RANBIR SINGH BHARDWAJ Vs. R.K. KAPADIA

JUDGEMENT

(1.) THIS is a suit for recovery of Rs. 20,06,591/ -. It is alleged in the plaint that the plaintiff is a manufacturer and seller of lubricating oil, carrying business under the name and style of M/s. Parvati Oils & Chemicals. The defendant placed a purchase order dated 30th September, 2008 on him for purchase by order of goods worth Rs. 16,58,340/ -. The plaintiff accordingly supplied the goods vide two invoices, both dated 20th October, 2008. The defendant, in due discharge of his legal liabilities, paid the price of the aforesaid goods by issuing a cheque for a sum of Rs. 16,58,340/ - dated 14th October, 2008 to the plaintiff. The cheque when presented to the bank was returned for want of insufficient funds. The plaintiff issued a demand notice dated 15th December, 2008 calling upon the defendant to pay the amount of the dishonoured cheque. Since the defendant has failed to pay the price of the goods, the plaintiff has claimed the principal sum of Rs. 16,58,340/ - along with interest on that amount at the rate of 18% per annum amounting to Rs. 3,48,251/ -. The defendant was proceeded ex parte on 8th October, 2010. In his affidavit by way of ex parte evidence, the plaintiff has stated, on oath, the case set out in the plaint and has proved various documents. He has further stated that the purchase order Ex. PW -1/1 was placed by the defendant on him and he sent proforma invoice Ex. PW -1/2. The goods were thereafter supplied vide invoices Ex. PW -1/3 and Ex. PW -1/4. The material was sent to the defendant through M/s. Rajesh Road Corporation (India) vide consignment note No. 478 dated 20th October, 2008. He has further stated that the cheque Ex. PW -1/6 was issued by the defendant but was dishonoured for want of insufficient funds.

(2.) EX . PW -1/1 is the copy of the purchase order dated 30.9.2008 placed by the defendant upon the plaintiff whereas Ex. PW -1/2 is the performa invoice which the plaintiff sent to the defendant on receipt of the purchase order. Ex. PW -1/3 and Ex. PW -1/4 are the two invoices whereby the goods were sold to the defendant. The consignment note Ex. PW -1/5 shows that the goods were sent by M/s. Parvati Oils & Chemicals to M/s. Sharda Auto Stores. Ex. PW -1/6 is the cheque for a sum of Rs. 16,58,340/ - issued by the defendant as proprietor of M/s. Sharda Auto Stores in favour of the plaintiff on 14th October, 2010. The bank memo Ex. PW -1/7 shows that the cheque was dishonoured for want of sufficient funds.

(3.) A perusal of the invoices Ex. PW 1/3 and Ex. PW 1/4 shows that interest @ 18% per annum was payable in case payment of the goods was not made within 15 days. This term on the invoice constitutes an agreement between the parties for payment of interest @ 18% per annum. Assuming that there is no agreement between the parties for payment of interest, since this is a suit for price of goods by seller and delivery, interest can be awarded to the plaintiff under Section 61 of the Sale of Goods Act, which, to the extent it is relevant, provides that in the absence of a contract to the contrary, the Court may award interest at such rates as it thinks fit on the amount of the price of the goods, to the seller, in a suit by him for the amount constituting price of the goods and the interest under this can be awarded from the date of tender of the goods or from the date on which the price of the goods was payable.