BAJAJ ELECTRICALS LIMITED Vs. RANA SUGARS LIMITED

JUDGEMENT

(1.) THIS is a suit filed under Order XXXVII Code of Civil Procedure for recovery of Rs.60,24,345.00. The case of the plaintiff is that the defendant placed an order with it for supply of certain equipment and appliances and paid 10% advance to it at New Delhi. The plaintiff claimed to have supplied material worth Rs.45,29,582.30 to the defendant between 8.2.2007 to 30.4.2007 vide 17 invoices mentioned in para 5 of the plaint. The defendant issued C-Form for the material purchased by it, but has not paid the amount of the invoices. The plaintiff has accordingly claimed the principal sum of Rs.45,29,582.30 along with interest on that amount at the rate of 18% per annum, coming to Rs.14,94,762.70, thereby making a total sum of Rs.60,24,345.00.

(2.) IN this application for leave to contest, the defendant has taken a preliminary objection that this Court lacks territorial jurisdiction to try the present suit since Clause 13 of the Purchase Order clearly stipulated that any dispute between the parties would be subject to jurisdiction of Chandigarh Court alone. On merits, it has been alleged that the Purchase Order clearly stipulated that the GA and Foundation Drawings would be sent within three days from the issuance of the Purchase Order, but the plaintiff defaulted in performance of the aforesaid condition. It is further alleged that the equipment delivered by the plaintiff were not up to the quality and the goods were delivered much after the period of two weeks prescribed in the Purchase Order.

(3.) THE plaintiff itself has placed on record five Purchase Orders issued to it by the defendant, three of 8.1.2007, one vide 21.1.2007 and one of 23.3.2007. Vide Clause 13 of the Purchase Orders dated 8.1.2007, it was stipulated by the defendant that they would try to settle all possible disputes in a friendly way, but the disputes which cannot be settled amicably, shall be subject to Chandigarh Jurisdiction only. The plaintiff having supplied goods to the defendant pursuant to the aforesaid purchase order, the term with respect to the jurisdiction of the Court by which the disputes between the parties could be decided is deemed to have been accepted by it. Therefore, any unresolved disputes between the parties were made subject to jurisdiction of the Chandigarh Court alone.