SHANTANU ACHARYA Vs. WHIRLPOOL OF INDIA LTD.

JUDGEMENT

(1.) I have heard counsel for both parties at length.

(2.) The respondent, Whirlpool of India Ltd., had instituted a summary suit under Order XXXVII of the Code of Civil Procedure against the appellant seeking recovery of Rs.18,78,000/-, along with pendente lite and future interest @ 24% per annum against the defendant/appellant. It was the case of the plaintiff that the defendant is a sole proprietor of a firm dealing in domestic and home appliances and, at his request, the plaintiff appointed him as a distributor for the sale of its products. Thereafter, and in terms of the agreement between the parties, the defendant purchased goods from the plaintiff from time to time. Ultimately, with a view to settling the outstandings, a joint meeting took place at the office of the plaintiff company at New Delhi on 22 nd March, 2004 where, out of the total outstandings of Rs.32,78,000/- shown in the books of accounts of the plaintiff company, the defendant admitted his liability to the extent of Rs.18,78,000/-, after adjustment of Rs.14,00,000/- towards certain defective stocks. A copy of the minutes of the aforesaid meeting held on 22 nd March, 2004 was also annexed to the suit. After service of summons for judgment, the defendant applied for leave to defend under Order XXXVII Rule 3 (5) of the CPC on the ground, inter alia, that no cause of action in favour of the plaintiff and against the defendant had arisen within the territorial jurisdiction of the court below.

(3.) In response, the plaintiff took the stand that a part of cause of action had taken place in Delhi since the defendant had approached the plaintiff at Delhi seeking the distributorship, and that the joint meeting in question had also taken place on 22 nd March, 2004 at New Delhi when the defendant agreed to pay a sum of Rs.18,78,000/-. Furthermore, minutes of that meeting dated 22 nd March, 2004 were also executed between the parties at New Delhi, and the said outstandings of Rs.18,78,000/- were also payable by the defendant at New Delhi.