HMT WATCHES LIMITED Vs. SWISS INDIA WATCH COMPANY

JUDGEMENT

(1.) This appeal under Section 13(1-A) of the Commercial Court Act, 2015 has been filed by the plaintiff against the judgment and decree dated 24.09.2019 passed by the Commercial Court, by which the suit for recovery of money by the plaintiff has been partly decreed and the appellant/ plaintiff has been held entitled to recover a sum of Rs.4.49 Lakhs from defendant No.1 along with interest at the rate of 18% per annum from 25.07.2005 till realization of the amount.

(2.) Facts leading to filing of this appeal in nutshell are that the plaintiff is a government company registered under the provisions of the Companies Act, 1956 and is inter alia engaged in the manufacture and sale of watches and watch components. Sometime in the year 1996, defendant No.2 approached the plaintiff to be appointed as re-distribution stockiest for the watches manufactured by the plaintiff and thereafter, under an agreement dated 10.09.1998, the defendants were appointed as re-distribution stockiest for Belgaum, Bijapur, Chitradurga, Dharwad, Gadag, Haveri and Uttara Kannada in the State of Karnataka. Subsequently, an agreement dated 14.07.2000 was executed between the parties for renewal as re-distribution stockiest. In the year 11.07.2020, the plaintiff extended the tenure of defendant No.1 as Re Distribution Stockiest up to 13.07.2004, on the terms and conditions enumerated in the initial agreement dated 14.07.2002. It was pleaded that the accounts of the defendant were running accounts and the payments made by the defendants were being adjusted towards the outstanding due.

(3.) It was averred that the defendants had issued Hundi worth Rs.1,30,257/- against which plaintiffs had made supply of watches. All the Hundies were returned dishonored on presentation on 14.08.2003. The defendants failed to make payment of the amount due. It was also averred that on 11.02.2003 in the meeting held between the plaintiffs and the defendants, the defendants acknowledged their liability to the extent of Rs.81,38,000/- as on 01.02.2003. Thereafter, the defendants issued cheques for a sum of Rs.50,40,000/- towards part payment of outstanding amount of Rs.1,84,70,298.31/- against the unpaid invoices and returned hundies. It was also pleaded that as on 31.03.2006, the defendants had to pay a sum of Rs.1,81,99,702.31/- and after taking back certain isolated wages and securitized wages, the defendants owed a sum of Rs.94,15,963.31/-. On the aforesaid amount interest at the rate of 18% per annum was claimed. Accordingly, the plaintiff sought a decree for a sum of Rs.2,31,35,419/- along with interest.