BHARAT UDYOG Vs. VINAY CORPORATION

JUDGEMENT

(1.) APPELLANT?s suit has been decreed against defendant No.4, impleaded as respondent No.4 in the instant appeal. Said respondent has not been served. Since the grievance in the appeal relates to the suit being dismissed in respect to the claim against defendants No.1 to 3, impleaded as respondents No.1 to 3 in the appeal, vide order dated November 01, 2011, in spite of respondent No.4 not being served, it was directed that the appeal would be heard for final disposal today.

(2.) ACCORDINGLY, arguments have been heard in the appeal.

(3.) AS per the plaint it was stated that Bharat Udyog used to award job work to defendant No.4 to manufacture yarn for Bharat Udyog and for which cotton was required. Bharat Udyog entered into a contract with defendant No.1 as per which upon advance payment made by Bharat Udyog to defendant No.1 cotton was to be supplied to defendant No.4. It was pleaded that pursuant to the contract only two orders were placed by Bharat Udyog upon defendant No.1 and pertaining to the first order, by means of a bankers? cheque in sum of Rs. 9 lakhs was paid to defendant No.1 on 05.02.2003 and thereafter pertaining to the second order vide three bankers? cheques dated 13.02.2003, 18.02.2003 and 20.02.2003 in sum of Rs. 7 lakhs, Rs. 3.25 lakhs and Rs. 10.25 lakhs i.e. totaling Rs. 20.50 lakhs payments were made in advance. Stating that defendant No.1 supplied cotton as per the contract worth Rs. 9 lakhs and thus executed the first work order, grievance laid was that defendant No.1 adjusted Rs. 20.50 lakhs against dues of defendant No.4 in respect of independent transactions between defendant No.1 and defendant No.4. Thus, decree in sum of Rs. 20.50 lakhs with interest was claimed against defendants No.1 to 3.