RUBFILA INTERNATIONAL LTD Vs. ALOK GUPTA

JUDGEMENT

(1.) THE respondent Alok Gupta filed a suit against the appellant pleading that he was carrying on business as the sole proprietor of M/s.Alok Enterprises and with effect from November 01, 1996 was appointed as an agent by the appellant for sale of its products in Northern India and he had to receive commission @1% on the sales made by the appellant to third parties on orders obtained by him and further that a part of his property would be taken on rent @ Rs.5,000/- per month from November 01, 1996 by the appellant and additionally he was to be reimbursed office expenses for the office use made by the appellant of his premises and further that his wife Renu Gupta was employed by the appellant as a Sales Executive at a salary of Rs.10,000/- per month and that one Jacob Thomas, an employee of the appellant and his i.e. Aloks wife Renu Gupta started managing the office from the premises of the respondent. At the asking of the appellant he paid salary to his wife and debited the said sum to the account of the appellant and further that he bore the office expenses and debited the same to the account of the appellant. He pleaded that this initial arrangement lasted, till when in the month of October, 1997 a meeting was held between him and one Mr.Raasaih and Mr.R.J.Menon, Managing Director and Marketing Manager respectively of the appellantat the factory of the appellant wherein it was agreed that with effect from April 01, 1997 the appellant shall pay to him commission at revised rates on slab basis. He further pleaded that in the month of July, 1998, another meeting took place between him and the Managing Director of the appellant wherein it was agreed that with effect from April 01, 1998 the appellant shall pay to him commission at the revised rate of 2% for the entire sales in North India.In the month of December, 1998 another meeting was heldwherein it was confirmed that he shall be paid commission at the revised rate of 2% for the year 1999-2000. He pleaded that he was entitled to a rendition of accounts from the appellant and that if accounts were rendered he would be entitled to receive at least Rs.13,51,521/- from the appellant.

(2.) IN the written statement filed by the appellant, it was pleaded that it had never appointed Alok as an agent for sale of its products and that whatever sales were made to him were direct sales on principal to principal basis. Admitting that his wife Ms.Renu Gupta was appointed as the Marketing Executive of the appellant it was denied that any salary on behalf of the respondent was paid by the appellant to her and it was pleaded that she alone had a right, if any to claim salary. It was pleaded that Alok and his wife visited the office of the appellant in October 1996 and desired to be appointed as the agent in the Northern region. The appellant did not agree because M/s.Filatex India was acting as its agent in Northern India and thus it was agreed that Aloks wife would work as a Marketing Executive of the appellant and his sole proprietary firm could purchase the product manufactured by the appellant on principal to principal basis. That it was agreed that if Alok procured orders from third parties, he would be paid 1% commission, but would not be entitled to any commission for direct sales made to him. It was denied that the premises of Alok were taken on rent. It was denied that he was entitled to be reimbursed any office expenses. It was pleaded that Alok was liable to pay Rs.29,52,317/- to the appellant. Being relevant, certain averments in the written statement need to be noted; and we do. They read as under:-

(3.) ON the basis of pleadings of the parties, vide order dated January 18, 2004 following issues were framed by the learned Single Judge:-