IDL AGRO CHEMICAL LIMITED Vs. SRINIVASA ENTERPRISES

JUDGEMENT

(1.) Under noted five issues, framed vide order dated 6.3.2000, require adjudication:-

(2.) Suit seeks recovery of Rs.24,23,074.58, having three components as under:-

(3.) Case of the plaintiff is that it appointed defendant as its distributor for sale of pesticides. By November 1989 a sum of Rs.14,11,537.29 remained outstanding. A notice dated 6.11.1989 was served upon the defendant demanding said sum to which defendant responded vide letter dated 20.11.1989 admitting that a sum of Rs.13.20 lacs was due. That defendant No.2 who is partner of defendant No.1 thereafter came to office of the plaintiff at Delhi on 11.1.1990 and acknowledged as well as confirmed that amount due and payable was Rs.14,11,537.29. Since amount was not cleared, plaintiff which had a bank guarantee in sum of Rs.2 lacs encashed the same and thus Rs.12,11,537.29, as principal, remained due and payable. Reckoned with effect from the date said sum was payable, interest @18% per annum till date of suit has been claimed which comes to Rs.12,79,400.61, but plaintiff has restricted the same to Rs.12,11,537.29. It is pleaded that the defendant acknowledged liability to pay vide letters dated 30.6.1988, 20.11.1989, 11.1.1990 and 4.3.1991.