RELIANCE INDUSTRIES LIMITED Vs. MARUTI SYNTEX INDIA LIMITED

JUDGEMENT

(1.) The plaintiff has filed this suit for recovery of Rs. 1,09,01,632.00 with pendente lite and future interest. It is a case of the plaintiff that it is engaged in the business of manufacturing and marketing Polyester Partially Oriented Yarn (hereinafter referred to as the 'POY'). The defendant company which is manufacturing concern, uses POY as raw material for its production activities. On the basis of orders placed by the defendant to the plaintiff for the purchase of various quantities of POY from time to time, the material was delivered to the defendant on credit basis and in lieu thereto sales hundis were drawn on the defendant and the defendant was liable to make payment to the plaintiff within 60 days from the date of despatch of the consignment.

(2.) . It is further stated in the plaint that it was the practice of the defendant company to place purchase orders with the plaintiff company for various quantities of POY sought to be purchased. The plaintiff company in turn, raised invoices in accordance with the said purchase orders and supplied to the defendant company, POY in terms of the said invoices. The plaintiff has been duly supplying the goods and the defendant has been receiving the same without any objection or complaint as is evident from the acknowledged lorry receipts wherein the defendant has acknowledged the receipt of the goods/POY in terms of the invoices raised.

(3.) . Further it is stated that the defendant in the year 1994 started making defaults in the payment of the purchase price of the said POY to the plaintiff. As a result of these defaults the outstanding due and payable by the defendant accumulated. The defendant has duly acknowledged their liability towards the plaintiff in letter of the defendant dated 7.9.1994 addressed to the plaintiff herein and vide the minutes of the meeting between the parties on 6.9.1994 (The defendant company being represented in the said meeting by its Managing Director).