BRAMEC SURI PRIVATE LIMITED Vs. SURI SMITH CHEM

JUDGEMENT

(1.) This suit under order 37 of the C.P.C. has been brought by the Bramec Suri Pvt. Ltd. for the recovery of Rs. 70,000.00 together with interest amounting to Rs. 8,18426. at 18% per annum It is based upon three Hundies dated 30.3.1978, executed by the defendants in plaintiff's favour. Two of them were of Rs, 30,000.00 each and third of Rs. 10,000.00 First was payable by 150 days from the date of execution, the second by 180 days and the third by 210 days.

(2.) The averments are that the plaintiff is engaged in the business of manufacture and sale of brake linings, clutch facings and other types of friction materials. For the purpose of effecting sales within the territory of eastern India, defendant No. 1 company was appointed as plaintiff's agent with liabilities to secure orders, ensure payments in respect of supplies made and to collect C&D Forms under the Central Sales Tax Act. On compliance, the defendant company was entitled to payment of commission at the agreed rate.

(3.) Apart from the agency business, defendant No. 1 also effected direct purchases from the plaintiff of goods for selling them in open market. On such purchases discount was allowed by the plaintiff. Under this head, goods worth several lacs were said to have been purchased by the defendant company from the plaintiff.