provided in maintaining automated kiosks for the company. The company contended that the petitioner failed to pay the salaries of personnel manning the kiosks, leading to direct payments by the company. The company adjusted around Rs. 6.67 lakh from the bills raised by the petitioner towards these payments, with a remaining sum of Rs. 12,999 acknowledged as due and payable.

The communication between the parties highlighted the issue of personnel salaries, with the company linking payment of outstanding bills to the payment of these salaries. The court noted that the company's defense raised a triable issue, indicating a bona fide dispute that required further adjudication. Therefore, the court did not find the company at fault for non-payment without justifiable cause. However, the court ordered the company to pay the acknowledged sum of Rs. 12,999 within a fortnight from the date of the judgment.

The court admitted the petition for the principal sum of Rs. 12,999 along with 8% interest from the date of the statutory notice. If the company paid the sum with interest within the specified timeframe, the petition would be permanently stayed. In case of default, the court ordered advertisement in specific newspapers, with the balance claim of the petitioner to be pursued through a separate suit. No costs were awarded, and urgent certified copies of the order were to be provided to the parties upon request and compliance with formalities.