NARANG DISTILLERY LTD Vs. RAMESH JAISWAL

JUDGEMENT

(1.) Impugned judgment/decree of 25th August, 2009 mandates the Appellant to pay an amount of '18,64,000/- alongwith interest @ 9% per annum to the Respondent, who was the Selling Agent of the Appellant Company by virtue of Agreement of 22nd May, 2007. In terms of the aforesaid Agreement (Ex.P-1), Respondent had made a security deposit of '5 lac, which was to earn interest @ 9% per annum and Respondent was to get commission @ '80/- per case/box of country liquor and against prior payment, consignments of the liquor was supplied by the Appellant to the Respondent vide Challan/Invoices (Ex.PW-1/2 to Ex.PW-1/13). In addition, the Respondent is said to have deposited a sum of '4,50,000/- in cash and another amount of 2,16,000/- by way of a Pay Order (Ex.PW-1/14) with the Appellant on 7th June, 2007 and again on 6th July, 2007, Respondent claims to have paid 1 lac by cheque to the Appellant.

(2.) According to the Respondent, aforesaid payments were made in terms of the afore-referred Agreement but the Appellant had failed to supply the liquor against the payments made and thus, the Agreement between the parties stood frustrated and cancelled. As per the Respondent, Appellant despite notice of 4th September, 2007 (Ex.PW-1/18) had failed to supply the Statement of Account reflecting the aforesaid transaction between the parties.

(3.) Respondent on the strength of Statement of Account (Ex.PW-1/19) had instituted a suit for recovery of 18,64,000/- against the appellant, who in the written statement had admitted the relationship between the parties which were governed by the Agreement of 22nd May, 2007 (Ex.P-1). However, the stand taken by the Appellant before the trial Court was that on account of breach of the terms of the aforesaid Agreement, the Respondent was liable to pay damages to the tune of 50 lacs and to institute such suit, Appellant/Defendant had reserved its right.