LUAN AIRWAYS PVT LTD Vs. PCI LIMITED

JUDGEMENT

(1.) This suit has been filed by the plaintiff for recovery of Rs.1,13,18,621/- along with pendente lite interest at the rate of 18% per annum.

(2.) The facts as noted from the plaint are, plaintiff is a Company duly registered and incorporated under the Indian Companies Act, 1956, having its registered office Gauhati, Assam. Defendant No.l is also a Company registered and incorporated under the Indian Companies Act, 1956, ('defendant Company', for short) having its registered office in New Delhi. The defendant No.2, Vivek Saxena, is the Group President (Marketing) of the defendant Company and has been made a party as he had given a written representation dated March 10, 2011 ('Proposal', for short) to the plaintiff Company on behalf of the defendant Company. However, I may note here that defendant No.2, Vivek Saxena was deleted from array of parties by this Court vide order dated May 7, 2013 while allowing I.A. 1505/2012.

(3.) It is the case of the plaintiff Company that Shri. Vivek Saxena had represented that the defendant Company has conglomerated with Diamond Aircraft Industries of Austria (M/s Diamond Aircraft', for short), which is dedicated in supplying the General Aviation Market with the safe, economical and amazing aircrafts. It is also the case of the plaintiff Company that as per clause 7 of Annexure-II of the Proposal, Shri. Vivek Saxena had categorically stated that the Aircraft offered to the plaintiff Company is accepted by Director General Civil Aviation ('DGCA', for short) for operation in India. It is the case of the plaintiff Company that it, considering the Proposal given by Shri. Vivek Saxena and with the intention to venture into Aviation business, entered into a Purchase Agreement dated March 10, 2011 ('Contract', for short) as well as placed a Purchase Order dated March 10, 2011 ('Purchase Order', for short) with two amendments therein, with the defendant Company for purchase of one DA42 NG Aircraft ('Aircraft', for short) for a total price of Rs.3,41,43,656/-. As per the terms and conditions of the Purchase Order, the plaintiff Company was required to pay 30% of the total price amount in advance within 10 days of signing of the Contract and balance 70% was to be paid at the time of delivery of the Aircraft against final invoice. That as per the condition No. 2 of Annexure-II to the Proposal, all the payments were to be made in favour of the defendant Company.