HINDUSTAN PHOTOFILMS MANUFACTURING CO LTD Vs. ANU ENTERPRISE

JUDGEMENT

(1.) APPELLANT Hindustan Photofilms Manufacturing Co. Ltd has preferred the present appeal against the judgment dated 2nd August, 2010 passed by the learned Single Judge whereby the suit filed by the appellant seeking decree for a sum of Rs.2,39,47,194.27 against the respondents, was dismissed.

(2.) IN the plaint, the appellant averred that it was carrying on a business of manufacture and sale of photo sensitized products including still photo products and graphics arts photo produces. On 30th July, 1984 and 1st August, 1984, the appellant constituted respondent M/s Anu Enterprises as its stockiest in respect of two types of products and entered into an agreement which was initially for five years and later renewed in 1989 for a further period of five years. IN terms of the agreement, dealings between the parties were on a principal-to-principal basis. M/s Anu Enterprises, as stockiest, was entitled to a credit period as well as a trade discount on the product value and additionally to an agreed commission. As stockiest, M/s Anu Enterprises has to furnish bank guarantees/revolving letter of credit/insurance guarantee to secure the overall credit facility. It is stated that consequently, the respondent initially issued some bank guarantees upon which the appellant started supplying the goods. During the course of dealings, respondent approached it for enhanced credit facilities against bills of exchange as they anticipated greater volume of business and that purchases would be made against hundies to be accepted for payment of supplying of goods.

(3.) THE appellant relied upon acknowledgment dated 24/05/1993 of debt of Rs.1,06,58,723.43 stating that they were liable to pay a sum of Rs.1,53,57,289.54. THE appellant further claimed interest @ 21 per cent per annum from the date of payment till 31st March, 1996.