INDIAN ALUMINIUM COMPANY LIMITED Vs. PREM METAL SYNDICATE

JUDGEMENT

(1.) IA. No. 8399/2000 This application is filed seeking condonation of delay in filing the application for leave to defend (IA No.8398/2000) by defendants 1 and 2. In fact there is no delay in filing the said application, and therefore, this application is not pressed.

(2.) IA No.8398/2000 The Plaintiff has filed the suit for recovery of Rs. 31,36,820.18 paisa (Rs.18,70,667,48 paisa as principal amount and Rs.12.66,152.70 paisa as interest thereon). The averments made in the plaint are that Memorandum of Agreement dated 31st July. 1996 was executed between the plaintiff and the defendant No.1 and as per that Agreement, the plaintiff has been supplying .Its product to the defendants from time to time raising invoices against the supplies so made. The plaintiff in due course maintained a statement of account and in the said statement of account, the amount received from the defendants against the invoices were duly credited and the amounts remained unpaid were debited to the account of the defendants. The defendant No.l is a sole proprietorship firm of which Mr.Santosh Kumar is the sole proprietor. After his death, defendant.No.2, nephew of Mr.Santosh Kumar, became the sole proprietor. The defendant No.3 is the uncle of defendant No.2 who is impleaded in the suit on the ground that he has been dealing with the plaintiff on behalf of the defendant No.l firm.

(3.) It is further averred in the plaint that defendants 1 and 2 failed to make the payments on the invoices raised and interest on the delayed payment. Thereafter meetings were arranged and the defendants vide letter dated 28th May, 1997 acknowledged the liability to pay the outstanding amount and showed willingness to clear the entire outstanding dues. However, still payment was not. Again in meeting dated 25th October, 1997 defendants admitted that a sum of Rs.22,36,903.00 was payable and agreed to pay the outstanding dues by instalments of Rs.2 lacs. per month commencing from November, 1997. Still, the defendants failed to make the payment. Notice dated 6th January, 1998 was sent to the defendants which was replied by letter dated 3rd February, 1998 again acknowledging the liability and requesting the plaintiff not to take legal action. However, the defendants 1 and 2 paid a sum of Rs.50,000.00 only. By another letter dated 12th August, 1998 the defendants 1 and 2 again admitted and acknowledged the total dues but did not make the payment. Therefore, the plaintiff vide notice dated 22nd April, 1999 called upon the defendants to clear the dues of Rs.20,60,914.00 outstanding as on 31st March, 1999, Some payments were made but as the defendants 1 and 2 failed to make the payment of the balance amount which was Rs.18,70,667.48 paisa as on 30st November, 1999, present suit was filed under Order XXXVII of the Code of Civil Procedure(for short 'Civil Procedure Code')